Support institutions and R&D activities in an ICT cluster: the multimedia development corporation in Malaysia's multimedia super corridor cluster

Economic geography in an era of global competition poses a paradox. In theory, location should no longer be a source of competitive advantage. Open global markets, rapid transportation and high-speed communications should allow any company to source anything from any place at any time. But in practice, location remains central to competition and institutions seem to help in the development of regions. This article examines the role of Malaysia's Multimedia Development Corporation as a regional development agency—in the development of the MSC Project—the Multimedia Super Corridor Cluster, a project to develop the information and communications technology sector, started by the government of Malaysia to kickstart the transition to a knowledge-based economy. Even though the MDC has played a significant role in developing the MSC project, there is much more it can do to develop it as a ‘regional cluster’. It is concluded that the MDC has been doing a good job of marketing the MSC in general and attracting companies to set up shop in Malaysia in order to form a new knowledge-based sector. It is suggested that the business-related function should receive equal attention when any innovation cluster is designed and operated.