Industrial Clustering and Establishments’ Innovation: A Case of Freshwater and Marine Food Processing Industry in Bangkok Metropolitan Region (BMR)
Keywords:
Industrial Cluster, Product Innovation, Process Innovation, Absorptive CapacityAbstract
Abstract
This article examines the relationship between industrial clusters and product and process innovations in Thailand’s freshwater and marine food processing industry. The regression analysis is used to analyze the data obtained from the mail survey with 101 sample establishments. The results show that establishments’ location in the cluster does not directly enhance their innovative capability. They need to invest in R&D to absorb knowledge that is spilled over within the cluster. Also, they need to establish the linkage with the global value chain to acquire new knowledge. The BMR may be more advantageous than other areas in Thailand as it is a large agglomeration of firms and supporting institutions and is also a national hub for international trade and investment. However, for establishments to benefit from locating in the BMR in terms of innovation, they need to invest in R&D and need to link with the global buyers via the OEM system.
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