Implementing the Cluster Approach

Abstract

The focus of this article is on the challenges faced by policymakers in implementing the Porterian cluster approach in an economic development context. Among the issues which are addressed conceptually and in some detail are those of cluster selection, characterization, and assessment. The article is firmly rooted in the experience gleaned from applying a cluster approach in Scotland. Its central empirical thrust lies in exploring the relevance of cluster methodology in two distinctly different industrial sectors, namely semiconductors and software in the Scottish context. Among its conclusions are that suboptimal future policy outcomes are likely to occur if they are based on cluster methodology applied without analytical rigor. Specific advice is given as to how this can be avoided.