Success Factors of Economic Clusters

Diamond Model and Clusters
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Vishal Acharya
Consultant, India

Success Factors of Economic Clusters

Economic clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, and associated institutions in a particular field that are present in a nation or region...
What makes economic clusters successful?Developing and strengthening of clusters is an important agenda for governments, companies, and other institutions.
But why do some clusters fare better than others?
Why do some clusters fail to perform to their full potential or to achieve the desired results, whereas similar ones or even ones with lesser resources perform better?
I wonder what are the most important success factors for clusters? Is it the natural endowments, infrastructure, finance, human capital, cultural capital, knowledge or the combination of one or more.
Is it the intervention from outside or the resources within that decide the outcome?

  Digitol Onyango Okech
Accountant, Kenya

Success Factors of Economic Clusters

Above all is the aspect of having a clear mission, vision and objectives and dedicating resources towards the attainment...

  Edith Ohri, Israel

Why do Clusters Fail? Because they miss the Interdependencies

Too many assumption get into the models that create these failing clusters, and too little yield of fresh findings. The ...

Student (MBA), United Kingdom

Success Factors of Economic Clusters

A combination of factors is certainly the reason why some clusters perform better than others. Two aspects I feel should...

  Timmy Baksh
Analyst, Trinidad and Tobago

Success Factors of Economic Clusters

Quite right... There must be a combination of factors which will contribute to the success of clusters. There must be a ...

  Augusto Carreira
Partner, Portugal

Interdependencies of Success Factors for Economic Clusters

@Edith Ohri: you are right. However, the orthogonality of the variables doesn't mean lack of interdependency. On the con...

  Jaap de Jonge
Editor, Netherlands

Sölvell's Cluster Initiative Performance Model (CIPM)

According to Sölvell (Sölvell, Ö., Lindqvist, G. and Ketels, C., The Cluster Initiative Greenbook, Stockholm, 2003) ther...

  Steve Neighbors
Strategy Consultant, United States

Success Factors of Economic Clusters

A business entity rises or fails based on the managed resource of its "C's": - Capital (financial, human, etc) - Core ...

  Juan Manuel Matallana
Student (MBA)

Success of Clusters in BRICS countries

I'd like to ask the following question about cluster formation at the BRICS countries (Editor: Brazil, Russia, India, Ch...

  Leodegardo M. Pruna
Professor, Philippines

Competition Inside Economic Clusters

There's always a competitive factor between partcipants whenever clustering efforts are initiated. This factor should b...

  May Koo Tui Moi, Malaysia

The Importance of Goal Dynamics in Clusters

Your goals are your motivation factor. - Always remind yourself of your goals and dreams - Keep your goals with you al...

  M. Srivastava
Project Manager, India

The Transition from Big Fish --> Fast Fish

@May Koo Tui Moi: In the current transition period situations vary country-wise and product-wise. The financial conditio...

  R Rengarajan, India

Cluster Success Factors: Mutual Trust Between Members

Another essential factor for success of any economic cluster is the mutual trust between the cluster members who usually...

  Vishal Acharya
Consultant, India

Why Clusters Fail in Problematic Regions of the World

@Marais: The clusters with the prime need for development are the deprived ones where there is a huge scope as well as n...

Manager, India

Cluster Success Factors: Regulation

Marais said rightly that regulation does play a important role in the success of clusters. In that how well are the play...

  Edith Ohri, Israel

Why do Clusters Fail? Because they Miss the Interdependencies

@Augusto Carreira: Of course I agree with the mathematical orthogonal expressions, but what to do if the interdependenci...

Student (MBA), United Kingdom

Establishing a Cluster versus Continued Operation of Cluster

@Vishal Acharya : The reasons or incentives for establishment of a cluster is as you suggest and I agree. The establish...

Management Consultant, Kenya

2 More Requirements for Success of Economic Clusters

Success with economic clusters can also not be achieved unless there is a good, stable political climate and a friendly ...

  Jaap de Jonge
Editor, Netherlands

Why Clusters are Hard to Accomplish in Poor Economies

@Vishal Acharya: as far as poor / developing economies are concerned, I believe you hit the nail on the head with your q...

  Leodegardo M. Pruna
Professor, Philippines

Success Factors in Economic Clustering

@Juan Manuel Matallana: initially BRICS may show signs of success. But I am afraid that in the long-run cultural factors...

  Kari MIkkela
Director, Finland

Case Study: Factors behind the Success of the Finnish Telecom Cluster

My team did the Finnish telecom cluster study in 1993. Nokia was a small but fast growing (60% /year) player and the clu...

Manager, India

Main Reason for Cluster Failure: Member Selfishness

I agree with @Leodegardo M. Pruna, most clusters fail because of the following reason stated by one of my Professors dur...

  Jonathan Ekambi
Strategy Consultant, Kenya

Reasons for Cluster Failure in Developing World

In the developing world, the failure of clusters is due to: 1) Lack of goodwill on the part of political leaders, 2) L...

  Jose M. Checo
Project Manager, Dominican Republic

The Importance of Trust in Clusters

@Digitol Onyango Okech: the level of trust is a key factor of success, especially in horizontal clusters. To be able to ...

