Emergence and Subsequent Development of Garment Clusters in Bangladesh and Tanzania

Abstract

This chapter attempts to demonstrate the importance of technology transfer from abroad in the development of industrial clusters in developing countries by comparing the cases of cluster development with and without introducing technological and managerial knowledge from abroad. In particular, focus is placed on spectacular development of the garment cluster in Bangladesh, which initially learned technology and management by sending newly recruited workers to South Korea for intensive training. Although less spectacular than that in Bangladesh, the garment cluster in Tanzania also developed by learning from training programs offered by UNIDO. It is also found that, for successful development of industrial clusters, the entrepreneurial human capital plays a key role as successful technology transfer requires innovations in the improvement of product quality, production methods, and marketing.