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Cluster Dynamics and Regional Networks

Regional clusters and their competitive advantages have attracted growing research and policy focus. This chapter reviews cluster dynamics, regional advantages, and the talent flow amongst the leading innovation hubs, notably Silicon Valley, and new emerging hubs in newly industrializing economies. In exploring cluster dynamics, cultures, and networks, the chapter compares Silicon Valley and Route 128, the leading innovation hubs, in the United States. It provides an alternative network approach to examine and explain the dynamics of industrial hubs and cluster dynamics. It also shows that economies of the periphery (such as Hsinchuu Science Park in Taipei) can rely on strategies of talent circulation and brain gain through collaboration with leading innovation hubs. Through a comparative study of firms in Silicon Valley and Route 128, the chapter explains the uneven performance between the two regional hubs, and provides new insights on regional clusters. This has implications for countries exploring effective policy mechanisms for cluster dynamics to develop technological capabilities. The review focuses on a particularly significant period, the 1970s to 1990s.