Abstract
It has been argued that the growth potential of industry clusters in developing countries is dependent on joint action to release external economy effects that otherwise remain latent. In this paper we report on the progress and impacts of a programme in Central Java to develop the capacity for joint action in industry clusters via economic forums in local government jurisdictions. We focus on the emerging relationships between industry clusters and their respective economic forums in four local government jurisdictions. Despite progress, the findings reveal the difficulties of developing new institutions to support joint action. These difficulties follow from the limits presented by the private sector dynamics underlying industry clusters and from variations in local government organisation, resourcing and understandings of the remit of these new institutions.
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