Social upgrading in developing country industrial clusters: A reflection on the literature

Pyke, Frank S.; Lund‐Thomsen, Peter

doi:10.1177/1024529415611265

Cited by 18 publications

(17 citation statements)

References 53 publications

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“…These disadvantages render exporting of cluster products more difficult as these products become less competitive (i.e., more expensive) in comparison to regional rivals First, our findings confirmed that clusters do not exist in isolation, but they are rooted in communities (Pyke & Lund-Thomsen, 2016 (Oliver et al, 2017). However, our study has not only focused on the intra-cluster communications (within the cluster), but also stressed the relevance of the inter-cluster communication (i.e., beyond the cluster boundaries).…”

Section: The Global Competitionsupporting

confidence: 75%

Industrial clusters in the developing economies: Insights from the Iranian carpet industry

et al. 2020

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Industrial clusters are perceived as potential drivers of small and medium‐sized enterprises development and efficient policy instruments to lead national and regional innovation and growth. However, these clusters in developing economies are typically placed in complex environments that impose a mix of serious challenges that adversely affect their overall performance. Therefore, this study aims to analyze the nature of these challenges and understand their dynamics using a case study of a carpet industry cluster in Iran. Using multiple sources of evidence, the study reveals two distinct, yet interrelated, levels of challenges: micro and macro. Under each level, a number of key dimensions were identified and theoretically linked which helped to conceptualize the structure of these challenges and model their dynamics.

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Section: The Global Competitionsupporting

confidence: 75%

Industrial clusters in the developing economies: Insights from the Iranian carpet industry

et al. 2020

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“…Moreover, Parker (2010) points out that industrial clusters are subject to constant evolution. In this way, Pyke and Lund-Thomsen (2016) argue that social conditions within clusters are influenced by state monetary, fiscal, and labor policies and regulations, as well as by dynamic processes of agency among cluster governance actors. As such, industrial clusters are affected by cluster-specific business environment conditions resulting from individual actions as well as cooperation of companies, government agencies, universities, and other institutions in the national and regional innovation system (Freeman, 1995).…”

Section: Industrial Clustersmentioning

confidence: 99%

Assessing the IP portfolio of industrial clusters: the case of the Brazilian footwear industry

Cavalheiro

Brandão

2017

JMTM

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Purpose By examining the intellectual property (IP) portfolio of the largest Brazilian footwear firms, the purpose of this paper is to improve the understanding of how manufacturing firms in the footwear industry in a developing country are using the IP system. Design/methodology/approach Intellectual property rights (IPRs) are widely acknowledged to be of central importance to manufacturing processes and systems. As such, manufacturing firms located in developing countries also need to use the international IP system in order to increase their competitiveness. This study examines how the Brazilian footwear industry is protecting their IPRs by assessing IP filings in recent years from this particular industry. Findings Here, the authors provide empirical evidence indicating a recent growth in IP filings that was accomplished by manufacturing firms in the Brazilian footwear industry. Additionally, the authors also found that the use of the IP system is highly concentrated in the two Brazilian footwear industrial clusters, which are located in the States of São Paulo (SP) and Rio Grande do Sul (RS). Research limitations/implications The analysis can be considered a solid reference for future studies that assess the use of IP of manufacturing organizations as a developing country context. The authors believe it is worthwhile to conduct qualitative interviews with the senior managers of the IP department of Brazilian footwear manufacturers located in the SP and RS industrial clusters, as a means of deepening our understanding on their motivations to file IP applications. Practical implications The results presented in this study demonstrate a recent growth in IP filings accomplished by firms in the Brazilian footwear industry, which is an industry subject to serious threats posed by counterfeit and pirated goods. More specifically, the authors provide empirical evidence that the use of the IP system is more intense in two industrial clusters, which are located in the states of SP and RS. In this way, the authors believe that similar patterns will appear in other technical areas, in which industrial clusters can be identified. Social implications According to OECD/EUIPO (2016), the footwear industry has been leading the rank of the most severely affected by counterfeit and pirated goods worldwide. Highly copied goods also include clothing, electrical machinery and equipment, articles of leather, and watches. However, footwear products are more frequently illegally copied as compared to any other type of product. Originality/value Given the increased importance of IP assets in the current knowledge-based society, firms located in developing countries ought to use IP more intensively. In fact, even with growing correlation between IP and competitiveness, IP data from firms in developing countries have received limited treatment in the extant literature. In summary, the evidence base is not strong and it urgently needs strengthening. As such, to the authors’ knowledge, this study is the first contribution addressing the use of IP by footwear manufacturing firms in a developing country.

