Inter Firm Relationships in the Silicon Fen

Inter Firm Relationships in the Silicon Fen The attention that clusters have received from policy makers and academics has substantially increased in the last 20 years. Since Porters seminal work on The Competitive Advantage of Nations (1990) presented clusters as one of the determinants of the international competitiveness of nations and regions, many scholars have adopted and further developed his approach. Porter bases his arguments on what he describes as the globalization paradox, pointing out that despite the logical implications that the globalisation process might have in dismissing the relevance of regional factors, the most competitive firms in world are located in groups geographically concentrated in specific locations. That perspective contributed to attracting attention to the existence of characteristics tied to a local context that could not be accessed by firms positioned elsewhere, and more, to the positive effects that the concentration and the geographic proximity could exert on the firms competitiveness. However influential, Porters ideas were not the precursor to discussing the competitive outcomes originating from the geographic concentration of firms (Martin and Sunley, 2003). The roots of cluster theory go back to the industrial districts identified by Marshall (1890), who offered the first detailed description about the economic and social systems created as a result of the spacial concentrations of industrial activities. The Marshallian industrial districts were arrangements of small firms interconnected by commercial operations (buyers and sellers) and other firms engaged in the same or similar activities, that shared productive factors, such as the labour market, infrastructure and tacit knowledge (Becattini, 2004, p. 68). According to Marshals descriptions, a group of firms operating in one specific sector within a well-defined, concentrated and relatively small geographic area would experience higher levels of productivity and innovation, indeed the emergence of a fertile e nvironment for technical and organisational developments. Thus the local characteristics would enable the emergence of an industrial atmosphere that would increase the firms potential to acquire (especially tacit) knowledge, and create positive external economies accessible only to the firms located within the district (Asheim, 2003, p. 416). That perspective tried to evidence that firms geographically concentrated could accesses restricted positive exogenous benefits (exogenous to firms, but endogenous to the district), which would be an alternative to the scale economies achieved by a single (integrated) firm. Additionally, following some of the seminal ideas proposed by Marshall, it is possible to observe a significant number of economic geographers that also explored regional development using the spatial economic agglomeration to support their ideas. Some examples of concepts emerging from that theoretical trend are regional innovation milieux (Crevoisier, 2004), neo-Marshallian nodes (Amin and Thrift, 1992) and learning regions (Asheim, 1995). More examples can be found in Markusen (1996, p. 297), in which another three different types of industrial districts are described according to the firms configurations, internal versus external orientations and governance structures: a hub-and-spoke industrial district, which is concentrated around one or more dominant firms; a satellite platform, formed by a group of unconnected branches embedded in external links; and the state-anchored district, concentrated on one or more public-sector institutions. Despite the logical and robust assumption s found in many of those concepts, their influence and dissemination were not as successful as the more general cluster framework proposed by Porter. Martin and Sunley (2003) attributes the successful dissemination of the Porter concepts to the very general descriptions and delimitations that encompass a wide range of actors and many different structures. Following much of the concepts proposed by Porter, the description of advantages conferred on clustered firms associated with a general and structured analytical framework stimulated the development and dissemination of academic studies and subsidized the creation of supply-side competitiveness policies directed at structuring and supporting the development of clusters (Pitelis, 2010). That fact resulted in what Martin and Sunley (2003) describe as a policy panacea in the use of clusters as a standard (sometimes the unique) target for promoting competitiveness, innovation and economic growth. Moreover, in the last 20 years an increasing number of empirical studies in different countries and sectors have been observed, which aim to identify and discuss the competitive outcomes originating from the concentration of firms and other actors in the same location, for example: Brazil à ¢Ã¢â€š ¬Ã¢â‚¬Å" shoe manufacturing in the Sinos Valley (Schmitz, 2000); Spain à ¢Ã¢â€š ¬Ã¢â‚¬Å" the text ile and clothing industries in Catalonia (Porter, 1998); Taiwan à ¢Ã¢â€š ¬Ã¢â‚¬Å" electronic products at the Hsinchu Science Park (Chen, 2008); and the United States à ¢Ã¢â€š ¬Ã¢â‚¬Å" computer and information systems at the Silicon Valley (Saxenian, 1994). The large significant number of academic studies has resulted in a large number of definitions aiming to describe and establish an accepted cluster template (e.g., Enright, 1996; Swann and Prevezer, 1996, Rosenfeld, 1997; Porter, 1998) to support policy makers and academics has led to intense debates and controversial perspectives. Even though the concept of clusters has been increasingly widely disseminated and used by geographers, economists and policy makers, it has suffered from some conceptual confusion. Porter defines a cluster as a geographic concentration of interconnected companies, specialized suppliers, service providers firms in related industries, and associated institutions (for example, universities, standards agencies and trade associations) in particular fields that compete but also co-operate (1998, p. 197). However, Martin and Sunley (2003, p. 12) present consistent arguments that indicate the vagueness and superficiality of the concept proposed by Porter. Accordin g to their arguments, those characteristics make the concept of cluster means different things to different researchers and policy makers, creating problems for its proper use in the guidance of academics and governments. Those highly controversial aspects of the cluster theory have stimulated the continuous emergence of new concepts and definitions for clusters. Proposing a definition aiming to fill some of the gaps and failures found in extant cluster theory, Pitelis (2010, p. 5) defines clusters as geographical agglomerations of firms in particular, related, and/or complementary, activities, with a geographical dimension, that exhibit horizontal and/or vertical intra- and/or inter-sectoral linkages, which operate in the context of a facilitatory socio-institutional setting, and which co-operate and compete (co-opete) in inter-national markets. That definition tries offer to a more delimited approach that incorporates four major elements: geographical agglomeration, linkages, social-capital  [1]  and co-opetition (competition and cooperation). The use of those four elements in a single definition offers the possibility to cover the cluster characteristics using delimited criteria to identify and distinguish developed clusters from less complex geographical agglomerations of firms and institutions. Although it is possible to observe some level of ambiguity encompassing the clusters theory, the existence of links interconnecting local actors complemented by geographical dimensions constitute some of the main common points used to guide academics and policy makers with interesting by the competitive outcomes originating from clusters. Those characteristics have frequently been used as the starting point to understand the economic dynamics of clustered firms, putting emphasis on the levels of innovation and productivity emerging from the concentration of different actors in the same area. Suggesting conditional characteristics to the presence of competitive advantages obtained by firms inside clusters, Ketels (2004) considers that the positive economic effects originated from the geographical concentration will only take place if four critical characteristics are shared among firms and institutions: Proximity: they must be geographically close to allow the emergence of knowledge spillovers and to share the same common resources; Linkages: the necessity of similarities in their activities leading to the establishment of connections and synergies; Interactions: the social interactions developed among firms, clients, suppliers, research institutes, and so on, is what forms the social capital that becomes possible firms to achieve differentiated competitive performances; Critical mass: it is important to have a significant number of firms and institutions in order to create meaningful impacts on performance of the local actors. Those characteristics described by Ketels may be used to guide the identification and distinction between developed clusters (Pitelis, 2010) from incipient clusters (Schmitz, 1999) in order to dismiss some incorrect interpretations associated with the clusters dynamics. Considering that the presence of geographic concentration of firms in the same industry is strikingly common around the world (Porter, 1990, p.120), it is necessary the use of specific benchmarks to distinguish and classify different groups of firms geographically concentrated according to their specific characteristics (Gordon and McCann, 2000; Isbasoiu, 2006). Describing how the existence of local capabilities  [2]  create differentiated conditions for companies within real clusters, Menzel and Fornahl (2010) argue that clusters are essentially formed from path dependencies (Martin and Sunley, 2006), transaction costs economies (McCann and Sheppard, 2003) and small cognitive distances originating from spatial proximity (Maskell, 2001). Thus, that set of factors are expected to create a specific regional dynamics with influence on the firms economic performance. Taking into consideration the different stages of a cluster life cycle, and the misunderstandings related to the claims associated with the clusters and competitiveness, Schmitz points out that A group of small producers making the same or similar things in close vicinity to each other constitutes a cluster, but such concentration in itself brings few benefits (1999, p. 4), emphasizing that the mere presence of firms in a delimited area does not represent a source of value creat ion able to improve in a significant way the local economic performance. Following the arguments above, the differences between regional clusters and simple agglomerations (groups of firms) lie mainly on the interconnected nature and spatial proximity. Thus, clusters are characterized by intense collaborative networks and concentrations of collaboration and competition (co-opetitition) (Pitelis, 2010), conditions which offer significant opportunities and stimulate the emergence of regional competitive advantages (Steinle and Schiele, 2002). Complementarily, another critical characteristic observed within clusters is the diversity of actors. According to Porter (1990, 1998, 2000), an industrial cluster includes suppliers, consumers, related industries, governments, and supporting institutions such as universities. This way, the existence of a regional network formed by a significant group of interconnected local actors is one of the critical factors to understand the differentiated competitive performance of firms within clusters (Steinle and Schiele, 2002 ). Illustrating that argument, Saxenian (1994) observed that Hewlett Packard and other firms at the Silicon Valley had their performance improved by the development long-term partnerships with suppliers located geographically close. Moreover, based on that observation, Saxenian concluded that, especially in high-tech industries, the physical proximity represents a facilitator to the establishment of efficient collaborative arrangements required to create and manage complex products and services. 