Title: Analyzing the Sources of Skilled Labor Force in the Development of Four Major ICT Clusters: Silicon Valley, Bangalore, Malaysia and Taiwan
Abstract: Clusters, meaning concentrations of interrelated companies and institutions, contribute to the prosperity of economies all over the world. It is undeniable that the region plays an important role in the cluster formation and development. However what lies at the heart of clusters is “people”. A skilled labor force is crucial for a successful cluster formation and therefore, identifying the sources of skilled labor force in order to enforce the human capital is important. The purpose of this paper is to examine the sources of a skilled labor force in the development of four major information and communication technologies clusters (ICT clusters); namely Silicon Valley, Bangalore, Malaysia and Taiwan. By a cross-cutting analysis of the four clusters, this study aims at identifying whether there are differences in the relevant sources of skilled labor force. The findings from the analysis will serve as lessons for the ongoing development of the Malaysian cluster but also for emerging clusters all over the world. Four clusters were chosen to be studied; namely Silicon Valley, Bangalore ICT cluster, Taiwan ICT cluster and Malaysia MSC. All the four clusters refer to the same industry- the ICT industry- in order for the sources of labor force to be easily comparable. Moreover, the choice of the four clusters was motivated by the difference in their age. The Silicon Valley is an old and successful cluster which served as a prototype for many clusters. Bangalore and Taiwan clusters are mature and successful clusters that have succeeded Silicon Valley. Finally, the Malaysian MSC is a new and still under development cluster. The four clusters are established in different countries of the world in order to identify regional differences, if any. This study contributes to the theory of cluster development by identifying the factors and sources that create a pool of skilled labor market. More specifically, it has been found that for the earlier phases of cluster formation, universities and favorable government policies are crucial for the creation of a skilled labor pool. For the development phase, along with the already mentioned factors, research institutes, collaboration between universities and companies, industry synergies, firm employees and role of expatriates are equally important sources of a skilled labor pool. Besides the theoretical contributions, this study proposes practical contribution in terms of policy implications. Policy recommendations are given for the enhancement of the Malaysian MSC, based on the lessons learned from the older clusters. In particular, the Malaysian government should consider supporting more actively the education system of Malaysia, drive the entrepreneurial activity in the area and give incentives for expatriates to bring in their valuable knowledge and experience. These proposals could also serve as a set of recommendations for emerging clusters all over the world.
Publication Year: 2010
Publication Date: 2010-01-01
Language: en
Type: article
Indexed In: ['crossref']
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