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The Emergence of Industry Clusters. Theory & Evidence - Essay Example
Author : ukonopelski
Pages 11 (2761 words)
The researcher of this paper will attempt to elaborately discuss the origin, the enlargement, the formation and the progression of industry clusters such as semiconductor industry of Silicon Valley, automobile industry of Detroit and German Laser industry. …
According to the researchers, an industry cluster may be defined as a geographical adjacent group of interrelated industrial firms and connected institutions which is linked by unity and harmony. In an organisational form, clusters offer more flexibility to the industrial firms in the ever- changing industrial environment. In other words, the extent along with the nature of link between the customers, the suppliers and the competitors determine the various advantages of industrial cluster with respect to industrial structure. The emergence of industry clusters has made an exceptional mark as well as caused a significant variation in regional financial performance of the United States and Germany. Through the occurrence of pioneering clusters of the companies and industries such as semiconductor industry of Silicon Valley, automobile industry of Detroit and German Laser industry, the researchers observed that the above mentioned industrial units attained strong financial performance due to the presence of modernised clusters. Thus, it can be stated that during the emergence of industry clusters lie a significant as well as mention worthy effect upon attaining strong and well organised financial performance which is performed by the industrial units such as semiconductor industry of Silicon Valley, automobile industry of Detroit and German Laser industry. The industry clusters act as a source of local modernisation along with improvement towards geographic attention of various business organisations, industrial firms and related trade institutions that include standard agencies and trading organisations among others. ...