Cluster Policy: Principles and a Toolbox

Cluster policy has become a method of choice for economic policymakers in many nations and regions in both industrialized and developing countries. Since the beginning of the 1990s, the policy is being perceived by politicians and practitioners as a way to anchor economic activity in locations even during gales of globalization. Yet no comprehensive theory of cluster policy has been formulated. Such a theory is necessary to establish a sound theoretical foundation for practical cluster promotion strategies if they are to stand a chance to systematically achieve their goals. Moreover, this theory must be linked with the general theory of economic policy. To gain policy relevance, the theory should offer a toolbox for cluster promotion practitioners and policy makers. This article proposes principles that integrate cluster policy in this broader theoretical context and suggests a toolbox.