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214 Bibliography
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215
Index
agglomeration, 2–5, 21–3, 35,
80, 112
see also clusters; industrial districts
Aleppo, 118, 122
Amin, A., 10, 11–12, 18–19, 81, 164,
196n, 197
Arthur, W. B., 17–18, 159, 197
Australia, 28
Babadag, 84, 100–2, Figure 5.2, 104,
105, 162
Baden Württemberg, 19, 169, 170
Baum, J. A. C., 20–1, 161, 198

Becattini, G., 14–15, 162, 198
Belgium, 114, 126, 132, 133, 167
brand-building, 100, 111–12, 125,
132–3, 166, 167–8
British Columbia, 30
Brusco, S., 9, 14–16, 160, 162, 199
bureaucracy, 41, 74, 99, 100, 127,
148
Bursa, Table 3.4, 52, 61, Table 4.2,
84–5, 86, 102, 103, 105, 137,
Figure 7.2, 138, 149
buyer–supplier relations, 21, 29,
103, 123, 130–1
see also subcontracting;
transaction costs
Byzantine Empire, 86, 192n
Canada, 27, 28, 30, 32, 34, 60,
Table 4.1
case study approach, 55–6, 187n
chance events, 17–18, 25, 36, 79,
105, 129, 148, 151, 158–9
China, 34, 60, Table 4.1, 84, 91,
110, 114, 135, 136, 144, 146,
147, 155, 167, 194n
CIS (Commonwealth of
Independent States), 61,
114, 132, 136, 190n
clusters
big cities v. small cities, 170–1
boundaries, 46–7

costs and benefits, 1–2, 79–81,
106–7, 130–2, 152–5, 160–3
definitions, 8–11
developed countries, 5–6
developing countries, 6–8
dissolution, 18–19, 112–13
emergence, 17–18, 26–7, 63–4,
85–8, 100–6, 136–8, 149–52,
158–9
industrial organization, 22–3
magnetic nature, 34, 107–9, 154,
162, 169
market-like nature, 3, 74, 108,
151, 153, 160
scope, 47–8
self-disciplining nature, 22,
106–7, 160
self-reinforcing nature, 25, 34,
107–9, 129, 130–1, 154,
162, 169
transformation, 79–81, 113,
132–3, 145–6, 155–6,
167–8
types, 9, 22–3, 164
see also under individual names
cluster initiatives, 169–70
collective learning, 16, 19, 160, 162
competition
destructive, 18, 71, 72, 81, 124,
131, 145, 161

in-cluster, 20–1, 23–4, 25, 29, 30,
70–1, 95–6, 106, 124, 131,
145, 152, 154, 160–1, 165–6
the carpet cluster, 124, 131
the furniture cluster, 70–1
the leather clothing cluster, 145,
152, 154
the towel/bathrobe cluster,
95–6, 106
see also local competition; price
competition
construction industry, 44, 63,
65, Table 4.3, Figure 4.1, 73,
77, 79, 158, 165, 188n
216 Index
cooperation, 14–16, 19, 160,
164–5
the carpet cluster, 123–4, 130–1
the furniture cluster, 70–1
the leather clothing cluster, 145,
152–4
the towel/bathrobe cluster,
95, 106
cooperatives, 87, 189n
costs
energy costs, 69, 91, 93, 123, 144
labour costs, 68, 71, 81, 90–1,
96, 109–11, 122, 144,
155, 167
transaction costs, 13, 15, 22, 24,

160, 161
cotton, 85–6, 88, 90, Figure 5.1,
104, 109
Coventry, 29
cross-border trade, 114, 128,
158–9, 165
culture, 14, 30
cutlery, 58, Table 5.1, 88, 190n
De Ottati, G., 18, 22, 161, 200
design, 68, 71, 82, 123, 125, Figure
6.2, 127, 131, 133, Figure 7.3,
146, 155
diamond framework
applications, 27–30
critiques, 30–6
elements, 25–6
empirical tests, 27–30
diversification, 41, 70, 112,
123–4, 145
dispersion, 18–19, 46
domestic rivalry
the carpet cluster, 124, 131
the furniture cluster, 70–1
the leather clothing cluster, 145,
152, 154
the towel/bathrobe cluster,
95–6, 106
Dunning, J. H., 23, 33–5, 166, 201
dyes, 84, 85, 86, 96, 98, 102, 106,
119, Figure 6.2, 126, 147, 154

