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A business cluster is a geographic concentration of interconnected businesses, suppliers, and associated institutions in a particular field. Clusters are considered to increase the productivity with which companies can compete, nationally and globally. This concept, also known as a competitive cluster, industry cluster or Porter's cluster, was first developed by Michael Porter in 1990. Cluster development has since become a focus for many government programs.
Objectives Michael Porter claims that clusters have the potential to affect competition in three ways: Traits A business cluster is a geographical location where: Types Generally two types of business clusters, based on different kinds of knowledge, are recognized: Process 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. An alternative to clusters, reflecting the distributed nature of business operations in the wake of globalization is Hubs and Nodes. Examples Well known examples are See also | ||||||||
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