What in the world is a cluster?

New Carolina – also known as SC’s Council on Competitiveness - is a public-private partnership working to increase per capita income in South Carolina. Through strong partnerships with organizations around the state, it’s our number one goal to build clusters that will enhance the state’s competitiveness.

A cluster is a group of businesses in a certain region that focus on or service the same industry: Think Silicon Valley for computers, Napa Valley for wine and Detroit for automotive.

How a cluster strategy adds value

Companies within clusters come together to increase efficiency and innovation within that industry, while boosting the overall economy in their region. How? By supporting new business development, enhancing existing business and recruiting new companies to an area. Clustering also supplements the economic development strategies of chambers of commerce and economic development regional alliances, and helps companies within the cluster identify workforce needs and marketing strategies.

Regional clustering

Most researchers believe that successful clustering occurs on the regional level. A state can create more value in a high-innovation, connected cluster region. End users have an increased awareness of the value of products and services coming out of the region. Existing industry becomes more engaged, and the region begins to differentiate itself from its competitors and align for stronger industry.

Though the conversation about clusters in South Carolina has only just begun, the concept of increased productivity through specialization and economic growth through collaboration appeared as early as Plato's Republic in 360 B.C. Now more than 2,000 years later, there are 1,400 cluster initiatives around the world driving local and regional economic growth.