WHAT IS THE BEST WAY TO USE CLUSTER ANALYSIS?
One of the more important things to remember about cluster analysis is not only its limitations, but also its benefits. Cluster analysis is not only a highly effective technical tool, but also as a method of inquiry. In short, cluster analysis is not just crunching numbers, it should also be seen as an effective tool for economic development planning and policy-making. The most compelling argument regarding the importance of this kind of analysis comes from Harvard Business School Professor Michael Porter, and others, that have suggested that a new approach is necessary to succeed in the global economy. The research done by Porter, and others, regarding the benefits to cluster-based strategies in economic development has pushed economic development professionals and policy makers to use a cluster approach for economic development strategy. The Morrison Institute for Public Policy provides a good summary of the basic goal of a cluster-based approach, they suggest that economic base anal
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