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Benefits of Clusters

 

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Benefits of Cluster Iniatives

The prospect of potential benefits from cluster initiatives for companies encourages government and other public actors to launch cluster promotion policies. In general, a well-developed concentration of related business promotes three important activities:

  • Increase productivity (through specialised inputs, access to information, synergies, and access to public goods);
     

  • Faster innovation (through cooperative research and more intense competition);
     

  • New business formation (filling in niches and expanding the boundaries of the cluster map).

Cluster initiatives help regions govern their economic development and recruiting efforts. It also encourages communities to refocus their efforts on existing industries.

Strong domestic cluster initiatives also assist the regions in attracting foreign investments. As leading platforms for their industries, clusters are able to attract national and international key players. In fact, foreign-owned companies can enhance the leadership of the cluster and contribute to its upgrading.

Throughout Europe, clustering of companies and R&D organizations is acknowledged as an effective tool for national and regional development. There are hundreds of cluster initiatives (CIs) existing in Europe alone, aiming to foster innovation and internationalisation of companies using collective actions.