ABSTRACT
By means of a case study regarding the cluster development program of the Indian government and technical assistance projects funded by multilateral donors, this chapter analyzes the dynamics and management mechanism of international development cooperation, investigating whether industrial district and cluster models can be transposed from one region to another and how this approach can influence poverty reduction. Managerial findings suggest that policies and projects should not use one-size-fits-all programs; cluster-to-cluster relationships can be sustainable when cluster typologies are significantly comparable and dependency on experts and program managers that are subjected to significant turnover diverts the attention and grants, transforming mid- to long-term initiatives into short-term ones, thus likely not reaching the overall objectives. In conclusion, sound micro and small business organizations evolve over time in a unique way, balancing historical persistence with external pushes; therefore, the effect of international projects might not have immediate benefits on creating new small businesses and reducing poverty, but they act on intermediate agents to create knowledge ownership to develop a unique territorial entrepreneurship vision.
