Abstract: The Diversity and Dynamics of Clusters in China: Intercluster Learning and Bridge Organizations in a Global Economy

Kazuhiro Taniguchi

Abstract

The diversity and dynamics of regional clusters of entrepreneurship and innovation in China are impressive. Particularly in the Beijing, Shanghai, and Tianjin regions, clusters, co-located firms within related industries and lines of business, enhance knowledge creation by promoting frequent interactions and deepened divisions of labor between firms. Managerial and entrepreneurial skills, a supply of capable workers, and connections to markets are crucial for starting clusters. But China faced a brain drain in the 1980s. In order to bring students home after their overseas educations and to encourage entrepreneurs to return either temporarily or permanently, the Chinese government sponsored frequent technical conferences and facilitated the extension of Silicon Valley's Overseas Chinese networks. What resulted may be called a "bridge organization" in the sense that it literally serves as a bridge between Silicon Valley and China, and thus facilitates "intercluster learning" in a global economy.