Explaining industrial cluster evolution: a case study of e-waste clusters in China

Abstract

Since China’s reform and opening up in the 1980s, a free-market environment coupled with policy guidance has led to the emergence of many industrial clusters. The e-waste industrial cluster is one example. It is widely acknowledged that e-waste is the fastest-growing type of waste, and this has been declared a ‘global crisis’. Many e-waste industrial clusters are encountering numerous challenges in balancing economic viability and environmental concerns and are facing prolonged policy uncertainty. Numerous countries have implemented regulations to restrict the export and import of e-waste, exerting a significant influence on the entire industry. As a result, entrepreneurs, workers, and governments are searching for ways to achieve industrial upgrades and transformation. This research considers the evolution of e-waste clusters in China. Focused on Guiyu and Huaqiangbei, Shenzhen, it aims to explore the process of e-waste cluster evolution, the relations between socio-cultural context, networks, and politics, how external shocks disrupted industrial development paths, and how different clusters have adapted. These issues are discussed via empirical material from 85 in-depth interviews with workers and government officials. The thesis shows that the e-waste clusters in Huaqiangbei and Guiyu have followed two modes of formation and evolution with different evolutionary paths. It finds that Guiyu has been based on a disassembly mode of waste processing that has been associated with strong ties and closed networks. This has diminished the cluster’s absorptive capacity and contributed to lock-in and fragmentation. Huaqiangbei, however, has followed a reassembly mode with much closer connections to related electrical product sectors. The thesis explains the implications of these differences for training, education, and technology and how these have changed in the development phases and mature stages. A well-educated workforce and human capital are necessary to maintain a cluster’s innovation level and avoid possible decline or lock-in. Policy plays a crucial role in the development of industrial clusters in China. This research transcends the limitations of singular theoretical perspectives by constructing a multidimensional analytical framework that explores the factors influencing e-waste cluster development and examines their interactions with regulatory interventions and policy shocks. The study provides valuable insights for fostering more effective industrial development in less-developed regions. Through its integration of multi-level analysis and diverse research perspectives, this work not only enriches industrial cluster theory but also offers significant guidance for formulating targeted and effective regional development policies.

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Identifiers

ORCID for Junwanguo Guo: orcid.org/0009-0003-0624-345X

ORCID for Peter Sunley: orcid.org/0000-0003-4803-5299

ORCID for Brian Hracs: orcid.org/0000-0003-1001-6877

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