From Mass to Motion: Conceptualizing and Measuring the Temporal Dynamics of Industry Clusters

45 Pages Posted: 15 Jun 2019

See all articles by Min Jung Kim

Min Jung Kim

University of Minnesota - Twin Cities, Carlson School of Management

Myles Shaver

University of Minnesota - Twin Cities - Carlson School of Management

Russell Funk

University of Minnesota

Date Written: May 1, 2019

Abstract

This article outlines a temporal dynamics approach to the study of industry clusters. Despite extensive work on cluster size (or “mass”), little attention has been paid to their temporal dynamics (or “motion”). We propose that understanding cluster dynamics is important, because clusters are seldom stable, and cluster dynamics may have strategic implications not accounted for by existing approaches. We introduce a novel measure of cluster motion. Applying this measure to data on establishments in the U.S. computer and semiconductor industries, we document wide variation in cluster mass over time, both within and across regions. Furthermore, utilizing patent data, we find that cluster motion correlates with localized knowledge spillovers in ways different from cluster mass, suggesting that our approach may offer novel insights to strategy researchers.

Keywords: industry clusters; temporal dynamics; measurement; agglomeration; knowledge spillovers

JEL Classification: M21; R12; O32

Suggested Citation

Kim, Min Jung and Shaver, J Myles and Funk, Russell, From Mass to Motion: Conceptualizing and Measuring the Temporal Dynamics of Industry Clusters (May 1, 2019). Available at SSRN: https://ssrn.com/abstract=3392465 or http://dx.doi.org/10.2139/ssrn.3392465

Min Jung Kim (Contact Author)

University of Minnesota - Twin Cities, Carlson School of Management ( email )

Minneapolis, MN
United States

J Myles Shaver

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

Russell Funk

University of Minnesota

MN 55455
United States

HOME PAGE: http://www.russellfunk.org

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