Transformation of cluster specialization in the wake of globalization

In the light of increasing globalization and the rising spatial distribution of production activities, different scenarios for geographical agglomerations, such as clusters, are discussed. Nonetheless, the literature provides only scant knowledge about how cluster specialization transforms due to the globalization of production activities. The paper addresses this research gap based on a comparative case study of two Danish clusters, and by applying the literature on the global division of labour, global value chains and clusters. The main conclusion is that the specialization of clusters either changes or deepens in response to the globalization of production activities. However, which of these two outcomes it will be depends on the prioritization and localization of specific production activities in relation to the current cluster specialization, and on the governance executed by cluster lead firms.