1.2 Evolutionary Stages of Industrial Clusters Despite the vast cluster literature, the number of academic works discussing the evolutionary patterns of clusters overtime is not so extensive. Some examples can be found in Pouder and John (1996), Klepper (2001, 2007), Wolter (2003) and Andersson et al., (2004), and despite the divergent perspectives, it is accepted that clusters follow a kind of life cycle comprised by different phases that significantly differ in their characteristics and influence on firms performance. Regarding the cluster dynamics, Pouder and John (1996) argue that comparative analysis between clustered and non-clustered firms during the industry life cycle reveal that firms within clusters outperform those geographically dispersed at the initial stages of development, and have a worse performance at its end. That fact suggests that the cluster life cycle is not just a local representation of the industry trajectory, but is a result from local peculiarities. The comparative analysis developed by Saxenian (1994 ) between the computer industry in Boston and Silicon Valley illustrates how different clusters belonging to the same industry are very likely to follow different trajectories (Menzel and Fornahl, 2010). Proposing a different perspective, Klepper (2001, 2007) suggests a model to demonstrate how the clusters life cycle is determined by some the industry patterns. Klepper analyzed the automobile, tire and television industries and observed that at the beginning of the industry life cycle it was not possible to observe clear geographic concentrations of firms, with most of the firms spatially dispersed. He observed that in those industries clusters started to emerge and develop according to the industry growth rates. Klepper argues that the local characteristics originating from the spacial proximity (e.g., intensive spin-off process) give the stimulus for the geographic agglomeration of the whole industry, not only for specific groups. At the time the industry growth rate reduces, the attractiveness to remain agglomerated will also decrease and the industry will become dispersed again. That model proposed by Klepper represents a Technology-Product- Industry (TIP) life cycle. The logic behind this model is on the impact that the evolution of products and innovations has on the size, number, and location of firms. Wolter (2003) criticizes the model proposed by Klepper arguing that the growth rate cannot explain the agglomeration process in all industries on equal basis. Moreover, Wolter disagrees with the determinist perspective proposed by the TIP model, once it neglects that mature industries can be reinvented by radical or incremental innovations of new products and process. Analyzing the economic performance of firms within clusters Pouder and John (1996) attribute to the existence of mental models and biased cognitive focus the characteristics responsible for shaping the movement through the clusters life cycle. Following that perspective, at initial stages the cluster dynamics creates an innovative environment that exerts positive impacts on the firms performance. However, overtime that initial condition is eroded by strong institutional pressures that create a homogeneous macroculture that acts inhibiting the innovative capacity of the firms within the cluster. As in the model presented by Klepper (2001, 2007), that trajectory proposed by Pouder and John may also be criticized by the determinism that ignores the possibility of adaptations or reconfigurations in order to avoid lock-ins and other negative effects. Considering the arguments proposed by Menzel and Fornahl (2010, p. 8) that very few clusters follow a rigid life cycle from emergence to growth and decline, it is expected that clusters evolve overtime according to the local dynamics created by economic and social interactions among firms and institutions. That dynamics may be influenced, but not strictly determined by industry patterns (Wolter, 2003). Following a generic and stylized trajectory, within successful clusters the local network formed by inter-firm connections will tend to be intensified overtime, with an increasing number of formal and informal interactions between the long-established companies and new the ones attracted to the cluster. Even though it is more conceivable to assume that the decisions adopted by firms and institutions are shaped by specific circumstances, a generic trajectory can be described following the stages illustrated in Figure 1. Figure 1: The cluster life cycle C:UsersLucasAppDataLocalMicrosoftWindowsTemporary Internet FilesContent.WordSem tÃÆ' ­tulo.jpg Source: Andersson et al. (2004, p. 43) Agglomeration: It is possible to observe the existence of a number of companies and other actors (e.g. banks, government agencies, universities, accountants, and lawyers offices) in a specific region working around the same or interrelated activities. Emerging cluster: Forming the embryo to the cluster some actors start to cooperation around some core activities, and start to realize the existence of common linkages. Developing cluster: The linkages are intensified by the emergence and attraction of new actors to the region, resulting in the creation of more interaction. In this context the development of inter-firm-cooperation becomes more evident through the development of joint efforts. The Mature cluster: This stage is configured by the presence of a certain critical mass of factors that consistently influence the competitive performance of the firms inside the cluster. The internal dynamics is characterized by the presence of an institutional environment, strong linkages, complementarities and the emergence of new firms through startups, joint ventures and spin-offs. Transformation: Indeed the process of continuous environmental change in markets, technologies, regulations and other process, to be successful a cluster have to innovate and adapt to these new conditions, other way stagnation and decay may affect the cluster dynamics. That process of change/adaptation may happen through the emergence of one or several interconnected clusters with focus in other activities, or by new configuration in terms of networks of firms and institutions. The presence of economic benefits for clustered firms described by authors like Schmitz and Nadvi (1999), Ketels (2004), Isbasoiu (2006) and Pitelis and Pseiridis (2006) are closely related to the stage of development that a cluster is experiencing. For example, an emerging cluster is not actually a cluster, since the small number of firms is not expected to present a high level of linkages and do not form a critical mass. Moreover, the absence of strong interdependencies such as labour mobility, spin-off, socioeconomic networks and intense exchange of good and services prevent the emergence of local capabilities. Thus, same considering that this stage constitutes the embryo that determines the future cluster orientation, at this point the firms are not expected to be strongly influenced by a complex local dynamics. Observing that fact, Menzel and Fornahl (2010) present a skeptical position regarding the effectiveness of any competitiveness policy intended to stimulate the development of clusters at initial stages (agglomeration and emerging), since the existence of horizontal and vertical links among firms concentrated in the same region constitutes a very common fact around the world. Thus, it is almost impossible to distinguish agglomerations with real potential to become a cluster from less complex structures. Consequently, emerging clusters are almost always only described ex-post. After the initial stages of the clusters life cycle it is expected the development and intensification of interdependencies between firms within cluster boundaries (Press, 2006). Indeed the development of those interdependencies, firms start to resemble more with each other, being observe the emergence of convergent designs in terms of technological models (Menzel and Fornahl, 2010), specialized labour market (Cooke et al., 2007), production systems (Pitelis, 2010) and inter-firm relationships (Blien and Maier, 2008). Moreover, developing clusters also attract a high number of start-ups that act stimulating the intensification of intra-cluster relationships. This way, that process of convergence and expansion of the number of firms within the cluster boundaries culminates in the development of self-reinforcing external economies that decrease the heterogeneity among firms at the same time that creates benefits like transactions cost economies and the privileged access to local knowle dge. As clusters reach the stage of maturity, the standards and configurations originating from past decisions become consolidate and it is observed a reduction in the growth rate of firms attracted to the cluster (Klepper, 2007). At this point the cluster trajectory may take two different directions. Keep unchanged, and suffer with a homogenization process that creates bias economic activities and therefore prevent firms to adapt to external shocks (Menzel and Fornahl, 2010). That situation traps firms in previous successful development path and lead to the geographic dispersion of the local actors and to the deterioration of the interdependencies and capabilities. The other possible trajectory is observed in clusters that reach the stage of maturity and successfully sustain the local dynamics by a continuous process of reconfiguration and adaptation to the external shocks (Wolter, 2003). 