Cluster Decline and Resilience: The Case of the Wireless Communication Cluster in North Jutland, Denmark

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Abstract

Most studies on regional clusters focus on identifying factors and processes that make clusters grow. However, sometimes technologies and market conditions suddenly shift, and clusters decline. This paper analyses the process of decline of the wireless communication cluster in Denmark, 1963-2011. Our longitudinal study reveals that technological lock-in and exit of key firms have contributed to impairment of the cluster’s resilience in adapting to disruptions. Entrepreneurship has a positive effect on cluster resilience, while multinational companies have contradicting effects by bringing in new resources to the cluster but being quick to withdraw in times of crisis.
Original languageEnglish
PublisherSocial Science Electronic Publishing, Inc
Number of pages24
DOIs
Publication statusPublished - 2013
SeriesSocial Science Research Network Working Paper Series

Bibliographical note

This is a working paper version. A revised version is published in Regional Studies. Please cite as:Christian R. Østergaard and Eunkyung Park (2015), "What Makes Clusters Decline? A Study on Disruption and Evolution of a High-Tech Cluster in Denmark.", Regional Studies, Vol. 49, No. 5, pp. 834-849.

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