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Clusters, Innovation, and Competitiveness: New Findings and Implications for Policy

Professor Michael E. Porter Institute for Strategy and Competitiveness Harvard Business School Stockholm, Sweden 22 January 2008
This presentation draws on ideas from Professor Porter’s articles and books, in particular, The Competitive Advantage of Nations (The Free Press, 1990), “The Microeconomic Foundations of Economic Development,” (with C Ketels, M Delgado) in The Global Competitiveness Report 2006, (World Economic Forum, 2005), “Clusters and the New Competitive Agenda for Companies and Governments” in On Competition (Harvard Business School Press, 1998), and the Cluster Initiative Greenbook (Ivory Tower, 2004) by C Ketels, O Solvell, and G Lindqvist. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical, photocopying, recording, or otherwise - without the permission of the author. Additional information may be found at the website of the Institute for Strategy and Competitiveness, www.isc.hbs.edu

The Changing Nature of International Competition

• Falling restraints to trade and investment • Globalization of markets • Globalization of value chains • Shift from vertical integration to relying on outside suppliers, partners, and institutions • Increasing knowledge and skill intensity of competition

• Nations and regions compete on becoming the most productive locations for business

European Cluster Policy 01-22-08 CK

2

Copyright 2008 © Michael E. Porter

Outline

• The role of clusters in overall competitiveness • How clusters work • The impact of clusters on regional prosperity and innovation • Cluster policy • Some implications for Europe

European Cluster Policy 01-22-08 CK

3

Copyright 2008 © Michael E. Porter

Clusters and Competitiveness

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