Extinction or Metamorphosis: Where the Typical Clusters Have Gone?

Abstract

The success of clusters of SMEs in promoting the growth of the companies within the cluster is largely due to the individual firms of the cluster collaborating and sharing resources. This paper investigates the facilitating role of a cluster in the process of internationalization. The research is grounded on the discussion of the three cluster models: pure agglomeration, industrial complex and social networks. In order to demonstrate the observed issues, we discuss three cluster examples from the science-based industry. SMEs behaviour exemplified through their organizational and strategic issues illustrate that the geographical location matters are much more complex than at first they appear. Different types of clusters have different advantages for different types of firms. Recognizing which type of firm will benefit from which particular cluster type requires consideration of organization, strategic objectives and institutional issues, many of which are neglected by the prior clusters literature. The research suggests that in the current reality there is a new type of cluster, which we refer to as a New Breed or Hybrid Clusters.