Does industrial clustering work? Reinventing cities-region competitiveness

Abstract

Most cities policies are now comprehend clustering concept, consistently encapsulated within the competitiveness school of though, range between the economics of innovation, economic geography and organisational economics. Apparently, it has become the sine qua non (essential element) of cities economic development policy. Grounded well to a particular hypothesis, the dynamics of clustering enable the agglomeration of cities economic activity, entice innovation, which again are measured by technological and knowledge spill-over, vis-a-vis, the equation of economic performance. Nonetheless, the definition of what constitutes industry cluster is still obscure. This is due to the diverse interpretation, influenced by the divergence in methodological and theoretical approaches, spawned by the emergent scholarship on cluster-based competitiveness, as stipulated above. Therefore, it is the interest of this paper to examine the significant of industrial clustering, as the main agenda of cities policy in building cities competitiveness endowment. A case study, from mid-cities region, Kuantan, Malaysia, will be the basis in reviewing this relationship, that industrial clustering able to propel the localised economies to new level of cities region competitiveness.