Cluster Development
A cluster is a geographic grouping of linked companies that benefit both from working together collaboratively and from competing against each other. They can be joined horizontally – meaning similar firms in the same location, like antique dealers all on the same street. Or, they can be joined vertically, meaning firms in different stages of one industry grouped together – like hay compression plants set up near hay producers. Finally, they can be joined diagonally, where businesses offer distinct services but add value to each other – like the many activities available in a tourism area.

Productivity Enhancement
Productivity enhancement is linked to innovation. It could mean increasing productivity in a cluster by adopting new technology, using new materials or new processes, introducing lean manufacturing or industry training, or creating a business incubator project that allows different firms to share ideas, skills, equipment or services.

Import Replacement
Import replacement involves replacing imported goods or services with locally made goods or services. It could include “buy local” campaigns, creating connections between local suppliers and local businesses, or attracting new businesses to fill gaps in local manufacturing or food production.

Development of New Markets
The development of new markets could include working with a cluster either to develop new export markets or to develop new markets in targeted sectors.

Innovative Access to Capital
Creating innovative ways to access capital could include the development of angel investor networks, creating programs that encourage innovative funding for business, or providing innovative access to growth capital.