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Productivity growth and job creation in the development process of industrial clusters
Author:Sonobe, Tetsushi; Higuchi, Yuki; Otsuka, Keijiro; Collection Title:Policy Research working paper ; no. WPS 6280
Country:World; Date Stored:2012/11/29
Document Date:2012/11/01Document Type:Policy Research Working Paper
SubTopics:Economic Theory & Research; Microfinance; Labor Policies; Labor Markets; E-BusinessLanguage:English
Major Sector:Education; Public Administration, Law, and JusticeRel. Proj ID:1W-Wdr 2013 -- -- P127136;
Region:The World RegionReport Number:WPS6280
Sub Sectors:General education sector; Public administration- Industry and trade; Compulsory pension and unemployment insurance; Public administration- Other social services; General public administration sectorTF No/Name:TF010228-KCPII; TF011042-The
Volume No:1 of 1  

Summary: Poor management has long been suspected as a major constraint on job creation in the manufacturing sector in low-income countries. In this sector, countless micro and small enterprises in industrial clusters account for a large share of employment. This paper examines the roles of industrial clusters, managerial capacities, and entrepreneurship in improving productivity and creating jobs, by reviewing the literature and case studies, including recent experiments. It finds that managerial capacities are a major determinant of firms' employment sizes and productivity growth, and that it is high innovative capacities, accompanied by high managerial capacities, that boost cluster-based industrial development.

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