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European Urban and Regional Studies
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Cluster Absorptive Capacity

Why do Some Clusters Forge Ahead and Others Lag Behind?

Elisa Giuliani

University of Sussex, UK; University of Pisa, Italy; European University Institute, Florence, Italy, E.Giuliani{at}sussex.ac.uk

This article provides a firm-centred interpretation of why some industrial clusters forge ahead and others lag behind. It argues that the dynamic growth of a cluster depends on its absorptive capacity and therefore on the capacity of firms to absorb external knowledge and diffuse it into the intra-cluster knowledge system. This article speculates on the relationship existing between the heterogeneity of firms’ knowledge bases with both intra- and extra-cluster knowledge systems. It concludes by illustrating that a conceptual link exists between firm-level knowledge bases, the cluster absorptive capacity and its potential for growth.

Key Words: absorptive capacity • firm knowledge base • industrial clusters

European Urban and Regional Studies, Vol. 12, No. 3, 269-288 (2005)
DOI: 10.1177/0969776405056593
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