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Cluster policy and firm performance: a case study of the French optic/photonic industry

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  • Amel Ben Abdesslem
  • Raphaël Chiappini

Abstract

This study analyzes the effects of a cluster policy on firms’ productivity, employment and total fixed assets in the French optic/photonic industry. Exploiting firm-level data between 1996 and 2008, it analyzes the selection process of the cluster policy through a logit model, before combining a propensity score matching (PSM) procedure and a difference-in-differences estimation to capture its impact on firms’ performance. It is shown that larger firms are more likely to be selected by the public policy. Second, the firms that received the competitiveness cluster certification became more productive and increased both their employment and their total fixed assets levels.

Suggested Citation

  • Amel Ben Abdesslem & Raphaël Chiappini, 2019. "Cluster policy and firm performance: a case study of the French optic/photonic industry," Regional Studies, Taylor & Francis Journals, vol. 53(5), pages 692-705, May.
    • Handle: RePEc:taf:regstd:v:53:y:2019:i:5:p:692-705
    DOI: 10.1080/00343404.2018.1470324
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    2. James Wilson & Emily Wise & Madeline Smith, 2022. "Evidencing the benefits of cluster policies: towards a generalised framework of effects," Policy Sciences, Springer;Society of Policy Sciences, vol. 55(2), pages 369-391, June.
    3. Modou Mar & Nadine Massard, 2021. "Animate the cluster or subsidize collaborative R&D? A multiple overlapping treatments approach to assess the impacts of the French cluster policy [The impact of R&D subsidies on R&D employment comp," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(4), pages 845-867.
    4. Guo, Yunxia & Yu, Mengyao & Xu, Mingchen & Tang, Ying & Huang, Jingran & Liu, Jia & Hao, Yu, 2023. "Productivity gains from green finance: A holistic and regional examination from China," Energy Economics, Elsevier, vol. 127(PA).
    5. Chiappini, Raphaël & Montmartin, Benjamin & Pommet, Sophie & Demaria, Samira, 2022. "Can direct innovation subsidies relax SMEs’ financial constraints?," Research Policy, Elsevier, vol. 51(5).
    6. Nathan, Max, 2022. "Does light touch cluster policy work? Evaluating the tech city programme," Research Policy, Elsevier, vol. 51(9).
    7. Raphaël Chiappini & Samira Demaria & Benjamin Montmartin & Sophie Pommet, 2020. "Can Direct Innovation Subsidies Relax SMEs' Credit Constraints?," GREDEG Working Papers 2020-09, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    8. Annekatrin Niebuhr & Jan Cornelius Peters & Alex Schmidke, 2020. "Spatial sorting of innovative firms and heterogeneous effects of agglomeration on innovation in Germany," The Journal of Technology Transfer, Springer, vol. 45(5), pages 1343-1375, October.
    9. Raphaël CHIAPPINI & Sophie POMMET, 2023. "The impact of public support for innovation on SME performance and efficiency," Bordeaux Economics Working Papers 2023-06, Bordeaux School of Economics (BSE).
    10. Angelino, Pierluigi & Czarnitzki, Dirk & Volckaert, Astrid, 2024. "Cluster policy, innovation, and firm productivity: An econometric assessment of the Flemish Spearhead Cluster Program," ZEW Discussion Papers 24-031, ZEW - Leibniz Centre for European Economic Research.
    11. Yuri Jo & Won Young Chung & Daeho Lee, 2020. "The capability‐enhancing role of government‐driven industrial districts for new technology‐based firms in South Korea," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 7(3), pages 306-321, September.
    12. Magali Chaudey & Muriel Fadairo & Frédéric Perdreau, 2020. "Do retailers benefit from network affiliation in all locations," Economics Bulletin, AccessEcon, vol. 40(2), pages 1623-1633.

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    More about this item

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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