Public Policy on Enterprise Clusters and Networks

This paper addresses the subjects of enterprise clusters and networks, fields that in recent years have attracted increasing attention from subnational and national policymakers. The paper briefly reviews broad features of cluster formation and the competitive advantages that enterprise agglomerations can confer on member firms. An outline is presented of current policies and programmes towards enterprise clusters employed by national and subnational governments. Critical consideration is given to the economic rationale for policy on clusters and business networks. The paper closes by discussing the policy recommendations in this field developed by the OECD Secretariat for the June 2000 Ministerial Conference in Bologna entitled “Enhancing the Competitiveness of SMEs in the Global Economy: Strategies and Policies”. These recommendations form the basis of part of the Bologna Charter, a declaration adopted during the Bologna Conference by 47 Ministers and representatives of government.i