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Introduction to Clusters
Todays economic map of the world is dominated by clusters: critical masses in one place of unusual competitive success in particular fields. Clusters are a striking feature of virtually every national, regional or state economy. E.G., Silicon Valley, Bollywood or Pune auto cluster.
Environment
What happens inside a company is important but clusters reveal that the immediate business environment outside companies plays a vital role as well. Clusters often extend downstream channels and customers and laterally to manufacturers of complementary products.
Why Cluster?
Reduce costs Specialize Leverage on anothers specialties Increase rates of innovation Pursue joint solutions to common problems Build common labor pool, technology and infrastructure Learn collectively what it takes to be competitive
What Is a Cluster?
Clusters are geographic concentrations of interconnected companies and institutions in a particular field. E.G., Suppliers of specialized inputs such as components , machinery, services & specialized infrastructure.
Clusters and the new economics of competition. Harvard Business Review; Boston; Nov/Dec 1998; Michael E. Porter; http://polaris.umuc.edu/~fbetz/references/Porter.html
Constituents
Many clusters include governmental & other institutions such as universities, standard setting agencies, think tanks, vocational training providers & trade associations. Clusters promote both competition and cooperation. Rivals compete intensely to win & retain customers. Without vigorous competition, a cluster will fail.
Clusters and the new economics of competition. Harvard Business Review; Boston; Nov/Dec 1998; Michael E. Porter; http://polaris.umuc.edu/~fbetz/references/Porter.html
Improves Productivity
Better access to employees & suppliers Access to specialized information Complementarities Access to institutions & public goods Better motivation & measurement
Maharashtra clusters
Centre releases Rs 15 crore for the Rs 67 crore auto cluster being established in PunePimpri-Chinchwad. Sectors planned for the cluster include auto electronics, CAD/CAM and rubber/polymer & plastics. Other clusters proposed are at Roha and Thane Belapur (for chemicals), Ichalkaranji (textiles) and Aurangabad (auto components).
UNIDO in Action
Pakistan
India Indonesia
Madagascar Zimbabwe
India Project
UNIDO was requested by the Indian Ministry of Industry to promote pilot projects in selected clusters, and formulate a national cluster development programme. With initial funding provided by the Italian Ministry of Foreign Affairs, a comprehensive Project was prepared to promote cluster development.