Abstract

We use a new firm level data set to study the network of local and trans-local firm linkages within and across 52 aerospace clusters in North America and Europe over the period 2002-2014. Applying small-world analysis and community structure detection techniques, we find that the structure of the overall network has been changing over time. First, we find that the topology of the network is transforming into a “small-world.” Second, we find that this trend is driven by the trans-localization of buyer-supplier and investment linkages. Concurrently, what is keeping local industrial clusters intact is growth in local partnership linkages. Third, we find important regional trends: traditional clusters in developed countries are reorienting their supply chains and investments towards emerging industrial clusters in Eastern Europe and Mexico, while trans-local partnership linkages develop between clusters specialized in similar value chain stages. Finally, we find that the overall network is evolving from a geographically partitioned community structure to a hierarchical community structure that is stratified along value chain stages.