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Clustering Still Key for Industries

Hal Johnson argues that the idea that it can be beneficial to a city or region to inspire the growth of industry clusters is still an effective way to go, and creating a sense of place to inspire clustering is essential.

Location, location, location - despite the growing sense that industries can be located anywhere in the internet age, evidence supports the opposite conclusion: that clustering alike businesses together works:

"Sixty percent of the respondents to Area Development's 2010 Corporate Survey said the presence of activities similar to theirs was a consideration when selecting a site. More recently, a 2011 Brookings Institution report showed that 'strong clusters foster innovation through dense knowledge flows and spillovers; strengthen entrepreneurship by boosting new enterprise formation and start-up survival; enhance productivity, income levels, and employment growth in industries; and positively influence regional economic performance.'"

Full Story: Industry Clusters: Importance of Place still Relevant to Business Success


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