High-Tech Clusters

High-Tech Clusters

Introduction

A business cluster is a physical concentration of similar or interrelated businesses, organizations, suppliers, manufacturers, and related institutions in a specific business area. The term 'Business cluster' is sometimes also referred to as 'Industry Cluster' or 'Competitive Cluster'. Business Clusters are destined to enhance the business outputs and productivity. Clusters are formed so that the organizations may have a competitive environment and they can struggle to attain a major market share nationally, as well as globally. It is physical site where adequate capital and competencies accumulate to attain an important threshold, producing a key spot in a specific economic division of activity. Business clusters provide organizations with a critical sustainable competitive advantage over any other location, or even a global domination in that particular field (for instance, Silicon Valley and Hollywood).

Clusters have played a very key and notable role in the ICT (Information and Communications Technology) sector. Business clusters of ICT companies are popularly called high technology clusters, or simply high-tech clusters. High tech clusters are technology-oriented, well modified to the knowledge economy, and usually encompasses as a core well-known institutions of higher education and research centers. High technology clusters helps in boosting the economy of a country. High technology clusters provide a platform to the IT companies where they can employ their core competencies in a far better and developing approach. Silicon Valley is the world's leading and largest high-tech cluster.

Discussion

The concept of a High-Tech Cluster was practically implemented in US with the foundation of Silicon Valley. This high technology cluster has been playing a major role in fueling the National financial growth of US since its inception. There is technological change focused on high technology clusters, as these high technology clusters has brought a revolution in advanced economies.

The high tech clusters drive and boost the economies of countries by amassing the latest technologies, advanced engineering principles and astute management. High tech clusters are the industrial powerhouse for a country. High tech clusters develop an environment for the ICT and ICT-related companies where they can increase their supply chain and interrelate to design and develop novel solutions and enhance their productivity, making themselves capable to compete on international scale. The high tech clusters provide a controlled environment that cultivates success for its each constituent organization through business clustering. A high tech cluster usually consists of several knowledge-driven divisions - hardware division, which deals in the manufacturing and fabrication of electronic and hardware equipments; software development and programming division, etc.

The high tech clusters are formed by business and science that enter into strategic joint venture and are destined to increase the innovative potencies and economic success of a country. The formation of high tech clusters is envisioned a financial input on the part of business and capitalists. The investments for high tech clusters are based on the stratagem that initiates from the particular majors and potencies of cluster and is designed at the vision of future development and objectives. The formation of a high tech cluster involves the ...