Exploration of Knowledge and Competitiveness in the Fashion Industry Agglomeration

Abstract

The purpose of this study was to explore how knowledge in a successful fashion industry is developed and used, and how this knowledge affects industry competitiveness. Based on a case study method, thematic themes explaining the relationship between knowledge and fashion industry competitiveness were identified through constant comparative analysis of the existing literature. In this study, the three knowledge characteristics (increasing returns to scale, non-rivalry and non-excludability, and tacit and codifiable nature) were systematically applied to the four major functional areas of fashion industry. Based on new growth theory, it was proposed that increasing returns to scale present in agglomerations helped increase fashion industry competitiveness through knowledge in all types of fashion industry through design, product development and supply chain management, marketing, and craftsmanship. The study provides implications for policy-makers and industry liaisons to improve the competitiveness of the fashion industry and a theoretical foundation for future fashion industry competitiveness research to further identify factors that determine fashion industry competitiveness.