Types of Ownership in Industrial Cluster

Report

Table of Contents
INTRODUCTION...........................................................................................................................1
Types of Ownership in Industrial Cluster –.................................................................................1
Overview of case analysis –........................................................................................................2
MAIN BODY...................................................................................................................................3
Advantages and Disadvantages of Clustering.............................................................................3
Porters Theory of Clustering.......................................................................................................5
Different components of industries where collaboration occurs.................................................5
Roles of Regulations in formation and stability of clustering.....................................................6
Cluster Organisational chart related to relationship of the companies........................................6
Conclusion and Overall Discussion.................................................................................................7
REFERENCES..............................................................................................................................10

INTRODUCTION
The term cluster formation refers to collaboration of similar type of many industries in a
particular area, for increasing availability of raw materials. It helps in improvement of labour
market, facilitating the capital formation, establishment of location for conducting a particular
business work (Cortés and et. al., 2020). It is mainly related with territorial labour division which
is specialisation of regions or areas, for the production of particular commodity. The process of
cluster formation and the way it applies towards modern regional economic development, refers
to a major driver within improvement of economic vitality as well as competiveness of regions,
nations and communities. It is broadly publicised right combination of policies and factors, can
unleash the energize individual initiative, inherent entrepreneurial society capacity and collective
benefit. In this regard, efforts and collaboration of various industrialists, SME’s and associated
people help in creation of clusters in innovative manner. Such kind of regional economic scene
can be littered via Silicon Valley case analysis (Akif and et. al., 2019). The present report is
going to explore concepts related to types of ownership, advantages and disadvantages of
clustering, including Porters Theory. A focus is also given on different industry components,
with SWOT analysis for cluster to analyse its impact on companies.
Types of Ownership in Industrial Cluster –
In cluster formation which is also known as localisation of similar type of industries. In
other words, clusters form a groups of inter-related organisations which drive wealth creation in
a specific region, primarily via export of goods or services (Pan and et. al., 2019). It uses a
descriptive tool to make regional economic relationships, that provides an insight and more
meaningful representation of regional dynamics and local industry drivers than traditional
methods. Because, as comparison with single industry, formation of clusters represents overall
chain of a broadly or wide range of industries, including from suppliers, supporting services to
end products with specialized infrastructure (Zabel and et. al., 2020). Along with this, cluster
businesses are geographically concentrated as well as inter-connected through flow of goods and
services, that refers to more strong than other flow, which include both up and low-value of
employment. Industry cluster can be formed through various types of business ownership, which
include Single Ownership (Private undertaking), Partnership, Joint Stock Company, Cooperative
Organisation (Societies), Public Sector and Private Sector.
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