Volume 4, Issue 2, Fall2004

How do Industry Clusters Success: A Case Study in China’s Textiles and Apparel Industries*

Zhiming Zhang, Chester To**, & Ning Cao Institute of Textiles and Clothing, The Kong Polytechnic University August 2004

ABSTRACT

In the course of transformation toward a market-driven, globally oriented economy, China’s textiles and apparel industries have been experiencing profound changes, both in terms of individual firms’ sustainable competence and the agglomeration competitiveness at industrial level. Among various changes, the most significance should be the phenomenon of regional clusters of various specialized industries. In each of the regional cluster localities, hundreds and even thousands of enterprises of various sizes have been formed and clustered together. Industrial clustering as an economic phenomenon is relatively new in China. No formal investigation and systematic analyses have been found on the phenomenon, especially for the textile and apparel industry. This research observed and documented a case study of industrial clustering in the Wujiang county of province. Through the analysis, the researchers generalize the factors that account for existence of the clusters and how the clusters sustain high performance of industry competitiveness. As the industry is one pillar of China’s economy, it is important to study this trend for further growth of the industry.

Keywords: Industrial clusters, geographic economics, regional specialization ______* This research is supported by the internal grant of The Hong Kong Polytechnic University, # A- PE10. This paper is extended from a presentation in the 4th Autex 2004 World Textile Conference, France, under the title, “Industrial Clu stering of Textiles and Apparel in China: A Case Study”.

** send correspondence to Dr. Chester To at the Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong. E-mail: [email protected]

industry, one such change is the emergence 1. Research Background of industrial clusters of various products, for instance, women’s wear in Hangzhou, men’s Since the late 1970s, China has reformed its wear in Wenzhou, socks in Ningbo, necktie economy and started transformation from a in Chengzhou (all in province), planned, centralized economic structure into and knitted products in Zhangcha globally oriented market systems with ( province). In each of the various extents of autonomy. In this process, localities, hundreds and even thousands of the economic structure is experiencing enterprises of various sizes have been profound changes. In the textile and apparel formed and clustered together. Article Designation: Scholarly 1 JTATM Volume 4, Issue 2,Fall 2004 Enterprises of related industries which serve industry in the Silicon Valley has the clustering enterprises are also located particularly attracted the attention of both nearby. According to China National Textile the academia and the business community. Industry Council (CNTIC), there are now 19 Much research has been conducted, and such township industrial clusters of textiles there is a large body of literature on the and apparel, which altogether have a total phenomenon of industrial clustering. output of RMB238 billion (nearly US$30 billion), accounting for about one quarter of Among several approaches discussing the the total textile and apparel output of the spatial clustering phenomena, the cluster country. About 1.81 million workers are concept put forward by Porter (1990, 1998) employed in these clusters (CNTIC, 2003). has been particularly influential in business, government and academia in the past The phenomenon of industrial clustering of decades. Porter is well known for his study textiles and apparel has enormous in this area. He associated the phenomenon signif icance. These clusters have helped of industrial clustering with the rationale of strengthen in the international market the developing competitive advantages for position of China, which is now the largest firms. According to Porter, the competitive producer and exporter of textile and apparel advantage of an industrial cluster is products in the world. They have had influenced by four interrelated determinants, significant impacts on the economic graphically depicted as a ‘diamond model’: development of the localities, and on the factor conditions, demand conditions, economic geography of the country. They related and supporting industries, and firm have helped create a large number of strategy, structure and rivalry. Porter argues enterprises, entrepreneurs, and employment, that the geographic concentration of rivals, which has important economic and social customers and suppliers tends to amplify implications. innovative ability and competitiveness in a cluster even further. Although the importance of the phenomenon is it, not much research has been conducted. Krugman’s work on economic geography This paper is intended to fill in the gap to has drawn the interest of economists to the some degree, and to arouse the attention of idea of “increasing returns” to proximity in the academic community, as well as the form of clusters (Krugman, 1991; business community, to this important Krugman & Venables, 1990, 1996). development. The information provided is Krugman's approach to regional thus of use to both researchers and to agglomeration involves two basic concepts. industrialists. First, there is the idea that regional specialization evolves for accidental 2. Literature of Industrial Clustering reasons, and second, the notion that once these regions become established, they are There is a large body of literature on sustained by the external scale economies. industrial clustering observed in the developed countries and documented, Within the geography and spatial-planning perhaps, in the nomenclature of economic literature, the interest in so-called new geographic, agglomeration/inordinate industrial districts arose primarily from economy, or industrial districts. In the observations of the spatial organization of United States for example, the industry production in several key industries such as is concentrated in Pittsburg, the automobile the electronics industry in California and the industry is in Detroit, the financial industry clothing industry in northern Italy in New York, and the textile industry in the (Saxenian, 1994; Scott, 1992). Efforts were North and South Carolinas. In recent years, given to explaining contemporary location the fast development of the high-tech patterns of North American industries

