By Pontus Braunerhjelm, Maryann P. Feldman
Clusters - local concentrations of similar companies and companies - are obvious as an incredible part of financial progress and innovation. yet there's little knowing of ways clusters come into lifestyles, and little tips supplied at the position of rules in selling this. Cluster Genesis makes a speciality of those early origins of clusters.
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Extra resources for Cluster Genesis: Technology-Based Industrial Development
Its level of control was augmented in 1910 when it established the General Film Company to distribute its members’ products throughout the USA. General Film was notorious for the sanctions it exerted over its licensed exhibitors by threatening to cut off their supply of ﬁlms should they attempt to deal with independent companies. For a time, the Trust even managed to establish itself as a monopsony for Eastman Kodak ﬁlm. These arrangements enabled the Motion Picture Patents Company to earn unusually high revenues while at the same time imposing shackles on the business activities of independent competitors.
In conceptual terms, we must distinguish between the planting of the seed and blooming of the organism, that is the ﬁrst occurrence of a locational signal from the achievement of competitive supremacy. Despite its rather abstract logic, this account of the formation of industrial agglomerations offers us a number of important clues about the early historic geography of the motion-picture industry in the USA. The problem we now face is how to exploit this account in order to identify critical turning points in the industry’s development while at the same time respecting the full complexity of events as they actually occurred on the ground.
Borrowing from Spender’s notion (1989) of industrial recipes, we argue that through an unplanned iterated learning process Silicon Valley actors developed regional recipe for creating and nurturing start-ups. This chapter examines how technology and institutions coevolved to create an ecosystem within which entrepreneurs were able to encapsulate many of the new innovations in separate ﬁrms, as opposed to all of the innovations being commercialized by existing ﬁrms. The information/computer/electronics (ICE) and, to a far lesser degree, biomedical technologies have formed the core of the venture capitalﬁnanced start-up economy.
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