Growth of industry clusters and innovation: Lessons from Beijing Zhongguancun Science Park

The success of technology parks in promoting technology transfer and attracting clusters of highly innovative firms has motivated countries from around the world in an attempt to promote regional development, including the People's Republic of China. Due to its similarities with other formerly planned economies undergoing transition towards market economies, the Chinese model of technology parks has been closely watched and emulated by other transitional economies. However, despite its economic significance, such development has been largely ignored in organizational research.In this study, I investigate a specific example of an industry cluster in China, the Beijing Zhongguancun (ZGC) Science Park, which has seen the largest cluster of semiconductor, computer, and telecommunication firms in China, consisting of both domestic and foreign invested firms. I examine the origin and growth of industry cluster in a traditionally heavily regulated economy and region, its role in promoting technology transfer and innovation, and challenges firms face in the future. I close by proposing some issues for future research.