Government policy, clusters and the 'Dubai model'

Abstract

This paper looks at how clusters can help to create competitive advantage for firms. The differences between clusters in terms of their structure and internal dynamics are discussed, with reference to a number of typologies. The life cycle dimension of cluster development is also considered. This paper then addresses issues related to public policy in terms of initiating clusters and ensuring their longer-term sustainability. This is considered in the context of clusters as an integral and growing feature of regional policy formulation by governments. The 'Dubai model' of regional development is then introduced, highlighting how the establishment of free zones (nascent clusters) constitute the basis of industry planning in the United Arab Emirates. Some insights are provided from the experiences of two particular zones: Dubai Media City and Dubai Logistics City. Some observations are made as to the efficacy of the 'Dubai model'.

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