Knowledge, Technology, and Cluster-Based Growth in Africa

Abstract

Although Africa is falling behind in today's global economic race, it holds pockets of vital economic activity -- many in the form of enterprise clusters scattered across the continent's countries and industries. By clustering, enterprises are able to overcome constraints in capital, skills, technology, and markets. Enterprise clusters help their constituents grow and compete by encouraging more effective knowledge and technology diffusion and product specialization, leveraging local comparative advantage, fostering production value chains, and achieving collective efficiency. In so doing, they contribute significantly to Africa's economic growth. They provide jobs for the continent's growing population, thus enabling families not only to survive, but also to educate their children and perhaps move out of poverty. But in today's increasingly knowledge-intensive and globalized economy, these clusters also face serious challenges in the areas of technology, natural resources, infrastructure, skill acquisition, and quality control. This book aims to provide an understanding of how these dynamic enterprise clusters in Africa were formed and have evolved, and how knowledge, human capital, and technology have contributed to their success.

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