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How clusters can encourage entrepreneurship and venture creation. Reasons and advantages

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The aim of this article is to define what is meant by clusters, their characteristics or determinants and the advantages they generate, focusing on the role they play in boosting entrepreneurship and new venture creation. In clusters, a balance is reached between cooperation and competition which becomes evident in the higher productivity of the companies because of their increased access to inputs, information, technology and institutions; or in greater innovation and venture creation. The cluster incentivizes the entry of new companies or start-ups. The hope is, then, that the new companies will revitalize specific regions where competitiveness has fallen and that entrepreneurship will contribute to economic development and improved country-wide competitiveness.

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    When companies cooperate with one another but are not geographically close, we speak of organizational networks.

  2. 2.

    These approaches are not mutually exclusive since entrepreneurial activity is a human based activity; it does not occur spontaneously within the context of the economic environment, institutions, technological, regulatory or demographic change (Shane 2003: 2).

  3. 3.

    The studies of Costa-Campí (1988) and Ybarra (1991) provide a first approach to the identification of industrial districts in the cases of Catalonia and the Valencia Autonomous Region.

  4. 4.

    This study was previously published as Working Paper (no. 05/14) in the Department of Applied Economics at the Autonoma University of Barcelona in 2005.

  5. 5.

    Hernández et al. (2005) use the same methodology as Boix and Galleto (2006), although with certain adjustments, for Catalonia.

  6. 6.

    Countering the argument that defends the importance of geographical location, other authors stress that, especially in developed countries, there are other important factors which explain companies’ results, apart from their location, or that, at any rate, only in periods of economic recession are companies especially influenced by their location (Davidsson 1989).


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This paper has been supported by Cátedra Bancaja-Universidad Complutense de Madrid “Jóvenes Emprendedores” and the Project CCG06-UCM-HUM-1052 of the Complutense University of Madrid.

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Correspondence to Ángeles Montoro-Sánchez.

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Romero-Martínez, A.M., Montoro-Sánchez, Á. How clusters can encourage entrepreneurship and venture creation. Reasons and advantages. Int Entrep Manage J 4, 315–329 (2008). https://doi.org/10.1007/s11365-008-0079-y

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  • Clusters
  • Entrepreneurship
  • Venture creation
  • Industrial districts