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A case study of the Hong Kong watch industry demonstrates the adaptive flexibility of labor‐intensive industrial clusters. The study describes the evolution of industry in Hong Kong, and highlights the unique attributes of the country's economic history which have influenced the structure of production systems in the country. Focusing on the role of global competition, the case study identifies the constraints posed by a labor‐intensive flexible production system in the face of continuous technological change in the industry.
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Amy Glasmeier (1994) studied this question.
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