Researchers and practitioners have recognized the importance of regional clustering of specialized firms as a relevant socio-economic engine that increases competitiveness and facilitates regional economic growth. Successful regional clustering also positively affects the performance of involved firms due to local competition, easier access to customers and partners, supportive institutional environment, and knowledge spillovers and synergies among cluster firms. Some previous studies found patterns of higher entrepreneurial activity in certain regions linking it with the presence of clusters in those regions. However, the empirical literature that would investigate the link between clusters and new firm creation has been rather scarce.

This study addresses this gap and explores the linkages between geographic clusters and new firms by testing the theoretical claim that clusters foster the formation of new start-up firms.

By applying a qualitative research design the study investigates processes and conditions within clusters and how they affect start-ups throughout three firm creation stages: gestation, firm birth and growth. Empirical data has been collected through a series of in-depth interviews with the managers of Austrian clusters, regional cluster organizations, and start-up agencies. The data will be analyzed using qualitative content analysis.

The empirical results shed more light on the link that is created between clusters and new firms in the region with the goal of explaining which factors can positively affect entrepreneurial activity and new firm creation.