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This paper focuses on the notion of 'industrial clusters' as a descriptor to discuss innovation in less-developed or industrializing economies. A critical review of the literature on industrial clusters is used to identify the key determinants of clusters. A frame of analysis is presented to examine the institutional factors that underpin cluster performance. The analysis of two case studies shows that whether or not a cluster becomes an integrated part of an economic system and contributes to economic growth depends on the type of cluster (sectoral location), geography (physical location), the institutional landscape that structures how the actors organize themselves (the mode of governance), the external (macroeconomic) environment, and whether or not the combination of all these factors is conducive to learning. Keywords: clusters, institutions, institutional analysis, innovation systems, development JEL Classification Codes: L1, O1, O2, O3, Z13, The current use of 'cluster' is often closely associated with Michael Porter's (1990; 1994; 1997; 1998; 2000a; 2000b; 2003a; 2003b) reconceptualization of the foundations of modern capitalist economies as varying [...]

If we start from the premise that institutions are socially constructed (Berger and Luckmann 1966) and that economic activity is socially instituted (Polanyi 1957) and a situated process (Granovetter 1992), […]

Byline: Rene Kemp, Saeed Parto, Robert B. Gibson In this paper we examine and elaborate on the central elements of sustainable development and governance, considering their interrelations as they have emerged from the core themes in sustainable development discourses over the past decade and a half. We argue that sustainability is best viewed as a socially instituted process of adaptive change in which innovation is a necessary element. We discuss four key elements of governance for sustainability, which are integrated into the concept of transition management. The result is a conceptual framework for policy-making and action-taking aimed at progress towards sustainability.

Byline: Saeed Parto This paper examines the causes of the failure by the Region of Waterloo (Ontario, Canada) to meet its objectives on sustainability. The analysis shows that in such macro matters as sustainability, scale does indeed matter, as do numerous other factors including the degree of trust in interrelations, perceptions and convictions, conflicting interests and competing agendas, the manner in which discourse occurs on policy formation and implementation, and ideology as expressed through partisan politics. This paper contributes to the discourse on sustainability in two ways. It proposes an evolutionary, multi-dimensional analytical framework to study sustainable development. The framework is then applied to a case study to underline the political implications of operationalising sustainable development