Article Designation: Scholarly 2 JTATM Volume 4, Issue 2,Fall 2004 (Storper, 1995; Storper & Salais, 1997). It located in Oxford and Cambridge (Keeble et was stressed that some newly industrialized al., 1999), and the work on Silicon Valley areas were characterized by vertically and Route 128 (Saxenian, 1994). These disintegrated production networks based on studies share a concern with tracing the highly flexible and specialized firms that co- mechanisms by which knowledge is located in order to minimize transaction generated and circulated within localized costs. In recent years, Silicon Valley as a production systems. Paci and Usai (2000) cluster for some high tech industries has explored the spatial distribution of attracted particular attention of researchers. innovative activity in Europe; the results According to their studies, enterprises in a indicated spatial and sectoral specialization cluster enjoy external economies of scale by of innovative and productive activities was easy access to supply of materials, skilled significantly and positively correlated. labor, service, and information on technology and market. They also Most of the studies on industrial clustering dynamically benefit from the competitive have been conducted for and in the environment. In addition, industrial developed countries. However, industrial clustering stimulates creation of new clustering also exists in the developing enterprises, resulting in creation of new jobs. countries, especially in some Asian and Not only is industrial clustering South American countries, and has attracted advantageous for individual enterprises, it the attention of some researchers (Porter, also helps improve competitiveness of the 1998). It has been noted that some of the industry as a whole. These findings provide industrial clusters of the developing insight into the development of industrial countries grew in urban areas, while some clustering, and also have impact on research others were the result of industrialization of in this field. the countryside; some were formed by themselves, while others were formed under Jacobs and DeMan (1996), Doeringer and the auspices of the government policies. Terikla (1995) and Rosenfeld (1996, 1997) While lacking the dynamic vigor and quality presented more in-depth interpretations and as those in the developed countries, these definitions of industry clusters, and clusters nevertheless enhance the discussed the related implications for new competitiveness of the countries. Many industry development. Further they times these industrial clusters are export generally focused on the geographic and oriented. The extent to which these export- spatial proximity that facilitate social oriented clusters in the developin g countries interaction and inter-firm cooperation as key can achieve industrial upgrading objectives beneficial features that characterized the and positive developmental outcomes dynamics of clustered firms. In industrial depends on the way in which firms in these clusters, firms draw on core competencies clusters become incorporated into global and knowledge flow among the existing chains. firms in the clusters and thus are encouraged for better competitiveness (Gilder, 1989; 3. Industry Clusters of Textiles and Storper & Salais, 1997). Apparel in China

In the last decade, the emphasis of spatial Industrial clustering is a new phenomenon in clustering theory has shifted from China. Only a few research started to pay transaction costs towards an increased attention to it in the 1990s. Wang (2001) interest in knowledge spill-over and other described the development of some clusters interdependencies. Some of the most in the coastal regions of China, and prominent empirical studies include the discussed their characteristics, including work on the British motor industry (Pinch & their localized network. He particularly Henry, 1997), the work on high-tech SMEs

