Small business clustering : Accessing knowledge through local networks

Over the last decade there has been considerable interest and activity in clustering and the concomitant link to regional development. In the world economy small and medium enterprises (SMEs) are now recognised as playing a pivotal role in regional economic sustainability and growth, yet there is relatively little research that examines SME clustering processes, and in particular the nature of knowledge creation in local/regional SME networks. This paper discusses the topic of small business clustering and local network knowledge transfer. It outlines some of the key literature on clustering within a regional development context and discusses the implications on industry and place vis-?-vis regional cluster learning, knowledge creation and innovation. To illustrate SME clustering and knowledge transfer issues, the paper briefly highlights three regional Australian small business clustering studies. The paper concludes with some future directions for SME clustering in terms of policy, industry and place.