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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

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.

Suggested Citation

  • Hubert Schmitz, 2000. "Does Local Co-operation Matter? Evidence from Industrial Clusters in South Asia and Latin America," Oxford Development Studies, Taylor & Francis Journals, vol. 28(3), pages 323-336.
  • Handle: RePEc:taf:oxdevs:v:28:y:2000:i:3:p:323-336 DOI: 10.1080/713688314
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    References listed on IDEAS

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    1. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, pages 412-427.
    2. Lee, Lung-fei & Rosenzweig, Mark R. & Pitt, Mark M., 1997. "The effects of improved nutrition, sanitation, and water quality on child health in high-mortality populations," Journal of Econometrics, Elsevier, vol. 77(1), pages 209-235, March.
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    Cited by:

    1. Ozlem Ozkanli & Erkan Erdil & Erdal Akdeve, 2008. "Innovation And Relationships In Industrial Districts: The Case Of Turkey," STPS Working Papers 0801, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised Aug 2008.
    2. 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.
    3. Tomlinson, Philip R., 2010. "Co-operative ties and innovation: Some new evidence for UK manufacturing," Research Policy, Elsevier, pages 762-775.
    4. Wilson Suzigan & João Furtado & Renato Garcia, 2007. "Designing Policies for Local Production Systems: A Methodology Based on Evidence from Brazil," Economia, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 8(1), pages 161-186.
    5. Morosini, Piero, 2004. "Industrial Clusters, Knowledge Integration and Performance," World Development, Elsevier, vol. 32(2), pages 305-326, February.
    6. 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, pages 134-143.
    7. 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, Philipps University Marburg, Department of Geography.
    8. Ju Liu & Cristina Chaminade & Bjorn Asheim, 2013. "The Geography and Structure of Global Innovation Networks: A Knowledge Base Perspective," European Planning Studies, Taylor & Francis Journals, pages 1456-1473.
    9. Erkan Erdil & Dilek Cetin, 2008. "Innovation and Relationships in an Organized Indutrial District: Ankara Sincan Industrial District," STPS Working Papers 0802, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised Aug 2008.
    10. Wonglimpiyarat, Jarunee, 2016. "Government policies towards Israel's high-tech powerhouse," Technovation, Elsevier, vol. 52, pages 18-27.
    11. 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.

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