Buzz‐and‐Pipeline Dynamics: Towards a Knowledge‐Based Multiplier Model of Clusters

Abstract This article critically reviews the idea that regional prosperity and growth are heavily dependent on regional industry networks. In contrast with this view, a cluster approach is presented which emphasises both the need for close local networks and strong extralocal or global linkages. The approach argues that local interaction or ‘buzz’ and interaction through translocal ‘pipelines’ create a dynamic process of learning, knowledge production and innovation that is central to understand a cluster's success. Based on a reflexive relationship between local and non‐local knowledge flows, this approach is interpreted as a knowledge‐based extension of regional multiplier models that have been intensively discussed in regional economics since the 1960s. The buzz‐and‐pipeline conception suggested here aims to overcome problems of these models by providing a microscale explanation of regional growth processes.