DP7102 Public Support to Clusters: A Firm Level Study of French ?Local Productive Systems?

Author(s): Philippe Martin, Thierry Mayer, Florian Mayneris
Publication Date: December 2008
Keyword(s): clusters, localization economies, public policies
JEL(s): C23, R10, R11, R12
Programme Areas: Public Economics, International Trade and Regional Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=7102

This paper analyzes empirically a public policy promoting industrial clusters in France. Cluster policies have become popular in many countries but have not been extensively evaluated empirically. We use data on production and employment for firms that benefited from the policy and on firms that did not, both before and after the policy started. We first show that the policy selected firms in relative decline. Furthermore, our results suggest that the policy had no major effect on their productivity but may have helped them in terms of employment.