KNOWLEDGE SOCIETY

DIMENSIONS OF THE KNOWLEDGE SOCIETY

DIMENSIONS OF THE KNOWLEDGE SOCIETY

Regional Cluster

Introduction

Clusters have long been a subject of much debate within human geography. While historically informed by location theory and regional science, the cluster has evolved as a highly interdisciplinary concept. While the concept of the cluster is particularly poignant in human and, more specifically, economic geography, it is an important concept across the social sciences. In simplest terms, a cluster can be understood as a group of similar or linked firms within a defined geographical area, although in addition to its importance as an empirical project, the concept provides a basis for considering the relationship between actors and space (Oklahoma, 2006).

The term cluster was first coined and subsequently popularized by the regional scientists Stan Czamanski and Luiz Augusto de Q. Ablas in 1979; however, it was the seminal work of Alfred Marshall in the late 19th century that provided the foundation for these debates. Without explicit reference to clusters, Marshall's study of the British textile industries in Lancashire and Yorkshire, potteries in Stoke on Trent, and metallurgical industries in Sheffield identified the existence of “industrial districts.” Marshall observed that the high capital costs associated with such Fordist industries meant that they tended to remain in a place for a long time once located, a characteristic fundamental to the establishment and sustenance of the business and the socio-cultural relationships of industrial districts.

Through cooperation and competition among firms, Marshall found, industrial districts offered advantages not available to those outside the locale (Stimson, et., al. 2006). Indeed, so great were the advantages of the industrial district that it became a significant factor in the location decisions of firms. More specifically, Marshall identified four aspects of external economies whereby industries sought to extend and refine social and economic relationships as well as physical infrastructure through the scale of production: (1) the reduction of transportation costs, (2) the creation of a common specialized labor force, (3) the specialization of input products, and (4) an intangible dimension that Marshall (1890) referred to as how “the mysteries of trade become no mysteries, but are as it were in the air”.

Discussion

The purpose of this paper is to highlight the regional clustering phenomena in the international and the Australian context. In this study, the author's focus is on the recent research over the regional initiatives to foster the industrial development in Australia, and also the how the industry development in the regional cluster benefit the economy as a whole. The author already explained regarding the concept of clustering, however, regional clustering in Australia still needed to highlight.

Innovative performance in Regional Cluster

The growth and persistence of a community or a society always linked with the development of the skills that related to the pressures, capabilities and incentives provided by the innovative environment. Basically, innovative performance linked with the overall sector that covers the innovative investment, effectiveness, direction, technological opportunities, and degree of focus towards the innovative activity. Among the innovative performance, innovative investment is such an area that has the biggest incentive and gain attached.

The relation of regional cluster with the innovative performance ...