Dual clusters in dual economies: understanding innovation in clusters of developing countries

Abstract In developing countries, clusters not only have a dual configuration with pronounced differences in company performance but are also embedded within the framework of dual economies. This restricts the capacity of networks to facilitate the innovation processes of local firms. We provide empirical evidence that supports this hypothesis by analyzing local and multinational firms in 18 Latin American clusters. Our findings can improve the understanding of innovation processes in underdeveloped countries, suggesting that dualism should be considered as a determining factor.