1.
Baldev Singh Shergill
– Assistant Professor at the Guru Kashi Department of Social Sciences, Punjabi University Guru Kashi Campus, Talwandi Sabo, Punjab.
2.
Kamaldeep Kaur
– Researcher at the Department of Economics, Punjabi University, Patiala
Abstract
This paper examines the dynamics of competition,
cooperation, and absorptive capacity
within three major industrial clusters
in Punjab. Based on primary survey
data from 150 firms, the study explores
how informal networks, trader relations,
and inter-firm cooperation shape knowledge
diffusion, innovation, and competitiveness.
Findings reveal that while firms
in all clusters actively cooperate in marketing,
input purchase, and information
exchange, the extent of absorptive capacity
varies significantly. The Hi-tech Metal
Cluster demonstrates advanced absorptive
capacity with strong knowledge assimilation
and transformation, while the
Textile Cluster lags behind. Informal ties,
especially friendships and collegial relationships,
play a critical role in fostering
trust and collective efficiency. However,
limited staff training and low patent activity
highlight the dependence on subcontracting
and external innovation.