Structure of interfirm networks in regional clusters

There has been a widespread resurgence of interest in regional clusters as well as related regional innovation concepts. A network is expected to work as a conduit of resources and knowledge within the region and its structure affects its performance. In this paper, we originally construct a large database of interfirm networks in selected regional clusters in Japan, and investigate their multiscale structures combining existing organizational and network theories. In order to investigate the inner structures determining the macroscopic network performance, we elucidated the mesoscopic and microscopic structures of the networks, i.e. the modular structures and the position of individual firms in such modular networks. Our analysis successfully extracted “hub firms” orchestrating their own supplier modules and “connector firms” bridging different modules. Then, we investigated the interfirm network structures and the relationships between their economic performance and topological positions in the networks. We discuss how “hub firms” and “connector firms” can contribute to the regional economic performance.