Thriving Innovation Amidst Manufacturing Decline: The Detroit Auto Cluster and the Resilience of Local Knowledge Production

Thomas J. Hannigan, Fox School of Business, Temple University; Marcelo Cano-Kollmann, Fox School of Business, Temple University; and Ram Mudambi, Fox School of Business, Temple University

Industrial and Corporate Change

Abstract: Analyzing the comprehensive 35-year patent data set associated with the Detroit auto cluster we confirm that innovation in clusters can increase in spite of a long-term decline in manufacturing activity. The “stickiness” of local knowledge is sustained by: (i) increasing technological specialization at the local level and (ii) growing connectedness to global centers of excellence. The very forces that bring about the decline in manufacturing in a cluster sustain their position as a global center of innovative excellence.

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Program on Vehicle and Mobility Innovation
The Program on Vehicle and Mobility Innovation (PVMI) is the largest and oldest international research consortium aimed at understanding the challenges facing the global automotive industry. PVMI’s network includes more than 50 prominent scholars of innovation, strategy, technology, operations, organization, and human resources who have conducted interdisciplinary, often collaborative, research at more than 25 universities worldwide. Originally founded at MIT in 1979, PVMI became part of the Mack Institute in 2013.