The relationship between supplier networks and industrial clusters: an analysis based on the cluster mapping method

Abstract

Michael Porter’s concept of competitive advantages emphasizes the importance of regional cooperation of various actors in order to gain competitiveness on globalized markets. Foreign investors may play an important role in forming such cooperation networks. Their local suppliers tend to concentrate regionally. They can form, together with local institutions of education, research, financial and other services, development agencies, the nucleus of cooperative clusters. This paper deals with the relationship between supplier networks and clusters. Two main issues are discussed in more detail: the interest of multinational companies in entering regional clusters and the spillover effects that may stem from their participation. After the discussion on the theoretical background, the paper introduces a relatively new analytical method: “cluster mapping” - a method that can spot regional hot spots of specific economic activities with cluster building potential. Experience with the method was gathered in the US and in the European Union. After the discussion on the existing empirical evidence, the authors introduce their own cluster mapping results, which they obtained by using a refined version of the original methodology.

Keywords

• cluster
• transnational company
• supplier network