1.2 Clusters and Economic Performance The extant theory offers a wide range of explanations to justify the economic and competitive benefits experienced by firms located within clusters. Krugman (1991) stress the existence of increasing returns originating from the concentration of firms in the same area, arguing that the geographic proximity puts together the main parts related to firms activities (e.g., labours, firms, suppliers and costumers) resulting in transaction costs economies. Following other perspective, Schmitz and Nadvi (1999) argue that unintentional external economies are not sufficient to explain the competitiveness of firms located within clusters, attributing to the existence of deliberate joint actions (e.g., sharing equipments, associations, strategic alliances and producers improving components) a critical source of the competitive advantages. Pitelis and Pseiridis (2006) explain the levels of competitiveness and productivity associated with clustered firms considering the existence of specialized hu man resources, infrastructure and befits associated with unit costs economies complemented by the presence of an institutional atmosphere. Stressing a different point of view, Bahlmann and Huysman (2008) adopts the knowledge-based view of clusters to emphasize the relevance of knowledge spillovers among the firms to explain the advantages originated from the agglomeration process. Dupuy and Torre (2006) explains the existence of cluster in terms of the advantages originating from trust relationships that increase confidence and reduce risk and uncertainty about the intra-cluster operations taking place among the firms. Moreover, Zyglidopoulos et al. (2003), describe the positive effects that the reputation of a cluster may exert on the internalization process of small and micro enterprises through the alleviation of strategic constraints associated with factors like qualified work force, financing and reduction of the firms legitimation expenses. Despite that wide range of arguments, the most traditional perspective found in the cluster literature has explained the competitive advantages of clusters in terms of productivity and innovation (Pitelis, 1998; Porter, 1998), suggesting that the special characteristics originated from the economic and geographic proximity have significant impact on those two factors. Supplementary, Enright (1998) considers that the characteristics present inside the clusters local environment result in pressures, incentives and capabilities that increase the firms competitiveness comparatively to dispersed competitors, explaining the clustering process in terms of geographically restricted characteristics. Moreover, Solvell et al. (2003) suggests that the competitive advantages emerging from regional clusters may be classified as static and dynamics. According to this perspective, while the agglomeration process triggered and sustained intensively or exclusively by factors like natural resources, low cost labors and government subsidies offers a vulnerable (easy to be copied, substituted or simple eroded by environmental changes) competitive position, clusters based on dynamics characteristics like multi-sectorial externalities, advantages of scale and scope and specific knowledge spillovers are more dynamics and competitive. Extending the arguments presented by Solvell and his colleagues, Andersson et al. (2004) considers that the sustainability of static and dynamic competitive advantages is not strictly determined, arguing that static factors are the main responsible for the emergence of clusters, while the dynamics factors are only developed along the different stages of the cluste r life cycle. Complementing the understanding about the influence of the cluster dynamics on the firms economic performance some authors like Porter (2001); Garnsey and Heffernan (2007); Karlsson (2008) and Mason (2008) describe the existence of a self-reinforcing process originating from the agglomeration externalities that contribute to create a regional virtuous-circle of increasing productivity, competitiveness and value creation. Following that argument, the economic and geographic proximity will stimulate firms to innovate more indeed benefits originating from local capabilities, which will stimulate even more the agglomeration process through the intensification of inter-firm relationships and the attraction of other firms from outside the cluster, which in turn will strength the local capabilities (Blandy, 2003, p. 101). Thus, the dynamics of clusters is expected to be self-reinforced by agglomeration benefits with significant influence on the firms performance. Putting together the arguments associated with the economic impacts experienced by clustered firms indeed the existence of local factors, it is possible to identify and describe the following positive location-specific externalities: Cost savings indeed the geographic proximity with specialized suppliers, labours and distributors; Knowledge-spillovers (intentional and unintentional), since firms inside clusters can benefit from the knowledge dissemination process that may take place especially through inter-firm cooperation, specific linkages and labour mobility; Deliberate joint actions facilitated by the engagement in alliances and partnerships to achieve strategic objectives; Trust relationships, that through the geographic and economic proximity minimize the uncertainty associated with commercial operations, resulting in transactions costs economies; Pressures for higher performance, stimulated by the proximity with competitors; Specific Infrastructure and public goods that are oriented to attend the cluster demands, like roads, ports, laboratories and telecommunication networks; Complementarities, associated with firms in different activities but sharing common factors like raw material, clients and technologies that may enhance the cluster efficiency as whole. Discussing the role of regional clusters in shaping competitive patterns, Tallman et al. (2004) proposes a distinction between the types of competitive advantages emerging from clustered firms: based on traded interdependencies and based on untraded interdependencies. The concept of traded interdependencies is related to the existence of inter-firm transactions inside the cluster, and is observed in formal exchange operations that may take place in form of alliances, commercial operations and acquisitions. On the other hand, untraded interdependencies are related to less tangible effects, and are based on shared knowledge for which no market mechanism exists; with no formal exchange of value for value (Tallman et al. 2004, p. 261). To illustrate the mechanisms by which the untraded interdependencies take place, it is possible to mention unintentional external economies associated with tacit knowledge shared through mechanisms like labor mobility. Those different types of interdependencies, especially untraded, present at the cluster level, represent a source of competitive advantage that is likely to be causal ambiguous (for firms inside and outside the cluster) and high complex in terms of their origins, what consequently constitutes attributes difficult to be replicated by competitors. However, the presence of untraded effects, especially unintentional knowledge spillovers, is viewed Enright (1998) as a constraining factor for firms within clusters, since the establishment of an efficient information flow may limit the firms capacity to obtain monopoly profits from the development of innovations. Complementing the negative effects originating from the clusters dynamics, some authors also describe agglomeration diseconomies that have a negative impact firms located within clusters. For example, congestion effects (Arthur, 1990), institutional sclerosis (Pouder and John, 1996; Pitelis, 2010), rigidities associated with labour mobility and natural resources (Krugman, 1989) and pollution (Fan and Scott, 2003). This way, the dynamics and performance of a cluster is determined by the interplay between positive and negative externalities observed during the different stages of development that a cluster is expected to pass overtime (Wolter, 2003) Limitations in the Cluster Theory Notwithstanding the advances in the cluster theory some questions still remain insufficiently explored. One of the main limitations observed in the current state of the cluster literature is the lack of comparative perspectives to explain the advantages and disadvantages of clusters relatively to other alternative models of organization of economic activities. In his very novel approach, Pitelis (2010) suggests that any perspective trying to explain clusters in terms of absolute advantages is at the very best incomplete. In this context, Pitelis proposes the comparison of clusters vis-ÃÆ'  -vis to markets and hierarchies in order to understand the reasons and conditions that lead firms to engage in intra-clusters relationships, market operations (outside the cluster) or integrate within the firms hierarchy. In fact it is not necessary a great effort to conclude that most of the cluster theory has been developed following a mono-institutional approach (e.g. Porter, 1990, 1998; Saxe nian, 1994; Rosenfeld, 1998; Swann and Sennett, 1998; Schmitz and Nadvi, 1999), while some few exceptions concentrated on transactions costs (e.g. Fujita and Thisse, 1996; Iammarino and McCann, 2006; Takeda et al., 2008) and knowledge creation efficiency (e.g. Hendry et al., 2000; Tracey and Clark, 2003; Reinau, 2007; Kongmanila and Takahashi, 2009) have been drawn on a comparative approaches between clusters and open-market operations. Assuming the arguments proposed by many scholars that clusters are engines of innovation (Davis, 2006, p. 32), the lack of comparative perspectives do not answer the question why clusters are more efficient than markets or the hierarchy to improve the firms innovative capacity (Pitelis, 2010). Thus, despite the wide number of ramifications observed in the cluster theory such as innovative efficiency, productivity, social capital and social interactions, its explicative power remains almost always restricted Inter Firm Relationships in the Silicon Fen Inter Firm Relationships in the Silicon Fen The attention that clusters have received from policy makers and academics has substantially increased in the last 20 years. Since Porters seminal work on The Competitive Advantage of Nations (1990) presented clusters as one of the determinants of the international competitiveness of nations and regions, many scholars have adopted and further developed his approach. Porter bases his arguments on what he describes as the globalization paradox, pointing out that despite the logical implications that the globalisation process might have in dismissing the relevance of regional factors, the most competitive firms in world are located in groups geographically concentrated in specific locations. That perspective contributed to attracting attention to the existence of characteristics tied to a local context that could not be accessed by firms positioned elsewhere, and more, to the positive effects that the concentration and the geographic proximity could exert on the firms competitiveness. However influential, Porters ideas were not the precursor to discussing the competitive outcomes originating from the geographic concentration of firms (Martin and Sunley, 2003). The roots of cluster theory go back to the industrial districts identified by Marshall (1890), who offered the first detailed description about the economic and social systems created as a result of the spacial concentrations of industrial activities. The Marshallian industrial districts were arrangements of small firms interconnected by commercial operations (buyers and sellers) and other firms engaged in the same or similar activities, that shared productive factors, such as the labour market, infrastructure and tacit knowledge (Becattini, 2004, p. 68). According to Marshals descriptions, a group of firms operating in one specific sector within a well-defined, concentrated and relatively small geographic area would experience higher levels of productivity and innovation, indeed the emergence of a fertile e nvironment for technical and organisational developments. Thus the local characteristics would enable the emergence of an industrial atmosphere that would increase the firms potential to acquire (especially tacit) knowledge, and create positive external economies accessible