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Clusters, Knowledge and Firm Performance

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Name of the Asset | Clusters, Knowledge and Firm Performance
Type of Asset | Working Paper
Date | February 2019

Summary
The development and promotion of a productive, competitive and sustainable industrial and manufacturing sector remains at the heart of the structural transformation agenda for many developing countries. The challenge facing Ghana, as with many other African countries, is the need to transform from a resource-dependent economy to a dynamic, diversified industrial economy. A thriving industrial and manufacturing sector also has the potential to create a large number of jobs for moderately skilled workers – an important mechanism for poverty alleviation, and sustained economic growth and development.

This study examines the potential of industrial clusters in promoting industrial development in developing countries. It assesses the growth potential of clustered industries and firms in Ghana, using the wood processing cluster in the Sokoban Wood Village, Kumasi, as a case study. 

The study found mixed impacts of the clusters on profitability and sales. The study also found that most of the innovation that took place within the cluster relates to processes, rather than new products and the role of the clusters themselves in promoting innovation is minimal.

Authors:

  • Charles Godred Ackah, Institute of Statistical, Social and Economic Research, University of Ghana
  • Frank Agyire Tettey, Department of Economics, University of Ghana
  • Festus Ebo Turkson, Department of Economics, University of Ghana

Country and/or Region | Ghana
Name of the Program | Competitive Industries and Innovation Program (CIIP)
Funder(s)| World Bank Group

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