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Productivity Growth and Job Creation in the Development Process of Industrial Clusters

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  • Tetsushi Sonobe
  • Yuki Higuchi
  • Keijiro Otsuka

Abstract

Poor management has long been suspected as a major constraint on job creation in the manufacturing sector in low-income countries. In this sector, numerous micro and small enterprises in industrial clusters account for a large share of employment. This paper examines the roles of industrial clusters and entrepreneurship in improving productivity and creating jobs, by reviewing the literature and case studies, including recent experiments. We find that the managerial capacity of entrepreneurs largely determine firms’ employment sizes, that their innovative capacity is a major determinant of productivity growth, and that entrepreneurship consisting of these capacities boosts cluster-based industrial development.
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Suggested Citation

  • Tetsushi Sonobe & Yuki Higuchi & Keijiro Otsuka, 2012. "Productivity Growth and Job Creation in the Development Process of Industrial Clusters," World Bank Publications - Reports 12143, The World Bank Group.
    • Handle: RePEc:wbk:wboper:12143
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Tigabu D. Getahun & Espen Villanger, 2018. "Labour-Intensive Jobs for Women and Development: Intra-household Welfare Effects and Its Transmission Channels," Journal of Development Studies, Taylor & Francis Journals, vol. 54(7), pages 1232-1252, July.
    2. Szirmai A. & Gebreeyesus M. & Guadagno F. & Verspagen B., 2013. "Promoting productive employment in Sub‐Saharan Africa : a review of the literature," MERIT Working Papers 2013-062, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Keijiro Otsuka, 2020. "Strategy for Cluster-Based Industrial Development in Developing Countries," Discussion Papers 2019, Graduate School of Economics, Kobe University.
    4. Nagler, Paula & Naudé, Wim, 2017. "Non-farm entrepreneurship in rural sub-Saharan Africa: New empirical evidence," Food Policy, Elsevier, vol. 67(C), pages 175-191.
    5. Reeg, Caroline, 2017. "Spatial development initiatives – potentials, challenges and policy lessons: with a specific outlook for inclusive agrocorridors in Sub-Sahara Africa," IDOS Studies, German Institute of Development and Sustainability (IDOS), volume 97, number 97, March.
    6. Reeg, Caroline, 2015. "Micro and small enterprises as drivers for job creation and decent work," IDOS Discussion Papers 10/2015, German Institute of Development and Sustainability (IDOS).
    7. Lafortune, Jeanne & Pugatch, Todd & Tessada, José & Ubfal, Diego, 2024. "Can gamified online training make high school students more entrepreneurial? Experimental evidence from Rwanda," Economics of Education Review, Elsevier, vol. 101(C).
    8. Getahun, Tigabu Degu, 2016. "The Effect of Industrial Cluster Policy on Firm Performance in Ethiopia: Evidence from the Leather Footware Cluster," Discussion Papers 229713, University of Bonn, Center for Development Research (ZEF).

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