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Research

PRTLI_INDU:

"Industry Clustering and Regional Competitive Advantage"

The focus of Irish industry policy shifted in the 1990s as a result of the Culliton review (1992) from its preoccupation with attracting foreign direct investment to the promotion of indigenous firms in the fast growing sectors of the world economy. Influenced by the work of Professor Michael Porter (1990), the new policy identified industries which could achieve global competitive advantage not only as low cost supply chains to multinational operations but also as high skill, knowledge-intensive clusters combining the advantages of small firm flexibility with the economies of scale generated by collective learning and collaboration. Accordingly, there was little disagreement with the view that 'the phenomenon of industry clustering is so pervasive that it appears to be a central feature of advanced national economies' (Porter 1990).
However, successful clusters in Ireland have taken a very different form from that envisaged in the Porter model (O'Malley and van Egeraat 2000). First, they tend to be oriented to global markets, and provide little evidence of the domestic rivalry that supposedly acts as the springboard for international competitiveness (O'Donnell 1998). Second, the clusters are largely driven by the multinational firms themselves, which in turn have been embedded in the local economy by skills upgrading, industry policy and the increasing sophistication of the indigenous sector itself (Bergman and Feser 2001).

The central research questions will address the conditions which give rise to successful industry clustering in Ireland, the distinguishing characteristics of these clusters, the consequences for cluster theory and modelling and the implications for public policy in Ireland and more widely. The project will build on current work for the OECD national innovation systems programme (Green et al 2001) with a survey and case study analysis of two regional industry clusters.

Project Leader:

Dr Paul Ryan

Participants:

Caren Crowley

Dr James Cunningham

Will Geoghegan

Majella Giblin

Professor Roy Green

Dr Rachel Hilliard

Dr Laura Martinez-Solano

Dr Paul Ryan

Edel Walshe


Technical Description
Task 1 Review of literature and data on industry clustering in Ireland and other comparable regional economies.
The first task will be to undertake a comprehensive review of the academic and policy literature in the area of industry clustering and the empirical data generated by other studies. This task will proceed in the context of simultaneous work on the nature and characteristics of regional innovation systems. In particular, it will address the issue of whether industrial clusters with links to local and regional innovation networks have been associated with accelerated diffusion of technology and know-how, and the extent to which diffusion depends on the country's industrial structure and technological specialisation, institutional set-up, corporate governance regimes, degree of economic openness and the flexibility of firms' organisational and managerial structures (OECD 1997).

Task 2 Survey analysis of the computer software and medical devices clusters in the Galway region of Ireland.

The major task of the project will be a detailed analysis of two clusters in and around the city of Galway in the west of Ireland. The first is the rapidly expanding computer software cluster, which was stimulated paradoxically by the withdrawal in the early 1990s of the Digital Electronic Corporation from relatively low value adding personal computer production in Galway. The second cluster is the concentration of firms in the medical devices sector, which now represents the largest source of production in Europe. The two clusters are led by US based multinational companies, but have acquired a degree of independence through the growth of local supplier networks, research and development activity, outsourcing and global penetration. The research will investigate the cluster dynamic in both cases through a combination of survey and case study methodologies (Bergman and Feser 2000), and make findings on the conditions for success and sustainability.

Task 3 Implications of cluster analysis for public policy at local, national and European levels.The final task will be to identify constructive implications for public policy in both the review of literature and the survey of the two regional clusters (Lagendijk and Charles 1999). It will evaluate, among other things, the role of local networking and collaboration among firms, linkages to research and educational institutions, investment attraction policy, business support measures and the quality of skills and infrastructure. More broadly, it will attempt to assess the relative impacts of the market and institutional factors in successful clustering. This, it is hoped, will also make an important contribution to the theoretical literature in the area.

Publications, presentations etc, for this project:


Books:

Cunningham, J., Harney, B., Strategic Management of Technology Transfer: The New Challenge on Campus, Oak Tree Press, 2006

Cunningham, J., O'Gorman, C., Enterprise in Action, 2nd Edition, Oak Tree Press, Irish Studies in Management Series 2002

Journal articles:

De Burca, S., & Fynes,B., 'Managing the Marketing Design-Manufacturing Interface: An Empirical Investigation of the Underlying Problems and Solutions' Irish Journal of Management, Vol. 25 No. 1, pp. 56-67, November 2004

De Burca, S., Fynes, B., and Marshall, D., 'Strategic Technology Adoption: Extending ERP across the Supply Chain', Journal of Enterprise Information Management, Vol. 18 No 4, pp. 427-440, August 2005

