What Are Clusters?
Today’s economic map of the world is characterized by “clusters.” A cluster is a geographic concentration of related companies, organizations, and institutions in a particular field that can be present in a region, state, or nation. Clusters arise because they raise a company's productivity, which is influenced by local assets and the presence of like firms, institutions, and infrastructure that surround it.
Key Concepts
Clusters increase productivity and operational efficiency.
Clusters stimulate and enable innovation.
Clusters facilitate commercialization and new business formation.
Building & Upgrading Clusters
Tourism Cluster in Cairns, Australia
In Cairn, this cluster (a group of interrelated businesses and institutions) was built around the Great Barrier Reef. Other examples of clusters include the Italian Footwear and Fashion Cluster, the California Wine Cluster, and the Silicon Valley Technology Cluster.
Cluster Initiatives
Cluster development initiatives are an important new direction in economic policy. Building on past efforts in macroeconomic stabilization, privatization, market opening, and reducing the costs of doing business, clusters can enhance competitiveness in today’s increasingly complex, knowledge-based, and dynamic economy.
As part of its long-running Cluster Mapping Project, the Institute is building a registry of U.S. cluster initiatives. A similar effort is housed at the European Cluster Observatory.
The U.S. Cluster Mapping Project
The U.S. Cluster Mapping Project provides policy makers, economic development practitioners, and researchers with powerful data and tools to understand clusters and locate cluster initiatives and potential partners throughout the U.S.
Explore U.S. Cluster DataThe EUROPEAN CLUSTER OBSERVATORY
The European Cluster Observatory provides data and analysis of clusters, cluster organizations and regional microeconomic framework conditions in Europe. Furthermore it provides a cluster library, and a classroom for cluster education.
Visit the EU Cluster Observatory