Porter's Cluster Theory
TABLE OF CONTENTS
TABLE OF CONTENTS…………………………………………………………………...p.2
INTRODUCTION…………………………………………………………………………..p.3
A Brief Summary of Porter’s Article………………………………………………………p.4
THE ORIGINS OF PORTER’S CLUSTER THEORY…………………………………….p.6
EXTERNAL CRITICISM…………………………………………………………………..p.8
Theoretical Gaps…………………………………………………………………………....p.8
Clusters and Their Practical Implications…………………………………………………p.9
FUTURE DIRECTIONS…………………………………………………………………...p.12
CONCLUSION……………………………………………………………………………..p.13
APPENDICES……………………………………………………………………………...p.14
REFERENCES……………………………………………………………………………..p.15
INTRODUCTION
Over the past two decades there has been an increasing popularity among academics of the development and expansion of cluster theory, its effects on productivity and economic growth, and the implications for public policies. Undisputedly, Michael Porter is a prominent practitioner in the field and also contributed to the proliferation of the definition and the basic assumptions and characteristics of cluster theory as well as to the promotion and manifestation of the beneficial effect an efficient organization of clusters can have on the economy hosting those clusters. The paper by Porter (2000) evaluated in this critical review represents a comprehensive summary of the existent knowledge and information on clusters and feeds directly from his primary research on cluster theory – The Competitive Advantage of Nations, which will be examined in more detail in the following sections. Porter’s work provides some meaningful insights into the practical side of cluster theory and potential positive outcomes in the presence of effort, knowledge and resources optimization – ‘In a cluster, the whole is greater than the sum of its parts’. However, there are certain drawbacks of this study as being predominantly descriptive, lacking rigour and substantial empirical evidence. Furthermore, the author relies mainly on his own former studies on
TABLE OF CONTENTS…………………………………………………………………...p.2
INTRODUCTION…………………………………………………………………………..p.3
A Brief Summary of Porter’s Article………………………………………………………p.4
THE ORIGINS OF PORTER’S CLUSTER THEORY…………………………………….p.6
EXTERNAL CRITICISM…………………………………………………………………..p.8
Theoretical Gaps…………………………………………………………………………....p.8
Clusters and Their Practical Implications…………………………………………………p.9
FUTURE DIRECTIONS…………………………………………………………………...p.12
CONCLUSION……………………………………………………………………………..p.13
APPENDICES……………………………………………………………………………...p.14
REFERENCES……………………………………………………………………………..p.15
INTRODUCTION
Over the past two decades there has been an increasing popularity among academics of the development and expansion of cluster theory, its effects on productivity and economic growth, and the implications for public policies. Undisputedly, Michael Porter is a prominent practitioner in the field and also contributed to the proliferation of the definition and the basic assumptions and characteristics of cluster theory as well as to the promotion and manifestation of the beneficial effect an efficient organization of clusters can have on the economy hosting those clusters. The paper by Porter (2000) evaluated in this critical review represents a comprehensive summary of the existent knowledge and information on clusters and feeds directly from his primary research on cluster theory – The Competitive Advantage of Nations, which will be examined in more detail in the following sections. Porter’s work provides some meaningful insights into the practical side of cluster theory and potential positive outcomes in the presence of effort, knowledge and resources optimization – ‘In a cluster, the whole is greater than the sum of its parts’. However, there are certain drawbacks of this study as being predominantly descriptive, lacking rigour and substantial empirical evidence. Furthermore, the author relies mainly on his own former studies on
References: A Brief Summary of Porter’s Article In his article, Porter (2000) proposes a comprehensive definition of clusters in relation to the decreasing significance of location in relation to competition on a global scale THE ORIGINS OF PORTER’S CLUSTER THEORY Undoubtedly, Porter’s work on clustering has been greatly influenced by Marshall (1920) and his study on the ancestors of clusters Theoretical Gaps In his book, The Competitive Advantage of Nations, Porter (1990) uses descriptive methods and tools in order to establish, develop and expand basic assumptions, characteristics, definitions and concepts in regard to cluster theory Clusters and Their Practical Implications According to Porter (2000), constraints to clustering and competitiveness exist Etzkowitz (2000) The triple Helix model N/A Gordon and McCann (2000) Kotels (2003) Cluster classification based on the type of product/service they provide, the stage of development they have achieved, and the locational dynamics they are subject to Markusen (1996) Markusen cluster model Sölvell (2008) Cluster factors model