Markets, Clusters and Innovation
Chapter 4: Local Clusters and Global Networks
INTRODUCTION In the ﬁrst part of this chapter, we move deeper following our review of the elements of knowledge economy interactions and milieux to investigate the conﬁgurations of knowledge-based clusters. In the second part, the ﬁnal three sections explore more the global network linkages in varieties of interaction with such milieux. The key aim of this chapter is to show how processes of knowledge exchange between these clusters exert inﬂuence upon global economic geography. We think this has occurred to the extent that we propose globalization itself to be changing direction because of the rise of the knowledge economy. The basic thesis is that until approximately the 1990s what we term ‘Globalization 1’ prevailed. This order was animated principally by global corporations, the multinationals, who sought cheap labour zones in which to locate routine production, much of which was sold in their home markets, principally the EU and the USA. This rather straightforward quest for low unit labour costs and heightened productivity was subject to elaborations. Global value chains emerged as multinationals became more sophisticated regarding which elements of the production chain were best located where, and such locations also contributed to the emergence of global value networks requiring delicate management, both strategically and on a day-to-day basis (Gereﬃ, 1999; Henderson et al., 2002). This in turn presaged the quarrying by multinationals of industry clusters present in developing countries and, furthermore, global linkages forming between clusters on an international basis (see, for example, Cooke and Memedovic, 2003). However,...
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