What is the theory behind clusters’ competitive advantage?
Harvard Business School’s Michael Porter’s defines clusters as groups of similar and related firms concentrated in a small geographic area (Porter, 1998). A cluster must consist of interconnected firms in the same fields, specialized suppliers, service providers, firms in related industries, and associated institutions (such as trade associations, universities, technology transfer centers, etc.). Through their competitive and cooperative dynamics, industry clusters are successful in creating competitive advantages for their member firms.
