What makes Clusters Start at some Place? How are Clusters Initiated?

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What makes Clusters Start at some Place? How are Clusters Initiated?
Jagdish B Acharya, Consultant, India

In another discussion we have found the main success factors of clusters. But what actually makes them start? How are clusters initiated?
1. Is it by fluke (luck)? Some particular firm is successful and others try to imitate it by starting the same activities nearby and a cluster evolves.
2. Does it start with a few visionary firms discussing and starting an industry which breaks up into a cluster?
3. Does it start artificially with governmental support for a particular region?
4. Does it start with some perceived big gap due to changed paradigms of technology in related areas?
It seems all 4 of these kickoff mechanisms of clusters are realistically possible. Perhaps there are even more?
By studying how some of the well known clusters started, we may learn more about this important economic phenomenon.

How Clusters are Initiated?
Vishal Acharya, Consultant, India
There can be some other factors like:
5. Natural endowments which may promote certain sectors in a cluster
6. Availability of raw materials
7. Availability of labour, skill sets
8. Availability of other economic and demographic factors, cultural factors and many more.
It would be a quite complex study to understand the impact of all the factors which result in the initiation of the clusters.



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