New Publication on Linkage between FDI and Cluster organisations in Life sciences

October 2015

In this October, the new publication whose title is The competitive advantage of clusters: Cluster organisations and greenfield FDI in the European life sciences industry has been released on Geoforum, one of the renowned international journals on human geography and other related discussions. The article is a joint research project of a group of scholars in development and strategy from Erasmus University Rotterdam, including Prof Dr van Eenennaam from the NIC.

Delving in the linkage between FDI and cluster in the industry of life sciences, the authors emphasised the essential impact on international competitive advantages of the cluster development, yet not the cluster organisations, that the EU has experienced in the industry. Data was gathered and analyzed to examine if there exists the correlation between the policies that fosters cluster organisations and the growth of FDI figure, especially the investment among multinational corporations. The conclusion rather contradicts to the policy attempt to attract for FDI: There is such a weak and small effect of cluster organisations on the attractiveness to FDI in the industry. Consequently, the role of cluster organisations in enhancing FDI in the industry, especially in the high value-added investments, can be questioned to policy-makers.

The study contributes insights for policy-makers in the EU and its nation members to review and revisit the regional development strategy with cluster approach. The author concluded that public funds which have been allocated to cluster organisations can be reconsidered and channeled to other activities that can bring more effect in attracting FDI.