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Impact of clusters on Asian economies

The Institute of Developing Economies (IDE) in Japan, under its current mandate to provide for the “expansion of trade relations and [to] promote economic cooperation with all developing countries and regions,” is currently embarking upon a major research project that could provide valuable insight into the true impact clusters have had on the Asian economy.

Their initial research will focus on various clusters in India, Malaysia, Vietnam, China, and Taiwan and try to determine whether these clusters are expanding or contracting. A more detailed analysis will attempt to demonstrate a link between multinational corporations present within the clusters and the introduction of effective value chain management (VCM). The driving force behind this idea is that with increased competition within the global marketplace, it is successful VCM that will determine a cluster’s competitiveness and it is the more comprehensive multinational corporations that posses the resources to impact each link in the value chain. This project will also examine whether or not these Asian clusters are more competitive or cooperative. With communist China as a growing economic powerhouse, it will be valuable information to see just how their cluster practices are impacting neighboring clusters and approaches.

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