Clusters - Clusters Clusters traditionally focused on price...

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Clusters Clusters traditionally focused on price but it also encompasses: land, labour, natural resources and exports Joseph Schumpeter a neo-classical Austrian Economist introduced the term in 1920’s of ‘Quality Competition’ where: Entrepreneurship and Innovation are real sources of long term advantage not just capital and labour which is the main focus at the time. This lead to the idea of evolutionary economics Whereby there is constant disequilibrium and not equilibrium New economic geography A series of models which stress softer issues alongside the idea of quality competition as key factors of economic success Communications Management Networks Skills Social Capital What is a Cluster? Clusters are geographic concentrations of interconnected companies, specialised suppliers, service providers, firms in related industries, and associated institutions, in particular fields that compete but also cooperate. (Porter, 1992) Porter’s competitive advantage his “clusters” became the archetype soft model firms are key determinants of economic success nation and region provide the surrounding conditions strategic management to explain macroeconomic performance
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Porter’s Competitive Advantage Factor 1: Factor Conditions - Basic vs. Advanced Factors (e.g. – land, unskilled labour location vs. Specialised Skills, ICT)
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This note was uploaded on 05/14/2011 for the course ECON 1021 taught by Professor No during the Spring '11 term at Craven CC.

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Clusters - Clusters Clusters traditionally focused on price...

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