Industrial Hubs and Economic Development

Abstract

Industrialization, supported by industrial hubs, has been widely associated with structural transformation and catch-up in developing, emerging, and advanced economies. There are around 6,000 industrial hubs spread across 147 countries, with a high concentration in emerging and developing economies, particularly in Asia. While the direct economic benefits of industrial hubs are significant, their value lies first and foremost in their contribution as incubators of industrialization, productive and technological capability, and innovation, which can facilitate sustained growth and the climbing of the development ladder. This chapter introduces the three objectives of the volume: to examine the conceptual underpinnings and research methodologies associated with industrial hubs and economic development; to extract relevant lessons for policy researchers and practitioners from empirical evidence; and to provide alternative perspectives and approaches, embedded in an industrial policy framework, to economic structural transformation and technological catch-up. It will provide conceptual clarity around notions of the all-embracing term industrial hub, and widely used terms such as industrial districts, special economic zones, export-processing zones, technology parks, and industrial parks.