How to institutionalize innovative clusters? Comparing explicit top-down and implicit bottom-up approaches

The cluster concept has become a popular guideline for regional policies fostering industrial competitiveness and innovativeness based on sectoral specialization and collaboration. This article discusses the issue of effective institutional forms of cluster promotion, juxtaposing two modes: Explicit cluster policies implemented top-down by regional authorities and implicit initiatives that are organized and financed bottom-up by groups of firms. Both approaches are compared from a theoretical and empirical perspective, pointing out differing patterns of effects, relative strengths and weaknesses. Realization of these differences, considered in relation to regional preconditions and objectives, may help to adequately institutionalize cluster support. (c) 2005 Elsevier B.V. All rights reserved.