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Industrial Clusters : Cases IMBA May 22, 2009 Te-Kuang Chou.

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Presentation on theme: "Industrial Clusters : Cases IMBA May 22, 2009 Te-Kuang Chou."— Presentation transcript:

1 Industrial Clusters : Cases IMBA May 22, 2009 Te-Kuang Chou

2 Why does a nation achieve international success in a particular industry?

3 Determinants of National Competitive Advantage

4 Factor Condition Factor Condition The nation ’ s position in factors of production, such as skilled labor or infrastructure, necessary to compete a given industry. The nation ’ s position in factors of production, such as skilled labor or infrastructure, necessary to compete a given industry.

5 Determinants of National Competitive Advantage Demand Condition Demand Condition The nature of home demand for the industry ’ s product or service. The nature of home demand for the industry ’ s product or service.

6 Determinants of National Competitive Advantage Related and supporting industries Related and supporting industries The presence or absence in the nation of supplier industries and related industries that are internationally competitive. The presence or absence in the nation of supplier industries and related industries that are internationally competitive.

7 Determinants of National Competitive Advantage Firm strategy Firm strategy The conditions in the nation governing how companies are created, organized and managed, and the nature of domestic revalry. The conditions in the nation governing how companies are created, organized and managed, and the nature of domestic revalry.

8 The German Printing Press Industry The international mobility of technology and skilled personal. The international mobility of technology and skilled personal. Government efforts to attract investment. Government efforts to attract investment. The emergence of domestic rivalry. The emergence of domestic rivalry. Specialized factor creation (vocational schools, universities). Specialized factor creation (vocational schools, universities). Sophisticated home demand. Sophisticated home demand. German printing industrial cluster. German printing industrial cluster.

9 The American Patient Monitoring Equipment Industry Early and sophisticated American demand. Early and sophisticated American demand. Related and supporting industries. Related and supporting industries. Active domestic rivalry. Active domestic rivalry. Distracted and set back by waves of acquisitions. Distracted and set back by waves of acquisitions.

10 The Italian Ceramic Tile Industry Home demand (tradition and local taste, climate, high price of wood, material of building). Home demand (tradition and local taste, climate, high price of wood, material of building). Lacking in raw materials, production equipments, heavy oil. Lacking in raw materials, production equipments, heavy oil. Sassuolo rivalry (information spread rapidly; copyrights and patents were hard to enforce; every one knew each other and lived closely). Sassuolo rivalry (information spread rapidly; copyrights and patents were hard to enforce; every one knew each other and lived closely). All kinds of third-party service and showrooms. All kinds of third-party service and showrooms.

11 The Japanese Robotics Industry Early and sophisticated home demand (shortage of skilled workers and raising wage; labor unions were willing to cooperate with robot; the emergence of world class Japanese manufacturers in a wide range of industries; cutting-edge Japanese manufacturers were sophisticated and anticipatory buyers and major spur to continuous innovation). Early and sophisticated home demand (shortage of skilled workers and raising wage; labor unions were willing to cooperate with robot; the emergence of world class Japanese manufacturers in a wide range of industries; cutting-edge Japanese manufacturers were sophisticated and anticipatory buyers and major spur to continuous innovation). The growing Japanese industrial clusters. The growing Japanese industrial clusters. Domestic rivalry (a national feverishness). Domestic rivalry (a national feverishness). Government played a modest role: improving demand conditions and stimulating factor creation. Government played a modest role: improving demand conditions and stimulating factor creation.

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