2014 Volume 13 Issue 4 Pages 183-197
Present literatures highlight that the presence of Japanese-speaking human resources in Dalian, China has formed a high-tech agglomeration in Dalian, which attracts many Japanese companies. However, that is a simplistic answer. This paper identifies that the software development outsourcing industry in Dalian is formed by three phases, First, the major role played by Japanese companies in China on the creation of skilled labor in the initial phase of the agglomeration. Second, Chinese companies that have become the core companies of the agglomeration through doing business with Japanese companies developed Japanese-speaking human resources as their own as a means of attracting Japanese customers. Third, new comers can utilize the skilled labor market which is formed by those human resource spun off of foreign-owned firms and core local firms.