Are Industry Clusters and Diversity Strange Bedfellows?
Randall W. Jackson
In this address, I review industry clustering and diversification strategies to compare and contrast their underlying foundations. The lack of consensus choice of one or the other for regional economic development strategies along with the recognition that in the dynamic process of development these two processes are related leads me to conclude that clusters and diversity need not be such strange bedfellows after all, and that a rational approach to economic development can leverage the strengths of each and offset weaknesses. I follow this discussion by introducing a cluster assessment diversification strategy (CADS) apparatus that can be used to measure existing cluster strength, to identify industrial strengths and deficit bottlenecks, and to explore the regional consequences of potential cluster diversification strategies.
industry clusters, industry diversification