Cluster-Based Industrial Development: An East Asian Model by by Sonobe Tetsushi Otsuka Keijiro

By Sonobe Tetsushi Otsuka Keijiro

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Extra info for Cluster-Based Industrial Development: An East Asian Model by Sonobe Tetsushi Otsuka Keijiro (2006-10-31) Hardcover

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With materials and intermediate inputs being readily available at the marketplace and the sale of final products being efficiently handled by specialized merchants at another marketplace, it is now possible even for farmers and others who have no experience in manufacturing to produce the lowquality standard products. 1 Illustrated changes in quantity of production (Q) and productivity (T) in the course of industrial development quantity of production of the industry increase rapidly. We refer to this phase as the “quantity expansion” because the production expands with negligible productivity gains and quality improvement in this phase.

4 Scope of the book Before examining the results of the case studies, we provide an overview of the geographical concentration and dispersion of the selected industries in the three East Asian countries over extended periods by using township level data in Chapter 3. First, we take up the case of Tokyo and its vicinity, where the machinery and metal processing industries were highly concentrated in a small area in the 1950s and 1960s, which was followed by their dispersion to suburbs and provincial towns.

These imitators produce essentially the same products as the founders using the same simple technique and materials. Thus, much information spillover takes place in the early stage of cluster formation. The same phenomenon is reported in a study of many industrial clusters in Latin America (Altenburg and MeyerStamer, 1999). It is obvious but important to emphasize that the quality of products is low in the early stage of industrial development. It is a great boon to new industries in low-income economies that low-quality products can be sold in the domestic markets where the demand for such products remains high.

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