Knowledge Flow in the Academia-industry Collaboration or Supply Chain Linkage? Case Study of the Automotive Industries in the Jababeka Cluster

This paper focuses on the main question as to whether clustering enhances companies performance. It explores the various linkages of knowledge flow in the Jababeka Industrial Cluster, Indonesia. The research is based on semi- structured interviews and ethnographic fieldwork. Specifically there are two types of linkages in the Jababeka cluster. The first is the vertical hierarchical linkage cultivated by the Keiretsu between automaker and first tier suppliers, the second is the horizontal linkage between second tier and third tier industries. These linkages form clusters within clusters. However the horizontal linkage between academia and industry is limited and restricted.