What is the difference between (entrepreneurial) clusters and ecosystems? Is the cluster just an element of the ecosystem? Is it correct to interpret clusters as geographical agglomeration of various players, while ecosystem can be viewed as clusters + shared vision and alliances that cross geographical boundaries?
Of course it is an element of the eco system, what with the increasing need to manage CPRs and the diverse techniques of environmental evaluation.
With clusters it brings to mind synergistic benefits. Think of them as colonies and colonists.The extent of these benefits depends on the health of the ecosystem in which it is embedded. In the past we have invoked the notion of supporting industries. So the answer is Yes. The ecosystem defines the quality of the synergies that can emerge. Would indeed agree that the metaphor of an ecosystem can be interpreted spatially/geographically for the market in which the cluster is a producer (strategic alliances, horizontal integration etc.)But more importantly it conveys the idea of carrying capacity limiting the growth of its players, though they have carved out specific niches for themselves. Ecosystem thinking, which is very prevalent in the IT sector, disciplines our thinking to look at the resilience of our business and not just competitiveness- which can be very shortsighted, like the proverbial frog in the pre-boiling jacuzzi. So that when the roadmap of a business is drafted, it should take into account the unfolding/rollout of its ecosystem as well.The introduction of "invasive" species can decimate entire native species. Think FDIs crowding out SMEs (e.g.cottage industries). Removal of apex predators can lead to the collapse of an entire ecosystem, as the entire pecking order is destabilized. Think of auto industry downsizing in Detroit, and the removal of dictators from countries.When we plant something and it begins to grow with weeds sprouting around it, we may not want to eliminate the weeds immediately.Since they might have a purpose ( I.e. symbiotic/the fight for survival strengthens an organism/limit the evaporation of moisture from the soil etc.). Furthermore if we do the weeding early, the delicate ecosystem of soil texture and microbial/insect relations with our plant may be affected, leading to less robust growth. Likewise while there are merits to clustering, it should be considered in tandem with how life in the ecosystem would be played out. Sometimes we need to keep our competitors around.Just like the weeds, they are a necessary evil. As Sun Tzu would say: keep your friend close, but keep your enemy closer.A bit of an aside, but sound business sense nonetheless...cluster around synergies, note the emergent fitness landscape of the ecosystem.
I think it is all not so obvious. You have joined two scientific disciplines in your question - geography and economy. If so the comparisons and conclusions must be done with caution even if the concepts itself cross boundaries of disciplines.
My comment to points made in your question: M. Porter's concept of clusters also contains strategy building processes and ecosystems also have its boundaries. Even if they cross economic or administrative boundaries they also have very distinct boundaries what derive from geographical tradition. On the other hand in clusters concept crossing the boundaries is also the important distinctive feature but these are mainly administrative and functional boundaries. In clusters concept important mechanism is also connected with restructuration so braking the old paths of development while ecosystems concept is to large extend built on incremental changes view of development.
There is many other important distinctions and similarities but the attempt to compare these concepts and understand the differences is very promising. I think that adding the region concept to this attempt would be also very interesting from theoretical perspective.
Good luck with your efforts.
Hi Harshvardhan,
thank you for the articles! I am currently writing an assignment for Entrepreneurship for final year MBA and this really helped!
Regards,
The differences between clusters and entrepreneurial ecosystems are well described in this article:
Spigel, B., & Harrison, R. (2018). Toward a process theory of entrepreneurial ecosystems. Strategic Entrepreneurship Journal, 12(1), 151-168.
It will not be totally right to call a 'cluster' an element of 'ecosystem'. Both cluster and ecosyatem are interdependent. A cluster may act as an element in creation of a 'vibrant business ecosystem' while on the other hand 'creation of ' vibrant business ecosystem' will catalyse the process of clustering.
I totally agree with Katarzyna Szmigiel-Rawska, that one must be careful in making comparisons.
One has to take a pragmatic approach while dealing with these two concepts simultaneously.
Hi Sumita Sarma I agree with Thomas Baron you may also want to ckeck the article of Pitelis, C. (2012). Clusters, entrepreneurial ecosystem co-creation, and appropriability: A conceptual framework. Industrial and Corporate Change, 21(6), 1359–1388. https://doi.org/10.1093/icc/dts008 - You may find more answers during the AOM PDW on entrepreneurial ecosystems in August 2019 http://eernetwork.org/index.php/aom-2019-pdw/
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