Sunday, July 27, 2014

Fostering Economic Development Through Industry Clusters

The development of higher economic states requires linkages between like minded individuals and their resources to start a generative process. A paper by Popa and Vlasceanu (2013) highlights how clusters, policies and sustained economic growth work together to prove development.

There is a natural lack of trust between economic elements as well as business and government. It is important for economic actors to find shared perceptions and work together on common principles and goals.

Regional clusters should understand their strength and weaknesses and find  competitive strategies. They should also understand how their cluster fits with other clusters and regional economic development.

When clusters develop they do so within a wider network of companies and economic activities. Their core competencies and tighter connections separate them from other hub clusters.

To develop stronger clusters, policies will need to have the wisdom to work with economic actors to create pro growth and trust building policies that foster the widest advantages for the most amount of people. Without trust and the right economic environment growth is unlikely and therefore cannot lead to sustainable development.

Pops, I & Vlasceanu, C (2013). Cluster policies in the European Union-engines for sustainable economic development and competitiveness. Annals of the University of Oradea, Economic Science Series, 22 (1).

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