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Manufacturing Clusters and Firm Innovation

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  • Li Fang

Abstract

This study examines how much different manufacturing clusters encourage per-establishment innovation measured by citation-weighted patent applications, and at which geographical scales they boost patent filings by the greatest magnitude. Using establishment and patent application data for the state of Maryland, 2004-2013, this study finds that the Metalworking Technology cluster, formed at 3 miles in radius, encourages innovation the most: The number of citation-weighted patent applications for firms in the cluster is 17.6% higher than that outside of the cluster. Food Processing and Manufacturing and Automotive clusters follow, at 1 and 2 mile(s) in radius, with an effect of 8.5% and 5.5%, respectively. A complete ranking of 20 manufacturing clusters is delivered. A description of how policy makers may use this ranking to target specific manufacturing clusters for economic development is included.

Suggested Citation

  • Li Fang, 2019. "Manufacturing Clusters and Firm Innovation," Economic Development Quarterly, , vol. 33(1), pages 6-18, February.
    • Handle: RePEc:sae:ecdequ:v:33:y:2019:i:1:p:6-18
    DOI: 10.1177/0891242418800770
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