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Porter's Cluster





Generally two types of competitive clusters, based on different kinds of knowledge, are recognized:
  • Techno Cluster s - These clusters are High Technology -oriented, well adapted to the Knowledge Economy , and typically have as a core renowned universities and research centers like the '' Silicon Valley ''.

  • 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 .

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


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