Cluster Based Economic Development: Prospering in a Global Economy

Abstract

With recent changes in technology and communication, the economy has become global. Many economists, having noticed the changes in the scope of the economy, have begun to study and document these changes. My experience and my research of the global economy points to one vehicle for a successful economy - the use clusters. Having spent almost an entire year studying and thinking about clusters, I have come to some of the same conclusions that many cluster based economists have. Based on the premise that the economy is becoming increasingly global, local stability and integration are not just important, they are essential. This is because clusters, no matter where they are located geographically, play an important role in balancing the economy. The health of each local economy contributes to the stability of the global economy. This essay will analyze how important these local matters are in determining the health of the global economy. I will give a case study of my experience in Kalamazoo with Regional EDGE. This up-close analysis will show the method for establishing a healthy cluster economy. The essay will further cite some observations from global and cluster economists.