Silicon Envy: How Global Innovation Clusters Hurt or Stimulate Each Other Across Developed and Emerging Markets

Abstract

This study is the first to show intercluster dynamics as important drivers of cluster growth. Authors draw upon two distinct views: the “regional competition” theory emphasizes the ensuing rivalry across global clusters; versus the “coopetition” view suggests mutually beneficial growth. Based on monthly counts of patents, startups and commercializations on ten global clusters over 1999-2014, results show that rival clusters facilitate rather than hurt each other’s growth due to resources complementarities, supporting the coopetition view. Reverse fertilization occurs from emerging to developed clusters: emerging clusters’ growth stimulates developed clusters’ productivity, as nascent firms seek market opportunities at a global scale.

Keywords: Innovation, Clusters, Inter-Cluster Effects, Silicon Valley, Emerging Markets, Competition collaboration, coopetition, patents, startups