Cluster-based Policies

Abstract

Cluster-based policies have boomed in both developed and developing countries, along with the literature around them. However, there is substantial ambiguity about the concept, about how clusters work, and about the impacts and results of cluster initiatives. This chapter reviews the basic economics of clusters with a view to introducing clarity in definitions, and makes important distinctions between clusters, cluster initiatives, and cluster organizations. More fundamentally, it puts the cluster approach in a new light by linking it with the new literature on experimentalist governance as a model of public policy. It uses two experiences to illustrate the importance of governance mechanisms in clusters and of their alignment with the principles of experimentalist governance: cluster policies in the Autonomous Community of the Basque Country, and the case of the agricultural machinery cluster in Argentina.

Empleo por sector de actividad económica en ALC, 1991-2021

“…Los países de ALC se están centrando en ampliar, mejorar y armonizar los marcos de finanzas sostenibles, que son esenciales para regular, supervisar y verificar la emisión de bonos GSSS y otros instrumentos. Los marcos más consolidados tienen potencial para reducir los costos de transacción para los inversores, haciendo que los mercados de capitales de la región resulten más atractivos (Salazar-Xirinachs, 2023 [112] ). Dichos marcos pueden incluir principios, normas o taxonomías que cumplan dos propósitos principales: i) reducir y gestionar los riesgos ASG de las actividades financieras; y ii) fomentar el flujo de capitales hacia activos, proyectos, sectores y empresas que generen beneficios ambientales, climáticos y sociales.…”

FDI Qualities Indicator for productivity and evolution of greenfield FDI by energy type

“…Countries in LAC are focusing on expanding, improving and harmonising sustainable finance frameworks, which are essential to regulating, monitoring and verifying the issuance of GSSS bonds and other instruments. Frameworks that are more consolidated have potential to reduce transaction costs for investors, making capital markets in the region more attractive (Salazar-Xirinachs, 2023 [112] ). Such frameworks may include principles, standards and/or taxonomies that serve two main purposes: i) reducing and managing the ESG risks of financial activities; and ii) encouraging the flow of capital to assets, projects, sectors and companies that have environmental, climate and social benefits.…”