Journal of Industry, Competition and Trade

, Volume 3, Issue 3, pp 187–210 | Cite as

SME Clusters, Acquisition of Technological Capabilities and Development: Concepts, Practice and Policy Lessons

  • Marjolein C.J. Caniëls
  • Henny A. Romijn


The paper contributes to the current policy debate about promoting regional economic growth and competitiveness of small and medium industrial enterprises in development. An analytical framework is elaborated, which integrates complementary insights from existing approaches that have been used as a basis for policy design in this area. These are: the meso-level collective efficiency approach and the micro-level technological capability approach. The new framework gives insight into the different ways in which firm-level technological learning could be fostered through geographical clustering. It also provides new directions for policy. An empirical case study of farm equipment manufacturing in Pakistan's Punjab Province is used to illustrate the added value of the new approach.

industrial agglomerations technological capabilities small and medium enterprise development knowledge spillovers developing countries regional industrial policy 


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Copyright information

© Kluwer Academic Publishers 2003

Authors and Affiliations

  • Marjolein C.J. Caniëls
    • 1
  • Henny A. Romijn
    • 2
  1. 1.Faculty of Management Sciences (MW)Open University of the Netherlands (OU)HeerlenThe Netherlands
  2. 2.Eindhoven Centre for Innovation Studies (ECIS), Faculty of Technology ManagementEindhoven University of Technology (TUE), DG 1.21EindhovenThe Netherlands

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