Economic Structure and Regional Performance in Germany, 2002-2007
This paper explores the impact of industrial clusters on regional growth at the German labour market region level using a regional convergence model. Based on the results of an exploratory study of the geography of German industrial clusters, we are able to differentiate the impact of industrial clustering from a horizontal and a vertical perspective while taking regional convergence into consideration. The results indicate that in addition to an all-German process of convergence, a specific East German one can be identified. The different types of industrial clusters show mixed effects within this framework. While vertically isolated industrial clusters have a negative impact on regional growth in this period, positive growth effects can be identified when industrial clusters show an intra-regional vertical interconnectedness.
