12/2004
June
"Clustering is beautiful": a Stage and Eclectic Approach applied to the Development of Survival Clusters in Latin America
 
Mario Davide Parrilli


Previous studies indicate that clustering is not a simple and monolithical process, but it is a process that passes through different "stages". Within this logic, the identification of the stage which each cluster is passing through is a key for both research and policy agents, especially in developing countries. This methodological approach would help them identify better what next development step could be feasible in the short-term. This paper identifies a second aspect that can have significant consequences for research and policy in developing countries. An "eclectic approach" is called for to explain fully the process of development in SME clusters. This approach hypothesizes that development is likely to be more fully and quickly implemented when three types of factors are taken together. Economic, social and policy factors need to be identified, and the main bodies of literature on SME clusters help achieve this objective. These two overall considerations change the perspective of development about SME clusters in developing countries, especially the so called "survival clusters", which tend to be negatively assessed. In contrast, this approach recognises that even these clusters have a good chance to grow over time.

 
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