Collective Efficiency: A Prerequisite for Cluster Development?

Rasmus Lema*, Jan Vang

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review


This paper is concerned with analysing the importance of collective efficiency for upgrading of clusters. The literature on collective efficiency ascribes it a crucial role in upgrading in clusters in developing countries. Little, however, is known about how insertion into global value chains affects the prospects of gaining collective efficiency hence, the paper analyses if Bangalore's insertion into global value chains has spurred or impeded collective efficiency in the cluster. Bangalore is considered a success case in terms of cluster upgrading in a developing country context. The paper finds mixed evidence of collective efficiency. Upgrading was mainly an aggregate outcome of an uncoordinated decentralised process managed by individual companies.
Original languageEnglish
Pages (from-to)348-376
Number of pages29
JournalWorld Review of Entrepreneurship, Management and Sustainable Development
Issue number3
Publication statusPublished - 1 Jan 2018
Externally publishedYes


  • Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
  • Multinational Firms; International Business
  • Transactional Relationships; Contracts and Reputation; Networks
  • Industrialization; Manufacturing and Service Industries; Choice of Technology
  • Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
  • Other Spatial Production and Pricing Analysis


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