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Thriving innovation amidst manufacturing decline: the Detroit auto cluster and the resilience of local knowledge production

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  • Thomas J. Hannigan
  • Marcelo Cano-Kollmann
  • Ram Mudambi

Abstract

Analyzing the comprehensive 35-year patent data set associated with the Detroit auto cluster we confirm that innovation in clusters can increase in spite of a long-term decline in manufacturing activity. The "stickiness" of local knowledge is sustained by: (i) increasing technological specialization at the local level and (ii) growing connectedness to global centers of excellence. The very forces that bring about the decline in manufacturing in a cluster sustain their position as a global center of innovative excellence.

Suggested Citation

  • Thomas J. Hannigan & Marcelo Cano-Kollmann & Ram Mudambi, 2015. "Thriving innovation amidst manufacturing decline: the Detroit auto cluster and the resilience of local knowledge production," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(3), pages 613-634.
    • Handle: RePEc:oup:indcch:v:24:y:2015:i:3:p:613-634.
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    File URL: http://hdl.handle.net/10.1093/icc/dtv014
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