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Add to this the increasing costs of material movement, and you have a recipe for chasing competition that you will never catch if your competition happens to be those using and developing clusters.
What Is a Cluster?
Porter (1998) defines a cluster as:
… geographic concentrations of interconnected companies and institutions in a particular field. Clusters encompass an array of linked industries and other entities important to competition. (p. 78)
The key word is geographic. Porter suggests that when firms operate in one location, the repeated interactions among them boost competition, improve productivity, innovation and coordination, and build trust (DeWitt et al...
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