Upgrading in Asian Clusters: Rethinking the Importance of Interactive Learning
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This paper is concerned with unpacking the role of the cluster supporting the SMEs move from competing on low-costs to innovating in the global value chain. By comparing 4 clusters in different industries in Asia, we highlight significant differences in the learning paths of the clustered SMEs. The paper contributes to current discussion on upgrading in clusters in developing countries by a) providing an explanation on how localized interactive learning and thus clustering relates to upgrading b) discussing under which conditions upgrading requires interactive learning and c) identifying the linkages between particular types of interactive learning and different upgrading strategies.