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Network Structure and Industrial Clustering Dynamics in the Aerospace Industry

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  • Ekaterina Turkina
  • Ari Van Assche
  • Raja Kali

Abstract

We use a new firm level dataset to study the network of formal firm linkages within and across 52 aerospace clusters in North America and Europe over the period 2002-2014. Applying community structure detection techniques, we find that the structure of the overall network has changed over time. We organize sub-networks by linkage type and find two important trends in their evolution. First, new linkages in the vertical buyer-supplier sub-network are generally formed in a hierarchical hub-and-spoke fashion, whereas new links in the horizontal partnership sub-network are generated in a more decentralized and cohesive manner. Second, the geographical scope of new linkages is different, with vertical buyer-supplier and investment linkages moving increasingly trans-local and partnership linkages becoming more localized. Taken together, our findings suggest that the overall network is evolving from a geographically partitioned community structure to a hierarchical community structure that is stratified along value chain stages.

Suggested Citation

  • Ekaterina Turkina & Ari Van Assche & Raja Kali, 2016. "Network Structure and Industrial Clustering Dynamics in the Aerospace Industry," CIRANO Working Papers 2016s-14, CIRANO.
    • Handle: RePEc:cir:cirwor:2016s-14
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    File URL: https://cirano.qc.ca/files/publications/2016s-14.pdf
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    More about this item

    Keywords

    industrial clusters; local and trans-local linkages; community structure detection; small world analysis;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts

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