Dynamic clusters in developing countries: Collective efficiency and beyond

M.C.J. Caniels, Henny A. Romijn

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

The alleged beneficial effects of regional industrial clusters for competitiveness andgrowth in developing countries have been subject to intensive study. A prominent place in thedebate has been occupied by the collective efficiency approach. In this paper we extend thatapproach by incorporating insights from the literature on firm-level technological learning indevelopment. The resulting framework is applied to the software cluster of Bangalore (India),to illustrate the ways in which spatial proximity of firms and other parties interacts with clusterknowledge creation in a dynamic environment. A number of new insights emerge, including theimportance of “old economy” factors such as high demand for innovation, internationaltechnology transfer, low wages and strong technology and education institutions. To the extentthat “new economy” regional factors also matter, spontaneous agglomeration advantagesappear to be important alongside active collective efficiency.
Original languageEnglish
Pages (from-to)275-292
JournalOxford Development Studies
Volume31
Issue number3
Publication statusPublished - 2003

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developing world
developing country
regional factors
firm
efficiency
new economy
regional economy
low wage
agglomeration
wage
competitiveness
agglomeration area
innovation
learning
education
India
software
economy
demand
literature

Cite this

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Dynamic clusters in developing countries: Collective efficiency and beyond. / Caniels, M.C.J.; Romijn, Henny A.

In: Oxford Development Studies, Vol. 31, No. 3, 2003, p. 275-292.

Research output: Contribution to journalArticleAcademicpeer-review

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