Spill over or Spill out? – A multilevel analysis of the cluster and firm performance relationship

Regional clusters have become an inseparable component of modern economies. Spurred by the idea that unrestrictedly encourage firm innovativeness, cluster approach has particularly gained attention among politicians. Nevertheless, due to a lack holistic consideration different influencing variables, scientific results about effect on innovative performance are highly contradictive. Consequently, this paper aims empirically investigate conditions through which companies can gain from being located in clusters, focussing thereby moderating variables relate possible knowledge spillovers. Therefore, three levels analysis considered separately and interactively. By analysing unique multilevel dataset 11.889 Germany evidence is found positive impact innovativeness. However, also indicate firms benefit unequally within environment, depending specific firm, market/industry conditions.