Article Designation: Scholarly 3 JTATM Volume 4, Issue 2,Fall 2004 examined the impact of accidental factor on Shaxi, and others. the formation of clusters, and pointed out that the strength of the impact depended on Closely followin g this, the economy in the congruence of the sector choice, brought River delta developed fast and about by the accidental factor, with the became very dynamic. Many enterprises of natural advantages of the region and the collective ownership and of private rightness of the policy decision of the local ownership established and grew very fast. government. Thus, the importance of Many of them were textile and apparel government was emphasized. firms. It was typical that these firms clustered together. Several reasons account The textile and apparel industry is one of the for their fast growth: First, the entry barrier pillars of China’s economy, accounting for to the textile and apparel industry was very 9.6% of China’s total industrial output and low in terms of capital and technology. For 13.7% of its total industrial workforce in example, at the beginning, only one 2001 (Zhang, 2002). Historically, the manually operated device to knit socks or geographical distribution of the industry was just a few sewing were needed. At not even. For example, textile plants used to the same time, there was almost endless be concentrated in three coastal cities, supply of cheap labor, who were farmers , Qingdao and . After the eager to leave the land. As the enterprises foundation of the new China, under the expanded, some shrewd entrepreneurs lured system of the government technicians and skilled labors who were dispersed the industry to more cities, where retired from state-owned enterprises to work many textile plants were located. While for them. These firms were most located in these could be regarded as clusters in a towns. The government granted very sense, in most cases the textile industry was flexible policies for the growth and only one of the industries of these relatively operation of these firms. They were much large cities. These could not be compared to less restricted by the clumsy rules and the current clusters of the textile and apparel regulations than the state-owned enterprises, industry, which have emerged in recent for example, they did not have to offer the years and are the focus of this paper. In so called -bowl to their employees, and these new clusters the textile and apparel they had no burden of payments to retired industry accounts for much large percentage employees. On the other hand, these firms of the local economy, and many times is the were very sensitive and responsive to market only industry. changes. Thus, they were very competitive. Second, at that time China was just about to come out of the planned economy when The first tier of the clusters existed in the there was insufficient supply of almost late 1970s and early 1980s, when China was everything. Thus, there was never a lack of first open to the outside world. Taking the strong demand for such consumer goods as advantages of proximity and low labor cost, textiles and apparel. Along with this, little many Hong Kong textile and apparel marketing and marketing skills were needed companies invested in Pearl River delta, and to sell the products. Third, as these firms there appeared a few clusters of textile and were started by farmer-entrepreneurs in apparel firms. These clusters grew fast, as towns and even villages, they set examples new investments also came from Taiwan and became models to others. Many times and other pla ces, and many local the latter just followed the footprints of the entrepreneurs emerged as well. These pioneers, starting with the same methods, clusters include Shenzhen (though later making the same products, and selling in the much diluted as it is now one of the largest same market. As villagers often belong to cities in China), Dongguan (similar to the same family, they did not view each Shenzhen but to a less degree), Humen, other as competitors, and helped each other

Article Designation: Scholarly 4 JTATM Volume 4, Issue 2,Fall 2004 in terms of capital, technique, and even and apparel in China can be categorized into customers through the strong sense of three types, as shown in Table 1: kinship. 1. Textile industrial bases: These are medium sized cities, and a large These firms were the seeds of the industrial percentage of their economy is clusters of textiles and apparel. Now most of textile/apparel based. There are 10 such the clusters still distributed in the two areas: bases, including Dongguan, Kaiping, Pearl River delta and Yangtze River delta. Zhongshan (all in Guangdong province), The former is Guangdong province, and the Haining, Shaoxing, Xiaoshan (all in latter Zhejiang province and southern part of Zhejiang province), Changshu, Jiangyin, Jiangsu province. These happen to be the Zhangjiagong (all in Jiangsu province), most advanced regions in China, in coastal and Haicheng (Liaoning province). area, with the best infrastructure in 2. Cities with special features: These are information, communication, and small cities, mostly used to be county transportation. As a matter of fact, most of seats, and now are featured with one the clusters are located either beside a broad category of textile/apparel highway or very close to a port. They are products. There are also 10 of them, as also very close to major cities, particularly presented in the following table Hong Kong, , and Shanghai. (Changshu of Jiangsu province is at the same time also an industrial base): Now according to CNTIC (2003), the most well-known industrial clusters of textiles

Table 1: Well Known Industry Clusters in China Provinces

Province City Featured products Zhejiang Pinghu Apparel for exports Shengzhou Necktie Tiantai Filter cloth Yuhang Various fabrics Jiangsu Changshu Casual wear Jintan Apparel for exports Changyi Dying and printing Jimo Knitting Hebei Qinghe Cashmere Shishi Casual wear

3. Towns with special features: These of research, including this paper. are all towns, and now featured with There are 19 of them, and all are one category of textile/apparel located in the three coastal products. These are the stars of the provinces and the two deltas. These textile and apparel industrial towns are presented in the following clusters, and are the attention focus Table 2:

