Glossary of cluster terms

Cluster ¹

A cluster is a geographically proximate group of interconnected companies and associated institutions in a particular field, including product producers, service providers, suppliers, universities, and trade associations. Clusters arise out of the linkages or externalities that span across industries in a particular location.

Local Cluster ¹

Local clusters are made up of local industries. Local industries provide goods and services almost exclusively for the area in which they are located, which explains why they must spread all across the country. Indeed, local industries show employment in every region, regardless of the natural or competitive advantages of a particular location. As a result, their regional employment should be roughly proportional to regional population, so that the most highly populated states like California, New York, Texas, and Florida will figure as the top local employment states.

Traded Cluster ¹

Traded clusters are made up of traded industries. Traded industries sell products and services across economic areas, so they are concentrated in the specific regions where they choose to locate production, due to the competitive advantages afforded by these locations. Employment levels in traded industries thus vary greatly by region, and have no clear link to regional population levels.

Rapporteur

Also known as a data-gathering institution, the rapporteur is the person or institution who acts a an intermediary between the client and the cluster. The survey asks the rapporteur to complete specific information about a certain cluster.

Customisation

The section of the survey that asks the respondent specific questions relating to a particular cluster. For example, the rapporteur may be asked to evaluate the competitiveness of 5 Institutes of Collaboration within a certain cluster.

Institutions for collaboration

Formal organizations and informal networks that link important economies actors (e.g., universities, firms, government agencies, training centres etc.) Examples are general institutions such as chambers of commerce, professional associations, school networks or local university-based networking organizations, or cluster-specific institutions such as industry associations or cluster councils, specialised professional associations and societies, local university technology transfer offices, alumni groups of core cluster companies, and business incubators. Note that this definition does not include government agencies, firms, universities or research centres.

General factor conditions

These bear upon every cluster in that location and are not specific to any one single cluster. Examples are, clusters location, it's climate or the general physical infrastructure.

Specialized factor conditions.

These are unique to the particular cluster in question and might include specially trained labour or a research infrastructure that is specially geared to this clusters needs.

Local investment context.

The local or regional climate for investment refers to policies and conditions such as the structure of the tax system, R&D support, or intellectual property rules and their enforcement, which affect the incentives to invest in innovation, workforce development, or production capabilities.