The Concept of Clustering

CEMI Discussion Paper Series DP0303 (ISSN 1448-2541), Centre for Entrepreneurial Management and Innovation

25 Pages Posted: 6 Aug 2012

See all articles by Tim Mazzarol

Tim Mazzarol

University of Western Australia

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

Suggested Citation

Mazzarol, Tim, The Concept of Clustering (July 5, 2003). CEMI Discussion Paper Series DP0303 (ISSN 1448-2541), Centre for Entrepreneurial Management and Innovation. Available at SSRN: or

Tim Mazzarol (Contact Author)

University of Western Australia ( email )

35 Stirling Highway
Crawley, Western Australia 6009
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