Technology Clusters Versus Industry Clusters : Resources, Networks, and Regional Advantages

Regional clusters are engines of economic growthand development, and researchers have focused on their entrepreneurial andinnovative characteristics and potential. Not recognized or understood are thedifferences among clusters. This analysis identifies two generic types:technology-based clusters and industry-based clusters. Using a resource-based view, the study analyzes the difference between thetypes of clusters. It argues that the two types have different regionalresource profiles, accumulations of resources, capabilities, and sources ofregional advantage. Technology-based clusters give rise to new product classesand whole new industries; key resources are idiosyncratic discovery andentrepreneurial insight, accumulated experience, and strong network ties. Industry-based clusters develop expertise in the particular industry; thecluster evolves along with the industry life cycle; key resources includeskilled labor, personnel, and specialized service providers. Differences in thetypes of clusters are examined with regard to industry and technology effects,individuals (researchers and inventors, entrepreneurs and managers, and serviceproviders), and firm-level resources. The types are also contrasted regarding accumulated entrepreneurialexperience, use of regional networks, and sustained advantages over time.Differences are likely to have implications for firms located in the regions,economic developers, and public policy officials developing strategies forclusters. (TNM)