The current trend towards globalization is posing a substantial challenge to SME clusters to restructure and reach out to distant markets and knowledge sources, while at the same time exploiting the advantages of local factors and agglomeration. This book represents a first attempt to analyze these issues in detail, employing novel empirical evidence. The authors focus on Small and Medium-sized Enterprises (SMEs) in Italy and Taiwan, two countries in which these businesses characterize the national industrial structure. They find that in the current climate of globalization, there is no best practice model for organizing an industrial cluster since a diversity of successful institutional arrangements is possible. They demonstrate that over time SME clusters can evolve and that globalization can reshape their upgrading options by providing a variety of international knowledge linkages. Thus, the authors conclude that the development of local and global networks and new interactive...

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