An observation, first made by Michael E. Porter, that a firm can develop a subst
An observation, first made by Michael E. Porter, that a firm can develop a substantial competitive advantage in manufacturing certain goods when a large number of its competitors and suppliers are located in close proximity, because the area then attracts the most talented employees, and the extraordinary competition between the firms generates a greater need to innovate and become efficient. Such a grouping of companies is called a cluster.
Silicone Valley is a cluster. Research one other location (city) that can be considered a cluster.
What characteristics do industrial clusters have that other cities do not have?
Can you think of another industrial cluster in the United States or abroad?
