What Makes Clusters Decline?: A Study on Disruption and Evolution of a High-Tech Cluster in Denmark

Christian Richter Østergaard; Eun Kyung Park

doi:10.1080/00343404.2015.1015975

What Makes Clusters Decline? A Study on Disruption and Evolution of a High-Tech Cluster in Denmark

Christian Richter Østergaard^*, Eun Kyung Park

^*Corresponding author for this work

Research output: Contribution to journal › Journal article › Research › peer-review

68 Citations (Scopus)

1245 Downloads (Pure)

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. The longitudinal study on the high-tech cluster reveals that technological lock-in and exit of key firms have contributed to decline. Entrepreneurship has a positive effect on the cluster’s adaptive capabilities, while multinational companies have contradicting effects by bringing in new resources to the cluster but being quick to withdraw in times of crisis.

Original language	English
Journal	Regional Studies
Volume	49
Issue number	5
Pages (from-to)	834-849
Number of pages	16
ISSN	0034-3404
DOIs	https://doi.org/10.1080/00343404.2015.1015975
Publication status	Published - 1 May 2015

Keywords

Adaptive capabilities
Cluster decline
Disruption
High-tech
Regional clusters
Wireless communication industry

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10.1080/00343404.2015.1015975

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Global Operations Networks (GONE)
Wæhrens, B. V., Johansen, J., Niang, M., Slepniov, D., Østergaard, C. R. & Timmermans, B.
<ingen navn>, Forsknings- og Innovationsstyrelsen
23/01/2009 → 23/01/2012
Project: Research
AEGIS: Advancing Knowledge-Intensive Entrepreneurship and Innovation for Economic Growth and Social well-being in Europe
Østergaard, C. R., Timmermans, B., Dahl, M. S. & Dalum, B.
<ingen navn>, EU FP7
01/01/2009 → 30/09/2012
Project: Research

Cite this

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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. The longitudinal study on the high-tech cluster reveals that technological lock-in and exit of key firms have contributed to decline. Entrepreneurship has a positive effect on the cluster{\textquoteright}s adaptive capabilities, while multinational companies have contradicting effects by bringing in new resources to the cluster but being quick to withdraw in times of crisis. ",

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KW - Disruption

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What Makes Clusters Decline? A Study on Disruption and Evolution of a High-Tech Cluster in Denmark

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Projects

Global Operations Networks (GONE)

AEGIS: Advancing Knowledge-Intensive Entrepreneurship and Innovation for Economic Growth and Social well-being in Europe

Cite this