Abstract
This chapter attempts to demonstrate the importance of technology transfer from abroad in the development of industrial clusters in developing countries by comparing the cases of cluster development with and without introducing technological and managerial knowledge from abroad. In particular, focus is placed on spectacular development of the garment cluster in Bangladesh, which initially learned technology and management by sending newly recruited workers to South Korea for intensive training. Although less spectacular than that in Bangladesh, the garment cluster in Tanzania also developed by learning from training programs offered by UNIDO. It is also found that, for successful development of industrial clusters, the entrepreneurial human capital plays a key role as successful technology transfer requires innovations in the improvement of product quality, production methods, and marketing.
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Notes
- 1.
The knitwear cluster near Hanoi escaped the zero profit equilibrium problem by increasing exports via overseas Vietnamese traders, but more recently its profitability has been declining (Higuchi et al. 2015).
- 2.
The situation did not improve for at least a few years according to personal interviews the author conducted with the managers of two export-oriented firms in 2010.
- 3.
The number of observations is less than 200 (40 sample firms multiplied by 5 years) because some of the 40 sample buying houses were not yet operating in the early years of data collection.
- 4.
Knitwear factories can be classified into circular- and flat-knit factories according to their machinery. While circular machines are used to produce T-shirts and polo-shirts, flat machines are used to produce sweaters.
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Sonobe, T. (2016). Emergence and Subsequent Development of Garment Clusters in Bangladesh and Tanzania. In: Hashino, T., Otsuka, K. (eds) Industrial Districts in History and the Developing World. Studies in Economic History. Springer, Singapore. https://doi.org/10.1007/978-981-10-0182-6_5
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