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Falck, Oliver; Heblich, Stephan (2007): Dynamic Clusters. BGPE Discussion Paper, 16
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Abstract

Globalization has had an enormous impact on traditional industrial structures. It seems almost the case that everything is everywhere the same. And yet, in reality, some regions in a single industrialized country enjoy rapid economic growth while others are downsizing or stagnating. Thus there must be some remaining regional competitive advantages�even in the �Age of Globalization.� This paper engages in a quest to discover what these new �locational� factors might be and how and why they are necessary in creating a dynamic cluster of regional growth. In doing so, we try to link agglomeration advantages of the new economic geography with competitive advantages of Porter�s cluster theory. But we also go beyond these approaches and add further regional growth factors such as creativity or diversity. Using data that paint a comprehensive picture of industry and regional development in Germany we try to find empirical evidence for our approach. A case study from the automobile industry � one of the leading industries in Germany � completes our picture of dynamic clusters.