Do clusters with public support perform better? Case study of Czech cluster organizations

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F46747885%3A24310%2F19%3A00006809" target="_blank" >RIV/46747885:24310/19:00006809 - isvavai.cz</a>

Result on the web

<a href="http://www.ramp.ase.ro/en/_data/files/articole/2019/33-02.pdf" target="_blank" >http://www.ramp.ase.ro/en/_data/files/articole/2019/33-02.pdf</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.24818/amp/2019.33-02" target="_blank" >10.24818/amp/2019.33-02</a>

Result language

angličtina

Original language name

Do clusters with public support perform better? Case study of Czech cluster organizations

Original language description

This paper deals with an evaluation of the differences in financial performance of member organizations of two types of clusters in the Czech Republic. The first type of cluster was created on the basis of the primary activity of the member entities, bottom-up, without any direct public support. The second type of cluster was created top-down on the basis of a cluster initiative with support from public budgets (mainly from EU structural funds). Cluster initiatives are used as a regional policy tool to foster innovation and competitiveness. Both types of clusters that met the conditions of maturity (created before 2012 inclusive) and high activity were selected for the research. In total, there were 32 clusters, 24 of which were created using the top-down approach and 8 using the bottom-up approach. The financial performance of the member business entities was evaluated using the ROA, ROE and EVA/employee and EVA/revenue indicators. The aim of the research was to prove whether public support for clusters would be reflected in the member entities achieving a better level of financial performance. The results of the analysis show that member entities in clusters established with public support do not achieve a better level of financial performance. Differences in financial performance between the two types of clusters are nonsignificant throughout the entire 2012-2017 reporting period. Therefore, no correlation connected with support for clusters from public funds and increased financial performance by their member enterprises was proved. The conclusion discusses the possible causes of this phenomenon, which include the purported establishment of clusters in order to obtain subsidies.

Czech name

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Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

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OECD FORD branch

50206 - Finance

Project

<a href="/en/project/GA18-01144S" target="_blank" >GA18-01144S: An empirical study of the existence of clusters and their effect on the performance of member enterprises</a><br>

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year

2019

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Administratie si Management Public

ISSN

1583-9583

e-ISSN

—

Volume of the periodical

17

Issue of the periodical within the volume

33

Country of publishing house

RO - ROMANIA

Number of pages

14

Pages from-to

20-33

UT code for WoS article

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EID of the result in the Scopus database

2-s2.0-85075530489