ABSTRACT

This chapter synthesises the role of general economic, spatial and cultural conditions in the development of growth clusters and focuses on cluster-specific conditions. It shows that the functioning, dynamics and opportunities of cluster development are largely dependent on the general economic and spatial conditions that prevail in the city under consideration. A cluster's critical mass development is also related to its market reach: the cluster's critical mass increases as the actors in the cluster develop their market beyond the local and regional market, to national markets. Strategic linkages in clusters which emerge under conditions of target convergence, recognisable shared interested, mutual trust and proximity help to build relationships in the cluster. New firms in the cluster create dynamics: they offer employment, create value added and may act as useful suppliers for existing firms in a cluster. Political and societal support is a necessary condition for cluster development. Leadership in cluster development comes in different disguises.