ABSTRACT
This chapter examines the industrial networks of the new industrial districts in Korea: local networks in production, services, and technology on the one hand, and global networks through strategic alliances, direct investments, and joint Research and Development (R&D) projects on the other. The emergence of various types of new industrial districts whose industrial networks extend locally and globally have been one of the distinctive features of the changes in the organization of industrial space. External economies of scale and scope in districts based on local production linkages, collaboration and cooperation are major competitive advantages of the Marshallian industrial districts. Advanced hub and spoke industrial districts can progress into the ‘pioneering high technology’ industrial districts with the development of locally networked innovative small firms’ industrial systems. Large firms in the high technology sector have initiated strategic alliances in order to recapture competitive advantages. In general, technology transfer, direct investments, and joint R&D are relatively important types of strategic alliances.
