A cluster in the economy and industrial production is a group of interconnected organizations (companies or corporations) that are located in a certain territory and are producers of products or services, while complementing each other. Cluster participants are characterized by cooperation and territorial concentration. Clusters are somewhat different from associations, industrial complexes, industrial agglomerations, holdings, industrial parks and industrial districts.
The process of creating and developing a cluster is called a cluster initiative. Cluster policy is the process of implementing initiatives to develop and increase the cluster.
What is the benefit of forming a cluster?
The creation of an industrial cluster can be quite an effective strategy for the development of companies. Combining several industries into a single entity has a number of important advantages. First of all, this is a reduction in transportation costs and the time it takes to transport products between production facilities. BUTthis means that fuel consumption, vehicle wear and other cost items are reduced.
The second reason is the benefit of collaboration, when the production process is carried out by the joint efforts of several companies, which makes it more reliable and less risky.
The third reason is the possibility of a direct exchange of knowledge and experience between people working in different industries, which is called implicit knowledge. Geographical proximity makes possible the direct exchange of such knowledge and the flow of personnel from one manufacturing company to another. This effect also explains the fact that traditionally many specific crafts did not go beyond limited territorial units.
Clustering increases the competitiveness of firms in local, regional and global markets.
Cluster Features
The characteristic features of the production cluster include the following:
- Territorial proximity of production units that make up the cluster.
- Single resource base.
- Interconnection of production processes and technologies;.
- Introduction of innovative technologies.
What is an industrial cluster
An industrial cluster is a new form of spatial and economic organization of economic activity, which is a group of manufacturing companies, territorially and economically interconnected, with an inter-company division of labor.
Concept"cluster" is fairly new. It appeared in 1990 in one of the works of Michael Porter. In the course of his analysis of the development of industrial countries, he found that the emergence of production clusters is a characteristic feature of modern industrialization.
The cluster is characterized by the unification of several manufacturing industries, which makes it possible to work more efficiently and squeeze out competitors by joint efforts. Also, the concept of "production cluster" can be interpreted as an association of several enterprises for the purpose of their joint development. All this leads to a reduction in the cost of obtaining products, an increase in production efficiency and the competitiveness of enterprises in a market economy. As a result, greater stability and resistance to various external challenges, industry and financial crises are achieved.
Conclusion
Thus, an industrial cluster is a close association of several manufacturing companies in one area. An example of a cluster is Silicon Valley in the USA, Airbus, Fujitsu Siemens Computers, the Eurasian Economic Union, and so on. The development of an industrial cluster leads to an increase in the competitiveness of its constituent companies in various markets.