Fynes, B., & de Burca, S., 'The Effects of Design Quality on Quality Performance' International Journal of Production Economics, Vol. 96 No. 1, pp 1-14, February 2005

Fynes, B., de Burca, S., and Marshall, D., 'Environmental Uncertainity, Supply Chain Relationship Quality and Performance' Journal of Purchasing & Supply Management, Vol. 10, No. 4/5, pp. 179-190, December 2004

Fynes, B., de Burca, S., and Voss, C., 'Supply Relationship Quality, the Competitive Environment and Performance' International Journal of Production Research, Vol., 43, No. 16, pp. 3303-3320, July 2005

Fynes, B., Voss, C., & de Burca, S., 'The Impact of Supply Chain Relationship Dynamics on Manufacturing Performance' International Journal of Operations & Production Management, Vol. 25, No. 1, pp 6-19, January 2005

Fynes, B., Voss, C., & de Burca, S., 'The Impact of Supply Chain Relationship Quality on Quality Performance'International Journal of Production Economics, Vol 96, No. 3, pp. 339-354, March 2005

Glynn, W. ; de Búrca, S.; Flynes, B. ; Brannick, T. and Ennis, S. "Listening Practices and Performance in Service Organisations." International Journal of Service Indsutry Management, 2003, 14(3), pp. 310-30.

Glynn, W. ; de Búrca, S.; Fynes, B. ; Brannick, T. and Ennis, S. "Listening Practices and Performance in Service Organisations." International Journal of Service Indsutry Management, 2003, 14(3), pp. 310-30.

Green, R., 'Structural Reform and labour markets in Europe: The case of Ireland' G Szell, C Bosling & J Hartkemeyere (eds), Labour Globalisation and the New Economy, Peter Lang, Frankfurt am Main, 2005

Green, R., Burgess, J., & Connell, J., 'The temporary work sector in Australia and Irleand: Modest, growing and under-recorded' Economic & Labour Relations Review, 15/2 January 2005

Green, R.; Giblin, M.; Ryan, P. and Moroney, M. "Innovation in the Irish Sector: Economy, Culture and Communication." Trends in Communication: Regional Clusters in ICT, 2002, 10, pp. 89-113.

Marshall, D., Lamming, R., Fynes, B., and de Burca, S., 'The Development of an Outsourcing Process Model', International Journal of Logistics, Vol. 8, No. 4, pp. 347-359, November 2005

Martinez, L., Role and significance of KISA in the innovation of the software industry�, Int. J. Services Technology and Management, Vol. 7, No. 2, 2006

Martinez-Solano, L. "Technology Spilovers between Eu Mncs and Mexico, Steps Towards Local Sustainable Development." Zagreb International Review of Economics & Business, 2002.

Martinez-Solano, L. "The Global Commodity Chain of Mncs in the Irish Software Industry." 2003.

Martinez-Solano, L. "The Technological Activities of Eu Mnes in Mexico." International Studies, 2003, 8(1).

Martinez-Solano, L. and Ryan, P. "FDI Impact on Less Developed Countries: Diverse Lessons from Ireland & Mexico." 2003.

Ryan, P., "Business-to-Business Relations from the Periphery of an Industrial Market: Difficulties and Opportunities." Small Firms Association, 8:3 2002

Ryan, P., Giblin, M., & Walshe, E., "From subcontracted R&D to joint collaboration: the role of trust in facilitating this process" International journal of Innovation and Technology Management, vol. 1, no. 2 pp. 205-231 2004

Ryan, P.; Giblin, M. and Green, R. "Industrial Clusters - the Role of Organisations and Institutions," Innovation and the Knowledge Economy. Playford Publication, 2003, 309-32.

Book chapters:

Cunningham, J., Green, R., Duggan, I., Giblin, M., Moroney, M., and Smith, L., Boundaryless Clusters: Information and Communication Technology in Ireland, OECD, Paris, Chapter 3, pp 47-64 2001

Martinez, L., Technology spillovers between EU MNCs and Mexico�: Steps Towards Local Sustainable Development, Zagreb International Review of Economics & Business, ISSN 1331-5609, 2002, Croatia.

Martinez, L., Technology spillovers between EU MNCs and Mexico�: Steps Towards Local Sustainable Development, Zagreb International Review of Economics & Business, ISSN 1331-5609, 2002, Croatia.

