Essay from the year 2002 in the subject Economics – Micro-economics, grade: 16 of 20, University of St Andrews (Economics Department), course: Regional Economics, language: English, abstract: Clusters can be motors for regions. They are supposed to reduce unemployment, ensure growth and wealth. This essay will discuss the question critically whether regional economic policy is able to create and enforce those new industrial districts. The limited extent of this text forces us to describe the topic nearly without examples; it is also not possible to mention all theoretical approaches in depths, it was rather just necessary to combine different ideas (e.g. in the definition part).
It will be shown that there is still a lot of academic work to be done until the phenomenon of regional cluster will be utterly understood. Nevertheless it will become clear that the strength of the policy is that there are many possibilities to affect the growth and evolution of clusters. Yet, most of them have several weaknesses to be thought of.
Due to the fact that most clusters have been created or came into existence throughout decades, a change in policy makers` minds will be necessary. They have to accept that building up successful clusters is not possible within a short term perspective.
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