A cluster is a geographic concentration of related companies, organizations, and institutions in a particular field that can be present in a region, state, or nation. Clusters arise because they raise a company’s productivity, which is influenced by local assets and the presence of like firms, institutions, and infrastructure that surround it.
- Clusters increase productivity and operational efficiency
- Clusters stimulate and enable innovation
- Clusters facilitate commercialization and new business formation
Cluster development initiatives are an important new direction in economic policy. Building on past efforts in macroeconomic stabilization, privatization, market opening, and reducing the costs of doing business, clusters can enhance competitiveness in today’s increasingly complex, knowledge-based, and dynamic economy.