Ryan, P., Giblin, M. and Green, R. "Industrial Clusters The Role of organisations and Institutions", in Innovation and the Knowledge Economy, eds Genoff, R. and Sheather, G.; Adelaide: Playford Publication, pp 309-332, 2003

Reports, monographs, working papers etc:

Hilliard, R., and Green, R., 'Governance and Institutional Change in Ireland' In S. Remoe (ed.) Governance of Innovation Systems. Paris: OECD.

Martinez, L., Hydrodynamic study about pollution dispersion in lakes (in Mexico)�, financed by the PEMEX, 1994.

Martinez, L., Hydrodynamic study about pollution dispersion in lakes (in Mexico)�, financed by the PEMEX, 1994.

Martinez, L., Knowledge-Intensive Service Activities (KISAs) in the Irish Software Sector�, Directorate for Science, Technology and Industry, Committee for Scientific and Technological Policy, Paris, 2005. Details >>

Martinez, L., Knowledge-Intensive Service Activities (KISAs) in the Irish Software Sector�, Directorate for Science, Technology and Industry, Committee for Scientific and Technological Policy, Paris, 2005. Details >>

Martinez, L., Management techniques to improve the quality of lakes and reservoirs (in Mexico)�, financed by CFE, 1995.

Martinez, L., Study about the hydrodynamic and sedimentation process of the Agua Prieta Lake�, Mexico, financed by PEMEX, 1994.

Martinez-Solano, L. "Knowledge-Intensive Activities (Kisas) in the Ict and Health Care Sectors in Ireland," OECD, Paris, Prague, 2002/2003.

Martinez-Solano, L. Giblin, M. and Walshe, E. "Knowledge -Intensive Service Activities in the Irish Software Industry." 2003.

Martinez-Solano, L., Giblin, M., Walshe, E., 'KISAs in the Irish Software industry: country report for the OECD KISA project 2002-2005' OECD Report, March 2005

Martinez-Solano, L.; Giblin, M. and Walshe, E. "Kisa's Oecd Project Step 3: Irish Software Industry," OECD KISA Meeting. Paris, 2003.

Conference papers/presentations:

Ambrose, E., and Fynes, B., 'Trust in Supply Chain Relationships - Issues of Measurement' Proceedings of the 3rd EIASM Workshop on Trust Within and Between Organisations, Brussels, October 2005

Cunnigham, J., Moroney, M., The Paths of Innovation in High Growth SMEs, 32nd EISB Conference, Sophia Antipolis-Nice, France 2002

Cunningham, J., Green, R., Duggan, I., Giblin, M., Moroney, M., and Smyth, L., Boundaryless Clusters: Information and Communication Technology in Ireland, Irish Academy of Management, University of Ulster 2001

Cunningham, J., Pandya, D., and O'Reilly, P., Barriers and Stimulants for Increasing Research Commercialisation Through Spin-offs and Intellectual Property in Irish Higher Education Institutions, 23rd R&D Conference, University College Dublin 2001

Cunningham, J., Pandya, D., and O'Reilly, P., Commercialisation of Non-Commissioned Research in Ireland's High Technology and Food Sectors, Irish Academy of Management, University of Ulster 2001

Cunningham, J., Pandya, D., and O'Reilly, P., Strategies for Increasing Research Commercialisation through Spin Offs, 31st European Small Business Seminar, Dublin Institute of Technology, 2001

Fahy, J., & Ryan, P., "Individualisation and the global marketplace" IAM ConferenceSchool of Business, Trinity College, September 2004 Oral Presentation National

Fynes, B., & de Burca, S., 'The Competitive Environment and Supply Chain Performance' Proceedings of the 9th Logistics Research Network Conference, Dublin 2004

Fynes, B., & de Burca, S., 'The Impact of Supply Chain Relationship Dynamics on Manufacturing Performance' Proceedings of the 2nd CEMS Logistics Conference, Riezlern, 2005

Fynes, B., and de Burca, S., 'The Effects of Supply Chain Dynamics on Manufacturing Performance' 10th International Symposium in Logistics, Lisbon, July 2005

Fynes, B., de Burca, S., & Ambrose, E., "A Contingency Model of Supply Chain Relationship Quality", the Competitive Environment and Performance 11th EurOMA Conference, INSEAD, Fontainbleu 2004 Oral Presentation International

Fynes, B., de Burca, S., and Ambrose, E., 'An Empirical Study of Environmental Context, Firm Characteristics and Quality Management in Irish SMEs', 12th EurOMA Conference, Budapest, June 2005

Geoghegan, W., 'A framework for a strategic repositioning strategy: a case study of Bulmers original cider' European Academy of Management Conference (Munich, March 2005)

Giblin, M. "Atlantic Technology Corridor: Dynamics of Cluster Development in Ireland.," Irish Academy of Management Conference 2002 - Boundaries and Interfaces in Management. Waterford Institute of Technology, 2002.

