Useful Report on Clusters

Much has been written about clusters. Here is an abstract of one that I ran across that hits the nail on the head in terms of where it is appropriate to adopt cluster development policies and strategies.

Clusters are at the forefront of economic development theory and practice. Instead of focusing on individual companies, clusters encourage practitioners and scholars to think about regional economies in terms of groupings of related firms and supporting infrastructure. Government, corporate, and other decision makers require a new analytical framework for understanding how clusters enable them to positively affect a large number of firms at a relatively low cost. This paper examines how state and local policy makers in New York identify the members and boundaries of a cluster and promote the regional technological dynamism associated with Silicon Valley. Next, the paper identifies three sets of specific recommendations for how policy-makers can use the cluster concept: to understand a regional economy and the sources of its competitiveness; to promote greater collaboration among regional firms; and to maximize the impact of government services to private industry. Finally, it concludes with a pilot proposal to identify successful examples of cluster policies at the regional level which other policy makers around the state can emulate as well as identify new opportunities for public action.

Go here to download report.