Does embeddedness in clusters enhance firm survival and growth? An establishment-level analysis using CORIS data

2016-10-11T09:34:47Z (GMT) by Nicole Litzel
<p>Does embeddedness in clusters enhance firm survival and growth? An establishment-level analysis using CORIS data. <i>Regional Studies</i>. The effects of clusters on firm survival and firm growth are the basis of an extensive literature that has produced mixed evidence. In this paper an analysis is performed by using an evaluation design based on a control group approach. This is possible by exploiting a database that connects an establishment-reported indicator for embeddedness in clusters with highly reliable longitudinal establishment data. Survival analysis (2001–10) shows that openness towards what the regional value-added chains can offer reduces failure risk by roughly one-third. In addition, embeddedness in clusters has raised 10-year growth of establishments by 16.6% on average.</p>