Entrepreneurial Clusters and thevCo-agglomeration of Related Industries: Spinoffs in Portuguese Plastics and Molds

Rui Baptista, Brunel Business School

This study provides insights on how co-agglomeration (or collocation) of entrepreneurial firms in related industries influences cluster growth. Two types of effects are considered that may drive collocation: the preference of spinoff founders for ‘home location’ leading local spinoffs to ‘inherit’ capabilities from local incumbents (heritage); and the benefits associated with agglomeration which stem from local access to supply-side spillovers occurring through worker mobility, informal personal contact, and subcontracting and supplier relations (agglomeration externalities). These effects are examined for the Portuguese molds and plastics industries. Results suggest that heritage of capabilities through the transmission of knowledge from incumbents to cross-industry spinoffs play an important role in driving cluster growth. Benefits from knowledge transmission through cross-industry spinoffs and co-agglomeration occur only upstream, from plastics to molds, implying that while collocation with molds is not a requirement for the plastics industry, collocation with plastics is likely essential for the molds industry.

About the speaker
Rui Baptista joined Brunel Business School on September 2013 as the Chair in International Entrepreneurship. He is a member of CEIBIEM (Centre for Research into Entrepreneurship, International Business and Innovation in Emerging Markets). He has been a faculty member at: Instituto Superior Tecnico, University of Lisbon; Carnegie Mellon University; and Indiana University. Rui’s research and teaching interests are in the economics of entrepreneurship and innovation, regional economic development, industry dynamics, and labor markets. He is an associate editor and member of the Editorial Board of Small Business Economics – An Entrepreneurship Journal.

Venue: Room A1.23 (Tongersestraat 53)

Date: 09 October 2013

Time: 12:00 - 13:30  CET