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Purpose – The purpose of the chapter is to sketch the historical and evolutionary development of the Wichita Aircraft Manufacturing Cluster from inception to present and provide a descriptive narrative of aircraft industry knowledge spillovers currently driving effort to establish a Medical Device Manufacturing Cluster. The chapter illustrates how carbon-fiber composite materials knowledge and technology developed for use in the aviation industry is facilitating the creation and growth of medical device manufacturing.

Methodology/approach – We use an historical case study approach to trace the development of the aircraft cluster in the Wichita, KS metropolitan area. A number of technologies are identified that had initially been adopted by one firm but eventually diffused through other firms in the local cluster and ultimately throughout the industry.

Findings – In addition to providing examples of within industry knowledge spillovers, we provide an example of technology-based knowledge that is diffusing through the aircraft manufacturing industry and is now being used as the basis for establishing an unrelated industry manufacturing cluster. The use of carbon-fiber composites in aircraft manufacturing has diffused from one manufacturer to many in the industry. Subsequently, the knowledge base surrounding carbon-fiber composite materials is being used in a local R&D effort to create a second manufacturing cluster producing medical devices ranging from surgical instruments to joint-replacement implants.

Originality/value of paper – The chapter illustrates a unique example of a manufacturing cluster, intra-industry knowledge spillovers, and inter-industry knowledge spillovers to create a new manufacturing cluster.

The United Nations Industrial Development Organization (UNIDO) (2017, pp. 14–15) identified that “industrialization is the seedbed for entrepreneurship, business investment, technological progress, the upgrading of skills, and the creation of decent jobs.” This placed studying different industrial sectors and their respective clusters, which are key drivers for economy, innovation, and knowledge creation (Slaper, Harmon, & Rubin, 2018), at the forefront of research. This chapter tackles the automobile industrial cluster in Egypt that possesses promising potential yet faces some challenges. It aims to provide an overview of the cluster, alongside underpinning its strengths and obstacles facing it. Moreover, the chapter displays the importance of the labor dimension in increasing the labor competitiveness of the cluster and showcases this through two cases of German automobile manufacturers that pioneered in venturing into the market through employing technical and vocational education and training. In conclusion, recommendations are provided to help in steering the cluster toward success.

This chapter focuses on the junction of space and technology, place and context, on the one hand; and modern industrial systems, on the other hand; as well as the relevance of clusters and Industry 4.0. The authors will first briefly present the basics of cluster, as well as the fourth industrial revolution concepts. Then, the authors will speculate about the possible contribution of clusters to the development of Industry 4.0. This chapter demonstrates that the mechanisms and functionalities provided by clusters seem to be well aligned with the features of modern manufacturing, the industrial Internet and the integrated industry. Hence, it is reasonable to claim that clusters and Industry 4.0 are compatible, not contradictory, terms.

The chapter presents a mechanism of innovational development of cluster of the hospitality industry in the system of region's economic security, which formation takes place in the conditions of complex turbulent state of economy, which leads to crises of various scales and volumes. Cluster is treated as a platform that unifies efforts and partnership interactions between large, medium, and small business and synthesizes expectations of consumers on the basis of territorial concentration of readiness to care about a customer in the form of provision of the need: (1) selection and readiness of consumer to accept a specific complex service of the hospitality industry (with tourist service complexes); (2) movement (with transport complex); (3) accommodation (with hotel complex), (4) readiness for catering (with catering complex); (5) entertainment (with participation of complex of entertainment); (6) security (with security complex). The process of clustering leads to a new treatment of the notion of competition, development of capabilities to be a business partner, and finding advantages in generation of innovations together with intermediaries and neighbors.

Recent developments in the competitive landscape of the management support software industry sub-sector — characterised by saturation, consolidation and defragmentation — have also attracted attention to the phenomenon of cluster formation. Layers of SMEs forming satellite systems centred on large players in this industry fill in structural holes in the competitive fabric of the market which are left open — at least temporarily — by the large ‘incubator’ company, while at the same time also acting as a type of capacity buffer or technology spearhead for the larger player which does not need to invest its own capacities into certain niches. This paper discusses the significance of clustering in the management support software sector and aims to offer explanations predicated on intangible constructs which may retrofit traditional agglomeration economies approaches. The findings of a pilot study corroborate the implications of clustering in relation to knowledge spillover effects, labour mobility, network formation, the generation of social capital, reputation building and effects of the urban ambience as factors potentially moderating the competitive environment within clusters vis-à-vis outside. Moreover, effects of the density of cluster labour pools and spin-off are considered. Simultaneously, the unique efficacy of these effects by means of mitigation of the idiosyncratic growth constraints affecting SMEs in this industry context — such as high levels of customer dependence, lack of legitimacy and the importance of reputation as well as customer references — is proposed.

