Content area
Full Text
Abstract
The aim of this article is to describe the advantages and limitations of business clusters, often interpreted as being complex economic entities. Throughout the time, it has been observed that firms tend to concentrate in certain locations as various types of economic agglomerations. However, there is no single cause which is due the clustering phenomenon, on the point of clusters may be the result of several combinations of subsequent factors: the existence of a competent workforce, specialized suppliers, knowledge dissemination and entrepreneurial activity, the inter-dependence between entities, the organizational cultures or the local demand. The objective of this paper is to demonstrate why the presence of a cluster succeeds to enhance a firm's productivity as well as stimulate growth in a region, and moreover how it manages to attain these results. While the article shows that the advantages of business clusters are obvious, even measurable, such as: the competitive advantages, the operational efficiency of its members, the encouragement of innovation and technological advance, the creation of new companies, the formation of social capital and the adaptability to market changes; the disadvantages are almost nonexistent, rather there are certain limitations and ambiguities that stand from major structural, technological or industrial changes at macroeconomic level or other impactful events such as wars and crises.
Keywords: cluster, business, regional development, competitiveness, localization economies
Introduction
Nowadays a new paradigm is shaping, claiming the fact that clusters serve as the driving force for economic growth in the most regional economies. My mission in this paper is to clarify what are the advantages of these entities and the limitations they face towards their development path. Having regard to the literature in the field, the most important features a cluster can have are the localization, the competitive advantages, and the networking potential. Proceeding with a deeper analysis of these factors, there are resulting a series of benefits for the firms, research institutes, universities, even the nation state and the popul at ion located in the region where the clust er functions. A well-established cluster is defined by four main characteristics:
* increased productivity through synergies, access to information and specialized inputs;
* the possibility of instant cooperation with business partners;
* more rapid innovation through cooperative research, constructive internal...