Article Designation: Scholarly 5 JTATM Volume 4, Issue 2,Fall 2004

Table 2: Illustrative Town Localities Developing Cluster-Based Economies

Province Town Featured products Guangdong Dalang Wool sweater Humen Women’s wear Shaxi Casual wear Xijiao Fabrics Xintang Denim wear Yanbu Underwear Zhangcha Knitting Zhejiang Datang Socks Fengqiao Shirts Maqiao Knitting Puyuan Sweater Xucun Interior fabric Youchegang Static flocking Yaqian Man-made fiber Yangxunqiao Warp-knitting Zhili Children’s wear Jiangsu Hutang Weaving Sanxing Embroidered home textiles Shengze Silk/light fabric

By 2002, the total outputs of textiles and 4. Case Observation apparel of these 38 clusters amounted to RMB365 billion (about US$45 billion). At We conducted an industry survey in one present the structural development of the industrial cluster, which is a town, called textile and apparel industry of China is Shengze, located in Wujiang county of characterized in two directions: one is a Jiangsu province in eastern China. While group of large companies based in large Shengze had an early history of silk cities with capacity in marketing and production, it was primarily of agriculture product development, often operating supply before the late 1970s when China started chain regionally even globally; the other is a economic reforms. At that time, the size of number of clusters of many small and the town was about 4 square kilometers with medium sized firms based in small cities and a population of 30,000. Since then, the town towns, with featured products and vigorous has seen enormous growth and become one growth (CNTIC, 2003). Thus, industrial of the 19 towns with special features clustering has become one of the two wings designated by CNTIC, and one of the most of the development of the textile and apparel important textile clusters in China. The industry in China. This demonstrates the focus of Shengze is fabric , importance of the clusters. primarily light weighted fabrics for lining of apparel. Now the size of the town has

