Template-Type: ReDIF-Paper 1.0 Author-Name: Oliver Falck Author-X-Name-First: Oliver Author-X-Name-Last: Falck Author-Name: Stephan Heblich Author-X-Name-First: Stephan Author-X-Name-Last: Heblich Title: Dynamic Clusters Abstract: Globalization has had an enormous impact on traditional industrial structures. It seems almost the case that everything is everywhere the same. And yet, in reality, some regions in a single industrialized country enjoy rapid economic growth while others are downsizing or stagnating. Thus there must be some remaining regional competitive advantages�even in the �Age of Globalization.� This paper engages in a quest to discover what these new �locational� factors might be and how and why they are necessary in creating a dynamic cluster of regional growth. In doing so, we try to link agglomeration advantages of the new economic geography with competitive advantages of Porter�s cluster theory. But we also go beyond these approaches and add further regional growth factors such as creativity or diversity. Using data that paint a comprehensive picture of industry and regional development in Germany we try to find empirical evidence for our approach. A case study from the automobile industry � one of the leading industries in Germany � completes our picture of dynamic clusters. Length: 31 pages Creation-Date: 2007-01 File-URL: http://www.bgpe.de/texte/DP/016_falck_heblich.pdf File-Format: Application/pdf File-Function: First version, 2007 Number: 016 Classification-JEL: R11, R12, O18, O33 Keywords: Cluster, Regional Growth, Innovation, Creativity Handle: RePEc:bav:wpaper:016_falck_heblich