Transnational Entrepreneurs and the Emergence of Clusters in Peripheral Regions. The Case of the Diamond Cutting Cluster in Gujarat (India)

Sebastian Henn ()

European Planning Studies, 2013, vol. 21, issue 11, 1779-1795

Abstract: This paper argues that through their close-knit community networks transnational entrepreneurs can transfer focused knowledge about external markets and technologies over great geographical distances at low costs. When integrating this external knowledge with the knowledge flows between their peers at a given location, they can shape the preconditions for the emergence of clusters even at places that do not appear to have any industry-specific amenities at all. In general, such patterns of cluster evolution are of particular importance in labour-intensive manufacturing sectors in developing countries or emerging markets which are characterized by low labour costs and a lack of knowledge in production techniques. The empirical part of this paper focuses on the evolution of the diamond cutting cluster in the Indian state of Gujarat which only developed after World War II but today is the world's most important location for diamond manufacturing. The study is based on semi-structured interviews with 120 diamond firm representatives and workers in Mumbai, Surat, New York and Antwerp, as well as on an analysis of immigration files from the Antwerp city archives.

Date: 2013
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DOI: 10.1080/09654313.2012.753690

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