The purpose of this paper is to take stock of what is known about industrial clusters in LDCs and to put forward an agenda for further research. The paper shows that clustering (sectoral and geographical concentration) is common in a wide range of countries and sectors.
The way clusters are organized varies a great deal. Socio-cultural ties seem to heighten economic performance, but there are exceptions. The relevance of clustering is brought into focus most sharply by those case studies which show the success of local producers in breaking into international markets and/or coping with domestic crisis. Other case studies, show that clustering does not necessarily lead to collective efficiency and raise competitiveness.
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