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Coordination Failures, Cluster Theory and Entrepreneurship: A Critical View

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  • Glavan, Bogdan

Abstract

Development policy has been energized in the last decades by a number of contributions emphasizing a new positive role the state can and should play in fostering economic growth. The central pillar of this literature is Michael Porter and his theory of clusters. This paper intends to provide a refutation of the idea that coordination failures as manifested in the inability of clusters to emerge can serve as a ground for government intervention. It uses mainly Porter, Rodrik and Rodriguez-Clare thesis as an example of this approach and criticizes the claim that coordination externalities prevent the market process to allocate resources optimally

Suggested Citation

  • Glavan, Bogdan, 2007. "Coordination Failures, Cluster Theory and Entrepreneurship: A Critical View," MPRA Paper 6033, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:6033
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    References listed on IDEAS

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    1. Rodrik, Dani, 2004. "Industrial Policy for the Twenty-First Century," Working Paper Series rwp04-047, Harvard University, John F. Kennedy School of Government.
    2. Adsera, Alicia & Ray, Debraj, 1998. "History and Coordination Failure," Journal of Economic Growth, Springer, vol. 3(3), pages 267-276, September.
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    Cited by:

    1. Triyakshana Seshadri & Virgil Storr, 2010. "Knowledge problems associated with creating export zones," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 23(4), pages 347-366, December.
    2. Filippova, Irina & Unknown, Unknown, 2013. "Кластерные Стратегии И Кластерные Инициативы: Перспективы И Факторы Эффективной Кластеризации [Cluster strategy and cluster initiatives: prospects and factors of effective clustering]," MPRA Paper 49949, University Library of Munich, Germany.
    3. Steiner, Bodo & Ali, Jolene, 2009. "Regional food clusters and government support for clustering: Evidence for a ‘dynamic food innovation cluster’ in Alberta, Canada?," MPRA Paper 26251, University Library of Munich, Germany.
    4. Филиппова, Ирина, 2014. "Анализ Факторов Эффективной Кластеризации [Factors influencing the effetiveness of clustering]," MPRA Paper 66632, University Library of Munich, Germany, revised 2014.
    5. Sipos-Gug Sebastian & Badulescu Alina-Daciana, 2013. "Entrepreneurial Activity In Romania - A Time Series Clustering Analysis At The Nuts3 Level," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 673-682, July.
    6. Sarath W.S.B. Dasanayaka & G D Sardana, 2015. "Development of Small and Medium Enterprises through Clusters and Networking: A Comparative Study of India, Pakistan and Sri Lanka," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 84-108.

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    More about this item

    Keywords

    coordination failure; cluster theory; development economics;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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