Factor conditions do not = a cluster

 

A colleague in Queensland has passed on some timery comments.

 

 

‘My current research into horizontal v. vertical clusters is forcing me to replace the word “cluster” with “social networks of businesses”.

 

It is a more cumbersome term, but less ambiguous for government agencies and businesses not terribly familiar with current competitiveness think.

 

Part of the reason for this is God – Porter himself.

 

As I quickly found, you can have all of his factor conditions present and still not have any clusters unless there is the “social” catalyst in the business interaction sense.