National Economic Advantage - The Role in Creation and Development of Competitive Clusters

Nation's standard of living in the long term depends on its ability to attain a high and rising level of productivity in the industries in which its firms compete. Good productivity not only supports high levels of income but allows citizens the option of choosing more leisure instead of long working hours. It also creates the national income that is taxed to pay for public services which again boosts the standard of living. Interest in the ‘cluster’ concept has been especially apparent in economic development policy, as seen in the increasing support for cluster development at both national and sub-national levels. Cluster policies have proliferated over the past decade - both those clearly designated as such and related policy initiatives such as regional innovation strategies and measures to support local production systems.