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

Diamond Model and Clusters
Knowledge Center


Jagdish B Acharya
Consultant, India

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

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.


Vishal Acharya
Consultant, India

How Clusters are Initiated?

There can be some other factors like: 5. Natural endowments which may promote certain sectors in a ... Sign up


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