Juan de Lucio (p), Raúl Minguez, Asier Minondo, Francisco Requena

Eleanor Doyle

This work helps to understand how firms learn from their peers for the selection of new markets. The results point the existence of information spillovers steaming from close companies: in the same region, sector or markets. There is also a competition effect that hinder spillovers; this comes from companies that without providing new information sell to the same destiny. Knowledge externalities seem to be stronger in successful companies what increase the relevance of these effects for export growth.

Marta Bisztray (p), Gábor Békés

Juan de Lucio

see document

Alexander Lembcke (p), Lenka Wildnerova

Marta Bisztray

It has been well-documented that global networks provide positive externalities to participating firms. Less is known about how the performance of non-participating firms, especially those that are small or medium-sized, changes with exposure to an increase in the presence of globally integrated firms in their vicinity. With global trade being dominated by large firms, the benefits for SMEs are often indirect, e.g. through input relationships with larger companies or through knowledge spillovers that facilitate the adoption of best practices in firms with access to globally integrated peers. This paper aims to further the understanding of the link between the performance in SMEs and their exposure to global networks. The analysis combines industry and regional exposure to global links (foreign ownership, estimated GVC participation, access to trade facilitating infrastructure) and firm-level microdata for multiple OECD countries, allowing for local spillovers (or crowding out) within the same industry and across industries. Levels and growth along three core dimensions are considered as indicators for SME performance is: firm turnover, employment and multi-factor productivity estimated using Wooldridge’s (2009) extension of the Levinsohn and Petrin (2003) method. The empirical analysis is complemented by a concluding chapter with concrete policy recommendations on how to leverage global links at the local level to support the performance of firms of all sizes.

Eleanor Doyle (p), Eoin Byrne, John Hobbs, Michael Walsh

Alexander Lembcke

Purpose – Cluster analysis has traditionally focused on identifying and mapping clusters. A deeper understanding of how clusters operate can be gleaned through visualising cluster linkages and cluster ecosystems. This paper outlines a novel cluster visualisation approach exploiting the concept of network capital. From the cluster visualisations, targeted policy recommendations are developed to address weaknesses and build on strengths in the local ecosystem.

Design/methodology/approach – Linkages and networks are a key component of clusters and network theory has potential to aid cluster analysis. The paper presents an application of V-LINC, a cluster visualisation approach, to an Information and Communications Technology cluster in Cork, Ireland. A sample of firms was interviewed to record, visualise and analyse their linkages, enabling the nature of the linkage types across the cluster ecosystem to be demonstrated. Investments in network capital and impact of networks are included in the measured business impacts of linkages.

Findings – The authors illustrate how the V-LINC approach permits: 1) showcasing both the internal and external linkages of a cluster; 2) identification of key connectors within a cluster; 3) development of targeted policy recommendations to address cluster weaknesses and build on strengths; and 4) analysis of the impact of cluster policy and initiatives.

Practical implications – The paper’s findings are of practical relevance to private and public policy makers with regard to the management and financing of industry clusters to secure and maximise sustainable development. The application of V-LINC provides a consistent replicable method to visualise and analyse cluster ecosystems, whilst developing and reviewing cluster policy and initiatives. Extension of the network capital concept to both outcome and input elements points to the practical application potential of the concept.

Originality/value – Through a bottom-up assessment of clustered firms’ linkages by applying V-LINC, a visual, numerical, structural and geographical understanding of a cluster’s ecosystem is provided. The use of V-LINC after a cluster identification analysis provides a comprehensive, systematic and robust analysis of a cluster’s network.