Archive for May, 2010

May
17 2010

Build it and they will come…?

In several previous posts, I have touched up on the cluster creation vs. cluster activation approach.

In short, with Cluster Activation I am referring to a “bottom up” approach, where the foundation and growth strategy is based upon the local/regional assets, industry and how this can best serve the demand in the market. Basically, the government and local policy makers role is to act as a catalyst and help remove bottlenecks and growth hurdles for local industry and R&D sector.

On the other hand, with a Cluster Creation approach, I am refereeing to a situation where through a “top down” approach, government or policy makers are creating an industry or a cluster presence by investing and in many cases building from “scratch”. Both approaches may be successful, but there is no doubt that the latter (Cluster Creation) will also carry more risk and likely demand a significant investment.

In a recent article published at Businessweek.com , Vivek Wadhwa shares his thoughts and insights about the challenge of “engineering or creating clusters” using a top-down approach. Interesting read indeed.

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