Motorsport Valley revisited: Cluster evolution, strategic cluster coupling and resilience

Abstract

Over 20 years ago a series of papers identified a strikingly dominant economic cluster – the UK’s Motorsport Valley (MSV) – which led to MSV becoming an international exemplar of concepts such as agglomeration, clusters and knowledge-driven systems of regional development. Utilising an evolutionary perspective on cluster development, this paper asks ‘whatever happened to MSV?’. Drawing on the framework of strategic cluster coupling, four cluster development episodes are conceptualised that each depict the dynamic evolution of the cluster’s multi-scalar institutional environment, strategic coupling trajectories and economic development outcomes. Reflecting the emerging synthesis between evolutionary economic geography and geographical political economy, the paper describes an extended case study of cluster development, an evolutionary process of strategic cluster coupling and, ultimately, an example of cluster resilience. Through a focus on strategic cluster coupling, the paper provides further understanding of cluster evolution and path development mechanisms at key moments of cluster reconfiguration – and an empirical update and continuation of the economic story and cluster lifecycle of MSV.

Examining the cohesiveness and nestedness entrepreneurial ecosystems: evidence from British FinTechs

“…Theories of evolutionary economics see entrepreneurs as being influenced by their previous experiences, leading them to start new ventures related similar to that of their prior employers, but with new approaches that allow them to build new sources of value (Klepper, 2007). This leads to the emergence of specialized clusters or ecosystems based around a core knowledge or industry (Henry et al, 2021). This privileges deep knowledge of a sector that allows for incremental innovation and finding new ways to serve existing groups of customers.…”

Does strategic coupling of TNCs affect their exit from host regions: Empirical analysis of the exit of Taiwanese enterprises from mainland China

“…Particularly, local governments attempt to maximize the popularity of regional markets to TNCs and ensure strategic coupling by minimizing the regulatory barriers for MNCs to facilitate their entrance to the local market. Regulatory bodies realize this initiative by regulating market practices and industrial development following their strategic requirements [24]. Moreover, due to the asymmetry of power between transnational corporations and host countries/regions, TNCs provide a variety of investment location alternatives that are influenced by several factors, including the local environment, local network, and firm-specific strategic considerations [25].…”

Everything must change for us to remain the same. Resilience in the face of disruptive innovations in industrial districts

“…However, their ability to generate competitive advantages for the embedded firms is increasingly being questioned (Grandinetti and Camuffo, 2011), mainly due to globalization (e.g., and technological shifts (e.g., Østergaard and Park, 2015). While some have been successful in resilience, many cases of stagnation and decline have emerged due to lock-in (Alberti, 2006;De Marchi et al, 2018;Henry et al, 2021;Pouder and St. John, 1996), making the question on what determines such heterogeneous performance more compelling.…”

“…Initially developed at the regional level, it has been increasingly adopted to explain industrial districts' (IDs) ability to face current challenges (Gilly et al, 2014;Pike et al, 2010). With respect to the emerging literature interested in explaining the causes of resilience in different IDs (Henry et al, 2021;Klepper, 2010) or to look for driving forces impact district trajectories to resilience (Eisingerich et al, 2010;Suire and Vicente, 2014), we contribute by investigating the conditions under which districts exhibit resilient behaviours in the face of disruptive innovation (DI) processes. Empirical analysis focused on a different territorial scale -regions -suggest indeed that innovation -considered as the introduction of novel technologies on the market -can represent an important driving force behind new path of development and resilience (Mossig and Schieber, 2016).…”