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Public cluster policy and performance

Author

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  • Erik E. Lehmann

    (University of Augsburg
    University of Augsburg)

  • Matthias Menter

    (University of Augsburg)

Abstract

While the conditions for creating clusters and modalities of how clusters should be configured have been investigated intensively, evidence about the performance evaluation of public cluster policy is scarce. This paper addresses this issue and investigates the promotion of ‘leading-edge clusters’ by the German federal government in 2007 as a part of the “High-Tech Strategy 2020”. Based on a unique balanced panel including all 150 German metropolitan areas ranging from 1998 to 2012, we apply treatment and difference-in-differences estimation techniques to evaluate this kind of governmental cluster policy. These leading-edge clusters, selected and intensively supported by the government, encompass 21 of the total 150 German metropolitan areas. In particular, we evaluate whether the treated clusters show a different performance path compared to the control group. Our results strongly support the effect of an active public cluster policy measured by regional GDP growth, yet highlight the importance of robust evaluation approaches and techniques. Our results also shed light on the complementary effects of pre-existing entrepreneurial and innovative ecosystems to spur regional wealth and make cluster policy successful at work.

Suggested Citation

  • Erik E. Lehmann & Matthias Menter, 2018. "Public cluster policy and performance," The Journal of Technology Transfer, Springer, vol. 43(3), pages 558-592, June.
    • Handle: RePEc:kap:jtecht:v:43:y:2018:i:3:d:10.1007_s10961-017-9626-4
    DOI: 10.1007/s10961-017-9626-4
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    3. Grashof, Nils, 2020. "Putting the watering can away Towards a targeted (problem-oriented) cluster policy framework," Papers in Innovation Studies 2020/4, Lund University, CIRCLE - Centre for Innovation Research.
    4. Grashof, Nils, 2021. "Putting the watering can away –Towards a targeted (problem-oriented) cluster policy framework," Research Policy, Elsevier, vol. 50(9).
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    7. Madeline Smith & James R. Wilson & Emily Wise, 2020. "Evaluating clusters: Where theory collides with practice," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(3), pages 413-430, June.
    8. Audretsch, David B. & Lehmann, Erik E. & Menter, Matthias & Wirsching, Katharine, 2021. "Intrapreneurship and absorptive capacities: The dynamic effect of labor mobility," Technovation, Elsevier, vol. 99(C).
    9. Jan & Aleksandra & Windham, 2021. "City policies to promote entrepreneurship: A cross-country comparison of Poland and Germany," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 17(2), pages 159-185.
    10. Aboal, Diego & Crespi, Gustavo & Perera, Marcelo, 2020. "How effective are cluster development policies? Evidence from Uruguay," World Development Perspectives, Elsevier, vol. 18(C).
    11. David B. Audretsch & James A. Cunningham & Donald F. Kuratko & Erik E. Lehmann & Matthias Menter, 2019. "Entrepreneurial ecosystems: economic, technological, and societal impacts," The Journal of Technology Transfer, Springer, vol. 44(2), pages 313-325, April.
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    Keywords

    Public cluster policy; Strategic management of places; University-industry collaborations; Regional clusters; Knowledge spillover theory; Evaluation;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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