only to the firms located within the district (Asheim, 2003, p. 416). That perspective tried to evidence that firms geographically concentrated could accesses restricted positive exogenous benefits (exogenous to firms, but endogenous to the district), which would be an alternative to the scale economies achieved by a single (integrated) firm. Additionally, following some of the seminal ideas proposed by Marshall, it is possible to observe a significant number of economic geographers that also explored regional development using the spatial economic agglomeration to support their ideas. Some examples of concepts emerging from that theoretical trend are regional innovation milieux (Crevoisier, 2004), neo-Marshallian nodes (Amin and Thrift, 1992) and learning regions (Asheim, 1995). More examples can be found in Markusen (1996, p. 297), in which another three different types of industrial districts are described according to the firms configurations, internal versus external orientations and governance structures: a hub-and-spoke industrial district, which is concentrated around one or more dominant firms; a satellite platform, formed by a group of unconnected branches embedded in external links; and the state-anchored district, concentrated on one or more public-sector institutions. Despite the logical and robust assumption s found in many of those concepts, their influence and dissemination were not as successful as the more general cluster framework proposed by Porter. Martin and Sunley (2003) attributes the successful dissemination of the Porter concepts to the very general descriptions and delimitations that encompass a wide range of actors and many different structures. Following much of the concepts proposed by Porter, the description of advantages conferred on clustered firms associated with a general and structured analytical framework stimulated the development and dissemination of academic studies and subsidized the creation of supply-side competitiveness policies directed at structuring and supporting the development of clusters (Pitelis, 2010). That fact resulted in what Martin and Sunley (2003) describe as a policy panacea in the use of clusters as a standard (sometimes the unique) target for promoting competitiveness, innovation and economic growth. Moreover, in the last 20 years an increasing number of empirical studies in different countries and sectors have been observed, which aim to identify and discuss the competitive outcomes originating from the concentration of firms and other actors in the same location, for example: Brazil à ¢Ã¢â€š ¬Ã¢â‚¬Å" shoe manufacturing in the Sinos Valley (Schmitz, 2000); Spain à ¢Ã¢â€š ¬Ã¢â‚¬Å" the text ile and clothing industries in Catalonia (Porter, 1998); Taiwan à ¢Ã¢â€š ¬Ã¢â‚¬Å" electronic products at the Hsinchu Science Park (Chen, 2008); and the United States à ¢Ã¢â€š ¬Ã¢â‚¬Å" computer and information systems at the Silicon Valley (Saxenian, 1994). The large significant number of academic studies has resulted in a large number of definitions aiming to describe and establish an accepted cluster template (e.g., Enright, 1996; Swann and Prevezer, 1996, Rosenfeld, 1997; Porter, 1998) to support policy makers and academics has led to intense debates and controversial perspectives. Even though the concept of clusters has been increasingly widely disseminated and used by geographers, economists and policy makers, it has suffered from some conceptual confusion. Porter defines a cluster as a geographic concentration of interconnected companies, specialized suppliers, service providers firms in related industries, and associated institutions (for example, universities, standards agencies and trade associations) in particular fields that compete but also co-operate (1998, p. 197). However, Martin and Sunley (2003, p. 12) present consistent arguments that indicate the vagueness and superficiality of the concept proposed by Porter. Accordin g to their arguments, those characteristics make the concept of cluster means different things to different researchers and policy makers, creating problems for its proper use in the guidance of academics and governments. Those highly controversial aspects of the cluster theory have stimulated the continuous emergence of new concepts and definitions for clusters. Proposing a definition aiming to fill some of the gaps and failures found in extant cluster theory, Pitelis (2010, p. 5) defines clusters as geographical agglomerations of firms in particular, related, and/or complementary, activities, with a geographical dimension, that exhibit horizontal and/or vertical intra- and/or inter-sectoral linkages, which operate in the context of a facilitatory socio-institutional setting, and which co-operate and compete (co-opete) in inter-national markets. That definition tries offer to a more delimited approach that incorporates four major elements: geographical agglomeration, linkages, social-capital  [1]  and co-opetition (competition and cooperation). The use of those four elements in a single definition offers the possibility to cover the cluster characteristics using delimited criteria to identify and distinguish developed clusters from less complex geographical agglomerations of firms and institutions. Although it is possible to observe some level of ambiguity encompassing the clusters theory, the existence of links interconnecting local actors complemented by geographical dimensions constitute some of the main common points used to guide academics and policy makers with interesting by the competitive outcomes originating from clusters. Those characteristics have frequently been used as the starting point to understand the economic dynamics of clustered firms, putting emphasis on the levels of innovation and productivity emerging from the concentration of different actors in the same area. Suggesting conditional characteristics to the presence of competitive advantages obtained by firms inside clusters, Ketels (2004) considers that the positive economic effects originated from the geographical concentration will only take place if four critical characteristics are shared among firms and institutions: Proximity: they must be geographically close to allow the emergence of knowledge spillovers and to share the same common resources; Linkages: the necessity of similarities in their activities leading to the establishment of connections and synergies; Interactions: the social interactions developed among firms, clients, suppliers, research institutes, and so on, is what forms the social capital that becomes possible firms to achieve differentiated competitive performances; Critical mass: it is important to have a significant number of firms and institutions in order to create meaningful impacts on performance of the local actors. Those characteristics described by Ketels may be used to guide the identification and distinction between developed clusters (Pitelis, 2010) from incipient clusters (Schmitz, 1999) in order to dismiss some incorrect interpretations associated with the clusters dynamics. Considering that the presence of geographic concentration of firms in the same industry is strikingly common around the world (Porter, 1990, p.120), it is necessary the use of specific benchmarks to distinguish and classify different groups of firms geographically concentrated according to their specific characteristics (Gordon and McCann, 2000; Isbasoiu, 2006). Describing how the existence of local capabilities  [2]  create differentiated conditions for companies within real clusters, Menzel and Fornahl (2010) argue that clusters are essentially formed from path dependencies (Martin and Sunley, 2006), transaction costs economies (McCann and Sheppard, 2003) and small cognitive distances originating from spatial proximity (Maskell, 2001). Thus, that set of factors are expected to create a specific regional dynamics with influence on the firms economic performance. Taking into consideration the different stages of a cluster life cycle, and the misunderstandings related to the claims associated with the clusters and competitiveness, Schmitz points out that A group of small producers making the same or similar things in close vicinity to each other constitutes a cluster, but such concentration in itself brings few benefits (1999, p. 4), emphasizing that the mere presence of firms in a delimited area does not represent a source of value creat ion able to improve in a significant way the local economic performance. Following the arguments above, the differences between regional clusters and simple agglomerations (groups of firms) lie mainly on the interconnected nature and spatial proximity. Thus, clusters are characterized by intense collaborative networks and concentrations of collaboration and competition (co-opetitition) (Pitelis, 2010), conditions which offer significant opportunities and stimulate the emergence of regional competitive advantages (Steinle and Schiele, 2002). Complementarily, another critical characteristic observed within clusters is the diversity of actors. According to Porter (1990, 1998, 2000), an industrial cluster includes suppliers, consumers, related industries, governments, and supporting institutions such as universities. This way, the existence of a regional network formed by a significant group of interconnected local actors is one of the critical factors to understand the differentiated competitive performance of firms within clusters (Steinle and Schiele, 2002 ). Illustrating that argument, Saxenian (1994) observed that Hewlett Packard and other firms at the Silicon Valley had their performance improved by the development long-term partnerships with suppliers located geographically close. Moreover, based on that observation, Saxenian concluded that, especially in high-tech industries, the physical proximity represents a facilitator to the establishment of efficient collaborative arrangements required to create and manage complex products and services. 1.2 Evolutionary Stages of Industrial Clusters Despite the vast cluster literature, the number of academic works discussing the evolutionary patterns of clusters overtime is not so extensive. Some examples can be found in Pouder and John (1996), Klepper (2001, 2007), Wolter (2003) and Andersson et al., (2004), and despite the divergent perspectives, it is accepted that clusters follow a kind of life cycle comprised by different phases that significantly differ in their characteristics and influence on firms performance. Regarding the cluster dynamics, Pouder and John (1996) argue that comparative analysis between clustered and non-clustered firms during the industry life cycle reveal that firms within clusters outperform those geographically dispersed at the initial stages of development, and have a worse performance at its end. That fact suggests that the cluster life cycle is not just a local representation of the industry trajectory, but is a result from local peculiarities. The comparative analysis developed by Saxenian (1994 ) between the computer industry in Boston and Silicon Valley illustrates how different clusters belonging to the same industry are very likely to follow different trajectories (Menzel and Fornahl, 2010). Proposing a different perspective, Klepper (2001, 2007) suggests a model to demonstrate how the clusters life cycle is determined by some the industry patterns. Klepper analyzed the automobile, tire and television industries and observed that at the beginning of the industry life cycle it was not possible to observe clear geographic concentrations of firms, with most of the firms spatially dispersed. He observed that in those industries clusters started to emerge and develop according to the industry growth rates. Klepper argues that the local characteristics originating from the spacial proximity (e.g., intensive spin-off process) give the stimulus for the geographic agglomeration of the whole industry, not only for specific groups. At the time the industry growth rate reduces, the attractiveness to remain agglomerated will also decrease and the industry will become dispersed again. That model proposed by Klepper represents a Technology-Product- Industry (TIP) life cycle. The logic behind this model is on the impact that the evolution of products and innovations has on the size, number, and location of firms. Wolter (2003) criticizes the model proposed by Klepper arguing that the growth rate cannot explain the agglomeration process in all industries on equal basis. Moreover, Wolter disagrees with the determinist perspective proposed by the TIP model, once it neglects that mature industries can be reinvented by radical or incremental innovations of new products and process. Analyzing the economic performance of firms within clusters Pouder and John (1996) attribute to the existence of mental models and biased cognitive focus the characteristics responsible for shaping the movement through the clusters life cycle. Following that perspective, at initial stages the cluster dynamics creates an innovative environment that exerts positive impacts on the firms performance. However, overtime that initial condition is eroded by strong institutional pressures that create a homogeneous macroculture that acts inhibiting the innovative capacity of the firms within the cluster. As in the model presented by Klepper (2001, 2007), that trajectory proposed by Pouder and John may also be criticized by the determinism that ignores the possibility of adaptations or reconfigurations in order to avoid lock-ins and other negative effects. Considering the arguments proposed by Menzel and Fornahl (2010, p. 8) that very few clusters follow a rigid life cycle from emergence to growth and decline, it is expected that clusters evolve overtime according to the local dynamics created by economic and social interactions among firms and institutions. That dynamics may be influenced, but not strictly determined by industry patterns (Wolter, 2003). Following a generic and stylized trajectory, within successful clusters the local network formed by inter-firm connections will tend to be intensified overtime, with an increasing number of formal and informal interactions between the long-established companies and new the ones attracted to the cluster. Even though it is more conceivable to assume that the decisions adopted by firms and institutions are shaped by specific circumstances, a generic trajectory can be described following the stages illustrated in Figure 1. Figure 1: The cluster life cycle C:UsersLucasAppDataLocalMicrosoftWindowsTemporary Internet FilesContent.WordSem tÃÆ' ­tulo.jpg Source: Andersson et al. (2004, p. 43) Agglomeration: It is possible to observe the existence of a number of companies and other actors (e.g. banks, government agencies, universities, accountants, and lawyers offices) in a specific region working around the same or interrelated activities. Emerging cluster: Forming the embryo to the cluster some actors start to cooperation around some core activities, and start to realize the existence of common linkages. Developing cluster: The linkages are intensified by the emergence and attraction of new actors to the region, resulting in the creation of more interaction. In this context the development of inter-firm-cooperation becomes more evident through the development of joint efforts. The Mature cluster: This stage is configured by the presence of a certain critical mass of factors that consistently influence the competitive performance of the firms inside the cluster. The internal dynamics is characterized by the presence of an institutional environment, strong linkages, complementarities and the emergence of new firms through startups, joint ventures and spin-offs. Transformation: Indeed the process of continuous environmental change in markets, technologies, regulations and other process, to be successful a cluster have to innovate and adapt to these new conditions, other way stagnation and decay may affect the cluster dynamics. That process of change/adaptation may happen through the emergence of one or several interconnected clusters with focus in other activities, or by new configuration in terms of networks of firms and institutions. The presence of economic benefits for clustered firms described by authors like Schmitz and Nadvi (1999), Ketels (2004), Isbasoiu (2006) and Pitelis and Pseiridis (2006) are closely related to the stage of development that a cluster is experiencing. For example, an emerging cluster is not actually a cluster, since the small number of firms is not expected to present a high level of linkages and do not form a critical mass. Moreover, the absence of strong interdependencies such as labour mobility, spin-off, socioeconomic networks and intense exchange of good and services prevent the emergence of local capabilities. Thus, same considering that this stage constitutes the embryo that determines the future cluster orientation, at this point the firms are not expected to be strongly influenced by a complex local dynamics. Observing that fact, Menzel and Fornahl (2010) present a skeptical position regarding the effectiveness of any competitiveness policy intended to stimulate the development of clusters at initial stages (agglomeration and emerging), since the existence of horizontal and vertical links among firms concentrated in the same region constitutes a very common fact around the world. Thus, it is almost impossible to distinguish agglomerations with real potential to become a cluster from less complex structures. Consequently, emerging clusters are almost always only described ex-post. After the initial stages of the clusters life cycle it is expected the development and intensification of interdependencies between firms within cluster boundaries (Press, 2006). Indeed the development of those interdependencies, firms start to resemble more with each other, being observe the emergence of convergent designs in terms of technological models (Menzel and Fornahl, 2010), specialized labour market (Cooke et al., 2007), production systems (Pitelis, 2010) and inter-firm relationships (Blien and Maier, 2008). Moreover, developing clusters also attract a high number of start-ups that act stimulating the intensification of intra-cluster relationships. This way, that process of convergence and expansion of the number of firms within the cluster boundaries culminates in the development of self-reinforcing external economies that decrease the heterogeneity among firms at the same time that creates benefits like transactions cost economies and the privileged access to local knowle dge. As clusters reach the stage of maturity, the standards and configurations originating from past decisions become consolidate and it is observed a reduction in the growth rate of firms attracted to the cluster (Klepper, 2007). At this point the cluster trajectory may take two different directions. Keep unchanged, and suffer with a homogenization process that creates bias economic activities and therefore prevent firms to adapt to external shocks (Menzel and Fornahl, 2010). That situation traps firms in previous successful development path and lead to the geographic dispersion of the local actors and to the deterioration of the interdependencies and capabilities. The other possible trajectory is observed in clusters that reach the stage of maturity and successfully sustain the local dynamics by a continuous process of reconfiguration and adaptation to the external shocks (Wolter, 2003). 1.2 Clusters and Economic Performance The extant theory offers a wide range of explanations to justify the economic and competitive benefits experienced by firms located within clusters. Krugman (1991) stress the existence of increasing returns originating from the concentration of firms in the same area, arguing that the geographic proximity puts together the main parts related to firms activities (e.g., labours, firms, suppliers and costumers) resulting in transaction costs economies. Following other perspective, Schmitz and Nadvi (1999) argue that unintentional external economies are not sufficient to explain the competitiveness of firms located within clusters, attributing to the existence of deliberate joint actions (e.g., sharing equipments, associations, strategic alliances and producers improving components) a critical source of the competitive advantages. Pitelis and Pseiridis (2006) explain the levels of competitiveness and productivity associated with clustered firms considering the existence of specialized hu man resources, infrastructure and befits associated with unit costs economies complemented by the presence of an institutional atmosphere. Stressing a different point of view, Bahlmann and Huysman (2008) adopts the knowledge-based view of clusters to emphasize the relevance of knowledge spillovers among the firms to explain the advantages originated from the agglomeration process. Dupuy and Torre (2006) explains the existence of cluster in terms of the advantages originating from trust relationships that increase confidence and reduce risk and uncertainty about the intra-cluster operations taking place among the firms. Moreover, Zyglidopoulos et al. (2003), describe the positive effects that the reputation of a cluster may exert on the internalization process of small and micro enterprises through the alleviation of strategic constraints associated with factors like qualified work force, financing and reduction of the firms legitimation expenses. Despite that wide range of arguments, the most traditional perspective found in the cluster literature has explained the competitive advantages of clusters in terms of productivity and innovation (Pitelis, 1998; Porter, 1998), suggesting that the special characteristics originated from the economic and geographic proximity have significant impact on those two factors. Supplementary, Enright (1998) considers that the characteristics present inside the clusters local environment result in pressures, incentives and capabilities that increase the firms competitiveness comparatively to dispersed competitors, explaining the clustering process in terms of geographically restricted characteristics. Moreover, Solvell et al. (2003) suggests that the competitive advantages emerging from regional clusters may be classified as static and dynamics. According to this perspective, while the agglomeration process triggered and sustained intensively or exclusively by factors like natural resources, low cost labors and government subsidies offers a vulnerable (easy to be copied, substituted or simple eroded by environmental changes) competitive position, clusters based on dynamics characteristics like multi-sectorial externalities, advantages of scale and scope and specific knowledge spillovers are more dynamics and competitive. Extending the arguments presented by Solvell and his colleagues, Andersson et al. (2004) considers