No 2006/3 Innovation policy for Asian SMEs

Exploring cluster differences

Abstract

Clusters are considered an adequate tool for development by governments and international organizations. Existing literature assumes that cluster policy can be universally applied & that industries cluster in similar ways. By comparing clusters in Asia, we highlight significant industrial differences in the relative importance of the cluster soft and hard infrastructure. We show the importance of the local specificities, the influence of national and regional policies & differences in upgrading strategies for SMEs. We identify patterns across industries and draw policy recommendations.