Theoretical, Empirical and Political Perspectives on the Initial Stage of Cluster Evolution
Industrial Dynamics, Entrepreneurship and Innovation series
Edited by Dirk Fornahl, Sebastian Henn and Max-Peter Menzel
Chapter 6: The Co-evolution of ICT, VC and Policy in Israel During the 1990s
Gil Avnimelech and Morris Teubal INTRODUCTION AND OBJECTIVES 1 The economic success of well-known innovative clusters such as Silicon Valley has fostered attempts to transform local economies into successful clusters (Feldman et al., 2005). In the last decade many studies (such as Feldman, 2001; Avnimelech and Teubal, 2004, 2006; Brenner, 2004; Bresnahan and Gambardella, 2004; Feldman et al., 2005; Breznitz, 2008; Menzel and Fornahl, 2009) attempt to explain how an innovative regional agglomeration may develop into a global leading cluster. However, there is still a need to extend our understanding of this process. This is mainly because many studies in the field often analyse the processes taking place within established clusters and based on that analysis attempt to draw conclusions about cluster emergence processes (Maskell, 2001). While such an approach is useful for characterizing the operation of mature clusters the analysis of cluster development and emergence requires a more dynamic approach (Breschi and Malerba 2001; Bresnahan et al., 2001; Feldman, 2001). On the other hand, many studies which do explore into the initial development stages of clusters often tend to be quite descriptive in nature. Recently, a few researchers introduced dynamic cluster development models (such as Bresnahan et al., 2001; Feldman, 2001; Feldman et al., 2005; Avnimelech and Teubal, 2006; Menzel and Fornahl, 2009; and others). However, more analytical case studies are needed in order to enable the development of more generalized theories and to expand the scope of profiles of cluster development that are identified. This will enable more...
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