  David Geraghty
Business Consultant, United States

Clusters, Proximity, Resources and Value Transfer

The greatest margins can be had through strategic clusters of industry specific producers, suppliers, and markets. Why? ...

  Francisco Corma Canos
Consultant, Spain

Cluster Case: Teachings of Experience

I´m working in one specific cluster: ceramic cluster at Castellón - Spain with a large tradition on floor and wall ceram...

  Zacharia Marimo
HR Consultant, Zimbabwe

Why some clusters fare better than others

The reasons vary. However, as alluded by colleagues earlier on, the number 1 factor is leadership's ability or failure t...

  Tafadzwa Gabaza, Zimbabwe

Why some Clusters Yield Better Results than Others? Information Sharing

The major reason is the degree to which the players in these clusters share information on costs, value addition and pri...

  Belay Gezahegn
Director, Ethiopia

Why Some Clusters Succeed and Others Fail? Porter's View

According to Michael E. Porter there are four attributes that determine the success of clusters or a firm. These attribu...

  Angel Arbonies
Business Consultant, Spain

Cluster Success Factors

In my view, factors for the success of clusters are: - Cluster structure and governance - not domination, - Cluster in...

  R Rengarajan, India

Cluster Success Factors

For certain economic clusters in some strategic sectors there can be special government grants which come without any fi...

  Augusto Carreira
Partner, Portugal

Why Some Clusters Succeed and Others Fail

@Edith Ohri: Hi Edith, I don't know if you are familiar with the subject of System Dynamics. It is a formal approach to ...

  Anand H

Clusters Performance Analysis

It's worthwhile to study and analyze clusters with limited resources and at strategic odds, which anyway do comparativel...

  Jagdish B Acharya
Consultant, India

Dynamics of Success Factors of Clusters

The clusters also follow life model and success factors change depending on its stage of development. 1. In early stage...

  Makhosana Siphengane, South Africa

Success Factors of Economic Clusters

Our sincere gratitude and appreciation for an excellent contribution on success factors of economic clusters. Presently...

  M.B. Mphahlele
Consultant, South Africa

Success Factors in Economic Clustering: Social Capital, Common Vision

The industrial clustering is fundamentally Marshallian. Alfred Marshall based his thinking on the textile industry in En...

  Makhosana Siphengane, South Africa

Cluster Formation in South Africa

@Juan Manuel Matallana: the formation of the fast emerging economic block BRICS is primarily based on their huge populat...

  Oscar Haupt
Strategy Consultant, Mexico

Clusters in Baja California

In Baja California, 10 years ago the local government spearheaded an initiative to create economic clusters around the m...

  Y Srinivas rao
Manager, India

Economic Clusters in Surat

It is the human endeavour which plays vital role. The cluster develops on it's own in spite of poor infrastructure, elec...

  Makhosana Siphengane, South Africa

Models for Successful Economic Clusters

@Editor: my greatest gratitude to our honorable editor for his excellent CIPM Model contribution to the group, highly ap...


Clusters Must Incorporate both Public and Private Sectors

This is an interesting subject I would like to learn more about. Without the private sectors within such developed and s...

  Francisco Corma Canos
Consultant, Spain

The People Influence on Cluster Formation

@Y Srinivas Rao: OK, always people are the engine, the motor, but other resources are needed like: demand (not only in t...

  Jagdish B Acharya
Consultant, India

Catalysts (Sectors) and Success Factors (Prime Movers) of Clusters

@Makhosana Siphengane: The four sectors described in the quadruple helix model play a catalytic role using enabling, dis...

  Hector Soto, Mexico

The Right Cluster Spirit for Success

In addition, some clusters are more successful than others, because there is the awareness of the globalization and expo...

  Marcelino Pandin
Teacher, Indonesia

Success Factors of Economic Clusters

Market. Market. Market. Nothing else for the pull factor of economic clusters, whereas its push factor is mainly determi...

  Leodegardo M. Pruna
Professor, Philippines

Sharing in Economic Clusters

@Tafadzwa Gabaza On top of information sharing, whenever those involved in clustering share the same vision, discipline,...

Entrepreneur, United States

Lack of Opportunity may Invite new Cluster Formation

Uncertain economies may invite the arrival of clusters. There many be limited regulations that encourage a large influx ...

  Belay Gezahegn
Director, Ethiopia

Comparative Advantage versus Competitive Advantage

@Kathryn Pawley Steiner: A nation's competitive advantage is not the availability of resources (comparative advantage - ...

  Leodegardo M. Pruna
Professor, Philippines

Comparative Advantage versus Competitive Advantage

@Belay Gezahegn: while one who engages in a battle obviously would want to win, there is always the probability that he/...

  Richard-Marc Lacasse
Professor, Canada

The Cluster Phenomenon is Stimulated by Many Actors, and Results from a Symbiosis Between Factors

The emergence of a cluster is a cultural and psychological phenomenon as well as an economical and technological event. ...

  Ravi Java
Manager, India

Clusters are Symbiotic Entities

I agree clusters which succeed are in fact like a living entity where all the stakeholders have a symbiotic relationship...

  Edith Ohri
Entrepreneur, Israel


@Augusto Carreira: About the statistics law which says that non-orthogonal are redundant, it does not apply to my model ...


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