What is a Cluster?

Michael Porter Professor at Harvard University  states that “Clusters are geographic concentrations  of interconnected companies, specialized suppliers, service providers, associated institutions in a particular field that are present in a region”

In our PSDCP project this means that our clusters are groups of companies that share local resources, use similar technologies and are forming linkages and alliances and increasing their networks. These linkages can take the form of buyer-supplier relationships, joint marketing, training, or research initiatives, and often involve lobbying government. One of the distinctive features of clusters is that of linkages between firms which in turn affect shared strategies. This is often called «Co-coopetition» – where companies compete in some areas, (such as selling to customers), but cooperate in other areas (such as joint training programs.)