Cluster Resilience in Canada:Clean-Tech and Advanced Manufacturing Under Energy Transition and Geopolitical Rewiring

David Wolfe

doi:10.5281/zenodo.18644931

Authors

David Wolfe University of Toronto – Munk School of Global Affairs & Public Policy https://orcid.org/0000-0002-2199-2673

DOI:

https://doi.org/10.5281/zenodo.18644931

Abstract

The acceleration of the global energy transition and the intensification of geopolitical fragmentation have fundamentally reshaped the competitive landscape faced by regional industrial clusters. In advanced economies such as Canada, clean-technology and advanced manufacturing clusters occupy a strategic position at the intersection of decarbonization objectives, industrial policy, and geopolitical realignment. This paper examines the resilience of Canadian clean-tech and advanced manufacturing clusters in the context of energy transition pressures and geopolitical rewiring of global value chains.Drawing on a mixed-methods framework that combines cluster-level indicators, firm dynamics, and policy analysis, the study investigates how clusters adapt to external shocks, reconfigure production networks, and sustain innovation under conditions of heightened uncertainty. The analysis focuses on mechanisms of resilience, including diversification of supplier networks, knowledge recombination, institutional coordination, and strategic public investment. The findings suggest that clusters with strong innovation ecosystems, dense inter-firm linkages, and active policy support exhibit higher adaptive capacity and resilience. By contrast, clusters with narrow technological specialization and high exposure to geopolitical risk face greater adjustment challenges.The paper contributes to the literature on regional development, industrial policy, and energy transition by highlighting the role of clusters as meso-level systems that mediate global shocks and local capabilities. The results offer policy-relevant insights for designing place-based strategies that enhance cluster resilience in an era of structural transformation.

References

Rexhepi, B. R., Smajli, R., Morina, V., Kida, N., & Miftari, F. (2025). Socioeconomic and emotional dimensions of retiree welfare in Kosovo: The basic pension and implications for sustainable social policy. International Journal of Sustainable Development and Planning, 20(9), 3647–3672. https://doi.org/10.18280/ijsdp.200903

Rexhepi, B. R., Murtezaj, I. M., Dauti, B., & Xhafa, H. (2024). Mitigating economic losses and prospects for the development of the energy sector in the Republic of Kosovo. Economics of Development, 23(3), 82–92. https://doi.org/10.57111/econ/3.2024.82

Rexhepi, B. R., Murtezaj, I. M., Dauti, B., & Xhaferi, B. S. (2025). Energy efficiency in the Western Balkans: The case of Kosovo. Grassroots Journal of Natural Resources, 8(1). https://doi.org/10.33002/nr2581.6853.080124

Rexhepi, B. R., Haziri, A., Kida, N., Rama, H. H., & Daci, E. (2025). The impact of human capital on the development of startup enterprises in Kosovo. Edelweiss Applied Science and Technology, 9(5), 2277–2290. https://doi.org/10.55214/25768484.v9i5.7462

Rexhepi, B. R., & Daci, E. (2024). The role of management in microfinance institutions in Kosovo – Case study Dukagjini region. Quality – Access to Success, 25(202), 207–213. https://doi.org/10.47750/QAS/25.202.22

Murtezaj, I. M., & Rexhepi, B. R. (2023). Accelerating values in shaping ethical leadership and its effect on organisational performance. Quality – Access to Success, 24(196), 295–302. https://doi.org/10.47750/QAS/24.196.36

Mustafa, L., & Rexhepi, B. R. (2023). Taxes as a source of public monetary income in the Republic of Kosovo. Quality – Access to Success, 24(195). https://doi.org/10.47750/QAS/24.195.09

Rexhepi, B. R., & Murtezaj, I. M. (2024). Visa liberalisation and labour migration: Legal and economic implications for Kosovo. Social and Legal Studios, 7(2), 19–27. https://doi.org/10.32518/sals2.2024.19

Audretsch, D. B., & Feldman, M. P. (1996). R&D spillovers and the geography of innovation. American Economic Review, 86(3), 630–640.

