Catching-Up Through Cluster-Focused Policy : Promoting High-Tech Clusters in Low- and Mid-Income Countries

Recently, the question of how low- to mid-income countries can technologically catch-up by following a knowledge-based strategy of economic development has been gaining ground. Addressing this question, the present study specifically focuses on the extent to which policies promoting clusters can be used by low- and mid-income countries as part of their efforts to catch up economically and technologically with advanced industrial countries. The analysis is therefore performed with an attempt to define the most relevant factors determining cluster emergence and development, as well as policies related to cluster development in the case of catching-up countries. Regional innovation systems (RIS), high-tech clusters, absorptive capacity, human and social capital, impacts of multinational companies (MNC), and intermediary innovation support agencies are key concepts and factors to analyse the effects that existing innovation policies have on the emergence, success and sustainability of high tech clusters in catching-up countries. Thus, the research study first focuses on a selected number of case studies from advanced and developing countries, giving a brief literature review to provide an overall appraisal of high-tech clusters and relevant policies. In the empirical part of the study, particular emphasis has been given to the case of Turkey, analysing how the Turkish experience compares with the findings of the literature review. Lastly, based on the results, the study examines which policy measures to promote high-tech clusters can be identified, and how these relate to the financing instruments of the European Investment Bank (EIB).Disclaimer: The views expressed in this research study are those of the author and do not represent the views of the European Investment Bank