In the context of Saudi Arabia, this chapter investigates how clustering promotes knowledge sharing and transfer in an emerging, government-directed industry cluster. It is determined that lateral actors play a key facilitating role, and formal and informal mechanisms and interpersonal links among actors support that cluster knowledge exchange. Limited social capital strength and depth and a lack of trust that prevents knowledge sharing are partially explained by the cluster's limited vertical and horizontal actors.

Building industrial clusters is getting much more political attention and strategic orientation in all developing countries. This study started by revising the conceptual and theoretical frameworks for industrial clusters, followed by some insights and contributions about empirical bases for clusters' dynamics and processes. The study focused on the case of Agadir Agreement between four Arab countries (Egypt, Jordon, Morocco, and Tunisia), which was initiated after the Euro-Mediterranean partnerships, and the rationale of the agreement was based on the concept of cumulative value-added origin. The study based its methodology on analyzing the international and bilateral trade flows of six industrial goods from the automotive sector among the four countries and with the EU countries to detect the degree of industrial collaboration and the achieved success of each country in this sector. The study indicated that the four countries used the concept of industrial clusters for economic development, but the results of the analysis showed that till now Agadir Agreement only achieved a shallow integration, while failed to deeply integrate as one big collaborative industrial cluster.

Purpose – The purpose of this chapter is to advance understanding of regional industry or innovation clusters and the opportunities that the cluster framework provides policymakers for delivering economic impact, clarifying economic priorities, and coordinating disparate programmatic efforts, and to articulate some basic principles for formulating cluster strategies.

Methodology/approach – As the cluster concept enters its third decade and the body of related literature reaches a new level of maturity a consensus has emerged among academics and policy thinkers on the economic benefits of clusters. In fact, clusters have emerged as major focus of economic and policy discussion just now – in what the authors dub a “cluster moment” – by dint of their demonstrated practical impact, their value in paradigm discussions, and their potential utility in policy reform. The chapter reviews the benefits of clusters and traces their ascendance – and re-emergence post-recession – among policy thinkers.

Findings – New research confirms that strong clusters tend to deliver positive benefits to workers, firms, and regions. As a paradigm, they reflect the nature of the real economy and as a matter of policymaking, clusters provide a framework for rethinking and refocusing economic policy. In pursuing cluster-based economic development strategies, policy leaders should not try to create clusters; use data to target interventions, drive design, and track performance; focus initiatives on addressing discrete gaps in performance or binding constraints on cluster growth; maximize impact by leveraging pre-existing cluster-relevant programs; align efforts vertically as well as horizontally; and let the private sector lead. All three tiers of the nation's federalist system have distinct and complementary roles to play in advancing the cluster paradigm.

Research limitations/implications (if applicable) – The paper includes no new/original data.

Practical implications (if applicable) – Given that clusters have emerged as a major focus of economics and policy, this chapter lays out a core set of general principles for pursuing cluster-based economic development strategies – and for avoiding common pitfalls – to which policymakers can adhere.

Originality/value of paper – The chapter advances cluster thinking and cluster strategies as a paradigm with the potential to accelerate regional economic growth and assist with the nation's needed restructuring and rebalancing toward a more productive post-recession economy.

This chapter explores some examples of good and not-so-good practices implemented worldwide, especially in Southern Europe, in Creative Tourism activities developed by entrepreneurs. The case studies used in the present chapter are located either in urban territories, small cities or rural areas. The global market introduces some difficulties in achieving good practices, highlighting the need to improve solid partnerships. The support from private and public sectors to institutions and enterprises developing creative tourism activities is analysed. Administrative and economic difficulties are also considered, and some proposals for the future survival of institutions and enterprises. In a global market, the definition of clusters is playing an increasing role in the survival of local and regional economies. In the tourism market, where seasonality is also a significant problem with difficult resolution, creating clusters can also be a great tool to contradict this. However, the success of implementing clusters in the tourism market depends on strong leadership and in-depth monitoring of results planned to be achieved. The present chapter considers clustering in Creative Tourism and the difficulties of implementing it in South Europe. Cultural and organisational issues are highlighted, as well as the need to construct thematic clusters that feature the needs of tourists.

This chapter applies the five drivers of productivity framework to regional microdata for Egypt and extends it by introducing an index of industrial clusters as an explanatory factor of the productivity performance of local private sector firms. Applying structural equation models, the geographic concentration of sectoral economic activity is found to have a positive and statistically significant effect on labor productivity. The transmission mechanism is conjectured to be the positive spillovers that are created, which local firms can tap into. In contrast, a higher concentration of skilled workers in an industrial sector in a region is associated with lower levels of labor productivity – a finding that suggests there may be structural deficiencies in the allocation of skilled workers. Regional policy should focus on net investments in gross capital formation throughout the country, for which the national and regional governments should improve how public investments are managed and the institutional framework – including the rule of law, bureaucracy and red tape, conflict of interest, transparency, and governance – so that private investment (both local and foreign) may substantially increase.