Scenarios
A startup joins a local biotech hub and collaborates with nearby universities but struggles to access international clinical trials.
What is missing: a cluster or an inter-cluster alliance?
An inter-cluster alliance (ICAs)
What are potential risks associated with clusters?
May become insular: repeated knowledge, loss of intellectual property, rising prices for scarce production factors (labour and suppliers)
Explain the difference between clusters and cross border inter-cluster alliances (ICAs)
Cluster: A geographic concentration of related businesses and organizations
ICAs: Formal collaborations between industry clusters in different countries to share knowledge, resources and market access
A cluster of AI firms shares talent and suppliers, but all firms rely on similar knowledge and markets.
What cluster risk is emerging?
Risk of becoming insular
SMEs use ICAs to substitute for their absence of these two connectivity elements
People and Pipeline
Explain the difference between centripetal forces and centrifugal forces in clusters
Centripetal: Forces that pull clusters inward for internal coordination
Centrifugal: Forces that push clusters outward to seek external alliances