Should Regional Policies Try To Promote Clustering?

Swedish regional policies try to create a dynamic and creative economy through the encouragement of clusters.

1 minute read

April 21, 2004, 11:00 AM PDT

By Zvi Leve


It is currently very fashionable in regional policy to support clusters of activities as a way of promoting growth and innovation. Typically this is done through programs aimed at encouraging cooperation between governmental authorities, private industry, and universities. Joakim Stymne, chief economist of Kaupthing Bank and chair of the Timbro think-tank argues that "it is the rivalry and competition between [firms] that creates dynamic clusters," not state supported collaboration between companies. It is crucial to keep the role of policy incentives in a proper perspective.

Thanks to Zvi Leve

Monday, October 24, 2005 in Axess Magazine

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