Do Industrial Clusters Foster Technological Capability: A Comparative Study of Small and Large Scale Firms in Bangalore Machine Tool Cluster

Abstract

The paper examines whether clustering of firms influences acquisition of technological capability. It also draws a comparative picture between small scale and large scale firms viv-a-vis the learning mechanisms which enable firms to acquire higher technological capability. The study is based on empirical data collected from 6 large and 25 small firms in the city of Bangalore, India. While the results support central assertion made in the literature that clustering does influence technological capability, it also draws useful comparisons in learning experiences of small and large firms.