Target Industries FAQ
The advantages of being part of a cluster
What is a cluster?
- A geographic concentration of interconnected economic and innovative activities in a particular field
- An agglomeration of interconnected companies and institutions that collaborate and compete at the same time
- It occurs naturally, but can be stimulated and developed strategically
- The presence of strong clusters within one industry will often indirectly spur cluster creation in other, non-related industries in the same geographical region
- A cluster consists of members from industry, academia and government institutions (the triple helix) - often coordinated by an organizational unit in the cluster
- Clusters support economic development through the specialization of regions in activities within which companies can achieve higher productivity through accessing external economies of scale or other comparative advantages
- Industries participating in a strong cluster register higher employment growth as well as greater expansion rates and higher numbers and patents
- Clusters reduce the cost of production and the cost of exchange by strengthening trading relationships and the transparency of local input and output markets
- Local knowledge spillovers: related local discoveries can simultaneously enhance the knowledge base of multiple local firms
- Qualitative studies of clusters emphasize the central role of specialized local R&D institutions, test facilities etc.
- Cluster activities promote enterprise investments in innovations such as single R&D projects, business-research collaboration and business-to-business collaboration.
What is the value of being part of a cluster?
- A cluster organization strengthens collaboration within the cluster and facilitates e.g. information exchange, training and seminars, joint corporation projects, marketing and public relations, as well as internationalization
- The cluster organization facilitates access to demand, skills or suppliers within the cluster or neighboring clusters and thereby enhances the natural, positive spillover effects in the cluster
- Cluster programs are an integral part of an effective innovation policy at regional as well as national level, and cluster organizations are essential for the execution of cluster policies
- A key role of the cluster facilitator is to determine what action is necessary for increasing the prosperity of the cluster
Why have a cluster organization?