Cluster Development: Issues, Progress, and Key Success Factors

Abstract

Over the years, industry clusters have been touted to have economic and strategic advantages and have been used to develop embryonic industries. The cluster development process/methodology generally has taken two distinct approaches: laissez-faire, or economic system-driven; or planned/sponsored, or driven by government policy and intent. This chapter looks at two biotech clusters that are representative of each of these methodologies—the San Francisco Bay Area (California, U.S.) cluster and the Hsinchu (Taiwan) cluster—to identify the evolution and success of these two methodologies. The chapter also identifies and discusses key success factors that impact the development and growth of business clusters.