Clusters as Instruments for Economic Development - Literature Evidences

In general the implementation of the Community Strategic Guidelines 2007-2013 for Cohesion Policy in Support of Growth and Jobs and the Competitiveness and Innovation framework Programme aim at creating strong connection between the SMEs and the research and technological institutions including creation of clusters. It should boost European productivity, innovation capacity and sustainable growth [16].

Conceptual framework
Michael Porter has proposed the conceptual idea in which today’s global economy is characterized by what he refers to as cluster. He suggests that the immediate business environment outside a company is significantly important in how cluster participants create competitive advantage [19]. Porter explained the cluster as geographically close groups of interconnected companies and associated institutions in a particular field, linked by common technologies and skills. They normally exist within a geographic area where ease of communication, logistics and personal interaction is possible. Clusters are normally concentrated in regions and sometimes in a single town [19].
There are many definitions of cluster but it is good to mention that clusters are not a static phenomenon. After the formation, clusters grow. They grow significantly especially when local institutions and local competition are willing to support their development [16]. (...)