that the sustainability of static and dynamic competitive advantages is not strictly determined, arguing that static factors are the main responsible for the emergence of clusters, while the dynamics factors are only developed along the different stages of the cluste r life cycle. Complementing the understanding about the influence of the cluster dynamics on the firms economic performance some authors like Porter (2001); Garnsey and Heffernan (2007); Karlsson (2008) and Mason (2008) describe the existence of a self-reinforcing process originating from the agglomeration externalities that contribute to create a regional virtuous-circle of increasing productivity, competitiveness and value creation. Following that argument, the economic and geographic proximity will stimulate firms to innovate more indeed benefits originating from local capabilities, which will stimulate even more the agglomeration process through the intensification of inter-firm relationships and the attraction of other firms from outside the cluster, which in turn will strength the local capabilities (Blandy, 2003, p. 101). Thus, the dynamics of clusters is expected to be self-reinforced by agglomeration benefits with significant influence on the firms performance. Putting together the arguments associated with the economic impacts experienced by clustered firms indeed the existence of local factors, it is possible to identify and describe the following positive location-specific externalities: Cost savings indeed the geographic proximity with specialized suppliers, labours and distributors; Knowledge-spillovers (intentional and unintentional), since firms inside clusters can benefit from the knowledge dissemination process that may take place especially through inter-firm cooperation, specific linkages and labour mobility; Deliberate joint actions facilitated by the engagement in alliances and partnerships to achieve strategic objectives; Trust relationships, that through the geographic and economic proximity minimize the uncertainty associated with commercial operations, resulting in transactions costs economies; Pressures for higher performance, stimulated by the proximity with competitors; Specific Infrastructure and public goods that are oriented to attend the cluster demands, like roads, ports, laboratories and telecommunication networks; Complementarities, associated with firms in different activities but sharing common factors like raw material, clients and technologies that may enhance the cluster efficiency as whole. Discussing the role of regional clusters in shaping competitive patterns, Tallman et al. (2004) proposes a distinction between the types of competitive advantages emerging from clustered firms: based on traded interdependencies and based on untraded interdependencies. The concept of traded interdependencies is related to the existence of inter-firm transactions inside the cluster, and is observed in formal exchange operations that may take place in form of alliances, commercial operations and acquisitions. On the other hand, untraded interdependencies are related to less tangible effects, and are based on shared knowledge for which no market mechanism exists; with no formal exchange of value for value (Tallman et al. 2004, p. 261). To illustrate the mechanisms by which the untraded interdependencies take place, it is possible to mention unintentional external economies associated with tacit knowledge shared through mechanisms like labor mobility. Those different types of interdependencies, especially untraded, present at the cluster level, represent a source of competitive advantage that is likely to be causal ambiguous (for firms inside and outside the cluster) and high complex in terms of their origins, what consequently constitutes attributes difficult to be replicated by competitors. However, the presence of untraded effects, especially unintentional knowledge spillovers, is viewed Enright (1998) as a constraining factor for firms within clusters, since the establishment of an efficient information flow may limit the firms capacity to obtain monopoly profits from the development of innovations. Complementing the negative effects originating from the clusters dynamics, some authors also describe agglomeration diseconomies that have a negative impact firms located within clusters. For example, congestion effects (Arthur, 1990), institutional sclerosis (Pouder and John, 1996; Pitelis, 2010), rigidities associated with labour mobility and natural resources (Krugman, 1989) and pollution (Fan and Scott, 2003). This way, the dynamics and performance of a cluster is determined by the interplay between positive and negative externalities observed during the different stages of development that a cluster is expected to pass overtime (Wolter, 2003) Limitations in the Cluster Theory Notwithstanding the advances in the cluster theory some questions still remain insufficiently explored. One of the main limitations observed in the current state of the cluster literature is the lack of comparative perspectives to explain the advantages and disadvantages of clusters relatively to other alternative models of organization of economic activities. In his very novel approach, Pitelis (2010) suggests that any perspective trying to explain clusters in terms of absolute advantages is at the very best incomplete. In this context, Pitelis proposes the comparison of clusters vis-ÃÆ'  -vis to markets and hierarchies in order to understand the reasons and conditions that lead firms to engage in intra-clusters relationships, market operations (outside the cluster) or integrate within the firms hierarchy. In fact it is not necessary a great effort to conclude that most of the cluster theory has been developed following a mono-institutional approach (e.g. Porter, 1990, 1998; Saxe nian, 1994; Rosenfeld, 1998; Swann and Sennett, 1998; Schmitz and Nadvi, 1999), while some few exceptions concentrated on transactions costs (e.g. Fujita and Thisse, 1996; Iammarino and McCann, 2006; Takeda et al., 2008) and knowledge creation efficiency (e.g. Hendry et al., 2000; Tracey and Clark, 2003; Reinau, 2007; Kongmanila and Takahashi, 2009) have been drawn on a comparative approaches between clusters and open-market operations. Assuming the arguments proposed by many scholars that clusters are engines of innovation (Davis, 2006, p. 32), the lack of comparative perspectives do not answer the question why clusters are more efficient than markets or the hierarchy to improve the firms innovative capacity (Pitelis, 2010). Thus, despite the wide number of ramifications observed in the cluster theory such as innovative efficiency, productivity, social capital and social interactions, its explicative power remains almost always restricted

Comparing Confucianism and Daoism Essay

Philosophical Daoism and early Confucianism have very different views on the way we should live life. If I was to choose a path in life to follow it would be the Confucianist path. Confucianism is a lot more controlled then Daoism. Daoism focuses on wu-wei, which translated is non-action. Non-action means that the Daoists believe the best way to live life is to just go with the flow, and not interrupt the natural course of life. Looking at such perspectives on life only brings chaos to my mind, as a society with a â€Å"go with the flow† attitude could cause a lot of problems. Without rules, regulations, or rituals to follow I feel that people would take advantage of this and simply do whatever it is they wish to do. The Daoist text, Tao Te Ching, does not have specific rules to abide by. It preaches messages via stories on how to live, which are then interpreted into guidelines that the Daoists follow. On the contrary, in Confucianism we are exposed to a way to live in order to achieve the good that is within all of us. Confucius believed that society was naturally good, but he felt that the society was getting corrupted with bad morals that focused on money, profit, and power (Lecture notes November 1,2011). In order to achieve the human goodness that we all have within us, and that we had in the past, he offered his followers two different choices to follow. The first choice involved education, which was accomplished through the five classics; the second method was through simple observation, letting life educate you (Lecture notes, November 3,2011) . These strategies represent moral force rather than physical force, and they cultivate human goodness. Along with these two ideas on how to cultivate human goodness, Confucius strictly believed that ritual, Li, would be the key to achieving good manners. The Master said, So long as the ruler loves ritual, the people will be easy to handle. (14. 44)† (Course Reader 3, p. 335) Confucius regulated his people through the religious rituals, rules, and by enforcing education with the intention that it would help cure his people of the corruption they have endured. Unlike the Daoist path, Confucius clearly had a smart approach on how to handle the current political situation in his country, by assuming ritual would put an end to current conflicts. If people were to follow the Daoist perspective on life it would lead to many conflicts due to the lack of control on people’s actions. These conflicts could grow into a more serious war between people, simply causing more suffering, which is why I would choose the Confucianist path over the path of Daoism. Even though Daoism would seem to cause more problems in society, some aspects of the religion are advantageous. Most people in life do not like to be dictated, and told what to do. Unlike Confucius the Daoists believe that forcing an act, such as educating yourself, is unnatural. Confucius dictated his followers to persevere in education, and this is a possible demand that some may not have followed as it was an act they were told and forced to follow in order to cultivate human goodness. The Daoists believe that going against this natural flow in life takes more vital energy, making the Daoist religion somewhat more plausible then Confucianism(Lecture notes, November 17,2011). But, the freedom in the Daoist religion may also be displeasing when it is looked at as a disadvantage. In Daoism, there is no harsh judgement on morality, meaning there is no good or bad, or right and wrong. The impact of this belief is evident when observing drastic situations such as wars, murders, and robberies. If there is no good or bad, society would have no morals when making decisions. This has a detrimental effect on the Daoist religion because the decisions people make in life could lead to large conflicts and suffering among people when they are made lacking morality. Confucianism on the other hand, lacks answers when the topic of the after-life comes up. Confucius never seemed to talk about the after-life, nor would he have an answer for someone if they were to have asked him about it. Till you know about the living, how are you to know about the dead? (11. 