The present paper investigates the role of decentralisation for the adaptability of production networks in clusters. It develops a simulation model able to test to what extent decentralised, networked clusters with many small firms (Silicon Valley) can be more adjustable than those composed of...

A local culture denotes a set of rules on business behaviour among firms in a cluster. Similar to social norms or conventions, it is an emergent feature of interaction in an economic network. To model its emergence, we consider a distributed agent population, representing cluster firms. Further,...