ABSTRACT
Pais Vasco is a relatively small region, whose sense of identity has been reinforced by its distinctive linguistic and cultural traditions and its considerable political autonomy. This cohesiveness may have facilitated the establishment of cluster policy by the Basque Government. Pais Vasco demonstrates what could be called an ' anti-bandwagoning' effect in the pursuit of cluster development. The impetus for cluster policy in Pais Vasco has come almost entirely from the regional level, unsurprisingly since responsibility for economic development policy has been delegated to this tier from the national level. The list of clusters supported in Pais Vasco provides a useful indication of what are perceived to be the most significant current or future sectors in the region. The automotive sector consists of 249 companies in Pais Vasco, representing 34 percent of Spanish automotive turnover. Under negotiated agreements, Pais Vasco has delegated responsibility for many policy fields which, in other regions, are managed nationally. Among them is economic development policy.
