This book presents an in-depth analysis of the functional dynamics of Indian industrial clusters which have grown and stayed as hubs of business activity in India, thanks to a large calibrated domestic market for goods. The examples given contribute towards the understanding of theoretical underpinnings of small firm clusters in LDCs and also indicate steps towards effective policy making for SME development in general, and local economic regeneration in LDCs in particular. The industries studied include modern as well as traditional/artisanal sectors which span at least ten Indian states. They provide insights into informality, labour, inter-firm relationship (cooperation and competition), technological and organisational flexibility, and forms of supportive institutional arrangements and nature of linkages with agencies external to the cluster, among other things. This book will be of particular interest to SME practitioners and to students and researchers of economics, business management, regional development, economic geography, industrial sociology and industrial organisation.

This book analyzes three points: employment conditions for migrant workers, the impact of industrialization as part of industrial clusters upon surrounding and outlying villages, and the labour market in industrial clusters. This book examines the cases of two newly developed industrial clusters: Ludhiana in Punjab and Tiruppur in Tamil Nadu.

This book provides a theoretical framework to explain the formation and growth of economic agglomerations and industrial clusters from the viewpoint of spatial economics, and goes on to present current examples of clustering and policy in different economies.

This book provides a comprehensive overview of what Asian industrial clusters might teach us. At a time when the dynamics of the world''s economy are increasingly being influenced by developments in Asia, the question takes on particular relevance because of the explosion of clusters and cluster policies throughout the region; and because of the great variety of models which can be seen developing in the various countries. Based on robust empirical surveys and interviews conducted in China, Vietnam, Thailand, Malaysia and Japan, the studies collected in this book were first debated at an international workshop in Lyon. From industrial districts to poles of competitiveness, these studies explored the transformation of traditional systems of activities or industrial districts to new networks ready for global competition or innovation, and also the development of new agglomerations or scientific knowledge clusters. The wide range of case studies in this collection offers a rich store of theoretical and practical lessons for analysts, policy-makers and economists. The book will also be a useful guide for graduate students as well as researchers in economics, sociology and political studies.

Industrial clusters in Silicon Valley, Hsinchu Park, and northern Italy, and in the vicinity of Cambridge, U.K., have captured the imagination of policymakers, researchers, city planners and business people. Where clusters take root, they can generate valuable spillovers, promote innovation, and create the critical industrial mass for sustained growth. For cities such as Kitakyushu, Japan, that are faced with the erosion of their traditional industrial base and are threatened by economic decline, creating a cluster that would reverse the downward trends is enormously attractive. Growing Industrial Clusters in Asia offers practical guidance on the nature of clusters and the likely efficacy of measures that could help build a cluster. It draws on the experience of both established dynamic clusters and newly emerging ones that show considerable promise. The insights that result from its anlaysis will be of particular interest to policy makers, urban planners, business people, and researchers.

The World Bank, Japan International Cooperation Agency (JICA) Research Institute, and the Foundation for Advanced Studies on International Development (FASID), in collaboration with researchers affiliated with the African Economic Research Consortium (AERC), recently conducted a study on Africa s domestic enterprises to improve the understanding of the constraints micro and small enterprises in Africa face in improving productivity and expanding their markets. In Africa, there are stark performance gaps between domestically owned enterprises and foreign-owned enterprises in terms of sales performance, productivity, and ability to reach distant markets. Among others, size appears to be a dominant factor in explaining the gap. Against this background, the study analyzes how naturally formed industrial clusters concentrations of enterprises engaged in same or closely related industrial activities in specific locations could potentially mitigate constraints Africa s micro and small enterprises face and enhance their business performance. The study is one of the first comprehensive quantitative inquiries on industrial clusters in Africa. The analysis specifically focuses on the role of spontaneously grown clusters of light manufacturing industries based on a set of original case studies of industrial clusters conducted for this research project. One of the key findings from the case studies was that cluster-based micro and small enterprises are performing better than similar micro and small enterprises outside of the clusters in terms of sales performance and ability to reach distant markets. Market access is a leading reason for cluster-based enterprises to choose their current locations. However, cluster-based enterprises face another set of unique growth constraints. By the very nature of spontaneous agglomera tion, new enterprises continue to flow to the clusters seeking the profit opportunities and better access to markets at such locations. The result can be intense competition in addition to increased congestion. Space constraints often impede growth within clusters. The lack of alternative locations available for industrial activities in the same cities, generic infrastructure bottlenecks, and unclear zoning policies and their unpredictable changes limit firms location choices and constrain their mobility. While competition should improve efficiency, lack of capacity among those competing cluster-based enterprises to invest and innovate does not generate growth out of the competition. The vast majority of naturally formed clusters of light manufacturing industries in Africa are still at a survival level, where agglomeration externalities are only limited to expand quantity but not quality as we observe in more advanced innovation-oriented clusters in elsewhere in the world. Existing studies on such natural industrial clusters in Africa have found that the lack of managerial skills among entrepreneurs running micro and small enterprises is a major constraint for innovation and growth in the clusters. As a part of this study, pilot managerial skills training programs were conducted in two industrial clusters on an experimental basis, where a group of randomly selected entrepreneurs within the clusters were given three-week long crush course of based management such as bookkeeping, marketing, business planning, and production management. The impact evaluation of the experiments showed significant positive impacts of the training programs on value added and gross profits of enterprises. Raising the current survival-type industrial clusters, which have been formed as a coping mechanism to weak investment climate, into more dynamic innovating clusters will be an important avenue for fostering growth of micro and small enterprises in Africa. While national efforts to improve investment climate and investments in human capital are undoubtedly important, there could be more targeted policies to be formulated, in complementing general policies, to support growth of micro and small domestic enterprises using existing industrial clusters as a natural springboard for their growth. In that context, the study discusses the merit of cluster-based managerial human capital development to build steps toward more innovation-oriented clusters, the importance of sound spatial planning policy, particularly at the local level in the context of urban planning, the need to expand market access and economic linkages for industrial clusters including regional integration and linkages with large enterprises.

This volume offers a detailed conceptual framework for understanding and learning about technology innovation policies and programs, and their implementation in the context of different countries.