Collective efficiency: A prerequisite for cluster development?

Rasmus Lema*, Jan Vang

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

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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
Original languageEnglish
JournalWorld Review of Entrepreneurship, Management and Sustainable Development
Issue number3
Pages (from-to)348-376
Number of pages29
Publication statusPublished - 2018


  • Bangalore
  • Collective efficiency
  • Development
  • Externalities
  • Global value chains
  • Inter-firm organisation
  • Joint action
  • Software industry


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