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Agglomeration Advantages and Capability Building in Industrial Clusters: The Missing Link

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  • Marjolein Caniëls
  • Henny Romijn

Abstract

Accumulation of technological capability is crucial for industrial growth and competitiveness of firms, particularly in the context of liberalisation and increasing international economic integration. The article sheds new light on the forces driving capability-building by complementing the micro-economic perspective on learning with a meso-economic perspective that takes account of interaction effects arising from firms' embeddedness in regional networks. The missing link at the interface between the two levels is explored by means of a taxonomy linking various agglomeration advantages to investments in technological effort. The framework results in new policy-relevant insights about the factors underpinning the acquisition of capabilities in comparison to conventional studies. A case study about farm equipment manufacturing in Pakistan's Punjab province is used as an empirical illustration.

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  • Marjolein Caniëls & Henny Romijn, 2003. "Agglomeration Advantages and Capability Building in Industrial Clusters: The Missing Link," Journal of Development Studies, Taylor & Francis Journals, vol. 39(3), pages 129-154.
    • Handle: RePEc:taf:jdevst:v:39:y:2003:i:3:p:129-154
    DOI: 10.1080/00220380412331322851
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    Citations

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    Cited by:

    1. Clarke, Ian & Klerkx, Laurens & Ramirez, Matias, 2016. "Learning and innovation in developing economy clusters: Comparing private and non-profit intermediaries in cluster governance," Greenwich Papers in Political Economy 16712, University of Greenwich, Greenwich Political Economy Research Centre.
    2. Melina Young, 2007. "Labour Market Integration of High-skilled Immigrants: Maximizing Knowledge Spillover in Toronto," Local Economy, London South Bank University, vol. 22(4), pages 401-408, November.
    3. Huang, Zuhui & Zhang, Xiaobo & Zhu, Yunwei, 2008. "The role of clustering in rural industrialization: A case study of the footwear industry in Wenzhou," China Economic Review, Elsevier, vol. 19(3), pages 409-420, September.
    4. Chen, Yu-Shan & James Lin, Ming-Ji & Chang, Ching-Hsun & Liu, Fang-Mei, 2009. "Technological innovations and industry clustering in the bicycle industry in Taiwan," Technology in Society, Elsevier, vol. 31(3), pages 207-217.
    5. Babur Wasim Arif & Tetsushi Sonobe, 2012. "Virtual Incubation in Industrial Clusters: A Case Study in Pakistan," Journal of Development Studies, Taylor & Francis Journals, vol. 48(3), pages 377-392, March.
    6. Sapir, Ye. V. & Karachev, I. A. & Zhang, M., 2016. "Export Potential of Russian Pharmaceutical Companies in the Emerging Regional Clusters," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 2(4), pages 441-449.
    7. Ciravegna, Luciano, 2011. "Technological learning in the Silicon Valleys of Latin America," MPRA Paper 36832, University Library of Munich, Germany.
    8. Marjolein Caniëls & Henny Romijn, 2003. "SME Clusters, Acquisition of Technological Capabilities and Development: Concepts, Practice and Policy Lessons," Journal of Industry, Competition and Trade, Springer, vol. 3(3), pages 187-210, September.
    9. Kushnarenko T.V. & Chernova O.A. & Matveeva L.G., 2016. "The phenomenon of multiculturalism in the regional strategizing," Экономика региона, CyberLeninka;Федеральное государственное бюджетное учреждение науки «Институт экономики Уральского отделения Российской академии наук», vol. 12(3), pages 755-764.
    10. Keshab Das, 2007. "Industrial Clusters in India: Perspectives and Issues for Research," Working Papers id:1028, eSocialSciences.
    11. Elvira Velarde Lopez & Edna de la Garza Martinez & Eunice Coronado Rojas, 2012. "The Development Of Technological Capabilities And The Linkage With Educational And Government Institutions In The Small And Medium Enterprises Of The Metalworking Industry In The Central Region Of The," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 5(2), pages 43-56.
    12. Babur Wasim Arif & Sana Ullah, 2021. "From subcontractors to company owners: modeling firm-type choices in industrial clusters," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 153-161, December.
    13. Hogenbirk, Annelies & Narula, Rajneesh, 2004. "Location and agglomeration of FDI in The Netherlands: implications for policy," Research Memorandum 006, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    14. A. Volkova I. & I. Karachev A. & А. Волкова И. & И. Карачев А., 2016. "Факторы Роста Экспортного Потенциала Малого Инновационного Предприятия // Export Potential Growth Factors For A Small Innovative Enterprise," Финансы: теория и практика/Finance: Theory and Practice // Finance: Theory and Practice, ФГОБУВО Финансовый университет при Правительстве Российской Федерации // Financial University under The Government of Russian Federation, vol. 20(6), pages 31-38.
    15. Elena Sapir & Igor Karachev & Mingzhu Zhang, 2016. "Russian Pharmaceutical Companies Export Potential in Emerging Regional Clusters," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1194-1204.
    16. Matias Ramirez & Ian Clarke & Laurens Klerkx, 2018. "Analysing intermediary organisations and their influence on upgrading in emerging agricultural clusters," Environment and Planning A, , vol. 50(6), pages 1314-1335, September.
    17. Alexander Cole, 2007. "Beyond the Knowledge-Based Theory of the Geographic Cluster," Papers in Evolutionary Economic Geography (PEEG) 0708, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2007.
    18. Babur Wasim Arif, 2013. "Education, Experience and Enterprise Development," Journal of South Asian Development, , vol. 8(3), pages 273-299, December.

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