How Phases of Cluster Development are Associated with Innovation - the Case of China

Abstract

Both Volvo and SAAB are now Chinese owned car companies. This means that a substantial amount of Swedish innovation takes place in China. In order to understand this phenomenon better and what it means to innovation strategy we look at how industrial clusters in the automobile industry in different phases of development differ. The Diamond Model is used to explain and measure the competitive situation in three cluster regions in China. The new automobile manufacturing clusters of Chongqing and Chengdu (2C) is compared with two well-developed clusters in Shanghai and Jiangsu, and Beijing and Hebei. Although Shanghai is the most attractive automobile cluster, automobile manufacturing firms choose to locate their production in other regions. The move is also related to the level of innovation in different regions.

Citation

Fri, W., Pehrsson, T. and Søilen, K. (2013), "How Phases of Cluster Development are Associated with Innovation - the Case of China", International Journal of Innovation Science, Vol. 5 No. 1, pp. 31-44. https://doi.org/10.1260/1757-2223.5.1.31