Cluster presence and economic performance: a new look based on European data

This paper takes a fresh empirical look at how cluster presence matters for economic performance. It analyses a new data set developed for the European Cluster Observatory to assess the impact of clusters on industry-level wages and regional prosperity. It is found that industry-level wages are associated with industry- and surrounding-cluster agglomeration levels to a similar degree. For regional prosperity, cluster portfolio strength is found to matter, while the specific mix of clusters is insignificant once business environment conditions are accounted for. The data show a meaningful relationship between clusters and economic outcomes, independent of other locational qualities.