Effectiveness of Cluster Associations from the Perspective of Firms Case Study: BioValley Association

Abstract

Supporting biotechnology clusters including cluster associations has been a significant component of regional economic development initiatives. This case study will contribute towards alleviating the dearth of research on cluster associations by assessing the extent to which they are perceived to be effective by firms and, providing useful guidance not only for associations themselves, but also for firms and policy makers. In the literature realising the benefits of positive externalities and overcoming the existence of market failure emerge as rationale behind intervention. Comparing these with firms' perceptions in this study produces a mixed picture. Participating firms highlight that the primary focus should be the facilitation of networks with cross-border relationships most important. However, forging international collaboration among firms seems to be a challenge for this particular association.