Examining the innovation performance within industrial clusters : the Chinese experience

Abstract

Various schools of scholarship have identified a myriad of factors that affect innovational capability within industrial clusters, such as large local firms, sectoral diversity, competition and social network. However, an examination of China's experience reveals that such factors do not necessarily induce innovation within clusters. This paper argues that an alternative 'model' based on a 'technology platform' fills the gap between theory and practice, and concludes by highlighting the policy implications of cluster development.