Abstract/Summary

Theoretical perspectives on local content development (LCD) are predominantly informed by economic and political theories. The aim of this paper is to develop the strategic perspective on local content in clusters. We define stakeholders in LCD, and give a definition of a cluster, taking into account increasing role of SMEs and local companies in a network that stakeholders create. We also formulate a conceptual model for LCD in clusters. This model fills the gap in theory embracing the role of local content policies (LCPs) in technological upgrade and diversification. This is qualitative research which adopts a case study approach. The focus of the research is on technological upgrade in the oil and gas and ICT industries in Kazakhstan.