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Upgrading Traditional Technologies in Small-Scale Industry Clusters: Collaboration and Innovation Adoption in Indonesia

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  • H. Sandee
  • P. Rietveld

Abstract

There is by now sufficient evidence that small-scale industry clusters matter in developing countries. This article intends to contribute to the discussion on cluster transformation by focusing on innovation adoption in a roof tile cluster in Indonesia. Clustering allows small-scale enterprises to grow in 'riskable steps' by sharing the costs and risks through collaboration. Using data from longitudinal field surveys we find that technological change is not only a matter of comparing costs and benefits of technologies, but also a matter of access. Collaboration among leaders is crucial in innovation adoption when technological indivisibilities play a role. In our case study it appears that joint action should be viewed as a means to an end only; it was given up in favour of traditional hierarchies in the cluster as soon as possible.

Suggested Citation

  • H. Sandee & P. Rietveld, 2001. "Upgrading Traditional Technologies in Small-Scale Industry Clusters: Collaboration and Innovation Adoption in Indonesia," Journal of Development Studies, Taylor & Francis Journals, vol. 37(4), pages 150-172.
    • Handle: RePEc:taf:jdevst:v:37:y:2001:i:4:p:150-172
    DOI: 10.1080/00220380412331322081
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    Citations

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    Cited by:

    1. Stein Kristiansen, 2003. "Linkages and Rural Non-Farm Employment Creation: Changing Challenges and Policies in Indonesia," Working Papers 03-22, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    2. Albert Berry & Edgard Rodriguez & Henry Sandee, 2001. "Small And Medium Enterprise Dynamics In Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(3), pages 363-384.
    3. Masaki Nakabayashi, 2017. "Honesty, Diligence and Skill: Risk Sharing and Specialization in the Kiryu Silk Weaving Cluster, Japan," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 1401-1424, November.
    4. Hu, Chaoran & Zhang, Xiaobo & Reardon, Thomas & Hernandez, Ricardo, 2019. "Value-chain clusters and aquaculture innovation in Bangladesh," Food Policy, Elsevier, vol. 83(C), pages 310-326.

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