Migrant Entrepreneurs in Industry Cluster Formation and Innovation: The Case of Semarang, Central Java, Indonesia

Industry cluster formation and innovation are vital to promoting local economic development. Industry clustering is commonly understood to have an endogenous dynamic effect, which can mask the exogenous origins and dynamics of clusters. This chapter presents findings from scoping research related to exogenous factors shaping innovation in micro and small enterprises’ (MSE) cluster formation and development in Semarang, Indonesia, where the enterprises in most clusters are in survival level and informally organized. Our findings indicate the influence of individual migrant entrepreneurs and local government initiatives in shaping industry formation and dynamics. The progress and sustainability of informal MSEs cluster development are observed to be strongly influenced by these components.