The Automotive Industry Cluster in Egypt: Cases of German Automotive Companies ¹

Abstract

The United Nations Industrial Development Organization (UNIDO) (2017, pp. 14–15) identified that “industrialization is the seedbed for entrepreneurship, business investment, technological progress, the upgrading of skills, and the creation of decent jobs.” This placed studying different industrial sectors and their respective clusters, which are key drivers for economy, innovation, and knowledge creation (Slaper, Harmon, & Rubin, 2018), at the forefront of research. This chapter tackles the automobile industrial cluster in Egypt that possesses promising potential yet faces some challenges. It aims to provide an overview of the cluster, alongside underpinning its strengths and obstacles facing it. Moreover, the chapter displays the importance of the labor dimension in increasing the labor competitiveness of the cluster and showcases this through two cases of German automobile manufacturers that pioneered in venturing into the market through employing technical and vocational education and training. In conclusion, recommendations are provided to help in steering the cluster toward success.

Citation

Darrag, M., El Ebrashi, R., Aldibiki, A. and Tosson, S. (2023), "The Automotive Industry Cluster in Egypt: Cases of German Automotive Companies ¹ ", El Ebrashi, R., Hattab, H., Hassan, R.S. and Bouchra, N.H. (Ed.) Industry Clusters and Innovation in the Arab World, Emerald Publishing Limited, Leeds, pp. 25-56. https://doi.org/10.1108/978-1-80262-871-520231003