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Transnational Entrepreneurs and the Emergence of Clusters in Peripheral Regions. The Case of the Diamond Cutting Cluster in Gujarat (India)

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  • Sebastian Henn

Abstract

This paper argues that through their close-knit community networks transnational entrepreneurs can transfer focused knowledge about external markets and technologies over great geographical distances at low costs. When integrating this external knowledge with the knowledge flows between their peers at a given location, they can shape the preconditions for the emergence of clusters even at places that do not appear to have any industry-specific amenities at all. In general, such patterns of cluster evolution are of particular importance in labour-intensive manufacturing sectors in developing countries or emerging markets which are characterized by low labour costs and a lack of knowledge in production techniques. The empirical part of this paper focuses on the evolution of the diamond cutting cluster in the Indian state of Gujarat which only developed after World War II but today is the world's most important location for diamond manufacturing. The study is based on semi-structured interviews with 120 diamond firm representatives and workers in Mumbai, Surat, New York and Antwerp, as well as on an analysis of immigration files from the Antwerp city archives.

Suggested Citation

  • Sebastian Henn, 2013. "Transnational Entrepreneurs and the Emergence of Clusters in Peripheral Regions. The Case of the Diamond Cutting Cluster in Gujarat (India)," European Planning Studies, Taylor & Francis Journals, vol. 21(11), pages 1779-1795, November.
    • Handle: RePEc:taf:eurpls:v:21:y:2013:i:11:p:1779-1795
    DOI: 10.1080/09654313.2012.753690
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    References listed on IDEAS

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    1. Bathelt, Harald & Gluckler, Johannes, 2011. "The Relational Economy: Geographies of Knowing and Learning," OUP Catalogue, Oxford University Press, number 9780199587391.
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    1. Rogerson Jayne M. & Mushawemhuka William J., 2015. "Transnational entrepreneurship in the Global South: evidence from Southern Africa," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 30(30), pages 135-146, December.
    2. Pierre-Alexandre Balland & Ron Boschma, 2021. "Complementary interregional linkages and Smart Specialisation: an empirical study on European regions," Regional Studies, Taylor & Francis Journals, vol. 55(6), pages 1059-1070, June.
    3. Ron Boschma, 2021. "The role of non-local linkages for innovation," Papers in Evolutionary Economic Geography (PEEG) 2113, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2021.
    4. Brett Anitra Gilbert & Yuanyuan Li & Andres Velez-Calle & Marcus Crews, 2020. "A theoretical model of values and behaviors that shape technology region emergence in developing contexts," Small Business Economics, Springer, vol. 55(1), pages 179-191, June.
    5. Aki Harima & Thomas Baron, 2020. "Is this Transnational Entrepreneurship? Five Cases in Which It Is Hard to Say ‘Yes’ or ‘No’," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 6(1), pages 12-40, January.

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