RECONCILING INDUSTRIAL CLUSTERS AND URBAN SYSTEMS
The location distribution of industrial clusters is often associated with their proximity to production factors geographically and economically. Many studies show how industrial clusters can maximise inter-firm social and economic benefits through a process of collective efficiency andflexible speci...
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| Format: | Article NonPeerReviewed |
| Published: |
[Yogyakarta] : Universitas Gadjah Mada
2010
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| Online Access: | https://repository.ugm.ac.id/27642/ http://i-lib.ugm.ac.id/jurnal/download.php?dataId=10703 |
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| Institution: | Universitas Gadjah Mada |
| Summary: | The location distribution of industrial clusters is often associated with their proximity
to production factors geographically and economically. Many studies show how industrial
clusters can maximise inter-firm social and economic benefits through a process of
collective efficiency andflexible specialisation. Particularly this condition can be achieved
with a support of well-articulated urban systems where the integration of public service
provisions can be established to reduce total transactional costs. In fact, most regions in
Indonesiafail to present appropriate urban systems for ensuring the delivery of resources
across regions. Moreover, the practices of decentralised developments since the past few
years have been neglecting the importance of strengthened urban system following the
tendency of governments to look after local developments. As a result, the industrial
clustering approach which is implemented by some local governments only creates
institutional obstacles and additional costs due to the lack of intergovernmental
cooperation. Regarding this issue a regional network governance should be encouraged to
provide coordination milieu between governments in developing industrial clusters
altogether. This attempts may be useful to cutting off the regional differences of
transactional costs that the respective clusters must cope with.
Keywords: industrial clusters. urban systems, regional network governance |
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