| Abstract: |
This paper develops a simulation model of the behaviour of clusters in the
face of bifurcation events in their environment. Bifurcations are understood
as the regional equivalent to Schumpeterian creative destruction. The model
investigates the role of decentralisation and co-ordination for the likelihood
of successful adaptation by comparing adaptive performance of clusters
exhibiting different degrees of decentralisation and alternative modes of
co-ordination. Using Kauffman’s (1993) N/K model, it is found that there is an
optimum degree of decentralisation with respect to cluster adaptability while
different co-ordination mechanisms face a trade-off between speed and
cluster-level optimality of results. In doing so, the model sheds light on an
empirical controversy regarding the role of both factors for adaptation that
has emerged between the Silicon Valley – Boston 128 comparison on the one and
the Italian Industrial District experience on the other hand. Moreover, the
identification of the roles played by decentralisation and co-ordination for
cluster adaptability in changing environments could serve as guidance for
future empirical research as well as policy initiatives. |