Clusters as Key Determinants of Economic Growth : The Example of Biotechnology

Introduction Clusters have become a key mode of economic co-ordination and focus of government policies across the world and for a wide variety of industries. In the UK, somewhat later than elsewhere in Europe, the USA and Japan, there has been government enthusiasm for encouraging cluster development, aimed particularly, though not exclusively, at high technology industry. The Competitiveness White Paper Our Competitive Future: Building the Knowledge Driven Economy, (1998) is clear on its commitment to supporting clusters and its view that they are beneficial to business. This commitment has already been followed up by an in-depth international research study and report on Biotechnology Clusters (DTI 19 1999) led by Minister of Science Lord Sainsbury. It is expected to be the first in a number of such government studies, including a Cluster Mapping exercise. Thus it is clear that cluster-thinking is on the move, with DTI playing a key role in promoting knowledge-development, interaction with business and policy-thinking in pursuit of the government’s vision of a co-operative as well as competitive way of enhancing the UK’s economic performance. In what follows, illustrated answers will be provided to four key questions concerning clusters and clustering activities: