Other households use some of the wet cassava starch in the manufacture of maltose, which in turn is used by local candy producers or the majority exported. The manufacture of maltose
uses rice seedlings, produced within the cluster by certain households. Other activities within the cluster include the production of noodles and the collection of the residue from
the starch processing process in order to use it for pig raising both inside and outside of the cluster. There is also some fish raising. All these spin-off enterprises are a product of the
clustering of the core starch processing enterprises. The structure of the cluster itself can be seen in Figure 6.
5.3.3 The upgrading of the cluster
The links between the various members of the Dong Lieu root crop industry have been crucial to its success, thus further demonstrating the importance of clustering. The
importance of these links can be demonstrated by looking at the diffusion of new technology throughout the cluster’s households. These new technologies have driven the dramatic
increase in production, and include the introduction of mechanical filtration equipment, root washers, water filters and the tiling of their tank walls with ceramic tiles. That these
technologies arrived and spread rapidly through the cluster is primarily because of the links between the producers and the local engineers. Through these links local workshops were
able to develop, manufacture and market equipment that was appropriate to the needs of the cluster. Meanwhile, the links between the households and the engineers also provided a quick
way for the household enterprises to become aware of the new innovations. In addition, links between each household enterprise further accelerated the diffusion of new technology.
Of the 48 households surveyed by Peters et al. 2002, 39 said that they discussed new technologies with their neighbours, indicating a considerable flow of information around
the community.
5.3.4 Limitations of the cluster
While the clustering of the root crop processing has been beneficial, particularly as it has supported the growth of related industries and as it has allowed the rapid diffusion
of innovation, the cluster does face some limitations. In particular, the clustering of the enterprises also means a clustering of their waste. Waste water and the root crop residues
that cannot be used as feed are both major pollutants, and the contamination of local rivers and streams is an issue. This problem rebounds on the producers because they depend on the
availability of clean water, and there is also a major public health issue. Technical solutions, such as communal treatment facilities, are proposed to tackle this problem. A second
limitation of the cluster concerns space. A lack of space is already limiting the growth of some enterprises, thus hindering the dynamism of the area. Clustering may thus have been
advantageous to the development of the root crop processing industry, but it is not without problems.
5.4 GRAPE CLUSTER IN MAHARASHTRA, INDIA
