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Service Innovation by Industrial Cluster Formation and Export Promotion

Author

Listed:
  • Noleen Pisa

    (University of Johannesburg, South Africa)

  • Sonja Grater

    (North-West University, South Africa)

  • Riaan Rossouw

    (North-West University, South Africa)

Abstract

Service innovation drives economic growth and structural change by stimulating the development of new sectors and productivity improvements in existing sectors. Resource based sectors are the main contributors to South Africa’s North West province’s economic output This paper illustrates how such a region can use industrial cluster formation and focused export promotion as a strategy to enhance service innovation. Four service clusters were identified within the above mentioned province through structural path analysis and power of pull methods. An export market selection model is applied to the identified service industrial clusters to reveal realistic export opportunities associated with each cluster. Finally, trade multipliers are used to show the spill-over benefits given an increase in the clusters’ exports. Policymakers can use these results to inform actions that may assist in the development of these services clusters to strengthen the province’s competitive advantage and diversify its output.

Suggested Citation

  • Noleen Pisa & Sonja Grater & Riaan Rossouw, 2017. "Service Innovation by Industrial Cluster Formation and Export Promotion," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 15(4 (Winter), pages 321-340.
  • Handle: RePEc:mgt:youmgt:v:15:y:2017:i:4:p:321-340
    DOI: 10.26493/1854-6935.15.321-340
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Service innovation; industrial clusters; export promotion; trade multipliers; TRADE-DSM®;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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