TY - JOUR

T1 - The transformative potential of inward investment on industrial cluster development

T2 - the case of the semiconductor industry in Wales

AU - Munday, Max

AU - Huggins, Robert

AU - Cai, Wanxiang

AU - Kapitsinis, Nikos

AU - Roberts, Annette

N1 - Publisher Copyright: © 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.

PY - 2024

Y1 - 2024

N2 - This paper examines the transformative potential of inward investment on cluster development. It undertakes this through the lens of the evolving semiconductor cluster in South Wales (UK) and within a context whereby the semiconductor industry is under pressure with government interventions to improve prospects being implemented at a time of increasing global tension in the industry. The paper reveals the potential of inward investors as agents of regional economic change and cluster development. It shows that the emerging South Wales cluster distinguishes itself in terms of investment motivation, commodities and services produced. These factors result in growing embeddedness in relation to elements such as joint research with higher education and intra-firm collaboration to develop new products and processes. The paper concludes that investments based on risky and fast-changing technologies in industries such as the semiconductor sector necessarily create challenges for policy makers. These are best managed by placing greater emphasis on developing the conditions to satisfy the needs of such knowledge-intensive industries in relation to labour market conditions, factor conditions and market access.

AB - This paper examines the transformative potential of inward investment on cluster development. It undertakes this through the lens of the evolving semiconductor cluster in South Wales (UK) and within a context whereby the semiconductor industry is under pressure with government interventions to improve prospects being implemented at a time of increasing global tension in the industry. The paper reveals the potential of inward investors as agents of regional economic change and cluster development. It shows that the emerging South Wales cluster distinguishes itself in terms of investment motivation, commodities and services produced. These factors result in growing embeddedness in relation to elements such as joint research with higher education and intra-firm collaboration to develop new products and processes. The paper concludes that investments based on risky and fast-changing technologies in industries such as the semiconductor sector necessarily create challenges for policy makers. These are best managed by placing greater emphasis on developing the conditions to satisfy the needs of such knowledge-intensive industries in relation to labour market conditions, factor conditions and market access.

KW - cluster development

KW - Inward investment

KW - semiconductor industry

KW - Wales

U2 - 10.1080/09654313.2024.2319704

DO - 10.1080/09654313.2024.2319704

M3 - Journal article

AN - SCOPUS:85186610565

VL - 32

SP - 1594

EP - 1612

JO - European Planning Studies

JF - European Planning Studies

SN - 0965-4313

IS - 7

ER -