Role of SME clusters in Bangladesh economy

Abstract

Michael Porter,1 father of the industrial cluster concept defined cluster as a “geographic concentration of interconnected businesses and associated institutions in a particular field". In this definition we are getting three criteria of an industrial cluster. These are (a) A geographic concentration, (b) A group of interconnected business, (c) In a particular field. Beside this fundamental definition industrial cluster could be defined based on common activities, single origin, size of the business, used technology, and focused market or target market etc. Many countries defined clusters based on different criteria for example “One village, one product” or “one town, one industry” concept is very popular in the east like Japan or China. India defined cluster based on a particular number of similar production units in a specific geographical location. The United Nations Industrial Development Organization (UNIDO) defines industrial cluster as a "Geographic and economic concentration of manufacturing activities which produce and sell a domain of interrelated and complementary products and having common problems and opportunities”.