ABSTRACT
This chapter presents the concept of cluster and cluster initiative (CI) further on referred to as cluster organization (CO). It provides the main conclusions from the review of the subject literature, revealing the current state of knowledge of the prior as well as the contemporary theories on the establishment and development of industrial clusters. The chapter focuses on the constituent elements of COs and the relationships they establish, the main areas of cooperation and involvement as well as the dynamics of a cluster and a CO. It discusses the impact of clustering on competitiveness. The concept of COs, which is the heart of the matter of the publication, originated from the idea of a cluster – a term introduced to the management literature by Porter. The factors highlighted in the diamond of national advantage and the relationships among them are, according to Porter’s intention, important determinants of the formation and development of clusters.
