Clustering for Competitiveness

Competitiveness is the ability of a company or institution to deliver better value to customers that the competitors. Clusters are systems of interconnection between private and public sector entities (firms, institutions). It usually comprises a group of companies, suppliers, service providers, associated institutions like testing and quality standard institutions, education institutions, vocational training schools, trade companies/distributors/associations in a particular field, linked by externalities and complementarities. In our economy competitiveness depends on productivity. Productivity means how the firms compete on a particular field. Companies can be highly productive in their industrial branch if they use sophisticated technology, production methods, and offer unique products and services. As Porter presented, clusters affect the competition by increasing competitiveness of companies acting in their area.