The grand hope today seems to be that venture capital and entrepreneurship can be salvaged by blue-ribbon panels, government initiatives and grand central plans. The buzzword of choice, "clustering," is a notion that has been around a long time in business supply chain circles, but is fairly recent to the venture capital realm.
In the United States, clustering came about spontaneously as VC activity coalesced into geographic focal points for businesses and their financiers with specialized expertise — think medical technologies in Boston, and IT and semiconductors in Silicon Valley.
The generally accepted premise is new clusters can sprout up from grand plans involving flashy incentives such a new government-funded business centres and targeted grant money. Governments are pouring tens of millions of dollars into these nascent clusters in the hope they catch on. This hope is not based on reality.
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