Porter's cluster
From Academic Kids
A Porter's cluster or competitive cluster is a geographical location where:
- enough resources and competences amass and reach a critical threshold,
- giving it a key position in a given economic branch of activity,
- with a decisive sustainable competitive advantage over others places, or even a world supremacy in that field.
Generally two types of competitive clusters, based on different kinds of knowledge, are recognized:
- Techno clusters - These clusters are high technology-oriented, well adapted to the knowledge economy, and typically have as a core renowned universities and research centers.
- Historic knowhow-based clusters - These are based on more traditional activities that maintain their advantage in know-how over the years, and for some of them, over the centuries. They are often industry specific.
The concept is named after Michael Porter, a Harvard professor who developed it. He claims that clusters have the potential to affect competition in three ways:
- by increasing the productivity of the companies in the cluster,
- by driving innovation in the field
- by stimulating new businesses in the field
The process of identifying, defining, and describing a cluster is not standardized. Individual economic consultants and researchers develop their own methodologies. All cluster analysis relies on evaluation of local and regional employment patterns, based on SIC codes.
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Examples
Well known examples are
- the Silicon valley, in California in the field of computer technology,
- Bangalore, in India, for software outsourcing,
- Paris, in France, for Haute couture,
- Toulouse, in France, for aerospace.
- Cambridge, in the UK, for biotechnology and electronics
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