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The Oxford Companion to the Economics of China$
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Shenggen Fan, Ravi Kanbur, Shang-Jin Wei, and Xiaobo Zhang

Print publication date: 2014

Print ISBN-13: 9780199678204

Published to Oxford Scholarship Online: December 2014

DOI: 10.1093/acprof:oso/9780199678204.001.0001

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Making clusters innovative?

Making clusters innovative?

A Chinese observation

(p.262) 41 Making clusters innovative?
The Oxford Companion to the Economics of China

Jici Wang

Oxford University Press

This chapter discusses the chaotic cluster concept, the mixed cluster phenomenon, and popular cluster policy in China. It argues that insertion into global value chains will bring opportunities for small local firms in Chinese clusters for learning and upgrading but multinational power may also dilute local ambition to creatively upgrade the production system by any means possible. An on-going problem for China’s industrial clusters — and one that needs to be urgently addressed — will be the transition from production capacity to capacity for innovation.

Keywords:   industrial clusters, manufacturing industry, cluster policy, mixed cluster, innovation, value chains

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