11)† (Course Reader 3, p. 342). Confucius avoided this topic and focused on current life issues, as he wanted to fix the current problems in his country. He looked up to the Duke of Chou, who was a politician, rather than a higher spiritual figure. This shows Confucius’ political rather than religious strategy to fix current problems around him (Lecture notes, Novemeber 8 2011). Confucianism demonstrates a weakness to it’s beliefs because as human beings we want to feel secure, and are curious about the afterlife. By not having an answer to what happens when we die, and by not having any views on the after-life, Confucianism neglects certain questions we want answered. From another point of view, Confucianism gives us exactly what we need to do in order to achieve human goodness. Confucius proposed two methods to cultivate goodness, education and simple observation. Confucianism is regulated, and unlike Daoism which can lead to chaos and disorder among people, the Confucianist path if followed correctly can lead to human goodness. Mencius also believed in goodness, because he taught his followers that all human beings are born good. Mencius believed in good and bad, and he described good as sympathetic compassion. Sympathetic compassion is the inability of humans to bare the suffering of others. Mencius also taught his followers that through education they can develop sympathetic compassion (Lecture notes, November 3,2011). The idea of human goodness, and the stability of a regulated religion based on ritual is what makes Confucianism more favourable. Despite the pros and cons mentioned for each religion, Confucianism is the better alternative due to its safe qualities. By following Confucianism there would be less worries about war and conflicts occurring due to choices made with the lack of morality. Confucianism would direct people towards the right direction in life, by teaching the followers how to cultivate human goodness. By cultivating human goodness, the Confucianist society would only ameliorate themselves as people. The path of Confucianism would be a strong and supportive religion to follow that would contribute to contentment for it’s followers along with those around them.

Alcohol and Literature Essay

Throughout America’s history we have seen men drinking for the sake of drinking, solely because it is a thing that men are accustomed to do. In every town there are saloons, taverns, and every other sort of gathering place for men to come soak their very souls in alcohol. This ideology is not uniquely American, nor is it an exclusively masculine tradition, but it has become so intertwined with the idea of a romantic working-class American vision that only the deaf, dumb, and blind could not see it reflected in the great American novel. And the great American novel that I will discuss: John Barleycorn. One of Jack London’s late works, actually written three years before his death by suicide (he would have died from alcohol poisoning within the year). The book is practically an autobiography, although London never admitted it, and it details his life throughout his ages and phases and shows how easily one who is not suffering from a predisposition to alcohol can become so dependant upon it. Jack London did not become an alcoholic until the last leg of his life and he would often say so: It is the accessibility of alcohol that has given me my taste for alcohol. I did not care for it; I used to laugh at it, yet here I am at the last possessed with the drinker’s desire. It took twenty years to implant that desire; and for ten years more that desire has grown. (33) Jack London was not born into a wealthy family and he did not lead a pampered life, maybe this is what made him a great writer, or maybe it was all the amazing things he saw in his time prospecting in the Yukon, pirating oysters around the Pacific coast, or hunting for seals in the Bering Sea (Teacher xi). All these things sound great and wondrous now but at the turn of the century these were chores left to the working class, not to aspiring novelists. London was in love with a romanticized idea of America, he loved the idea of adventure and it is reflected in almost every one of his books and so is his game of chess against alcohol. London’s earliest works such as Call of the Wild and Sea Wolf show the two conflicting personalities within London. In Sea Wolf a young man ,with a striking resemblance to a younger London, is washed out to sea and rescued by a sealing boat on it’s way to the hunting grounds. The captain is a massive self-educated man named Wolf Larsen and he refuses to return the young lad (to whom he refers as â€Å"Hump†) to land and offers him a job on board as a sailor. The conflict between the two main characters of the story seems to represent a conflict within London himself, one present in most of his novels. The young educated man is clearly a representation of a younger and more idealistic London, what he envisioned for himself when he was a young man (and he did not drink). An example of the similarities between London and his characters can be seen in a line from Sea Wolf regarding the young man named â€Å"Hump†; â€Å"he kept a summer cottage†¦and read Nietzsche and Schonpenhauer to rest his brain† (Teacher 837). We know London was a very avid philosopher and Nietzsche was one of his favorites which is evident in John Barleycorn, the book was influenced by Nietzsche even if he never named him directly; â€Å"a pessimistic German Philosopher† (London 11). The older self-educated man known as Wolf Larsen in Sea Wolf represents what London envisioned himself becoming later in life; a hard man who finally realized life is given to those who want it the most, regardless of how worthless or trivial it may be. The conflict between these two characters is the basis of the story, they become uneasy friends in their nightly discussions of life and all that encompasses it and every night Wolf Larsen is victorious in their arguments. He is not a man who values life or love, money or recognition; he values his life and his life alone. This lack of â€Å"morality† goes against everything the younger â€Å"hump† has been taught yet in the end he comes to see it as true, although he retains some of his more solid values. This is the unavoidable pessimism that we see in all of Jack London’s later stories, the death of his younger idealistic side, drowned in alcohol, and the ascension of his â€Å"realist† side. As London progressed in his writing the conflict lessened and the â€Å"White Logic† took over almost completely (London 192). The White Logic is the primary suffering of any true dipsomaniac; it is the loss of faith in mankind and oneself, it takes pessimism and turns it into realism, it is the constant knowledge that we shall all come to pass (London 193). Although Jack London coined the term â€Å"White Logic†, the ailment has always been present, at least in American novelists’ reality. It is a weighty sense of sadness that makes one feel that life is a lie and that there is no real purpose but to grow old and die. It’s a sad thing to know and it must be far worse to have this constantly on ones mind, which is exactly what happened to Jack London and many other American writers. Ernest Hemingway sank deep into his own form of the â€Å"White logic† in his last years with us as can be seen in Across the River and Into the Trees, his last two novels which the author could never finish because of the morbid babbling they contained. A depressing majority of American writers have had their careers in literature cut short by their affairs with John Barleycorn; Ernest Hemingway shot himself because he could not take the constant whispers of death John Barleycorn would made in his ear, maybe if Truman Capote could have put down his glass maybe he would have finished Answered Prayers, Hart Crane might have written poetry into middle age if alcohol did not exist (Waldron 2). Upton Sinclair wrote about Sinclair Lewis’s drinking in The Cup of Fury; â€Å"Through a miracle of physical stamina Lewis made it to 66, more tragic than any shortage of years was the loss of productivity and the absence of joy.† (Waldron 2). Why is it that these great people, whom many of us admire and revere in the highest sense, have had their lives mired in an alcoholic binge? Is it a wise career move to drink when one is a writer? Does it give a better understanding of fiction and life in general? The answer to the above questions is obvious, no, alcohol is a lie and all that is learned through it is also a lie, although it may make the truth clear at times by loosening the tongue, this may seem like contradiction but what in life isn’t? Despite this bit of common knowledge an overwhelming number of people drink and continue to drink as well as encourage others to drink with them. It’s practically impossible to escape the lures of fermented grain; it’s a part of human history (Crowley 35). In truth we are all predispositioned to drink because we are human, this gives us a proclivity to soak our spirits with spirits and our minds with margaritas. Hundreds of years before America was discovered writers were altering their minds with whatever was at their disposal; Poe was a poppy popper (opium), Shakespeare may have been a stoner (Hashish), Nietzsche was drunk off of his ego, and Plato and Socrates were just drunks. All these people, who helped shape the intellectual progress of man, were by today’s standards drug addicts and alcoholics. They lived and died by their choice of poison (Socrates did so literarily) and it greatly influenced their writings, which brings another question to mind. If alcohol is responsible for the deaths of many great writers and their careers then it must be considered a faux pas and banished from the civilized world right? True the world might be better off without alcohol but then again could anyone say that the great literary works would have been made better by taking the morbid realities out of them. Would War and Peace have been better if it had a happy ending (maybe if they had prozac back then)? Would A Farewell to Arms have been more meaningful if Hemingway wasn’t soused while writing it? Everyone would have probably loved Romeo and Juliet if the lovers in question did not die, and John Barleycorn would have never been written in a perfect world without alcohol. It seems that in literature our faults and weaknesses are great, they help depict a real person and allow readers to relate directly to the characters or ideas in the story, without depression there is nothing to compare happiness too. What makes literature interesting is the positively maladjusted people who write it, if they were to be normal upstanding citizens they would have nothing to write about. To say that alcohol is directly responsible for the end of Jack London’s writing career is just as folly as saying Robert Frost could have benefited from alcoholism, yet it is undeniable that it had something to do with the loss of his life and maybe even the spawn of his career. One cannot determine the validity of statements through statistics, it does not matter how many writers were alcoholics or how many more were not. They were people just the same and they were prone to the same temptations as the rest of us. Many choose to drink and revel in John Barleycorn’s false but alluring friendship and many more choose not to do so, in the end it matters not because such is life. Although it matters to us it does not matter on the grand scheme, life is really a little game we play and it’s depressing to think about how inconsequential we are. Knowing this why would anyone want to make life and death a constant thought in their minds like the great authors of old? Why were their manically depressed words so inspiring? Simply because to find beauty in all that is bleak is beautiful, and it is in those moments of clarity that we all shine.

