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full set of expertise necessary for a successful kick-start. Thus, unlike the other examples discussed in this paper, Cluster 6 had the multifaceted innovation in its incipient period.

Mostly the current customers of the firms in this cluster are so-called global buyers, i.e., large retailers, wholesalers, and manufacturers with well-known brands in developed countries. The global buyers require their vendors like the garment firms in Cluster 6 to keep reducing production costs, shortening lead times, and improving product quality. If a vendor fails to meet such requirements, it will soon be replaced by another vendor in the same country or in another developing country. Many firms in Cluster 6 have stepped up the ladder of buyers from minor buyers to the top-class global buyers. This fact indicates clearly that since its kick-start, Cluster 6 has continued with improvements in efficiency and product quality.

Note, however, that this cluster’s growth has other features. First, firms in this cluster have not established their own brand names because they are vendors for global buyers. Second, the scope for mechanization is limited. Third, good management is critically important to take the full advantage of the abundant supply of low-wage workers in Bangladesh, and the role of technological innovation is much less important. Probably, these features explain why a positive association between labor productivity and employment size is missing in Figures 2-6a and 2-6b, even though the variance of labor productivity is lower for larger firms.

Thus, the 12 panels of Figure 2 are consistent with Hypotheses 1 and 2. They also suggest that managerial capacities play an important role in determining employment size particularly in survival clusters, whereas entrepreneurship and innovation enhance job creation in dynamic clusters. Before closing this section, we would like to add that basic knowledge of management can be taught by business consultants to entrepreneurs of MSEs. In recent years, an increasing number of randomized controlled experiments have been carried out to test the effectiveness of management training or consulting provided to entrepreneurs (e.g., Karlan and Valdivia, 2011; Drexler, Fischer, and Schoar, 2010; Bruhn, Karlan, and Schoar, 2010; Field, Jayachandran, and Pande, 2010; Bjorvatn and Tungodden, 2010; Mano et al., 2012). These experiments have been conducted in various part of the developing world, but they share surprisingly similar results. We also conducted management training experiments in Clusters 1 and 2, together with the results of experiments in two other survival clusters in Vietnam and Tanzania (see Table 2) and obtained similar results. The outline and main results of our experiments may be summarized as follows.

In each cluster, management training was provided to entrepreneurs in a classroom setting by local business consultants in local languages and by international consultants accompanied by an interpreter. The program consisted of three modules: marketing and entrepreneurship, production management including an introduction to a few basic concepts of Kaizen, and record keeping. Before the program, we conducted a baseline survey of firms in the cluster and assigned sample firms randomly to the treatment group or the control group. It was up to the entrepreneurs in the treatment group to decide whether to attend the training program, which lasted three weeks.<sup>8</sup>

> 8 In the cluster of garment firms in Dar Es Salaam, Tanzania, the training program had four modules and lasted four weeks.  Three modules were the same as in other study sites, and the fourth was about color