The old and the new: the evolution of polymer and biomedical clusters in Ohio and Sweden

This paper examines the rapid growth of the polymer-based and biomedical cl usters in Ohio and Sweden - two regions of similar size and with similar tr aditions undergoing similar industrial restructuring. Two issues are addressed: First, why has growth been so strong in these par ticular clusters, i.e., can we identify the sources of the growth and dynam ics in these sectors? Second, why do these two clusters differ in Ohio and Sweden in terms of size, level and type of activity, number and composition of actors, size structure of firms and growth patterns over the last coupl e of decades? In particular, what is the role of public policies as well as cultural, historical, and geographic factors? Our main conclusions are (1) that there is strong path dependence in both c lusters in both countries, and (2) that the key to rapid development is a h igh absorptive capacity combined with rapid diffusion to new potential user s. Our policy discussion addresses these issues.