| Abstract |
Researchers in developed economies have highlighted the opportunities created by networking among enterprises located in geographical proximity, i.e. industrial clusters. The processes of networking and clustering have contributed tremendously to the competitiveness and growth of the `participating' firms. Evidently, clustering and networking of firms have significant advantages, which enhance their technological dynamism and efficiency. However, the explanations of internal dynamics of the networks and how firms learn in this environment are scarce. This project seeks to understand how industrial clusters help firms build technological capabilities in the context of clusters of firms in the electronics and the information technology industries. More specifically, given the links between cluster and industry dynamics the study will explore the following questions:
• What is the nature and contours of technological capabilities within each cluster? Are any of them distinct from those within firms outside the cluster?
• Do clusters play a role in building technological capabilities? If yes, how do firms source knowledge and what are the determinants of knowledge flows between firms within a cluster and those between firms within and outside the cluster?
• Do firms consciously adopt strategies to build capabilities that take advantage of their presence in an industrial cluster?
• Do inter-firm linkages that are internal and external to the cluster facilitate capability building? If yes, how can such inter-firm networks and collaborations be promoted and strengthened?
Among other things, exploration of some of these issues will provide insights into the determinants of cooperation among firms for development, diffusion, and deployment of technology.
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