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Does embeddedness in clusters enhance firm survival and growth? An establishment-level analysis using CORIS data

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  • Nicole Litzel

Abstract

Does embeddedness in clusters enhance firm survival and growth? An establishment-level analysis using CORIS data. Regional Studies. The effects of clusters on firm survival and firm growth are the basis of an extensive literature that has produced mixed evidence. In this paper an analysis is performed by using an evaluation design based on a control group approach. This is possible by exploiting a database that connects an establishment-reported indicator for embeddedness in clusters with highly reliable longitudinal establishment data. Survival analysis (2001–10) shows that openness towards what the regional value-added chains can offer reduces failure risk by roughly one-third. In addition, embeddedness in clusters has raised 10-year growth of establishments by 16.6% on average.

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  • Nicole Litzel, 2017. "Does embeddedness in clusters enhance firm survival and growth? An establishment-level analysis using CORIS data," Regional Studies, Taylor & Francis Journals, vol. 51(4), pages 563-574, April.
    • Handle: RePEc:taf:regstd:v:51:y:2017:i:4:p:563-574
    DOI: 10.1080/00343404.2015.1115009
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    1. Mario Cleves & William W. Gould & Roberto G. Gutierrez & Yulia Marchenko, 2010. "An Introduction to Survival Analysis Using Stata," Stata Press books, StataCorp LP, edition 3, number saus3, August.
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    1. Bellmann, Lisa & Brixy, Udo, 2018. "Hiring by start-ups and regional labor supply," IAB-Discussion Paper 201818, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Sam Tavassoli & Viroj Jienwatcharamongkhol & Pia Arenius, 2023. "Colocation of Entrepreneurs and New Firm Survival: Role of New Firm Founder’s Experiential Relatedness to Local Entrepreneurs," Entrepreneurship Theory and Practice, , vol. 47(4), pages 1421-1459, July.
    3. Tavassoli, Sam & Jienwatcharamongkhol, Viroj & Arenius, Pia, 2021. "Colocation of Entrepreneurs and New Firm Survival: Role of New Firm Founder’s Experiential Relatedness to Local Entrepreneurs," Papers in Innovation Studies 2021/13, Lund University, CIRCLE - Centre for Innovation Research.
    4. Ismaëlh Cissé & Jean Dubé, 2024. "Survival of new and small retail businesses facing mega‐retailers in non‐metropolitan areas—The case of Walmart in the province of Quebec," Growth and Change, Wiley Blackwell, vol. 55(1), March.

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