Cluster life cycles – The role of actors, networks and institutions in emerging, growing, declining and renewing clusters

Austrian Science Fund

Ample research has been carried out on the mode of functioning of clusters. Little scholarly attention, however, has received the way how clusters evolve over time, i.e. how clusters actually become clusters, how and why they decline, and how they shift into new fields. The main objectives of this collaborative research project has therefore been to analyse the factors and processes that are responsible for the evolution and –transformation of clusters; to distinguish between endogenous and exogenous drivers through the cluster life cycle; and to give policy advice which helps to create new clusters, prevent existent clusters from decline and transform declining clusters into new clusters.

The research project has investigated 20 clusters in different phases of their life cycle in 7 countries of Europe. For Austria three clusters in different phases of their life cycles were investigated: The environmental technology industry in Upper Austria representing a maturing cluster within a traditional industrial region, the “creative industries” in Vienna representing a growing cluster within a diversified agglomeration; and the Medical Technology Cluster in Vienna, an industry that has seen a considerable institutional and globalisation challenges and transformation recently. The analysis of the Austrian cases has focussed on firm- and cluster development in the different regional settings, on the role of internal and external drivers in this respect, and on factors and appropriate policy support for cluster renewal and innovative change.