The Midrand area: An emerging high‐technology cluster?

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Abstract
This article takes a close look at art emerging high‐technology cluster in a developing country ‐ Midrand in South Africa ‐ to develop a deeper understanding of its nature, why it emerged and the problems it faces. Midrand lies within the Gauteng province, which has a disproportionately large share of South Africa's private and public demand, as well as factor inputs for high‐technology sectors. The cluster is growing rapidly and includes a large contingent of high‐tech multinationals and blue‐chip local firms. The cluster is not, however, based on research and development but rather on head office, warehousing and distribution functions, and manufacturing. Its success is built on a central location, high visibility, a positive high‐tech image, good quality of life, a visionary town council, good investment returns, low operating costs and a lack of local competition. Its weaknesses are that it has not been built on a solid foundation of high‐tech infrastructure and lacks high‐tech dynamism, rendering its locational advantage somewhat fragile.

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