economic geography, 3, 5
economic development, 3, 26–7,
35–6, 168–71
Emilia-Romagna, 15, 185n
see also Italy; Santa Croce; Third
Italy
energy, 69, 91, 93, 123, 144
Enright, M., 3, 4, 5, 18, 22, 26, 45,
46, 47, 184n, 187n
entrepreneurship, 7, 9, 10, 12, 21,
26, 31, 93–4, 100, 101–2, 104–5,
107–9, 129–30, 133–5, 149–51,
152–3, 154, 158, 159, 162–3,
164–6, 187n, 190n, 192n
see also family business
environmental regulations, 148,
152, 156, 157, 171
envy, 94, 160
Eraydin, A., 48, 52, 91, 95, 96, 104,
108, 110, 113, 118, 122, 124,
125, 128, 132, 133, 201
European Union (EU), 32, 39, 40,
45–6, 60, 61, 84, 103, 114, 127,
147, 148, 155–6, 190n, 194n
family business, 41, 70, 92–3, 123, 145
FDI (foreign direct investment), 23,
26, 33–5, 169, 186n
fellow citizenship, 93, 95, 102,
104, 106, 108, 122, 129,
130, 154, 162

financing, 69, 74, 82, 91, 98–9,
109, 122–3, 132, 144, 192n
flexible specialization, 12–14, 81,
161, 164, 195n–6n
food/beverages, 42, Table 3.1, 44,
62, 88, 112, 117–18, 130, 189n
footwear, 7, Figure 1.2, Figure 1.3,
10, 11, 16, 30, 88, Table 5.1,
118, Table 6.2, 130, 133, 137,
138, Table 7.1, 146, Figure 7.3,
147, 149, 150, 153, 165, 184n,
187n, 190n, 192n, 193n–4n,
195n
Fordism, 12–14, 21
France, 47, 66, Table 4.1, 61, 84,
119, 125, 136, 146, 154
fur industry, 147
fuzzy methods, 54–5, 183, 187n
game theory, 150, 163, 185n
GAP (South-Eastern Anatolian
Project), 118–19, 127
Index 217
Germany, 5, 47, 60, Table 4.1, 61,
69, 73, 84, 85, 87, 88, 91, 104,
105, 114, 119, 126, 136, 144,
145, 170, 184n, 186n, 190n,
191n, 192n
Granovetter, M., 15, 162, 203
Grant, R. M., 30, 31, 203
grey economy, 40, 74, 99, 123,

135, 148–51, 162–3
Haveman, H. A., 20–1, 161, 198
historical accidents, 17–18, 25, 36,
79, 105, 129, 148, 151, 158–9
Hollywood, 12, 184n
see also Yesilçam
Hong Kong, 28, 186n
human resources, 31, 74, 87, 91,
96, 104, 111, 113, 145, 151
see also labour costs
imitation, 71, 81, 96, 107, 111, 123,
131, 161, 167–8
see also information spillovers;
competition
India, Figure 1.3, 84, 91, 110, 114,
119, 135, 136, 146, 155, 156,
167, 194n
industrial districts
definitions, 8–11
examples, 9, 11, 184–5
types, 9, 11–12
industry associations, 70, 94, 95,
100, 104, 124, 145
see also cooperatives
information spillovers, 2, 16, 21,
22, 23, 24, 25, 26, 29, 70–1,
72, 81, 95–6, 106–7, 124, 125,
131, 145, 160, 161, 162, 165,
187n, 188n
see also knowledge

