This book analyses the effectiveness of policies adopted in cluster promotion, using complexity thinking and evolutionary economic geography approaches. It studies cluster dynamics in transition economies, exploring the case of Albania. In developing countries, the 'model' of the developed countries, is often seen as the endpoint of a trajectory that must be followed meticulously, implying a view on modernization as a linear and uniform process. They tend to import policies from these 'success models' showing minimal regard to their context and institutional capabilities; therefore, more often than not, such policies show little effectiveness. This research on cluster policies in Albania confirms this. It suggests that in Albania there is a need to revise the way of thinking about clusters, considering them first and foremost as relational networks, instead of physically bound industrial districts. While there is questioning of top-down policies and the national innovation systems prerogative, the suggested model by this research, in line with some of the most recent policy frameworks, advocates the need for flexibility, bottom-up initiatives and place-based approaches. By means of conclusion, the book comes up with an alternative model of territorial policies for cluster development, shifting from 'static' towards 'dynamic' planning.

This book analyses the effectiveness of policies adopted in cluster promotion, using complexity thinking and evolutionary economic geography approaches. It studies cluster dynamics in transition economies, exploring the case of Albania. In developing countries, the ‘model’ of the developed countries, is often seen as the endpoint of a trajectory that must be followed meticulously, implying a view on modernization as a linear and uniform process. They tend to import policies from these ‘success models’ showing minimal regard to their context and institutional capabilities; therefore, more often than not, such policies show little effectiveness. This research on cluster policies in Albania confirms this. It suggests that in Albania there is a need to revise the way of thinking about clusters, considering them first and foremost as relational networks, instead of physically bound industrial districts. While there is questioning of top-down policies and the national innovation systems prerogative, the suggested model by this research, in line with some of the most recent policy frameworks, advocates the need for flexibility, bottom-up initiatives and place-based approaches. By means of conclusion, the book comes up with an alternative model of territorial policies for cluster development, shifting from ‘static’ towards ‘dynamic’ planning.

Transition economies, such as the countries in Southeast Europe, face an expeditious institutional transition from a centrally planned to a market economy. The state withdraws from its monitoring function, which results in institutional voids that affect the economy in general and small and medium sized enterprises (SMEs) in specific. With a qualitative case study approach Tine Schrammel develops a scheme to detect institutional voids as one source of competitive disadvantages of SMEs in transition economies. In a second step she demonstrates that specific cluster services bridge institutional voids and improve the competitive position of SMEs in environments of institutional voids. The findings add to the understanding of institutional voids and to the role of clusters in transition economies.

A transition economy is an economy which is changing from a planned economy to a free market. Transition economies undergo economic liberalisation (letting market forces set prices and lowering trade barriers), macroeconomic stabilisation where immediate high inflation is brought under control, and restructuring and privatisation in order to create a financial sector and move from public to private ownership of resources. These changes often may lead to increased inequality of incomes and wealth, dramatic inflation and a fall of GDP. Transition process is usually characterised by the changing and creating of institutions, particularly private enterprises; changes in the role of the state, thereby, the creation of fundamentally different governmental institutions and the promotion of private-owned enterprises, markets and independent financial institutions. This new book presents the latest research from around the world in this field.

Addressing the role of regional clusters in the context of ongoing globalization, this timely book investigates the two seemingly competing trends of globalization and localization from both quantitative and qualitative perspectives. International case studies offer pioneering insights into the internationalization process of regional clusters and the effect of this on regional as well as firm performance.

This book presents a state-of-the-art portrait of entrepreneurship in the transition economies of Central and Eastern Europe (CEE) and the Commonwealth of Independent States (CIS) as well as Georgia and Ukraine. Based on new empirical evidence, it highlights major trends in, characteristics and forms of entrepreneurship common to countries in transition. The contributions cover topics such as levels of opportunity-based entrepreneurship, incentives for innovation, dominance of large-scale international corporations, the role of family businesses, and opportunities for grass-roots entrepreneurship. The first part of the book focuses on theoretical considerations regarding the establishment of sustainable entrepreneurial ecosystems and private business. In turn, the second part offers cross-border studies of entrepreneurial environments and activities, while the third and fourth present case studies on the current state and unique characteristics of entrepreneurship in various countries of the CEE and CIS as well as Georgia and Ukraine. Finally, the last parts discuss the role of institutions and policy recommendations.