Title: On clustering behaviour of industries: implications for the industrialisation of developing countries

Authors: Yuehua Zhang

Addresses: Department of Marketing and International Management, Waikato Management School, The University of Waikato, Private Bag 3105, Hamilton, New Zealand

Abstract: Clustering is a natural behaviour of industries. Enhancing the development of industrial clusters has been increasingly accepted, particularly in OECD countries, as an effective way of increasing national competitiveness. The present study probes the development of the cluster concept, clustering advantages and cluster situations in developing countries through a literature review. Findings suggest that clustering benefits firms and entrepreneurs in developing countries as well as in developed countries. The current paper concludes by suggesting that policy-makers of developing countries should also take the cluster approach into consideration particularly for their industrialisation effort. Strategies envisaged effective and efficient for this purpose are to identify and enhance existing industrial clusters; to focus industrial clusters relevant to the local economy; and to create sufficient factors for new cluster development.

Keywords: industrial clusters; industrialisation; national competitiveness; innovation; entrepreneurship; knowledge spillover; innovative milieu; developing countries.

DOI: 10.1504/IJEIM.2004.004761

International Journal of Entrepreneurship and Innovation Management, 2004 Vol.4 No.2/3, pp.290 - 304

Published online: 07 Jul 2004 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article