EconPapers    
Economics at your fingertips  
 

The Role of Human Capital in Cluster†Based Industrial Development

Keijiro Otsuka () and Tetsushi Sonobe ()

The Developing Economies, 2018, vol. 56, issue 2, 104-116

Abstract: More often than not, manufacturing industries are clustered in small areas in developing economies of Asia and sub†Saharan Africa (SSA). While agglomeration economies arising from low transaction costs are a clear advantage of industrial clusters, a drawback is the ease of imitation, which leads to the gap between social and private benefits of innovation. An important observation is that multifaceted innovation, consisting of the quality improvement of products, improved internal management, and the introduction of new marketing systems, takes place in many industrial clusters in Asia, but such innovation seldom occurs in SSA. This article attributes this to greater endowment of entrepreneurial human capital, and increased possibility of learning advanced technologies and management methods from neighboring countries in Asia than in SSA. This article also discusses evidence suggesting that multifaceted innovation can be stimulated by offering management training to entrepreneurs in SSA.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/deve.12166

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:deveco:v:56:y:2018:i:2:p:104-116

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0012-1533

Access Statistics for this article

The Developing Economies is currently edited by Katsuji Nakagane

More articles in The Developing Economies from Institute of Developing Economies Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2020-09-17
Handle: RePEc:bla:deveco:v:56:y:2018:i:2:p:104-116