Article Designation: Scholarly 6 JTATM Volume 4, Issue 2,Fall 2004 expanded to 25 square kilometers with a reason. Located in southern China with population of nearly 200,000, most of them warm climate, fertile land and abundant migrants from other parts of the country. water from nearby rivers and lakes, Shengze There are about 1,100 factories, operating had been one of the silk centers in China for about 50,000 looms, all of which are of hundreds of years. Historically, residents of water-jet or air-jet. It is said to be one of the Shengze were skillful in silk production, and largest concentration of such looms. The many workshops and silk-related businesses total yearly output is about RMB20 billion were located in Shengze. Merchants from all (US$2.5 billion). There are about 4,000 over the country would flock to Shengze for selling and buying offices located in the silk. Thus, it could be regarded as a silk town. The business district of the town is cluster even then. However, as planned full of such offices, which would impress economy was established and no private any visitors to the town. And there is no sign business was allowed to exist, the silk center of stopping of the fast growth. was reduced to nothing and Shengze was no more than an ordinary agricultural town in This is a qualitative and exploratory study, China. This was for about 3 decades until and in-depth interviews with town officials the late 1970s. By then, economic reforms and entrepreneurs were used to collect began, and town residents were allowed to information about the industrial cluster. start their own businesses. For a few of Altogether 3 town officials (Vice Party them, the natural choice was to enter the silk Secretary of the town, Director of The Town business, since this was something they Government Office, and Director of The were relatively familiar with and the local Town Development Office) and 8 conditions were suitable for. This was the entrepreneurs were interviewed by origin of the cluster. structured means. During the interviews, in addition to the current situation of the As discussed above, the general cluster, the history of development was also environment at that time was very favorable investigated. Emphases were paid to the for the development of textile and apparel following questions: how is the cluster clusters like Shengze. Businesses were very formed; to what degree does township successful. The first wave of the government play a role, and to what degree entrepreneurs in the distribution channel was do market forces promote the clustering; sensitive to catch the information, and came what is the advantages of clustering to the to Shengze for its silk. At that time, there locality and to the enterprises; what are the was only one shabby hotel to accommodate interactive relationship among the these merchants. From there, however, it enterprises within the cluster; what is the was like a snowball or atom reaction; more relationship between the cluster and the demand encouraged more supply, and more external market system; how does the cluster supply encouraged more demand. In this attract the servicing industries; and how process, Shengze as both a production base does the clustering help the creation of new and a distribution center grew very rapidly. enterprises and new jobs. These questions More local residents joined, and more have profound policy and marketing enterprises formed, and a cluster was in the implications. Some of the findings to these forming. questions are presented in this paper, with a focus on the origin and growth of the 4.2. The Role of the Local Authority cluster. While the origin seemed to be natural and 4.1. Historical Factors out of the plan of the local government, the government did play an important role in In accordance with the literature (Krugman, helping the cluster grow. Both government 1986), the development of Shengze into a officials and entrepreneurs emphasized the light-fabric cluster was accidental, but on importance of two measures taken by the the other hand quite natural with a historical local authority. Article Designation: Scholarly 7 JTATM Volume 4, Issue 2,Fall 2004 organizing the local entrepreneurs to negotiate with Toyota of Japan. They The first one was the establishment of a collectively made the largest order ever in market in its physical form. The Shengze the world, 3,600 air-jet looms. In the process government was sensitive to realize that the of his business expansion, he has helped lack of a market had become the constraint numerous others to start their own business on the development of the economic by loaning capital, sharing technology and activities and a physical market was in market. These entrepreneurs help the demand. The government then financed and development of Shengze as a cluster. developed “The Oriental Silk Market”, which was like a mart and leased to various 4.4. The Development of the peripheral trading firms. This provided a platform, and Industries tremendously stimulated the growth of businesses both in demand and supply. Later Shengze started with silk production. This when this was no longer sufficient to hold was expanded into domestic trade of silk. all of the buying and selling offices, a new Very soon light-weight fabric manufacturing district was developed, which eventually began to develop. This further promoted the expanded into an area which holds growth of trading. By then there seemed to thousands of selling and buying offices. be two wings of the town, one was enterprises of fabric manufacturing The other was the establishment of an primarily clustered in the industrial park, industrial park, which is beside the one was the selling and buying offices of provincial highway. The government fabrics primarily clustered in the business provided the infrastructure in terms of road, district. As large amount of materials are water, , and other basic conditions. needed, many yarn suppliers are attracted to This has created a good environment for come and set selling offices in Shengze. One manufacturing. While at the beginning, of our interviewees was the owner of a Shengze was only focused on silk trading company, headquartered in Hong production, very soon the enterprises broke Kong. The company imports man-made the limits. As there was some similarity in fibers from abroad, and sells these fibers to technology between silk fabric and light- fabric weavers through its selling office weight fabric, many of the firms expanded here. Textile companies, both into the production of man-made fiber domestic and foreign, also set up offices in fabrics. Now even though Shengze is still Shengze to sell machines and machine parts, known as a silk center, most of its looms are and to provide services to the fabric engaged in weaving of lightweight fabrics. manufacturers. It is said that none of the plants would keep any spare parts. If a belt 4.3. The Role of Individual Entrepreneurs is broken, even at midnight, a new one can be ordered and delivered in less than 20 During our interviews, we were very minutes. These have significantly lowered impressed with those entrepreneurs of the production costs, and are part of the