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Porter's ClusterA Porter's cluster or competitive cluster is a geographical location where: Generally two types of competitive clusters, based on different kinds of knowledge, are recognized: - Techno clusters - These clusters are high technology-oriented, well adapted to the knowledge economy, and typically have as a core renowned universities and research centers.
- Historic knowhow-based clusters - These are based on more traditional activities that maintain their advantage in know-how over the years, and for some of them, over the centuries. They are often industry specific.
The concept is named after Michael Porter, a Harvard professor who developed it. He claims that clusters have the potential to affect competition in three ways: - by increasing the productivity of the companies in the cluster,
- by driving innovation in the field
- by stimulating new businesses in the field
Examples Well known examples are - the Silicon valley, in California in the field of computer technology,
- Bangalore, in India, for software outsourcing,
- Paris, in France, for Haute couture,
- Toulouse, in France, for aerospace.
- Cambridge, in the UK, for biotechnology and electronics
See also
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