Emerged in the early 1990s, the most common definition for clusters can be traced back to Michael E. Porter who defined clusters as “geographic concentrations of interconnected companies, specialized suppliers, service providers, firms in related industries and associated institutions in particular fields (for example, universities, standards agencies, and trade associations, etc.) that compete but also cooperate”. Through their geographical proximity, interactions, the presence of a skilled labour force, the exchange of knowledge, technology and business information are facilitated, thereby pooling forces of cluster members and allowing SMEs to benefit who do not have the necessary resources. Therefore, this process enables clusters to be important drivers for competitiveness and innovation.

Notwithstanding famous success stories such as Silicon Valley or Hollywood, clusters should not be seen as wonder weapons to boost competitiveness and improve business location of disadvantaged regions as the most successful clusters are mostly created spontaneously by market forces and many man-made unsuccessful clusters exist. Nevertheless, the development and maintenance of clusters of innovative companies and excellent research institutes can be fostered from outside and these clusters can live up to the expectations if dedicated cluster policies take the local economic and historic conditions into account and do not apply one-size-fits-all solutions and universal sets of tools on specific contexts.