By Sonobe Tetsushi Otsuka Keijiro
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Extra resources for Cluster-Based Industrial Development: An East Asian Model
The long-term relationship also reduces the risk that the subcontractor steals the new design and sells it to other enterprises. 16 In any event, quality improvement is likely to be accompanied by signiﬁcant changes in production organization. As is clear from the above discussions, the entry of an industry to the quality improvement phase involves “multifaceted” innovations, ranging from quality improvement of ﬁnal products to the establishment of a new marketing strategy and the procurement of improved parts and components.
In order for such multifaceted innovations to take place, competent engineers, merchants, and parts-suppliers must be available to innovative entrepreneurs. In this sense, we argue that an industrial cluster that has accumulated diverse human resources during the quantity expansion phase enlarges the possibility of innovation. 32 Cluster-Based Industrial Development Note that “innovation” here does not refer to the development of truly new products or new production methods using the most advanced scientiﬁc discoveries and engineering inventions.
32 Cluster-Based Industrial Development Note that “innovation” here does not refer to the development of truly new products or new production methods using the most advanced scientiﬁc discoveries and engineering inventions. Viewed from the technologically advanced countries, the innovation in developing counties is not far from the imitation of the innovation in the remote past. Thus, it may be appropriate to call it “imitative innovation,” which developing countries can learn from the experience of developed countries.