The Cluster Concept

A Blunt Sword in the Quest for Economic Development

Abstract

High cost, low productivity development strategies are a liability that Ireland can ill-afford. This paper examines the role of one such strategy, the I. D. A. 's Cluster Concept. The paper undertakes a general evaluation of the effectiveness of the Cluster Concept as the I. D. A’s primary strategy for industrial location and development. It argues that the Cluster Concept is a growth-orientated development strategy that has failed to cope with the problems posed by widespread economic recession. The Cluster Concept has failed to produce any long term economic· growth and has become increasingly ineffective as a development strategy. This ineffectiveness has been exacerbated by I. D. A. mismanagement and national economic problems. The paper argues that present economic conditions dictate a serious re-evaluation of the Cluster Concept as the I. D, A' s primary development strategy.