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Title:The extension of clusters: differences-in-difference evidence from the Bavarian state-wide cluster policy PDF Logo
Authors:Falck, Oliver
Heblich, Stephan
Kipar, Stefan
Issue Date:2008
Series/Report no.:Jena economic research papers 2008,073
Abstract: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.
Subjects:Difference-in difference
cluster policy
regional policy
JEL:R38
R11
O32
Document Type:Working Paper
Appears in Collections:Jena Economic Research Papers, MPI für Ökonomik

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