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Indian vs International Clusters . India. International. Philippines – Mrs Loreto Canada-Quebec – Mr Olivier and Mr Gauthier France – Mr Pitollet and Mr Tinard Belgium-Flanders – Mr Diels. Odisha – Shri . Gupta Karnataka – Mr Rao Maharashtra – Mr Rastogi

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indian vs international clusters
Indian vs International Clusters

India

International

Philippines – Mrs Loreto

Canada-Quebec – Mr Olivier and Mr Gauthier

France – MrPitollet and MrTinard

Belgium-Flanders – Mr Diels

  • Odisha – Shri. Gupta
  • Karnataka – MrRao
  • Maharashtra – MrRastogi
  • Rajasthan – Mr Gupta
clusters and the world bank
Clusters and the World Bank
  • Increasingly important topic for the World Bank
  • Clusters are key drivers of competitiveness, economic growth and poverty reduction
  • World Bank is supporting clusters through projects combining :
    • Infrastructure development (e.g. industrial parks)
    • Skill development
    • Policy reforms
  • India: SIDBI – MSME Ministry - States…
benefits of clusters
Benefits of clusters
  • Cooperation…and… competition
  • Learning and innovation
  • Economies of scale…and…flexibility
  • Access to common infrastructure
  • Access to inputs
  • Access to workers and skills
  • Access to service providers
  • Access to markets/customers
  • Access to governments…to lobby
clusters and the investment climate
Clusters and the Investment Climate

Sialkot - Pakistan

Shenzhen - China

From a small fishing village 30 years ago to one of the main light manufacturing cluster in the world

Enabled by the Chinese government:

Good infrastructure

Good policies

Became the rule as the government replicated this pilot throughout China

  • Leading producer of soccer balls and surgical equipment in the world
  • Human and social capital accumulated over 150 years
  • Successful despite the government/poor investment climate
  • Collective action by businesses to improve investment climate – e.g. private international airport with support from gvt
  • The exception rather than the rule
what can government do to help clusters
What can government do to help clusters
  • Improve overall investment climate – clusters will emerge organically as they did for thousands of years:
    • Policies promoting entry/fair competition/exit
    • Trade logistics to facilitate access to markets and inputs
    • Policies to facilitate access to land/infrastructure – e.g industrial zones with possibility for expansion
  • Support entry of strategic first movers – e.g. Renault in Morocco
  • Support linkages between strategic first movers and SMEs/informal firms
  • Facilitate access to finance, skill development and innovation