infrastructure, 69, 91, 104, 123, 127,
154–5, 171
inner cities, 36
innovation, 1, 10, 15, 16–17, 19, 24,
26, 27, 31, 94, 106, 107, 125,
160, 161, 162, 185n
see also information spillovers;
R&D; technology
international business, 23, 32, 33–5,
41–4, 52–4, 60–1, 81, 82, 84–5,
87–8, 98, 102, 105, 114, 119,
135, 145, 149–51, 164–5, 166
international demand, 105, 116,
132, 149–51, 153, 155–6,
159, 166
Ireland, 27–8, 28–9, 34, 186n
Italy, 5, 6, Figure 1.2, 11–12, 13,
14, 15, 19, 30, 60, Table 4.1,
61, 73, 84, 88, 91, 109, 112,
114, 119, 125, 135, 136,
144, 147, 153, 155, 156,
162, 164, 170, 184n, 185n,
190n
see also Emilia-Romagna; Third
Italy; Santa Croce
Izmir, 37, 48, Table 3.4, 52, 61,
Table 4.2, 84, 86, 87, 91, 103,
104, 107, Figure 6.1, 116, 118,
119, Figure 7.2, 138, 148, 149,
152, 156, 160, 187n, 189n,

191n, 192n, 195n
Japan, 5, 9, 10, 21, 23, 32, 61, 88,
125, 167, 185n, 191n
jewellery, Figure 1.1, Table 7.1, 194n
just-in-time (JIT), 10, 21, 185n
Kazliçesme, Figure 7.1, 136–8, 148,
149, 152–3, 154
knowledge, 2, 14–15, 16–17, 23, 24,
27, 79, 81, 104, 108, 160, 162,
165, 187n
codified, 14–15, 17
tacit, 14–15, 17, 160, 162
see also information spillovers
KOSGEB, 64, 71, 73, 104, 125,
188n, 189n, 193n
Krugman, P., 5, 17, 46, 79, 102,
129, 151, 158, 184n, 185n,
187n, 205
labour costs, 68, 71, 81, 90–1, 96,
109–11, 122, 144, 155, 167
Laleli, 58, Figure 7.1, 135, 148,
149–51, 162–3
learning region, 16–17, 19, 160,
162, 165
local competition, 20–1, 161
the carpet cluster, 124, 131
the furniture cluster, 70–1
218 Index
local competition – continued
the leather-clothing cluster, 145,

152, 154
the towel/bathrobe cluster,
95–6, 106
see also competition; price
competition
local networks, see networks
location quotient (LQ), 45, 46,
48, 186n
lock-in, 17–18
London, 10, 29
Lösch, A., 2–3, 206
machinery, Figure 1.2, Table 3.1, 44,
73, 96, Figure 5.1, 98, Figure 6.2,
118, 126, 129, Figure 7.3,
147, 192n, 195n
marketing, 21, 24, 26, 58, 70, 72,
74, 82, 87, 91, 92, 102, 106, 111,
133, 135, 156, 162, 169, 190n
Markusen, A., 9, 35–6, 164, 206
Marshall, A., 1–2, 9, 10, 12, 14, 17,
155, 158, 206
methodology, Figure 3.4, 159
cluster analysis, 55–7
fuzzy methods, 54–5, 183, 187n
geographic clusters, 45–8
international competitiveness,
41–2
Mexico, 7, 34
milieu approach, 16–17, 185n
multinational enterprises (MNEs),

5, 6, 10, 12–13, 23, 27–8, 30,
32, 33–5, 92, 96, 135
Nadvi, K., 6, 7, 170, 185n, 207
Nazilli, 93, 107–8
networks, 10–11, 12, 15, 16, 21–2,
23, 24, 58, 106, 107, 129,
149–51, 161, 166, 185n
definitions, 10–11
social v. business, 15, 16, 22, 185n
transnational, 12, 149–51
new economic geography, 5
New Hampshire, 29–30
New Zealand, 27, 28
OECD, 31, 91
oral history, 159
organization theory, 20–3
Ottoman Empire, 37, 86, 87, 102,
116, 117–18, 126, 136, 147,
152, 190n, 193n, 195n
Pakistan, 7, 84, 91, 103, 110, 114,
136, 144, 146, 155, 156, 167
Perroux, F., 3, 10, 208
political cultures, 14–16
population ecology, 20–1
Porter, M. E., 5–6, Figure 1.1, 10, 11,
20, 25–36, 41, 70, 79, 112, 155,
156, 158, 160, 162, 166–7,
169, 170, 208–9
price competition, 71, 80–1, 82, 106,
125, 131, 145, 155–6, 161,

