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A Rational Cluster Strategy: Manoeuvring between Market and Government Failures

Author

Listed:
  • Evgeniy Kutsenko

    (Institute for Statistical Studies and Economics of Knowledge, National Research University Higher School of Economics)

Abstract
Debates on the viability—and the extent of public intervention—that are requisite in the formation and development of clusters are ongoing. It seems, on one hand, that there are few cases of systematic and successful cluster creation from the ground up. On another, clusters shaped without any contribution from government are difficult to find. In this sense, the empirical evidence will not readily provide an answer to the questions, how much intervention is needed and are the existing tools adequate for creating clusters. The author analyses two basic types of market failures related to shaping and development of clusters. These are a mismatch of territorial location of production forces to existing centrifugal and centripetal agglomeration effects (positive and negative external gains, as well as underproduction of a positive external gain that influences performance of local actors. The paper also concerns possible causes, where public cluster policy produces inefficiencies (government failures). That is, it analyses the most obvious risks for policy implementation. It is argued that an efficient policy should be aimed at dealing with market failures, while the procedures and implementing algorithms — at overcoming government failures. Note: Downloadable document is in Russian.

Suggested Citation

  • Evgeniy Kutsenko, 2012. "A Rational Cluster Strategy: Manoeuvring between Market and Government Failures," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 6(3), pages 6-15.
    • Handle: RePEc:hig:fsight:v:6:y:2012:i:3:p:6-15
    as

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    File URL: http://foresight-journal.hse.ru/data/2013/09/23/1279029261/01-Kutsenko-6-15.pdf
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    References listed on IDEAS

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    Cited by:

    1. Stepan Zemtsov & Vera Barinova & Alexey Pankratov & Evgeniy Kutsenko, 2016. "Potential High-Tech Сlusters in Russian Regions: From Current Policy to New Growth Areas," Foresight-Russia Форсайт, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 10(3 (eng)), pages 34-52.

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    More about this item

    Keywords

    cluster policy; government failures; market failures; location of productive forces;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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