Definition and Examples of Conditional Sentences

In English grammar, a conditional sentence is a type of sentence that expresses one situation (the condition,  antecedent, or protasis in a dependent clause) as a condition for the occurrence of another situation (the result, consequent, or apodosis in the main clause). Put simply, the basic structure underlying most conditional sentences can be expressed as, If this, then that. Also called a conditional construction  or a conditional. In the field of logic, a conditional sentence is sometimes referred to as an implication. A conditional sentence contains a conditional clause, which is a type of adverbial clause  usually (but not always) introduced by the subordinating conjunction if, as in, If I pass this course, I will graduate on time. The main clause in a conditional sentence often includes the modal  will, would, can, or could. A subjunctive conditional is a conditional sentence in the subjunctive mood, such as, If he were to show up here right now, Id tell him the truth. Examples and Observations In each of the following examples, the italicized word group is a conditional clause. The sentence as a whole is a conditional sentence. If I ruled the world,Every man would be as free as a bird,Every voice would be a voice to be heard,Take my word, we would treasure each day that occurred.(Leslie Bricusse  and  Cyril Ornadel, If I Ruled the World. Pickwick, 1963)If I ruled the world, was king on the throne,Id make peace in every culture, build the homeless a home.(Nasir Jones et al., If I Ruled the World (Imagine That), 1995)Now, if I had  been that young woman, I would have planted my feet, looked those men straight in the eye, and dared them to try to put me on board a ship when I didnt want to go, but times were different then.(Jennifer Chiaverini,  The Quilters Apprentice, 1999)Even  if she were to  confide in them all her suspicions, even  if she were to  tell them about the pills, even  if she were to  lead them to her locker at the Greyhound Bus Terminal and actually present them with her bloodied dress and the stacks of hundred-dollar bills, she would be regarded with skepticism and outrig ht disbelief.(Joy Fielding, See Jane Run. William Morrow, 1991)All this can be a dreadfully boring business, unless you think you have a future.(Bernard Malamud, The German Refugee, 1964)Conditional Clauses That Are Not Introduced by a Conjunction- It is possible to construct conditional clauses that do not begin with if or unless. The commonest way of doing this is to begin the clause with one of these words: were, should, had. For example: Were I to own a new BMW car, another ten microcomputers would be at my command, so their advertisements claim.Should you succeed in becoming a planner, you would be helping to create these parameters.Had I ignored my fitness, I could never have played international cricket for twenty years. (John Seely, Oxford A-Z of Grammar and Punctuation, rev. 2nd ed. Oxford University Press, 2013)-  Were I to take a turn into the country,  the trees would present a leafless, wintry appearance.(Thomas Paine, winter 1792)- Let Domingo be my heir  should I fail to return, I said to the House that surrounded me.(Jane Lindskold, Child of a Rainless Year. Tor Books, 2005)- Yet this strangest of all things that ever came to earth from outer space must have fallen while I was sitting there, visible to me  had I only  looked up as it passed.(H.G. Wells,  The War of the Worlds, 1897)Using the Past Perfect in ConditionalsIf the situations are set in the past, the past perfect is used in the conditional clause and a past perfect modal, usually would have, in the main clause. - If we had been there yesterday, we would have seen them. (But we were not there yesterday.)- If he had been given a good mark, he would have told me. (But it seems that he was not given a good mark.) If the auxiliary in the conditional clause is were, had, or should, we can omit if and front the auxiliary: - Were she here now, there would be no problem.- Had we stayed at home, we would have met them.- Should you see him, give him my best wishes. (Sidney Greenbaum and Gerald Nelson, An Introduction to English Grammar, 2nd ed. Pearson, 2002)Direct and Indirect ConditionsConditional clauses generally express a direct condition, indicating that the truth of the host clause (or apodosis) is dependent on the fulfillment of the condition in the conditional clause (or protasis). However, some conditional clauses may express an indirect condition that is related to the speech act: [18]   And if I remember rightly you had jaundice didnt you (if I remember rightly it would be true to say)[19]   I mean if I told you honestly things can be really interesting [...][20]   [. . .] I did need to have a need to say , that I was doing something because uhm , otherwise I wouldnt be anybody if you see what I mean Direct conditions may be either open (or real) or hypothetical (or closed or unreal). Open conditions leave completely open whether the condition will be fulfilled: [21] Youre going to have huge trouble , if youve infected me. In [21] the speak er does not give any indication whether he or she believes that the condition--the infection by the person addressed--has been fulfilled.(Sidney Greenbaum, Oxford English Grammar. Oxford University Press, 1996)Material Conditionals in LogicA material conditional expresses  another type of connection, neither causal nor logical yet similar to other types of conditionals in that it cannot be true if it has a false consequent and a true antecedent. An example of a material conditional is If humans live on Jupiter, then my great-grandmother was an astronaut. Although no natural link connects the antecedent and  consequent in this conditional, its meaning is clear. The point of this sentence, and others like it in English, is to emphasize that the antecedent is false. It is a way of expressing No way is there human life on Jupiter.Although material conditionals are often just  humorous ways of stating that something is false, we can draw from them a logically useful principle about interpreting sentential connectives. In a material conditional, the if... then... that connects the component sentences is a  truth-functional connective. This means that the truth of the conditional sentence is determined completely by (is a  function of) the truth of its component sentences. The only circumstance under which a material is false is when it has a true antecedent and a false consequent. That is why the compound sentence If theres human life on Jupiter then my great-grandmother was an astronaut can be used to state the falsity of there is human life on Jupiter. The consequent of the conditional (my great-grandmother was an astronaut) is obviously false. Yet the sentence as a whole is understood as true. But if the antecedent were true, then the conditional would be false, for it would have a true antecedent and a false consequent. Thus, a material conditional  of the form If (antecedent), then (consequent) is true unless the antecedent is true and the consequen t is false. (Merrilee H. Salmon,  Introduction to Logic and Critical Thinking, 6th ed. Wadsworth, Cengage, 2013)