Catch-up Via Agglomeration: A Study of Township Clusters

This study examines whether the premises of inter-firm competition and cooperation on cluster performance outcome hold true in the context of China. By examining 87 township clusters in Jiangsu Province, we find that cluster performance is co-determined by the intensity of inter-firm competition and cluster innovativeness. Our results also show that the cluster\u27s competitive intensity mediates the relationship between cluster size and cluster performance, and that a cluster\u27s R&D centers and inter-firm joint actions positively affects a cluster\u27s innovativeness, which in turn contributes to cluster performance. These findings not only provide additional support for strategy theories about clusters in a new context, but also shed novel insights into the unique phenomenon of Chinese township clusters