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The Flowchart Approach to Industrial Cluster Policy pp 109–144Cite as

Palgrave Macmillan

Automobile Clusters in India: Evidence from Chennai and the National Capital Region

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Part of the book series: IDE-JETRO ((IDE))

Abstract

Empirical studies on agglomeration economies have primarily focused on the nature and sources of agglomeration, its impact on the performance of firms and industries, and the mechanisms that connect agglomeration to innovation and regional growth (Saxenian 1994; Breschi and Lissoni 2001; Rosenthal and Strange 2004). With regard to the sources of agglomeration economies, the classical literature, in particular Marshall’s (1920) seminal work, discussed highly localized industries and their contribution to the continued growth of the town and the industry (1920: 271), identifying three key factors: increasing returns to scale, labor market pooling, and knowledge spillovers. More recent works, particularly theoretical advances in economic geography, have expanded and built on Marshall’s classic arguments (Fujita et al., 1999; Rosenthal and Strange 2004). Some scholars have identified other relatively immobile resources, such as knowledge, skills, local institutions, and industrial and corporate structures and networks, as important determinants of growth-enhancing effects of agglomeration (Saxenian 1994; Breschi and Malerba 2001; Karlsson et al., 2005).

The National Capital Region (NCR) is the area in and surrounding the national capital Delhi. It includes some districts in the state of Haryana (such as Gurgaon and Faridabad), and some in Uttar Pradesh (such as NOIDA and Ghaziabad) that are adjacent to Delhi.

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Author information

Authors and Affiliations

  1. Graduate School of International Development, Nagoya University, Japan

    Aya Okada (Professor)

  2. Madras School of Economics, India

    N. S. Siddharthan (Honorary Professor)

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  1. Aya Okada
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  2. N. S. Siddharthan
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Editor information

Editors and Affiliations

  1. Japan External Trade Organization (JETRO), Japan

    Akifumi Kuchiki (Executive Vice President) (Executive Vice President)

  2. Graduate School of Applied Informatics, University of Hyogo, Japan

    Masatsugu Tsuji (Professor) (Professor)

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© 2008 Institute of Developing Economies (IDE), JETRO

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Okada, A., Siddharthan, N.S. (2008). Automobile Clusters in India: Evidence from Chennai and the National Capital Region. In: Kuchiki, A., Tsuji, M. (eds) The Flowchart Approach to Industrial Cluster Policy. IDE-JETRO. Palgrave Macmillan, London. https://doi.org/10.1057/9780230589520_5

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