Industrial clusters in Denmark: Theory and empirical evidence

This article tests the hypothesis that two industrial clusters exist in Jutland, Denmark. The article first discusses the theory of agglomeration economies in relation to industrial clusters, particularly with respect to spill-over effects as a positive technological externality. Different methodological approaches to the identification of these effects are examined. In the light of this discussion, the article investigates the performance of two Danish industrial clusters that are frequently identified and examined in the literature. Little evidence is found to support claims concerning the existence and performance of the two clusters, raising wider doubts about cluster-based industrial policy.