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Does Local Co-operation Matter? Evidence from Industrial Clusters in South Asia and Latin America

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  • Hubert Schmitz
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    Abstract

    Inter-firm co-operation has been a major theme in the industrial cluster debate but has rarely been investigated systematically. Does it matter? What kind is most relevant? When is it most important? This paper draws together the results of four cluster studies from South Asia and Latin America. It shows that, while local external economies accrue clusterwide co-operation tends to be selective. In spite of considerable variations in the extent and type of co-operation, some clear results emerge from the four studies. First, co-operating enterprises tend to perform better. Second, recent competitive pressures have led to increases in vertical rather than horizontal co-operation. Third, vertical co-operation increases most when major improvements in quality and speed are required but diminishes subsequently. The paper concludes with two suggestions for further research, one concerned with the role of public mediators in private conflicts and one concerned with shifting the attention from (cluster) internal to external relationships.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/713688314
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Oxford Development Studies.

    Volume (Year): 28 (2000)
    Issue (Month): 3 ()
    Pages: 323-336

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    Handle: RePEc:taf:oxdevs:v:28:y:2000:i:3:p:323-336

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    Cited by:
    1. Giuseppe De Arcangelis & Giovanni Ferri & Pier Carlo Padoan, 2002. "Firms’ Clustering and SEE Export Performance: Lessons from the Italian Experience," wiiw Balkan Observatory Working Papers 021, The Vienna Institute for International Economic Studies, wiiw.
    2. Tomlinson, Philip R., 2010. "Co-operative ties and innovation: Some new evidence for UK manufacturing," Research Policy, Elsevier, vol. 39(6), pages 762-775, July.
    3. Morosini, Piero, 2004. "Industrial Clusters, Knowledge Integration and Performance," World Development, Elsevier, vol. 32(2), pages 305-326, February.
    4. Thomas Brenner & André Mühlig, 2007. "Factors and Mechanisms Causing the Emergence of Local Industrial Clusters - A Meta-Study of 159 Cases," Papers on Economics and Evolution 2007-23, Max Planck Institute of Economics, Evolutionary Economics Group.
    5. Coslovsky, Salo V., 2014. "Economic Development without Pre-Requisites: How Bolivian Producers Met Strict Food Safety Standards and Dominated the Global Brazil-Nut Market," World Development, Elsevier, vol. 54(C), pages 32-45.
    6. Tomlinson, Philip R. & Fai, Felicia M., 2013. "The nature of SME co-operation and innovation: A multi-scalar and multi-dimensional analysis," International Journal of Production Economics, Elsevier, vol. 141(1), pages 316-326.
    7. Isaak, Robert, 2009. "From collective learning to Silicon Valley replication: The limits to synergistic entrepreneurship in Sophia Antipolis," Research in International Business and Finance, Elsevier, vol. 23(2), pages 134-143, June.

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