Shengze. Many of them are local residents external economies of the industrial clusters. and previously were farmers. They As Shengze has become a fabric center, demonstrated enormous spirit of risk taking, showrooms and selling offices of other creativity, and willingness to learn from the fabrics, such as denim, are also set up in market. One young entrepreneur started as a Shengze. security guard, borrowed a little money to enter the business, then set up a small 4.5. Workforce Supply factory of his own. Now this has been expanded into a company, and just the As the cluster grows and enterprises weaving branch of it has capacity of 220 mushroom, large labor supply is needed. In water-jet looms and 120 air-jet looms. He this process the former agriculture town was also exhibited outstanding leadership in totally transformed. Most of the land was Article Designation: Scholarly 8 JTATM Volume 4, Issue 2,Fall 2004 turned into industrial uses, and all farmers factories used outdated facilities and are now employed in manufacturing. As the equipment. Many of the machines used were population of Shengze enlarges several folds those retired from state-owned plants. Over (from about 30,000 to 200,000) in the last the years, as the enterprises grow, these two decades, many migrants are attracted to machines have been gradually replaced by live and work here. Most of the people were advanced ones. Now about 50,000 water-jet peasants and come from other provinces. and air-jet looms are operating in Shengze, While the neighboring Anhui province, many of them are imported from abroad and which is relatively backward in economic are the most advanced models. Many of the development, provides a large portion of the companies in Shengze export fabric s to the labor supply, many workers come from international market. Not only do they remote provinces. They have formed nearly receive order from abroad, some of them endless supply of cheap labor, and made have set up offices in North America and great contribution to the development of the Europe. They market their products cluster. A large proportion of the labor initiatively, and obtain the most updated supply is uneducated and unskilled. As there information on marketing and products. are many operational jobs, the raw labor While most of the companies started as a could be trained in a short period time and family business, now many of them are then be able to work. Thus, the cluster in managed professionally by University return also makes direct contribution to graduates with MBA and PhD. Many employment and indirect contribution to companies have well-established systems economic development of the less advanced and met with international compliance regions of the country. However, there is a standards and requirements, like ISO9000 shortage of skilled labor. Compared to other certificates. Thus, many of the enterprises places, labor compensation is better, as an have changed from the old-fashioned operator can make about RMB1,500 (about township companies into modern US$180) per month. In other places, the corporation-type companies. It can be prevalent wage rate is about RMB1,000 per anticipated that these clusters will continue month. to contribute to the growth of the economy and industrial development of the country. 5. Conclusive Remarks References In this paper, the development of industrial clustering of textiles and apparel in China is CNTIC (China National Textile Industry investigated. As a result of economic Council) (2003). Overview on China’s reforms and development, some textile industrial bases and cities (towns) characteristics of the textile and apparel with special features. China Textile industrial clusters are described. One Press. particular cluster, Shengze which is famous Doeringer, P. & Terikla, D. (1995). Business for its silk and light-weight fabric, is used as strategy and cross-industry clusters, a case to exemplify the growth of clusters. Economic Development Quarterly, 9: The empirical factors taken into account the 225-237. cluster performance include the historical Gereffi, G. (1999). International trade and and natural origin, the role of the local industrial upgrading in the apparel government, the role of entrepreneurs, the chain. Journal of development of supporting industries, and International Economics, 48: 37-70. the supply of labor. During the past two Gilder, G. (1989). Microcosm. New York: decades in the process of development, the Basic Books. cluster not only grows in terms of quantity Jacobs, D., & DeMan, A. (1996). Clusters, (number and scale of enterprises) but also in industrial policy and firm strategy: a terms of quality (equipment, products, menu approach. Technology Analysis variety, marketing, and management). In and Strategic Management, 8(4), 425- the early when Shengze started to take off, 437. Article Designation: Scholarly 9 JTATM Volume 4, Issue 2,Fall 2004 Krugman, P. (1991). Geography and trade. Rosenfeld, S.A. (1996) Overachievers, Cambridge: MIT Press. business clusters that work: Prospects Krugman, P. & Venables, A. (1996). for regional development. Chapel Hill, Integration, specialization, and NC: Regional Technology Strategies. adjustment. European Economic Rosenfeld, S.A. (1997) Bringing business Review, 40: 959-967. clusters into the mainstream of Krugman, P & Venables, A. (1990). economic development. European Integration and the competitiveness of Planning Studies, 5 (1), 3-23. peripheral industry. In C. Bliss and J. Saxenian, A. (1994) Regional advantage: Braga de Macedo (eds.). Unity with culture and competition in Silicon diversity in the European Community. Valley and Route 128. Harvard Cambridge: Cambridge University University Press. Press. Scott, A. (1992). The collective order of Keeble, D., Lawson, C., Moore, B. & flexible production agglomerations: Wilkinson, F. (1999). Collective Lessons for local economic learning processes, networking and development policy and strategic choice. institutional thickness. Cambridge Economic Geography, 68: 219233. Region Regional Studies, 33: 319-332. Storper, M. (1995). The resurgence of Paci, R. & Usai, S. (2000). Technological regional economies, ten years later: The enclaves and industrial districts: An region as a nexus of untraded analysis of the regional distribution of interdependencies. European Urban and innovative activity in Europe. Regional Regional Studies, 2: 191-221. Studies, 34: 97-114. Storper, M. and Salais, R. (1997) Worlds of Pinch, S. & Henry, N. (1999). Paul production: the action frameworks of the Krugman’s geographical economics: economy. Harvard University Press. industrial clustering and the British Wang, J. (2001). The room for creativity: motor sport industry. Regional Studies, Industrial clustering and regional 33: 815-827. development. The Economic Press. (in Porter, M. (1990). The competitive Chinese) advantage of nations. New York: Basic Zhang, Z. (2002). Textiles and apparel in Books. Porter, M. (1998). Clusters and China: Competitive threat or investment the new economics of competition. opportunity? Textile Intelligence Harvard Business Review, 77-90. Limited.

Article Designation: Scholarly 10 JTATM Volume 4, Issue 2,Fall 2004