Are Clusters or cluster initiatives really adding any tangible value to firms? Are they obsolete? Maybe not yet, but I believe if the present policy tools and institutional frameworks are not reformed they may very well soon become so. In the following blog I would like to focus on three areas that have not been given enough importance by policy makers: focus beyond geographies, new clusters and cluster performance.
‘Clusters are geographic concentrations of interconnected companies, specialised suppliers, service providers, firms in related industries, and associated organisations (such as universities, standard agencies, trade associations) in a particular field linked by commonalities and complementarities. There is competition as well as cooperation.’ This is how Michael Porter defined clusters in the 80′s making them fashionable.
Others talked about them long before Prof. Porter. For example Marshall in 1920′s defined clusters as a concentration of a large number of similar businesses in a locality. The geographical aspect hasn’t really changed until now (Guiliani (2005) defines clusters as a ’geographical agglomeration of firms operating in the same industry). A lot has been said about how this agglomeration impacts economic growth. Nonetheless subscribing to Martin and Sunley’s critique of clusters (2003); I would argue there exists no direct causality.
To read the full, original article click on this link: Clusters Are Obsolete | InnovationManagement
Author:
