What is a cluster?

“Clusters are geographic concentrations of interconnected companies and institutions in a particular field. Clusters encompass an array of linked industries and other entities important to competition. They include, for example, suppliers of specialized inputs such as components, machinery, and services, and providers of specialized infrastructure. Clusters also often extend downstream to channels and customers and laterally to manufacturers of complementary products and to companies in industries related by skills, technologies, or common inputs. Finally, many clusters include governmental and other institutions—such as universities, standard-setting agencies, think tanks, vocational training providers, and trade associations […].”

^{– (Porter, M.E. (1998). “Clusters and the New Economics of Competition,” Harvard Business Review, November-December 1998.)}