The Sustainable Development of Industry Clusters: Emergent Knowledge Networks and Socio Complex Adaptive Systems

Abstract

In a highly competitive global economy the development of sustainable, innovative responses from Industry is now vital. Many industries globally need to respond rather than react to current economic climate through sustainable (economically and environmentally) development. The steel industry is a critical player in the urban landscape. Like many industries, small, medium enterprises (SMEs) are vital players within the steel industry supply chain. The Australian SME steel housing sector (based in rural and regional areas) are still developing systemic capabilities with the aim of realizing its full potential. The question of an effective sustainable industry is much larger than any one player.

This paper aims to present a proposed methodological approach for sustainable cluster development based on previous industry wide investigations. Through the lens of scalability of a socio complex adaptive system, SME development becomes arguably the most significant player with regards to industry cluster development. By starting with SME development it’s possible to build an understanding of a simultaneous two layered approach, “bottom up – top down” whilst including a very diversified group.

Keywords: Knowledge Networks, Industry Clusters, Small & Medium Enterprises, Steel Frame Housing Industry, Complex Systems

JEL Classification: D21, D71, L22, L74, O32, 034