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It is generally recognized that spatial clustering yields advantages for SMEs, not only in European ‘industrial districts’ but also in developing countries (Visser, 1996). However, the issue is what type of clustering advantages enhance SME competitiveness. As SME clusters emerge in dissimilar market and technology settings, the logics of various clustering processes are diverse. In addition, clustering advantages shape producer preferences and their perceptions of alternative business styles, and therefore, their response to competitive crises.
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