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Pressures to innovate and sustain competitive advantage in global markets are shifting the structure of advanced manufacturing industries towards a pattern typical of nimbler, high technology clusters. Industries that have historically been structured through vertical supply chains and internalized R&D are adopting a clustered pattern of industrial organization, characterized by regional concentrations of networked suppliers, inter-firm learning and a decentralized and flattened production chain. This paper synthesizes the findings on innovation and learning in six industrial clusters in advanced manufacturing and mining sectors, as they face the challenge of making the transition from one form of industrial production to another.
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Warrian et al. (2009) studied this question.
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