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What Makes Clusters Decline? A Study on Disruption and Evolution of a High-Tech Cluster in Denmark

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  • Christian Richter Østergaard
  • Eunkyung Park

Abstract

Østergaard C. R. and Park E. What makes clusters decline? A study on disruption and evolution of a high-tech cluster in Denmark, Regional Studies . Most studies on regional clusters focus on identifying factors and processes that make clusters grow. However, sometimes technologies and market conditions suddenly shift, and clusters decline. This paper analyses the process of decline of the wireless communication cluster in Denmark. The longitudinal study on the high-tech cluster reveals that technological lock-in and exit of key firms have contributed to decline. Entrepreneurship has a positive effect on the cluster's adaptive capabilities, while multinational companies have contradicting effects by bringing in new resources to the cluster but being quick to withdraw in times of crisis.

Suggested Citation

  • Christian Richter Østergaard & Eunkyung Park, 2015. "What Makes Clusters Decline? A Study on Disruption and Evolution of a High-Tech Cluster in Denmark," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 834-849, May.
    • Handle: RePEc:taf:regstd:v:49:y:2015:i:5:p:834-849
    DOI: 10.1080/00343404.2015.1015975
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    References listed on IDEAS

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    1. Bent Dalum & Christian Ø.R. Pedersen & Gert Villumsen, 2002. "Technoligical Life Cycles Regional Clusters Facing Disruption," DRUID Working Papers 02-10, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    2. Mark Lorenzen & Volker Mahnke, 2002. "Global Strategy and the Acquisition of Local Knowledge How MNCs Enter Regional Knowledge Clusters," DRUID Working Papers 02-08, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    3. Michael S. Dahl & Christian Ø.R. Pedersen & Bent Dalum, 2003. "Entry by Spinoff in a High-tech Cluster," DRUID Working Papers 03-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
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