Question 1

Gossip is one example of the numerous mechanisms for transferring tacit knowledge that do not depend on _______________ relationships between two firms.

Accepted Answer

Gossip, as an informal mechanism, can facilitate the transfer of tacit knowledge without relying on any formalized, legal, or contractual relationships between firms. This is because gossip can occur outside of these structured frameworks, relying instead on informal communication channels.

Question 2

When discussing institutional thickness at the regional scale, the term "institution" is used to refer to a wide variety of ___________ organizations that are an integral part of regional economies.

Accepted Answer

The term "institution" in the context of institutional thickness refers to non-firm organizations such as government agencies, educational institutions, and other entities that contribute to the economic and social fabric of a region.

Question 3

Regions endowed with a beneficially "thick" range of institutions engender ______________ economic cultures and a strong regional capacity for innovation.

Accepted Answer

Regions with a "thick" range of institutions typically foster dynamic economic cultures and a strong capacity for innovation, contrary to the negative connotations of options A, B, and C.

Question 4

Institutional thickness is constituted by which of the following elements:

Accepted Answer

Institutional thickness refers to the presence and interplay of multiple factors that contribute to the robustness and effectiveness of institutions within a region. This includes not just the variety and number of institutions focused on regional growth (A), but also how well these institutions collaborate (B), and their ability to collectively advocate for the region at higher levels of governance (C). Thus, all the options (A, B, and C) are components of institutional thickness, making D the correct answer.

Question 5

A positive outcome of institutional thickness will be a regional economy characterized by:

Accepted Answer

Institutional thickness, characterized by strong, interconnected institutions, leads to a regional economy that is adaptable (flexible institutions), innovative (ongoing innovation), and cohesive (high levels of trust), thus all of the options (A, B, C) are positive outcomes.

Question 6

This term is used by some geographers to describe successful territorial ensembles of production and innovation.

Accepted Answer

Learning regions are indeed used by some geographers to describe successful territorial ensembles of production and innovation, emphasizing the role of local knowledge and learning processes in regional development.

Question 7

This is an example of an important regional institution that contributes to institutional thickness at the regional scale:

Accepted Answer

Universities, chambers of commerce, and technology-promotion agencies all contribute to institutional thickness by providing networks, resources, and support that enhance the economic and social fabric of a region.

Question 8

These types of clusters provide business service activities such as financial services, advertising, law, accountancy, and so on, and are often concentrated in the central districts of leading or "global" cities.

Accepted Answer

Business service clusters are specifically designed to provide business service activities such as financial services, advertising, law, accountancy, etc., and are typically found in the central districts of major or "global" cities.

Question 9

This disparate category of clusters has developed due to the location decisions of government facilities, such as universities, defense industry research establishments, prisons, and government offices.

Accepted Answer

State-anchored clusters are those that develop around government facilities and services, such as universities, defense industry research establishments, prisons, and government offices, due to their location decisions.

Question 10

The theater districts of the London's West End and New York's Broadway offer specific examples of this type of cluster, as do the many retail and entertainment districts of Tokyo (e.g., Shibuya) and Shanghai (e.g., Xin Tian Di).

Accepted Answer

These are examples of consumption clusters, where businesses are grouped together to attract a large number of consumers for entertainment, shopping, and dining, rather than being centered around production or business services.

Question 11

These types of clusters are often found in industries such as clothing, where work is characterized by sweatshop conditions and often very high levels of immigrant labor. Firms are involved in tight subcontracting networks, and may also use home-workers.

Accepted Answer

Labor-intensive craft production clusters are characterized by sweatshop conditions, high levels of immigrant labor, tight subcontracting networks, and the use of home-workers, which aligns with the description provided.

Question 12

These clusters are characteristic of "new" after-Fordist sectors such as computers and biotechnology. These clusters tend to have a large base of innovative small and medium-sized firms and flexible, highly-skilled labor markets.

Accepted Answer

High-technology innovative clusters are characterized by a large base of innovative small and medium-sized firms and flexible, highly-skilled labor markets, which is typical of sectors like computers and biotechnology.

Question 13

In these clusters, a single large firm, or small group of large firms, buys components from an extensive range of local suppliers to make products for markets external to the cluster. These clusters represent the spatial logic of just-in-time production systems.

Accepted Answer

Flexible production hub-and-spoke clusters are characterized by a central firm (or a small group of firms) that sources components from a wide array of local suppliers. This setup is integral to just-in-time production systems, where the goal is to reduce inventory costs and increase production efficiency by receiving goods only as they are needed in the production process.

Question 14

These clusters represent congregations of externally owned production facilities. These range from relatively low-tech assembly activity, through to more advanced plants with research capacity, but all are relatively stand-alone.

Accepted Answer

Production satellite clusters are characterized by the presence of externally owned (often by multinational corporations) production facilities that are relatively stand-alone, ranging from low-tech assembly to more advanced plants with research capacity.

Question 15

These refer to dense agglomerations of small and medium-sized firms specializing in the high-quality production of a particular good or service. They are characterized by a highly disintegrated production system in which individual firms perform specialized and narrowly defined roles.

Accepted Answer

Design-intensive craft production clusters are characterized by dense agglomerations of small and medium-sized firms specializing in high-quality production, with a focus on specialized and narrowly defined roles within a disintegrated production system.

Question 16

Geographical dispersion creates different challenges of _________________ for firms.

Accepted Answer

Geographical dispersion of a firm's operations creates challenges in integration, coordination, and management. Integration involves combining different parts of the business to work together effectively. Coordination is necessary to ensure that different units or departments are working towards the same goals and in sync with each other. Management challenges arise in overseeing diverse operations across different locations, each with its own local issues and dynamics.

Question 17

Clusters essentially act as centers of __________________ transfer and control within wider global networks.

Accepted Answer

Clusters are often seen as centers of tacit knowledge transfer and control, as they facilitate the exchange of non-codified, experiential knowledge through close interactions and networks.

Question 18

This term describes nearness created through operating within the same legal and institutional frameworks as others (e.g., within the German economy and the EU).

Accepted Answer

Institutional proximity refers to the closeness or similarity between entities based on shared institutional frameworks, such as laws, regulations, and norms. Operating within the same legal and institutional frameworks, such as those within the German economy and the EU, exemplifies institutional proximity.

Question 19

This is a type of nearness engendered through both written rules and codes, and unwritten ways of doing things within a particular firm or institution (e.g., the corporate culture of a large transnational firm).

Accepted Answer

Organizational proximity refers to the closeness created by both formal rules and informal practices within a firm or institution, such as corporate culture.

Question 20

This type of nearness is derived from a shared cultural heritage and linguistic background (e.g., the Irish, Jewish, or Chinese diasporas).

Accepted Answer

Cultural proximity refers to the closeness between people or communities based on shared cultural backgrounds and languages, as exemplified by various diaspora communities.

Quiz 12: Clusterswhy Do Proximity and Place Matter