Cover Image

The Extension of Clusters: Difference-in-Differences Evidence from the Bavarian State-Wide Cluster Policy

If one cluster increases local competitiveness, can politicians, by interlinking clusters, achieve an even better effect at the state level? To answer this question, the paper analyzes the “Cluster Initiative” introduced in 1999 by the Bavarian State Government. The purpose of the initiative was to... Full description

Year of Publication: 2008
Authors: Falck, Oliver; Heblich, Stephan; Kipar, Stefan
Physical Description: application/pdf
Series: CESifo Working Paper Series
Subjects: difference-in-differences | cluster policy | regional policy
Classification: jel-O32; jel-R11; jel-R38
Type of Publication: Book / Working Paper
Notes: Number 2463
Title record from database: RePEc - Research Papers in Economics
Availability:  PDF full text PDF full text PDF full text More options
More options (other): 
Summary: If one cluster increases local competitiveness, can politicians, by interlinking clusters, achieve an even better effect at the state level? To answer this question, the paper analyzes the “Cluster Initiative” introduced in 1999 by the Bavarian State Government. The purpose of the initiative was to create a Bavarian-wide innovation network in support of state-wide knowledge flows. Using a difference-in-differences approach, we find that introducing the Bavarian-wide cluster policy increased the likelihood of innovation by a firm in the targeted industry by 4 to 7 percentage points. However, this effect is mainly driven by large firms’ increased likelihood to innovate.
Item Description: Number 2463
Physical Description: application/pdf
EconChat