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Clusters as an Economic Development Tool: Beyond the Pitfalls

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  • James R. Held

    (New York State Department of Economic Development)

Abstract

While many states have used a cluster approach to improve economic development policy, such an approach can easily yield inaccurate or incomplete results. The specific approach to cluster analysis presented here provides a definition of industry clusters that encompasses the classic, vertically integrated cluster, as well as horizontal clusters, where common resource needs rather than buyer-supplier relationships more closely link the component industries and firms, and emerging clusters. Further, this approach integrates quantitative analysis with qualitative approaches and examines the cluster as an entity in itself rather than a collection of industries to be studied individually. Case studies of two clusters in the Hudson Valley of New York State illustrate how this approach develops a deep understanding of the cluster and encourages the formation of policy interventions as an outgrowth of the study process.

Suggested Citation

  • James R. Held, 1996. "Clusters as an Economic Development Tool: Beyond the Pitfalls," Economic Development Quarterly, , vol. 10(3), pages 249-261, August.
    • Handle: RePEc:sae:ecdequ:v:10:y:1996:i:3:p:249-261
    DOI: 10.1177/089124249601000305
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    Cited by:

    1. Thomas Brenner, 2017. "Identification of Clusters - An Actor based Approach," Working Papers on Innovation and Space 2017-02, Philipps University Marburg, Department of Geography.
    2. Maryann P. Feldman & Iryna Lendel, 2010. "Under the Lens: The Geography of Optical Science as an Emerging Industry," Economic Geography, Clark University, vol. 86(2), pages 147-171, April.
    3. Sören Eriksson, 2011. "Promotion of Company and Local Economic Growth through Clusters," Chapters, in: Charlie Karlsson & Robert G. Picard (ed.), Media Clusters, chapter 2, Edward Elgar Publishing.
    4. Rivera, Liliana & Sheffi, Yossi & Welsch, Roy, 2014. "Logistics agglomeration in the US," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 222-238.
    5. Cristina Santos & Alexandre Almeida & Aurora A.C. Teixeira, 2008. "Searching for clusters in tourism. A quantitative methodological proposal," FEP Working Papers 293, Universidade do Porto, Faculdade de Economia do Porto.
    6. Melania Pop & Florica Ștefănescu, 2018. "Urban Development Strategies: Baia Mare City Case," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 54-62, December.

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