Giblin, M., "Business Clusters in the Atlantic Technology Corridor" Atlantic Gateways Seminar (November) Oral seminar presentation National

Giblin, M., "National Context for Innovation" Guest Lecture for Masters of Business Studies class at NUI Galway (October) Guest Lecture National

Giblin, M., Ryan P., Moroney, M., "Strategic business networks in industrial clusters", EUNIP Conference, 18th-20th September 2003, Porto, Portugal.

Giblin, M., Ryan, P., & Walshe, E., "From vertical R&D outsourcing to joint collaboration: the role of trust in facilitating this process" IAM Conference 2003 - Management Theories and Practices in the 21st Century: Time for Reflection?, 2nd-3rd September 2003, Smurfit Business School, UCD.

Giblin, M., Walshe, E., & Martinez-Solano, L., The role of knowledge intensive business service activities in the innovative capability of the Irish software sector IAM Conference 2004 (September) Oral Conference Presentation National

Green, R., & Fahy, J., �Regional Innovation Systems and Public Policy�, International Conference on �The Role of Government in Regional Economic Development�,University of Vigo, Spain, September 2005.

Green, R., Curran, D., 'Assessing the likely impact of the information and consultation regulations on employee voice in the Irish workplace' Irish Academy of Management, GMIT, Galway, September 2005

Hilliard, R., 'Dynamic capability, the pharmaceutical industry and technical change' European Academy of Management, May 2005

Hilliard, R., 'Global Knowledge Management: The Irish Experience' Irish Academy of Management, September 2005

Hilliard, R., 'In Search of Search Routines' Second Routines Workshop, IDEFI, Nice, January 2005

Hilliard, R., 'Innovation policy governance and institutional change in Ireland' DRUID Summer Conference on Dynamic of Industry and Innovation Copenhagen, June 2005

Hilliard, R., 'Innovation Policy Governance In Ireland: The Problem of Coherence In An Emerging National Innovation System', Irish Academy of Management, June 2005

Martinez-Solano, L. "Es Posible Un Modelo De Desarrollo Para Canarias (Espana) La Atraccion De Inversiones Technologicas," Symposium. Fundacion Universitaria de las Palmas, Gran Canary, 2003.

Martinez-Solano, L. "Multinationals & Local Economic Development: Lessons from Mexico and Ireland," 99th Annual Meeting of the Association of American Geographers (AAG). New Orleans, 2003.

Martinez-Solano, L. "The Participation of the European Subsidiaries in the Regional Networks of Innovation in Mexico," International Conference 2002 Enterprise Odyssey: Economics & Business in the New Millennium:. University of Zagreb, Zagreb, 2002.

Martinez-Solano, L. 2003e. "Multinationals & Local Economic Development: lessons from Mexico and Ireland." 99th Annual Meeting of the Association of American Geographers (AAG): New Orleans.

Martinez-Solano, L., Giblin, M., Walshe, E.,"KISAs OECD Project Step 3: Irish Software Industry", Presentation at the OECD KISA meeting, Paris, December 7th - 8th 2003

Ryan, P. and Martinez-Solano, L. "FDI Impact on Emerging Economies and Technology Embeddedness: Contrasting Lessons from Ireland and Mexico," Strategic Management Society Conference. Hong Kong, 2003.

Ryan, P. and Moroney, M. "Industrial Clusters: The Role of Organisations and Institutions," SEGRA Conference - Innovation in Europe: Dynamics, Institutions and Values. Roskilde University, Denmark, 2003.

Ryan, P. and Walshe, E. "Horizontal Research Collaborations: The Role of Trust in Facilitating Cooperation," Irish Academy of Management Conference 2003 - Management Theories and Practices in the 21st Century: Time for Reflection:. Smurfit Business School, University College Dublin, 2003.

Walshe, E., 'Collaborative R&D Relationships' MBS in Corporate Strategy guest lecture, October 2005

Walshe, E., 'Trust Within and Between Organisations' EIASM 3rd Workshop, October 2005

Walshe, E., Giblin, M., Ryan, P., 'R&D Outsourcing: a growth strategy for the SME as a vendor company' EUNIP 2004 Conference, December 2004

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