Cluster-based development: lessons from Singapore

Abstract

This paper reviews the literature to unravel what is new in cluster-based development and how different is it from key sector analysis, unbalanced growth strategy, industrial policy, comparative and competitive advantage or what is generically termed as international competitiveness. Singapore's experience in cluster-based development industrialisation in both manufacturing and service activities are examined and some lessons drawn. As it is losing on price competitiveness, there is urgency to move away from its factor- driven to investment and innovation-driven stage of national advantage.