The role of clean technological change and networking in the emergence of small-scale enterprise clusters: an empirical study in the Red River Delta of Northern Vietnam

Abstract

This paper reports on a survey on the environmental conditions in three small-scale enterprise clusters in the Red River Delta of northern Vietnam. The survey attempted to identify the existence and contribution of environmental innovation networks that influence the behaviour of clustered enterprises. It also sought to measure the extent of the enterprises’ exposure to regulatory, market, and community pressure in relation to government initiatives aimed at persuading them to adopt clean technologies. It appears that the most important influence is that of the enterprises’ customers (many of which are located overseas), who are most likely to be the source of knowledge in relation to new environmental technologies. The Vietnamese media (in particular, national television) are the next most important source of such knowledge, followed by trade associations. Statistical findings show that the adoption of new, clean technologies is influenced by the enterprises’ location. It was also established that community pressure to reduce pollution is mostly ineffectual, as are regulatory measures and monitoring by local authorities.