Balland, P. A., Boschma, R., Crespo, J., & Rigby, D. L. (2019). Smart specialization policy in the European Union. Journal of Economic Geography, 19(6), 1257–1287.

Boschma, R. (2015). Towards an evolutionary perspective on regional resilience. Regional Studies, 49(5), 733–751.

Cainelli, G., Ganau, R., & Modica, M. (2018). Industrial relatedness and regional resilience in Italy. Annals of Regional Science, 60(1), 125–146.

Cooke, P. (2012). Transition regions: Green innovation and economic development. Regional Studies, 46(5), 655–672.

Crespo, J., Balland, P. A., Boschma, R., & Rigby, D. L. (2014). Related variety, unrelated variety and regional economic growth. Regional Studies, 48(12), 1929–1952.

Frenken, K., Van Oort, F., & Verburg, T. (2007). Related variety, unrelated variety and regional economic growth. Regional Studies, 41(5), 685–697.

Hassink, R. (2010). Regional resilience: A promising concept. Cambridge Journal of Regions, Economy and Society, 3(1), 45–58.

Hidalgo, C. A., & Hausmann, R. (2009). The building blocks of economic complexity. Proceedings of the National Academy of Sciences, 106(26), 10570–10575.

Martin, R., & Sunley, P. (2015). On the notion of regional economic resilience. Journal of Economic Geography, 15(1), 1–42.

Mazzucato, M. (2018). Mission-oriented innovation policies. Research Policy, 47(5), 803–815.

Mazzucato, M., & Semieniuk, G. (2018). Financing renewable energy. Journal of Sustainable Finance & Investment, 8(2), 1–25.

OECD. (2020). Industrial policy for the climate transition. Organisation for Economic Co-operation and Development.

OECD. (2023). Clusters, industrial ecosystems and regional resilience. Organisation for Economic Co-operation and Development.

Porter, M. E. (1998). Clusters and the new economics of competition. Harvard Business Review, 76(6), 77–90.

Rodrik, D. (2014). Green industrial policy. Oxford Review of Economic Policy, 30(3), 469–491.

Rodrik, D. (2021). Industrial policy for the twenty-first century. Project Syndicate.

Sabel, C. F., & Zeitlin, J. (2012). Experimentalist governance. Socio-Economic Review, 10(1), 169–200.

Storper, M. (2013). Keys to the city: How economics, institutions, social interaction, and politics shape development. Princeton University Press.

Sturgeon, T. J. (2021). Upgrading strategies for global value chains. Journal of International Business Policy, 4(3), 327–346.

Tooze, A. (2022). Shutdown: How Covid shook the world’s economy. Penguin.

UNIDO. (2022). Industrial development report 2022: The future of industrialization. United Nations Industrial Development Organization.

Wolfe, D. A. (2019). Innovation, institutions and regional development in Canada. Canadian Journal of Regional Science, 42(1), 1–18.

Wolfe, D. A., & Gertler, M. S. (2016). Growing urban economies. University of Toronto Press.

World Economic Forum. (2023). Global risks report 2023.

Bank of Canada. (2023). Climate transition risks and the Canadian economy.

IEA. (2022). World energy outlook. International Energy Agency.

Hidalgo, C. A. (2021). Economic complexity theory. MIT Press.

Balland, P. A., Rigby, D., & Boschma, R. (2015). The technological resilience of U.S. cities. Cambridge Journal of Regions, Economy and Society, 8(2), 167–184.

Pike, A., Dawley, S., & Tomaney, J. (2010). Resilience, adaptation and adaptability. Cambridge Journal of Regions, Economy and Society, 3(1), 59–70.

Tirole, J. (2017). Economics for the common good. Princeton University Press.

United Nations. (2021). World investment report. UNCTAD.