Industrial Clusters, Upgrading and Innovation in East Asia

Industrial Clusters, Upgrading and Innovation in East Asia

Edited by Akifumi Kuchiki and Masatsugu Tsuji

This lucid and informative book analyzes the problem of clusters in transition through studies of agglomerations at different stages of development in various East Asian countries.

Chapter 2: On the Sequence of Steps in Clustering Policy for Creating Spatial Advantages

Akifumi Kuchiki and Toshitaka Gokan

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


Akifumi Kuchiki and Toshitaka Gokan 2.1 INTRODUCTION Industrial cluster policy is one of the keys to economic development and regional integration in Asia. Few papers have built practical models for industrial cluster policy, but Kuchiki and Tsuji (2008) established the practical model of a flowchart approach to industrial cluster policy without a theoretical model. The purpose of this chapter is to establish a hypothesis concerning a ‘flowchart approach to industrial cluster policy’ as a main framework of this book. According to Fujita (2003), the central issue in the field of spatial economics is to clarify the mechanisms of industrial agglomeration, while the objective in the study of industrial clustering also includes how firms in industrial clusters become more innovative as a result of locating in the cluster. An industrial cluster is defined as a space where firms agglomerate and continuously innovate. The flowchart approach to industrial cluster policy brings industrial agglomeration at the first stage and innovative processes at the second stage. The first stage of agglomeration is represented by a flowchart of steps consisting of the construction of industrial zones, capacity building, and the invitation of an anchor firm. The flowchart approach to industrial cluster policy is sufficiently simple and practical to allow policy-makers to use the approach for policy implementation for an industrial cluster. We illustrate a typical case of a successful example of growth in East Asia by applying the hypothesis to the Eastern Seaboard region of Thailand in the 1980s and 1990s. This example is a...

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