The increase in the number and variety of “cluster” and “competitiveness” projects in USAID programs since the late 1990s has been accompanied by considerable confusion about concepts and terms. This paper attempts to clarify cluster theory and summarize research on USAID-supported cluster activities. It explains the different uses of the term competitiveness and distinguishes between cluster initiatives and broader efforts to increase the competitiveness of firms, industries and countries. It suggests some guidelines for cluster development in order to help assure the most appropriate use of cluster development approaches in USAID programs.

Source