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What is Geographical Cluster

Handbook of Research on Nature-Inspired Computing for Economics and Management
A geographically defined production system, characterized by a large number of small and medium-sized firms involved at various phases in the production of a homogeneous product family. These firms are highly specialized in a few phases of the production process and integrated through a complex network of inter-organizational relationships.
Published in Chapter:
Competitive Advantage of Geographical Clusters
V. Albino (Politecnico di Bari, Italy)
DOI: 10.4018/978-1-59140-984-7.ch022
Abstract
This chapter deals with complexity science issues from two sides: from one side, it uses complexity science concepts to give new contributions to the theoretical understanding of geographical clusters (GCs); from the other side, it presents an application of complexity science tools such as emergent (bottom-up) simulation, using agent-based modeling to study the sources of GC competitive advantage. Referring to the first direction, complexity science is used as a conceptual framework to identify the key structural conditions of GCs that give them the adaptive capacity, so assuring their competitive advantage. Regarding the methodological approach, the agent-based simulation is used to analyze the dynamics of GCs. To this aim, we model the main characteristics of GCs and carry out a simulation analysis to observe that the behaviors of GCs are coherent with the propositions built up on the basis of complexity science literature.
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