Clusters are a striking feature of virtually every national, regional, state, and even metropolitan economy, especially in more economically advanced nations. Clusters are not unique, however; they are highly typical—and therein lies a paradox: the enduring competitive advantages in a global economy lie increasingly in local things—knowledge, relationships, motivation—that distant rivals cannot match.
— NOVEMBER-DECEMBER 1998 ISSUE OF HBR
About the Project
In 2017 Institute for Competitiveness, India joined hands with Institute for Strategy and Competitiveness and Department of Industrial Policy and Promotion, India to lay the foundation for their initiative Cluster Mapping India. The objective is to provide the leaders, businesses, and changemakers in the country with open records on industry clusters and regional business environment to advance competitiveness. It was conceived on the understanding that there has been no systematic statistical cluster analysis at pan India level despite the realization that focus on clusters holds the key to competitive advantage. This indicated a pressing need for defining and analysing clusters in India that can help businesses and regional policymakers to make informed decisions.
The project invests in a highly optimized, modern website to enable private and public sector entities to make effective use of the cluster mapping data. This website tool provides a broader data infrastructure that covers cluster presence and performance, as well as several types of data about regional economic performance, business environment quality, and regional characteristics. A key component of the platform is an organizations registry that presents a community network for practitioners to learn about ongoing initiatives across the country and share their best practices.
The entire exercise will help in the policy making process by identifying traded and local clusters present in India, analysing the performance of clusters from 1999 till date, and examining the role of clusters in the Indian economy.