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The Cluster as Market Organisation

Peter Maskell

Danish Research Unit on Industrial Dynamics (DRUID), Department of Industrial Economics and Strategy (TVS), Copenhagen Business School (CBS), Solbjergvej 3, DK-2000 Frederiksberg, Denmark, Maskell{at}cbs.dk

Mark Lorenzen

Danish Research Unit on Industrial Dynamics (DRUID), Department of Industrial Economics and Strategy (TVS), Copenhagen Business School (CBS), Solbjergvej 3, DK-2000 Frederiksberg, Denmark, mark{at}cbs.dk

This paper views clusters as a specific spatial configuration of the economy suitable for the creation, transfer and usage of knowledge. It investigates how the modern exchange-economy becomes organised as rent-seeking firms build network relations to create knowledge and obtain resource efficiency while keeping transaction costs at bay. It moves on to consider the cluster as an emerging, self-organising, attractive alternative for interfirm relationships in cases where (global) network formation becomes a less feasible strategy. The paper empirically investigates two industries where clustering for different reasons might be considered superior to other forms of market organisation.

Urban Studies, Vol. 41, No. 5-6, 991-1009 (2004)
DOI: 10.1080/00420980410001675878
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