INDUSTRIAL CLUSTER

Industrial cluster is the groups of business enterprises and

institutions that involved with together, which located in geographic
proximity (nearly area). And they have to help and support each other
by linked and supported such commonality and complementary. So a
linkage include of vertical-groups of businesses, and horizontal-
groups of sponsors or supporters such as services institutions, trade
associations etc. Those supporters will support the business
enterprises in order to increase the competing potentials by
productivity, and to create new innovations.
However, the industrial clusters have about 4 objectives which consist
of to motivate many small and medium enterprises (or SMEs)
recognize the importance of integration, to encourage the industrial
clusters get more benefit from their potentials, to encourage groups of
industrial network among a cluster and another clusters, and to
promote the industrial clusters exchange and relay the knowledge to
each other.
According to industrial clusters should be worked and cooperate
with each other, it can be give them more benefits such as benefit to
economic development, benefit to the public sector, benefit to
established and emerging industries, benefit to investment in human
capital, and benefit to community as well.
For the first is the benefit to economic development. It provides a
coordinated and efficient way to promote economic growth. The
second is the benefit to public sector, it can be allow the public
agencies to direct more resources and give them opportunities to work
with industry. The third one is the benefit to established and emerging
industries, which can be increase in even public and private industries
about resources. And it include of access to workforce, access to
suppliers, and access to extensive network as well. The fourth is
benefit to investment in human capital, which focuses on developing
workforce in term of skills and training to build a competitive and
innovative industry. The last one is benefit to communicate, which
can be increase the efficiency and effectiveness to many organizations
in that cluster.
To make you understand more about industrial clusters, I will
give you an example of the companies that located in one cluster.
That is an automotive cluster in Saudi Arabia such as Toyota Saudi
Arabia, Honda Saudi Arabia, and also include of Ford Motor, so those
are the companies that located in Saudi Arabia, they were supported
by the governments Ministry of Petroleum & Minerals and Ministry
of Commerce and Industry (or MOCI) in term of R&D (research and
development), design, components such as assembly lines, and also
encourage an automotive cluster about logistic. Therefore, the
automotive cluster can be give the benefit to Saudi Arabia as well,
such as to support the foreign investment sector, make Saudi Arabia a
major player in vehicle development and production, reduce import
and increase export, and can be improve and develop Saudi Arabia
economy.
Finally, we know that an industrial cluster was created to be
work and cooperate with each other, and as well as to give the benefit
whether direct or indirect. So the achievement of industrial cluster can
be success, should be depend on a collaboration between the
industrial enterprises and the institute sponsors.




References:

Industry Cluster Saudi Arabia, 2013. Automotive Cluster. [Online]
Available at: http://www.ic.gov.sa/en/industrial-clusters/automotive-cluster/
[Accessed 25 November 2013].
Munnich Jr, L. W., 1999. economic development. [Online]
Available at:
http://www.hhh.umn.edu/centers/slp/economic_development/documents/econdev_strategy_mn_i
ndustry_cluster.pdf
[Accessed 25 November 2013].
, 2007. .. [Online]
Available at: http://info.dip.go.th///Cluster/tabid/137/Default.aspx
[Accessed 25 November 2013].
, ., 2013. : . [Online]
Available at: http://www.dld.go.th/pvlo_naw/PDF/Cluster.pdf
[Accessed 25 November 2013].