This paper is concerned with unpacking the role of clusters in supporting the move from competing on low-costs to competing on innovation in the global value chain; special attention is paid to clustered SMEs. By comparing 4 clusters in different industries in Asia, we highlight significant differences in the learning paths of clustered SMEs. The paper contributes to current discussion on upgrading in clusters in developing countries by a) providing an explanation on how localized interactive learning and thus clustering relates to upgrading b) discussing under which conditions upgrading requires interactive learning and c) identifying the linkages between particular types of interactive learning and different upgrading strategies.
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Paper provided by CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University in its series CIRCLE Electronic Working Paper Series with number
2008-21.
Find related papers by JEL classification: O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes O34 - Economic Development, Technological Change, and Growth - - Technological Change - - - Intellectual Property Rights O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence R58 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Regional Development Policy
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