The devepment and governance of industrial clusters: The case of the mould-making industry in Marinha Grande, Portugal

Industrial clusters have become an important topic for study in economic geography. Despite this attention, analyses of clusters are often myopic and lack depth. A study of clusters must be multi-faceted to understand both the path dependent nature of cluster development, and the richness of relationships that exist in a given region. Only then, can a theory which explains cluster development be formed.; This thesis examines the nature of relationships within the mould-making cluster in Marinha Grande, Portugal with particular emphasis on the relationships between firms and institutions. Marinha Grande is a place with a rich tradition of glassmaking, but today, it is better known for its highly developed mould-making industry. How did this town evolve to become a world-class mould-making cluster?; The answer is not a straightforward one. Part of the story lies with a group of mould-making entrepreneurs who in the 1920's came out of the glass-making industry, and were influenced by the skills and socialist history of glassmaking in Marinha Grande. Another part of the story involves the political and economic integration of Portugal into Europe and the policies which evolved out of this major turning point in the political economic history of Portugal. Joining the E.E.C., which later evolved into the E.U., provided Portugal with the tools and funding to develop locally-based institutions tailored to the needs of mould-makers in Marinha Grande. Today, these institutions provide financial support, research and development assistance, employee training, and export promotion services to the industry. The final part of this story is how through time, these local institutions and mould-making firms have evolved and shaped each other. The strong ties that bind mould-makers and institutions are what truly define this cluster.; The thesis traces the development of the mould-making industry in Marinha Grande and outlines the broader events which influenced its evolution. Besides secondary statistical data and information, the empirical analysis draws upon interviews with mould-makers and personnel from the mould-making industry association, training schools, exporting agencies, small and medium sized business centres, technological centres, and the Marinha Grande municipal government. By analyzing the evolution of relationships that exist between the various industry actors in Marinha Grande, this thesis develops a better understanding of the nature of relationships within this particular mould-making cluster and offers insight into the nature of entrepreneurial and institutional relationships which may best be suited to ensuring the cluster's continued success. In particular, I argue in this thesis that the nature of relationships which exist in the mould-making cluster in Marinha Grande today define the cluster and will determine its future success.