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INDUSTRIAL CLUSTERING (2) answer(s).
 
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ID:   101100


Importance of government incentives relative to economic fundam: the case of software industry in Thailand / Larsson, Christoffer; Venkatesh, Sundar   Journal Article
Larsson, Christoffer Journal Article
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Publication 2010.
Summary/Abstract Studies on industrial clustering identify factors that nourish the clustering and thus aid in industrial development. We classify these as government incentives and economic fundamentals. Economic fundamentals, which we define as a set of essential factors conducive to the development of an industry cluster, may be the result of chance - for instance, geographical location and climate or may be a result of long term government policies such as affordable and abundant higher education. We examine the importance of government incentives relative to the economic fundamentals in the development of the software services industry in Thailand. Our survey of investors, both foreign and domestic, in the software services industry in Thailand, found that economic fundamentals were perceived as being more important than government incentives in influencing investment decisions. This raises important questions for government policy. For example, is money used for tax breaksand grants efficiently spent? Or, could the money be better invested in improving the quality of human resources and infrastructure? Based on the findings of this study, recommendations are proposed for government policy and directions for future research.
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2
ID:   128156


Patterns of China's industrialization: concentration, specialization, and clustering / Long, Cheryl; Zhang, Xiaobo   Journal Article
Zhang, Xiaobo Journal Article
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Publication 2012.
Summary/Abstract This paper presents a few stylized facts on the patterns of China's industrialization by computing a set of multi-dimensional measures on industrial concentration, regional specialization, and clustering based on census data at the firm level in 1995 and 2004. Our results show that China's rapid industrialization is characterized by the following patterns: industries have become more spatially concentrated; regions have become increasingly specialized; and firms have become more interconnected, both within industries and within regions. In addition, the number of firms is growing faster in clustered areas than non-clustered ones. Together these patterns suggest that China's industrialization process is largely cluster-based-a phenomenon in which a large number of highly interconnected firms are located within a well-defined geographic region.
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