If we look at the business cluster, the role could be more significant. Cluster around agricultural products in area of processing can create job and income for farmers. Cluster around issue of biotech and nanotech by private sector could be an successful example.
It is a big question that is related to industrial districts. The role of clusters is highly debated, because on one hand, there seems to be a persistence of clusters in history (see the literature on "third Italy", or Silicon Valley), but on the other hand, clusters can also die. It is difficult to answer your question in a few words, but I would recommend to read some literature related to clusters -- some a bit old, but still important -- such as Saxenian, Beccatini, and Crevoisier. Olivier Crevoisier has conceptualized the notion of territorial development. Becattini tried to answer why small companies prosper in certain region and did not lead to the creation of large enterprises, on the contrary of what industrial economists predicted. Saxenian more specifically studied the Silicon Valley. Hope that helps.
I would like to add some points in relation to prof. Hosseini questions. His question is specifically related to "economic clusters in regional and rural development". Most of the literature previously mentioned mainly relates to industrial clusters. The question related to rural economic cluster is, in a certain way, "relatively" new. I have done researches on the issue in Chile regarding a specific region - the Maule region - that attests a strong agrarian economy but a weak rural economy. So I have used cluster analysis -as usual- to point out the different rural clusters related to different forms of organization of the rural economy based on four typologies of variables (agricultural, environmental, institutional and social). I am sending you the file of the paper published in an open source journal. I hope that this could be useful.
Elena, thanks for the precision. In fact, the question of Choen explicitely mention "clusters of industry". Now, if you want to talk about rural development, there is a relatively huge literature. For example, a large part of the literature on "geographical indications" analyze this phenomenon (you can see my recent book on the topic, you can also try to find literature from the SINER-GI group). You can also see the literature on "Agro-food Localized Systems. For examaplle, Maite-Moizi, among many others. There is also some literature about "terroirs" (see Jossling, "The War on Terroirs", etc.).
There is an article by Rastoin, in my book on geographical indications that analyzed the concept of terroir from a business perspective.
This litterature analyses food production in clusters. If you are interested in non-agricultural literature, there are stuffs done in Asia regarding the development of industrial clusters in the countryside (in Thailand, In China, even in Japan, to some extent).
Yes, my "relatively new" was a bit ironic, considering how important is agricultural and rural development in the economic development processes and in the history of the economic thought. I will look you works surely and thank you very much for your indications. Thank you to prof. Choen Krainara for having proposed this relevant question.
See some r;cent work on Appalachia that might be of relevance: based on a report prepared for the Appalachian Regional Commission (2014) by REAL and CREC (Center for Regional Economic Competitiveness)
Focused on issue of Economic Diversity as a potential development strategy
Series of reports available at
http://economicdiversityinappalachia.creconline.org/Report/
Including a web-based tool:
http://economicdiversityinappalachia.creconline.org/report/Economic_Diversity_in_Appalachia_Web_Tool_Data_and_Methods.pdf
If we see today, the economic groups do not regard it as a rural major issue, however, I should look at the field as a development and social impact, improving the standard of living of farmers bringing some development, seeking thereby increase the production of raw motherland for the industry, which would generate a positive impact on the countryside, with the possible decrease in production costs, or that would impact regional growth.
An important characteristic of clusters is that they are centered on firms that sell outside the local, state, or even national market. They are driving forces in a regional economy. They bring money into the area and support many local farmers or industries.
My understanding of the role of economic clusters in rural or regional development is that a cluster focus will help in bringing integrated development to an area or region and tries to take advantage of the benefits that acrue when a whole value chain is developed instead of just individual companies. The cluster approach if implemented well should build competitiveness of the whole chain. An example that my country is looking at in terms of cluster development is the motor industry whereby Zimbabwe on its own may not survive in the long run but has a better chance of survival if the sector is developed as a cluster in the SADC region whereby motor products from Zimbabwe are not just destined for Zimbawe but for the region and Zimbabwe also benefits from products developed in other parts of SADC. In such a case, not only Zimbabwe is able to build its competitiveness but all the other countries involved also build theirs. The challenge that I see in using the cluster approach across a region/separate countries is in convincing the countries to see the benefit of developing together rather than as individual countries.
Elisa Giulinani did quite some studies on wine clusters in Chile, which may be interesting in this regard
https://www.researchgate.net/profile/Elisa_Giuliani
also Bjornar Saethar has done some work applying cluster thinking to rural areas, see
https://www.researchgate.net/publication/235353296_Sther_B._Isaksen_A.__Karlsen_A._%282011%29_Innovation_by_co-evolution_in_natural_resource_industries_The_Norwegian_experience_Geoforum_42%283%29_373381?ev=prf_pub
and
Sæther, Bjørnar (2013). Socio-economic Unity in the Evolution of an Agricultural Cluster. European Planning Studies. ISSN 0965-4313. . doi: 10.1080/09654313.2013.849228
Article Innovation by co-evolution in natural resource industries: T...
I think the role of clusters in regional developmen is twofold. On the one hand, clusters decrease intraregional transaction cost for actors of public and private economy as well. On the other, significant options arise for the more effective exploit of local comparative advantages.
Thanks All for contributing with interesting and useful knowledge and understanding of significance of rural cluster.
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