The Concept of Clustering
CEMI Discussion Paper Series DP0303 (ISSN 1448-2541), Centre for Entrepreneurial Management and Innovation
25 Pages Posted: 6 Aug 2012
Date Written: July 5, 2003
This paper provides an overview of the concept of industry clustering and its value to enhancing innovation and enterprise. The success factors associated with regional clustering are described, highlighting the critical importance of local networking between industries and firms. A series of case studies are provided including regional development using clustering principles in Adelaide, Cairns and the Newcastle-Hunter region of NSW. Finally, the paper concludes with recommendations for future action. These include the following: i) undertaking a cluster mapping and environmental scanning process to provide base-line data for future policy and planning activities; ii) enlisting the support of the local business community to participate in a development strategy, particular ‘anchor’ firms in each cluster; iii) identify regional development projects that can channel the energies of key industry and community stakeholders, but that offer mutual benefits to the region; iv) formation of a Regional Development Board to coordinate projects and source funding.
Keywords: Australia, clustering, regional economic development
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