Abstract

ABSTRACT This paper examines the transformative potential of inward investment on cluster development. It undertakes this through the lens of the evolving semiconductor cluster in South Wales (UK) and within a context whereby the semiconductor industry is under pressure with government interventions to improve prospects being implemented at a time of increasing global tension in the industry. The paper reveals the potential of inward investors as agents of regional economic change and cluster development. It shows that the emerging South Wales cluster distinguishes itself in terms of investment motivation, commodities and services produced. These factors result in growing embeddedness in relation to elements such as joint research with higher education and intra-firm collaboration to develop new products and processes. The paper concludes that investments based on risky and fast-changing technologies in industries such as the semiconductor sector necessarily create challenges for policy makers. These are best managed by placing greater emphasis on developing the conditions to satisfy the needs of such knowledge-intensive industries in relation to labour market conditions, factor conditions and market access.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.