This paper by Christian Ketels and Sergiy Protsiv takes a fresh empirical look at how cluster presence matters for economic performance.

It analyses a new data set developed for the European Cluster Observatory to assess the impact of clusters on industry-level wages and regional prosperity.

It is found that industry-level wages are associated with industry and surrounding-cluster agglomeration levels to a similar degree.

For regional prosperity, cluster portfolio strength is found to matter, while the specific mix of clusters is insignificant once business environment conditions are accounted for.

The data show a meaningful relationship between clusters and economic outcomes, independent of other locational qualities.

Read the full article here. Open access courtesy of Stockholm School of Economics.

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