165–6
productivity, 4, 13, 26, 29, 35, 56,
92, 162, 167
Putnam, R. D., 15, 209
quality, 1, 13, 67, 71, 73, 74, 79–80,
82, 86, 88, 92, 94–5, 96, 100,
102, 104, 105, 106, 108, 109,
110–11, 118, 119, 124, 125,
132–3, 138, 144, 145, 147,
151, 152, 153, 155–6, 168
Ragin, C. C., 54–5, 183, 187n
R&D, 5, 94, 105, 124, 126, 147,
188n, 189n
see also innovation; technology
regional policy, 3, 6, 35–6, 87, 99,
118, 127, 148, 163, 168–71,
188n, 189n
see also GAP (South-Eastern
Anatolian Project)
regional theories, 3–4
Route 128, 10, 22–3
Rugman, A. M., 5, 30, 32, 33–5,
166, 210
Russian Federation, 40, 61, 73, 110,
114, 132, 136, 145, 146, 147,
148, 150–1, 155–7, 162–3,
190n, 194n
Santa Croce, Figure 1.2, 10, 11–12
see also Emilia-Romagna; Italy;
Third Italy

Saxenian, A., 10, 22–3, 160, 210
Index 219
Schumpeter, J. A., 3, 16, 185n, 210
shoes, see footwear
Silicon Valley, 9, 10, 15, 16, 17,
22–3, 47, 163, 184n, 186n
Siteler, 62, 63–5, 68, 69, 71, 73, 74,
Table 4.4, Table 4.5, Table 4.6,
Table 4.7, Figure 4.2, 80, 188n
spillovers, see information spillovers
social capital, 15, 162–3
social networks, see networks
Storper, M., 14, 16, 17, 159, 212
subcontracting
the carpet cluster, 123–4, 131,
164, 166, 192n
the furniture cluster, 70, 72, 77,
82, 164, 166
the leather-clothing cluster, 145,
152, 153, 164, 166, 195n
the towel/bathrobe cluster, 87, 92,
95, 103, 104, 106, 107, 108,
112, 164, 166, 191n
see also buyer–supplier relations;
transaction costs
Sümerbank, 87, 102, 117, 127, 138,
190n, 192n
Switzerland, 5, 47, 88, 136, 185n
Syria, 119, 125, 158–9
see also Aleppo

tacit knowledge, see knowledge
technology, 4, 10, 16–17, 22–3, 24,
26, 27, 82, 84, 94, 104, 110, 119,
122, 124, 126, 132, 145, 147,
153, 167, 185n, 186n, 191n
see also information spillovers;
innovation; knowledge; R&D
Third Italy, 6, 11, 12, 13, 19,
162, 170
see also Italy; Emilia-Romagna;
Santa Croce
tourism, 88, Figure 5.1, 98, Figure
7.3, 146, 147, 149, 165
Trabzon, 151
transaction costs, 13, 15, 22, 24,
160, 161
see also buyer–supplier relations;
subcontracting
transportation, 2, 4, 21, 42, 72, 79,
96, 98, 104, 106, 108, 118, 123,
128, 131, 144, 149, 151, 155,
156, 160, 194n
triad, 32
Toyota, 9, 21
trust, 14–16, 150, 162–3
TÜSIAD, 38, 41
Tuzla, 58, Figure 7.1, 148, 149, 156
UK, 5, 24, 60, Table 4.1, 61, 84,
114, 116, 119, 125, 136,
154, 184n, 191n

untraded interdependencies,
17, 19
urbanization, 4, 36, 58, 154–5,
170–1
USA, 5, Figure 1.1, 29–30, 60, Table
4.1, 61, 63, 84, 103, 105, 111,
114, 119, 129, 136, 184n,
186n, 191n
see also Hollywood; New
Hampshire; Silicon Valley
Verbeke, A., 5, 30, 32, 33–5,
166, 210
Weber, A., 2, 213
World Bank, 38, 40
yarn, 87, Figure 5.1, Table 5.2, 107–8,
119, 125–6, Figure 6.2, 129,
133, 158, 191n, 192n
Yesilçam, 194n
Zeytinburnu, 58, Figure 7.1, 145,
149, 151