On clustering behaviour of industries: implications for the industrialisation of developing countries

Abstract

Clustering is a natural behaviour of industries. Enhancing the development of industrial clusters has been increasingly accepted, particularly in OECD countries, as an effective way of increasing national competitiveness. The present study probes the development of the cluster concept, clustering advantages and cluster situations in developing countries through a literature review. Findings suggest that clustering benefits firms and entrepreneurs in developing countries as well as in developed countries. The current paper concludes by suggesting that policy-makers of developing countries should also take the cluster approach into consideration particularly for their industrialisation effort. Strategies envisaged effective and efficient for this purpose are to identify and enhance existing industrial clusters; to focus industrial clusters relevant to the local economy; and to create sufficient factors for new cluster development.

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