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Measuring relatedness in a multisectoral cluster: an input–output approach

ABSTRACT Studies in evolutionary economic geography have found that knowledge spillovers, crucial for the development and maintenance of clusters, tend to flow between sectors that are related via similar inputs and/or outputs. Thus, there is a growing body of literature stating that industrial variety within clusters is beneficial for economic growth, whereby local industrial diversity sparks creativity, new ideas and innovations. Within this context, the Irish Maritime and Energy Resource Cluster (IMERC) is a diverse, multisectoral cluster. Using an Input–Output table this paper examines the intra-cluster linkages, as well as the relatedness in terms of inputs and outputs across the four IMERC pillars: Marine Energy; Shipping, Logistics and Transport; Maritime Safety and Security; and Yachting Products and Services. This analysis found that although IMERC has weak intra-cluster linkages, the four pillars share a high number of related inputs and outputs. Based on this analysis, IMERC has the potential to develop into a strong maritime cluster.