BUSINESS CLUSTERS AND REGIONAL DEVELOPMENT POLICY

During the last decade, business clusters - a geographic concentration of economic activities in a specific field - have become the central point of policy-makers. The development of regional economies is nowadays driven by successful clusters' performance. Many studies indicate that companies adopt changes easier when they operate within a cluster, rather than being isolated, Modem companies prefer to cluster, in order to face more efficiently the challenges of technological changes. The proximity of experienced employees, specialized suppliers, demanding customers, as well as public and private institutions, create innovative ideas that enable companies to reach a higher level of productivity. In this study, we discuss and review recent literature on cluster performance, evolutionary development and competitive advantages.