Regional Clusters: What We Know and What We Should Know

Abstract

Interest in regional clusters and their role in economic development has grown substantially over the last several years among academics, economic development professionals, and firm managers. The main reasons have been the increased intensity of interregional and international competition in the world economy, the apparent shortcomings of traditional regional development models and policies, and the emergence of successful clusters of firms and industries in many nations around the world. One result has been a proliferation of cluster-based economic development policies. Another has been a veritable explosion of literature on regional clusters and regional clustering. In this paper, I will highlight some of the results of research on regional clusters, identify some of the gaps in our present knowledge of the clustering phenomenon, and suggest an agenda for further research. The particular set issues covered is idiosyncratic rather than exhaustive, reflecting my own research interests and drawing on results, preliminary results, and stylized facts that have emerged in my own research as well as the literature. The purpose is to summarize at least a portion of what we know about regional clusters and to suggest areas for future investigation.