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Development paths of industrial clusters

In: Transforming Poor Economies

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Abstract

More often than not, manufacturing industries are clustered, particularly in poor economies. First of all, this chapter explains why manufacturing industries tend to be clustered. Second, based on more than 20 case studies of the development of industrial clusters in Asia and Africa, I discuss common patterns of the development of an industrial cluster consisting of the initiation phase, the quantity expansion phase, and the quality improvement phase. Third, I point out the importance of multifaceted innovation for development in view of the complementarity between technological and managerial innovations. Finally, I highlight the similarity between industrial clusters and rural communities in reducing transaction costs based on informal personal networks.

Suggested Citation

  • ., 2024. "Development paths of industrial clusters," Chapters, in: Transforming Poor Economies, chapter 3, pages 34-52, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:23579_3
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    File URL: https://www.elgaronline.com/doi/10.4337/9781035339297.00009
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