CHAPTER 7

Clusters and Competition

New Agendas for Companies, Governments, and Institutions

Michael E. Porter

THINKING ABOUT COMPETITION and strategy at the company level has been dominated by what goes on inside companies. Thinking about the competitiveness of nations and states has focused on the economy as a whole, with national economic policy seen as the dominant influence. In both competition and competitiveness the role of location is all but absent. If anything, the tendency has been to see location as diminishing in importance.1 Globalization allows companies to source capital, goods, and technology from anywhere and to locate operations wherever it is most cost effective. Governments are widely seen as losing their influence over ...

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