Local or National Competitive Advantage? The Tensions in Cluster Development Policy

The following paper explores the tensions in cluster development policy arising from the combination of different economic spaces on which cluster policies can be targeted and the different levels of governance which produce them. In seeking to enhance industrial competitiveness at different spatial scales, the contrasting strategies of national and regional/local authorities towards cluster development have led to a sharpening of the differences between different governance levels. The policy tensions highlight potential conflicts between polices pursuing national and local competitive advantages. To explore these conflicts, a series of case studies is presented to investigate how cluster concepts have influenced policy-making in eight Western European countries. The paper concludes that cluster policy has largely arisen from spatial rather than industrial policy traditions, and far from exacerbating tensions between different policy areas and governance structures, it has often provided a useful means of resolving them. The author can be contacted at: European Policies Research Centre University of Strathclyde 40 George St. Glasgow G1 1QE United Kingdom