Industry Cluster Types and Firm Performance: An Empirical Analysis of the Oil and Gas Extraction and the Bio-Medical Industries

摘要

This paper is an empirical analysis of two types of industry clusters: clusters that arise exogenously due to natural advantages, and endogenously formed clusters. The Oil and Gas industry was chosen as an industry that would have exogenously clustered near natural resources. The Bio-Medical industry was chosen as an industry that would have clusters that formed endogenously. The evidence suggests that these two industries have clusters that experience very different firm performance gains and losses in comparison to other non-clustered firms in their industries. The Oil and Gas industry has positive performance and growth associated with firms inside clusters. The Bio-Medical industry has negative performance and growth associated with firms inside clusters.