Computer modelling and identification of factors important for the success of business clusters

Abstract

Business clusters are often intended to provide the environment needed to stimulate the financial growth of corporate inhabitants. However, many fail, prompting scholars to strive to identify the relevant success factors. In this paper, we identify factors promoting the growth of high-technology firms using a longitudinal dataset for both on- and off-cluster firms in Mjärdevi Science Park (MSP) at Linköping, Sweden. A panel data approach was used to investigate factors influencing the growth of on-cluster firms using off-cluster firms as a control group. Size and age influence turnover, as does the ability to innovate, but whereas size and age have a quadratic (nonlinear) impact on financial growth, innovation capabilities have a positive linear impact. Employment is mainly correlated to age, previous years' innovation and shareholder investment. Innovation output, (the ratio of patents asset value to turnover) is correlated to networking measured as social expenditure, which in turn exhibits a positive influence on innovation capabilities.

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