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Cluster policy, innovation, and firm productivity. An econometric assessment of the Flemish Spearhead Cluster program

Author

Listed:
  • Pierluigi Angelino
  • Dirk Czarnitzki
  • Astrid Volckaert

Abstract

The Flemish government launched its Spearhead Cluster (SHC) policy in 2017. The aim is to boost strategic sectors by setting up cluster initiatives which coordinate collaborative R&D initiatives. In this paper, we analyze whether becoming a member of such a cluster initiative has an impact on the Total Factor Productivity (TFP) of the firm. We exploit firm-level data between 2013 and 2020 to estimate TFP and apply a difference-in-differences approach to assess the programs’ treatment effects. We find that becoming a member of a cluster has an average positive impact on firmlevel TFP of between 1 to 4.4 percent, depending on the econometric specification. These results are the first to provide an insight into the impact of the Flemish SHC policy on productivity.

Suggested Citation

  • Pierluigi Angelino & Dirk Czarnitzki & Astrid Volckaert, 2024. "Cluster policy, innovation, and firm productivity. An econometric assessment of the Flemish Spearhead Cluster program," Working Papers of Department of Management, Strategy and Innovation, Leuven 741800, KU Leuven, Faculty of Economics and Business (FEB), Department of Management, Strategy and Innovation, Leuven.
    • Handle: RePEc:ete:msiper:741800
    Note: paper number MSI_2404
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    References listed on IDEAS

    as
    1. 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.
    2. Daniel A. Ackerberg & Kevin Caves & Garth Frazer, 2015. "Identification Properties of Recent Production Function Estimators," Econometrica, Econometric Society, vol. 83, pages 2411-2451, November.
    3. Máté Pecze, 2020. "The benefits of membership in policy-stimulated clusters in Hungary," European Planning Studies, Taylor & Francis Journals, vol. 28(8), pages 1493-1512, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    cluster associations; cluster policy; innovation policy; total factor productivity; conditional difference-in-difference;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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