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Cluster life cycle and diaspora effects: Evidence from the Indian IT cluster in Bangalore

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  • Sonderegger, Petra
  • Täube, Florian

Abstract

The role of local clusters has been of interest to scholars and policymakers in international business alike. Research found that clusters enable a region to develop faster compared to dispersed economic activity, based mainly on a local concentration of competing and cooperating firms and sophisticated domestic demand. Locating in a cluster has certain benefits for firms stemming from pooling of human capital and supporting institutions varying by industry and international specialization. In this paper, we extend the local view of clusters and emphasize the complementary role of non-local linkages, in particular diasporas, illustrating our model employing the case of the evolution of the Bangalore IT cluster. The novelty of our paper lies in its longitudinal character. We are thereby able to identify how the roles of local and non-local networks differ across life-cycle phases; moreover, we find that diasporas can trigger or accelerate local development. We discuss implications for managers and policy makers.

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  • Sonderegger, Petra & Täube, Florian, 2010. "Cluster life cycle and diaspora effects: Evidence from the Indian IT cluster in Bangalore," Journal of International Management, Elsevier, vol. 16(4), pages 383-397, December.
  • Handle: RePEc:eee:intman:v:16:y:2010:i:4:p:383-397
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    Cited by:

    1. D'Ambrosio, Anna & Montresor, Sandro & Parrilli, Mario Davide & Quatraro, Francesco, 2017. "Migration, communities-on-the-move and international innovation networks: An empirical analysis of Spanish regions," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201701, University of Turin.
    2. Karna, Amit & Florian A. Taeube & Petra Sonderegger, 2014. "Economic Geography and Networks: Role of local and non-local ties in Cluster Evolution," IIMA Working Papers WP2014-12-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    3. Hill, T.L. & Mudambi, Ram, 2010. "Far from Silicon Valley: How emerging economies are re-shaping our understanding of global entrepreneurship," Journal of International Management, Elsevier, vol. 16(4), pages 321-327, December.
    4. Upadhyayula, Rajesh S. & Dhandapani, Karthik & Karna, Amit, 2017. "The Role of Cluster Presence and Quality Certification in Internationalization and Performance of Offshore Service Providers," Journal of International Management, Elsevier, pages 72-86.
    5. Qin, Fei, 2015. "Global talent, local careers: Circular migration of top Indian engineers and professionals," Research Policy, Elsevier, pages 405-420.
    6. Kothari, Tanvi & Lahiri, Somnath, 2012. "Yesterday, today and tomorrow: An overview of research publications in the Journal of International Management," Journal of International Management, Elsevier, pages 102-110.
    7. Ron Boschma, 2017. "Relatedness as driver behind regional diversification: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 1702, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2017.
    8. Maria Elo, 2015. "Diaspora networks in international business: a review on an emerging stream of research," Chapters,in: Handbook on International Alliance and Network Research, chapter 1, pages 13-41 Edward Elgar Publishing.
    9. Manning, Stephan, 2013. "New Silicon Valleys or a new species? Commoditization of knowledge work and the rise of knowledge services clusters," Research Policy, Elsevier, pages 379-390.
    10. Fundeanu Daniela, 2015. "Quality Audit Of The Cluster Management, Instrument Of Accreditation At European Level," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 126-133, August.

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