Clusters are non-random geographical agglomerations of firms with similar capabilities. This paper investigates the theoretical backgrounds of the “cluster” and proposes a framework aiming at drawing the contour of cluster theory. The profundity of the notion of ‘clusters’ is arguably conditional on the coherence of three fundamental issues associated with the concept..
1) the economic and social benefits that may accrue to firms when clustering or co-locating (the existence argument); 2) the diseconomies encountered when clustering exceeds certain geographical and sectoral thresholds (the extension argument); and, finally, 3) the possible erosion of economies and onset of diseconomies over the lifecycle of the cluster (the exhaustion argument)…
Author: Peter Maskell,Leïla Kebir
Source: Copenhagen Business School
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