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The Innovation of SMEs and Development of Industrial Clusters in China

In: The Rise of Technological Power in the South

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  • Jinmin Wang

Abstract

During the 1980s and 1990s, developing countries obtained more market share for some labour-intensive products than developed countries because of cost advantages. Subsequently, many export-oriented industrial clusters came into being in such countries. Most clusters of small and medium-sized enterprises (SMEs) are characteristic of labour-intensive, low-tech content and low entry barriers. However, most of these industrial clusters in developing countries had comparative advantage only in terms of low prices and failed to get into a position to enter mainstream international markets. In contrast, the industrial clusters in developed countries maintained competitive advantages in terms of quality, design capacity, technological innovation and rapid response to market changes (Zhu, 2003).

Suggested Citation

  • Jinmin Wang, 2010. "The Innovation of SMEs and Development of Industrial Clusters in China," Palgrave Macmillan Books, in: Xiaolan Fu & Luc Soete (ed.), The Rise of Technological Power in the South, chapter 9, pages 186-200, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-27612-3_10
    DOI: 10.1057/9780230276123_10
    as

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