Integrated clusters – the future basis of competition

Abstract

As manufacturing becomes a truly global affair, the basis of competition will switch from individual companies and their supply chains to regional clusters. Large multi‐nationals can relocate operations to any part of the world, with significant impact on the regions into and out of which they move. This will introduce new considerations for managers seeking to achieve agile manufacture. In particular, they must recognise the interdependence of all the stakeholders in the economic infrastructure of their part of the world. This contribution discusses the nature of clusters giving some examples. It comments on the role of governmental agencies in economic development.

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