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    How do industry clusters start?
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How do industry Clusters start?

There are many ways that an industry cluster can start. Some prevalent factors include:

  • Access to employees with specialized skills
  • A university research center
  • Desirable physical location
  • Well-developed infrastructure

Developing clusters reach a point of critical mass, attracting other businesses, people, and ideas needed for sustenance and growth. Specialized suppliers emerge, local institutions develop training, government works to further develop legislature and needed infrastructure.

For a cluster to succeed, a confluence of factors are necessary, including healthy competition, a climate of entrepreneurship, and strong inter-relationships. There are a number of factors that distinguish today's formalized industry cluster:

  • A formal business plan
  • Organizational skills
  • Cooperation of the community stakeholders
  • Educational system (programs, training, research)
  • Workforce development at all levels
  • Efficient transportation of products
  • Competition in the local region
  • Integration and modification of multiple foreign technologies