Enterprise- and Industry-Level Drivers of Cluster Evolution and Their Outcomes for Clusters from Developed and Less-Developed Countries

Abstract

This article aims to discuss the international strategies of lead companies and the modularization of production networks as drivers of cluster evolution in developed countries, and to formulate propositions regarding the impact of those drivers on relationships with clusters in less-developed countries, based on literature reviews. Three streams of literature were combined, namely, that on (1) the role of lead companies in the development of industrial agglomerations, (2) the life cycle and evolution of clusters, founded on evolutionary economic geography and (3) the possibilities of upgrading by suppliers from less-developed countries. The article contributes by proposing a conceptual model that covers internal cluster evolution and the evolution of inter-cluster relationships globally to inform business and policy choices. Moreover, the research gap is addressed to study how the cluster dynamics in developed countries affect the upgrading opportunities for clusters in less-developed countries. The theoretical input consists in using the constructs of knowledge exploration and exploitation as mechanisms that determine cluster development prospects. Cluster development perspectives are shown as determined by those clusters' capacity to jointly pursue knowledge exploration and exploitation activities.

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