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“…The literature has recognized the importance of clustering for economic development (Van Dijk and Rabellotti, 1997; Schmitz and Nadvi, 1999). Several contributions in this field showed how clustering in the developing world is often related to (technological or sectoral) upgrading through insertion into broader production structures, also theorized as global commodity or value chains (Bair and Gereffi, 2001; Humphrey and Schmitz, 2002; Sturgeon et al , 2008; Pyke and Lund-Thomsen, 2016).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Clusters face various challenges that are critical to their competitiveness (Gereffi and Lee, 2016), such as lack of trust (Chen et al , 2017; Vanzettine et al , 2017), lack of specialized human resources (Pyke and Lund-Thomsen, 2016), lack of information that is critical to business, restrictive government rules and regulations, market access constraints, limited logistical facilities, poor R&D infrastructures (Richardson, 2013), inability to conform with new global standards (Lei and Huang, 2014) and weak links with supporting/related industries (Knorringa and Nadvi, 2016). Challenges that are considered to be at the cluster-level tend to require long-term solutions and concerted efforts to overcome them (Ponte and Sturgeon, 2014; Abdin and Rahman, 2015).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…The review of the cluster literature reflects, although a host of studies have examined clusters in developed countries (Kamran et al , 2017; Vanzettine et al , 2017), that a lack of research that systematically addresses the dynamics and nature of cluster development in developing economies is still problematic, especially small and medium-sized enterprises (SMEs) (Van Dijk and Rabellotti, 1997; Schmitz and Nadvi, 1999; Park and Luo, 2001; Lin et al , 2009; Pyke and Lund-Thomsen, 2016; Vanzettine et al , 2017). Researchers have identified this research gap, subsequently calling for more research to investigate the transferability of current theories of clusters to developing countries (Ghauri and Santangelo, 2012; Vanzettine et al , 2017).…”

Section: Introductionmentioning

confidence: 99%

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Emergence and development of low-tech clusters: an empirical study of five Palestinian clusters

Sultan

Dijk

Omran

2020

EMJB

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PurposeThis study aims to analyze the nature of challenges facing five low-tech Palestinian small and medium-sized enterprise (SME) clusters and to understand their dynamics. The study proposes a number of key policies necessary to foster start-ups and the growth of the current clusters.Design/methodology/approachFive low-tech Palestinian clusters were selected for investigation. Using multiple sources of evidence, the research questions are answered using a case study approach. Twelve semi-structured in-depth interviews were conducted with representatives from the government, private sector and universities. Content analysis was used to analyze the data obtained from the interviews.FindingsThese five low-tech clusters in Palestine are located in a complex environment that imposes a mix of challenges which adversely affect their performance. The challenges facing Palestinian clusters are different in terms of their degree of complexity. The common challenges facing the Palestinian low-tech SME clusters are the fundamental lack of innovative stimulation policies or of incentives in the Palestinian ecosystem, lack of trust, unfair competition, limited access to finance, lack of access to promising markets and the limited collaboration between different parties. More focused policies are suggested to the Palestinian authorities.Practical implicationsClusters represent a new and complementary way of understanding an economy, organizing economic development, enhancing competitiveness and innovation through sectoral specialization and cooperation and implementing public policies. In the overwhelming majority of Palestinian entities categorized as SMEs, clustering adds value to the firms from the point of view of productivity and by battling unemployment, which is rampant among Palestinian youth.Originality/valueEven though the issue of clusters in SMEs has been well researched in developed countries, empirical studies are still lacking in this developing region. The attention given to policies in this article allows using the insights gained for cluster development in Palestine.

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Social upgrading in developing country industrial clusters: A reflection on the literature

Cited by 18 publications

References 53 publications

Industrial clusters in the developing economies: Insights from the Iranian carpet industry

Industrial clusters in the developing economies: Insights from the Iranian carpet industry

Assessing the IP portfolio of industrial clusters: the case of the Brazilian footwear industry

Emergence and development of low-tech clusters: an empirical study of five Palestinian clusters

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