Abstract
The last four decades have witnessed a large number of successful examples of industrial development in Asia, but possibly an equally large number of failures in other developing countries; particularly in Sub-Saharan Africa and to some extent in South Asia.
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Notes
- 1.
- 2.
There is much evidence, based on randomized controlled and natural experiments (e.g., De Mel et al. 2008), that small and medium firms in low-income countries are faced with severe credit constraints. We argue that the provision of low-interest loans to credit-constrained firms is effective if it is targeted to innovative entrepreneurs.
- 3.
By now, this view has been widely accepted by development economists and other experts. Indeed, Japanese development since the Meiji era provides a vivid example of rapid economic development based on technology imports (e.g., Ohkawa and Rosovsky 1973; Otsuka et al. 1988; Hamada et al. 2011). In their textbook on development economics, Hayami and Godo (2005) argue that successful technology transfer from developed to less developed economies is the key to the successful development of the latter.
- 4.
Such shift of jobs by traders and engineers is consistent with the prediction of Hidalao et al. (2007) that the industrial compositions evolve only gradually.
- 5.
Hayami (e.g., 2009) argues that the community mechanism is effective for the enforcement of contract-based transactions in rural communities.
- 6.
The innovation here refers not only to breakthrough leading to “creative destruction” but also to useful improvements.
- 7.
Some enterprise managers in East African countries, however, are learning from other countries by employing technicians and managerial advisers from Europe and the U.S. and by visiting European countries and the U.S.
- 8.
“Firms” include (1) workshops employing more than 10 workers, (2) workshops employing less than 9 workers, (3) weaving manufactures-cum-contractors, and (4) out-weavers.
- 9.
Production data pertain to production of not only silk fabrics but also other fabrics including cotton, linen and rayon, even though the former were by far the most important. In Kiryu, the data on the number of firms are not available before 1990.
- 10.
Unfortunately, the content of training and characteristics of participants are not well reported.
- 11.
Complaints about the low quality of habutae in European markets were serious issue in the early 20th century, which may be taken to indicate that the quality of habutae improved later than in the 1910s. According to the Consular Reports which informs bad reputations of habutae exported from Fukui, main quality problems were in coarse weaving, bad scouring, lack of uniformity, and false inspection ways, which needed collective efforts both by local government and private sector for quality improvement (Hashino 2010).
- 12.
We suspect that the value of production in Tango was double counted in the total production in Kyoto, because gross value of production rather than value added was reckoned.
- 13.
In Kyoto, city government began supporting experimental station in 1916, which was originated from the institute established by Nishijin trade association in 1908. The first president of the institute was Naohiro Koriki who visited Fukui city for teaching habutae production.
- 14.
In the case of the formation and development of the potato producing and processing cluster in Gansu Province in China, it was the local government that introduced potatoes for commercial production, assisted the formation of trade associations to facilitate marketing, built wholesale marketplaces, and undertook research and extensions (Zhang and Hu 2013).
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Otsuka, K. (2017). Role of Local Institutions in the Development of Industrial Clusters. In: Cooray, N., Abeyratne, S. (eds) Decentralization and Development of Sri Lanka Within a Unitary State. Springer, Singapore. https://doi.org/10.1007/978-981-10-4259-1_11
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