A Flowchart Approach

  • Akifumi Kuchiki
Part of the IDE-JETRO Series book series (IDE)


Policy for forming industrial clusters — industrial cluster policy — plays an important role in the development of any region in East Asia. Such policy is followed not only in Japan by the Ministry of Economy, Trade and Industry but also in most countries in the area, such as Malaysia and Singapore. Silicon Valley in the USA and Bangalore in India are well-known success stories of development in information technology. Agglomeration theory and cluster theory explain that an industrial cluster is effective in generating external economies and reducing transportation costs. But we need to be clear about what the required conditions are for forming a cluster, particularly when we are discussing the growth strategy for developing countries.


Foreign Direct Investment Transportation Cost Joint Venture Chain Management Core Competence 
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© Institute of Developing Economies (IDE),JETRO 2005

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  • Akifumi Kuchiki

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