Industrial Clusters, Upgrading and Innovation in East Asia
Show Less

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.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 3: Promoting Regional Integration through Industrial Cluster Policy in CLMV Cities

Akifumi Kuchiki


Akifumi Kuchiki 3.1 INTRODUCTION While there are large industrial agglomerations or clusters such as the automobile industry cluster in Shanghai and Guangzhou, China, in East Asia, there are almost none in Cambodia, Laos, or Myanmar. Cambodia, Laos, Myanmar, and Vietnam are referred to as the CLMV countries, and started to grow later than other ASEAN countries such as Singapore, Malaysia, and Thailand. It may be difficult to narrow the gaps between countries in East Asia without the development of industrial clusters in CLMV country cities. In his development theory, Nurkse (1953) explained that there exist vicious cycles of poverty in developing countries. Nelson (1956) also proved that there exists a low-level equilibrium trap. Rostow (1960), Rosenstein-Rodan (1943), and Leibenstein (1957) advanced the concepts of take-off, big push, and critical minimum effort, respectively. Yokoyama (1997) derived the policy implication that developing countries must attain critical minimum effort via the big push concept in order to extricate themselves from the trap and take off. The big push strategy that paved the way for Asian countries to lift themselves out of their low-level equilibrium trap has changed since the 1980s. The more recent strategy is to invite participation in Export Processing Zones (EPZs) by foreign direct investment in labor-intensive manufacturing industries with high backward linkage values. The idea of industrial clusters was tapped to induce foreign investors to agglomerate in industrial zones in the Asian economies. Canon established a factory and began operations in Thang Long Industrial Park in Hanoi in 2001. Other...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.