ABSTRACT
The globalization of finance, communication, technology and markets has resulted in unprecedented business competition, especially for small firms. The tendency towards globalization appears to reduce the importance and relevance of local regions and yet, regional clustering of leading firms is found in almost every national economy in the world. As the phenomenon of globalization, and global competition has increased, interest in local regions and regional clusters of firms has also increased. Researchers have begun to discuss the phenomenon of regional clusters in the context of home-base competitive advantage in an international market. Where general network strategies once formed the basis of government programs designed to address issues of growth and internationalization, there is now a growing interest in localized networks, where many firms within a particular sector are "clustered" in a distinct geographical region. Firms within these clusters apparently derive support and competitive advantage through highly localized inter-firm relationships, place-specific history, economic factors, values and culture. Clusters are increasingly seen as the driving force of international trade. They are credited with providing the environment for developing leading-edge technology, the acquisition and use of information and innovation through co-operation and competition between firms within the cluster.
