Clusters are geographic concentrations of interconnected companies or institutions that manufacture products or deliver services to a particular field or industry. Clusters typically include companies in the same industry or technology area that share infrastructure, suppliers, and distribution networks. Supporting firms that provide components, support services, and raw materials come together with like minded firms in related industries to develop joint solutions and combine resources to take advantage of market opportunities.

A well developed concentration of related business spurs three important activities:
  • increased productivity (through specialized inputs, access to information, synergies, and access to public goods),
  • more rapid innovation (through cooperative research and competitive striving),
  • new business formation (filling in niches and expanding the boundaries of the cluster map).