The cluster concept has rapidly attracted attention from governments, consultants, and academics since it was first proposed in 1990 by Michael Porter.
It is a mass of interrelated businesses including, but not limited to commercial wineries, independent wine grape growers, suppliers of grape stock, irrigation, and harvesting equipment, barrels and labels, public relations and advertising agencies, and publication firms involved with consumer and trade audiences.
[3] Many governments and industry organizations around the globe have turned to this concept in recent years as a means to stimulate urban and rural economic growth.
While the purpose of cluster initiative organizations is to promote economic development within the cluster by improving the competitiveness of one or several specific business sectors, it is important to differentiate these public-private organizations from policy-making organizations at different levels, e.g., national government units such as the UK Department of Trade and Industry (DTI), and supranational bodies such as the OECD and the European Commission and from industry associations comprising firms within one business sector, e.g., biotech, steel.
[4] Whereas lobbying policymakers may be one of the cluster initiative's activities, cluster initiatives generally are involved in a broad range of activities, e.g., supply-chain development, market intelligence, incubator services, attraction of foreign direct investment, management training, joint R&D projects, marketing of the region, and setting technical standards.
For South Asia to become a leading economic power, development of its cities as prospective centers of growth and dynamism holds great promise.