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The surrogate model of cluster creation: The case of Mubadala in Abu Dhabi

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  • Sami Mahroum
  • Yasser Al-Saleh

Abstract

The extant literature on cluster development focuses largely on ‘clusters’ where businesses are co-located along a supply chain to facilitate territorial concentration of a certain economic activity. This paper presents an inverse model of ‘cluster development’ strategy pioneered by the Emirate of Abu Dhabi. This model is coined as the ‘surrogate mother’ whereby the seeds for a new industry are initially planned in more ‘fertile’ offshore locations, with the intention of transferring knowledge and ‘spill-back’ home at a later phase. The paper introduces the case of Abu Dhabi as an experiment in cluster development and provides an early examination of experience to date in the light of the cluster life-cycle framework. We find that while this model remains an experiment-in-progress, it serves as a good source of learning for other resource-abundant economies seeking industrial renewal and/or greater economic diversification.

Suggested Citation

  • Sami Mahroum & Yasser Al-Saleh, 2016. "The surrogate model of cluster creation: The case of Mubadala in Abu Dhabi," Science and Public Policy, Oxford University Press, vol. 43(1), pages 1-12.
    • Handle: RePEc:oup:scippl:v:43:y:2016:i:1:p:1-12.
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    File URL: http://hdl.handle.net/10.1093/scipol/scv015
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    References listed on IDEAS

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    1. Arnoud Lagendijk, 1998. "New forms of regional industrial policy in Europe: How do policy makers understand 'competitiveness' and 'clusters'?," ERSA conference papers ersa98p388, European Regional Science Association.
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    3. J. Peter Neary, 1985. "Real and Monetary Aspects of the ‘Dutch Disease’," International Economic Association Series, in: Karl Jungenfelt & Douglas Hague (ed.), Structural Adjustment in Developed Open Economies, chapter 12, pages 357-391, Palgrave Macmillan.
    4. Edward L. Glaeser & Joshua D. Gottlieb, 2008. "The Economics of Place-Making Policies," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 39(1 (Spring), pages 155-253.
    5. Hvidt, Martin, 2013. "Economic diversification in GCC countries: past record and future trends," LSE Research Online Documents on Economics 55252, London School of Economics and Political Science, LSE Library.
    6. Sami Mahroum & Yasser Al-Saleh, 2013. "Demand-led related diversification: An innovation policy approach to economic diversification and development," Science and Public Policy, Oxford University Press, vol. 40(3), pages 406-418, February.
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    Cited by:

    1. Yasser Al-Saleh, 2018. "Crystallising the Dubai model of cluster-based development," Place Branding and Public Diplomacy, Palgrave Macmillan, vol. 14(4), pages 305-317, November.
    2. Krupa, Joel & Poudineh, Rahmatallah & Harvey, L.D. Danny, 2019. "Renewable electricity finance in the resource-rich countries of the Middle East and North Africa: A case study on the Gulf Cooperation Council," Energy, Elsevier, vol. 166(C), pages 1047-1062.

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