Clusters and Economic Growth in Asia

Clusters and Economic Growth in Asia

Edited by Sören Eriksson

This detailed book explores and provides insights into the development and transformation of various clusters, economies and industrial sectors in East and Southeast Asia.

Chapter 7: The aircraft industry as a tool for economic and industrial development – the case of Indonesia

Sören Eriksson

Subjects: asian studies, asian development, asian economics, asian urban and regional studies, development studies, asian development, economics and finance, asian economics, economics of innovation, geography, economic geography, innovation and technology, economics of innovation, urban and regional studies, clusters, regional economics

Extract

Discussions occur regularly on the possible advantages of different kinds of industries and their influence or importance as creators of employment and economic development. Included in the question at hand are the possible spillover effects in specific industries, mostly high-tech industries (Eriksson, 2000). High-technology sectors are frequently cited objectives of regional development policy. High-technology industries are both misunderstood and overrated, although at the same time they are the most probable source of innovations, of successful entrepreneurs, of new firms and of new industries (Malecki, 1997). Pavitt (1990) argues that distinct modes of innovation can be observed across four sectors: science-based, scale-intensive, information-intensive and specialized supplier-dominated. Nelson and Rosenberg (1993) point out the differences between complex systems and other commodities such as chemicals and bulk commodities such as steel. In contrast to commodity goods, complex product systems are large customized engineering goods that are seldom, if ever, mass produced (Miller et al., 1995). Examples include aeroplanes, flexible manufacturing systems, flight simulators, telecommunication systems, chemical process plants and nuclear power plants.

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