The Interconnections of Regional and Domestic Cluster Development Processes

Abstract

SUMMARY The regional clusters have an important position in the modern world. One of the most prominent clusters in the Nordic area (Scandinavia, Baltic region and Russia) has been formed in the wood and forest industries. The aim of this study is to investigate the dual impact of regional clusters on the development of local clustering and networking ties. In this respect the positive impact in terms of technology transfers, financial support and market access are analysed alongside potentially more detrimental aspects, such as replacing local value-adding processes with roundwood and paperwood exports and limiting the international marketing options of the acquired producers. The results indicate that regional clustering has several positive influences on the development of local/domestic wood and forest clusters in terms of technology transfer and foreign market access, but dominant intra-corporate networks can also lead to centralised operations that set a lower value on local supply chain relationships.

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