Is Global Competition Weakening the Benefits of Clusters ?

In a recent article published by The Economist, and using Italy as an example, the tendency to outsource manufacturing and supply to low-cost countries and regions (for instance China) is presented as a threat to existing cluster.

Although we can agree with the author that “picking apart” an established industry cluster with up and downstream relationships established can disrupt the dynamics of the cluster, it is also an opportunity to bring in new strategies for growth and industry development.

Leaning in the traditional cluster thoughts by Michael Porter as tools for economic development, perhaps it is time and an opportunity for the challenged clusters to further tighten their focus and strategy.

Facing increased competition, clusters can adopt traditional business strategies to further grow and strengthen its market presence. This can include strategic partnerships (to other clusters and complimentary R&D communities around the world), maketing strategy to create awareness and recognition around the world, business led growth strategies and more.