ABSTRACT
This chapter emphasises the processes of local economies while respecting their interdependence with urban economies. It introduces clusters, categorises the GBA's clusters and examines the government's role in their development. The chapter looks at coordination across the GBA from the perspectives of corporate organisation and through the urban hierarchy of business functions. A few, such as those related to textiles, toys and shoes may have declined both absolutely and relatively as a result of competition from lower-cost regions (primarily on labour costs), or they may be flourishing because of automation and improved value-added products. In 2006–2010 a policy of upgrading the clusters included pilot zones of industry clusters. The policy framework included funding for innovation, encouragement of export-oriented manufacturers entering the domestic market with brand-building activities, control of pollution with specially-designed industrial buildings, and industrial parks with centralised treatment facilities.
