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Sergey Boltramovich, Grigory Dudarev, and Vladimir Gorelov ... - Etla

Sergey Boltramovich, Grigory Dudarev, and Vladimir Gorelov ... - Etla

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7<br />

• Consumers – the main consumers of primary goods manufactured<br />

by the companies of the cluster.<br />

An analysis <strong>and</strong> underst<strong>and</strong>ing of the cluster <strong>and</strong> its structure can help<br />

companies to create focused development strategies, <strong>and</strong> authorities to<br />

identify the sources of competitiveness in their particular regions, <strong>and</strong> to<br />

create on the basis of this an efficient <strong>and</strong> active system of general development,<br />

of infrastructure <strong>and</strong> operational environment improvements,<br />

including relevant regulatory acts, actions <strong>and</strong> decrees of the legislative<br />

power.<br />

Although there is an extensive body of theory <strong>and</strong> research behind the<br />

matters presented in this chapter we do not dare to bother readers with<br />

further explanations <strong>and</strong> would like to proceed to the analysis presented<br />

in the following text. Those who are interested to learn more we ask to<br />

refer to the forthcoming book “Advantage Northwest Russia” by<br />

<strong>Grigory</strong> <strong>Dudarev</strong>, Hannu Hernesniemi <strong>and</strong> others where these issues will<br />

be addressed in more detail. A short summary of theoretical routes used<br />

as knowledge basis for the study is presented below in Box 2.1.<br />

Box 2.1 Theoretical Routes<br />

It was long time a widely accepted fact that national <strong>and</strong> regional location is central<br />

to growth, increased welfare <strong>and</strong> well-being. Already in the end of the 19th<br />

century Alfred Marshall introduced “industrial districts”, later Joseph Schumpeter<br />

– “innovation clusters”, Eric Dahmen – “development blocks”, François<br />

Perroux – ”development <strong>and</strong> growth poles”, economic geographers – industrial<br />

<strong>and</strong> “high-technology” agglomerations. These concepts assessed the geographic<br />

concentration of economic activities <strong>and</strong> innovation from different perspectives.<br />

Going here deeper into the intellectual history underlying these approaches <strong>and</strong><br />

the difficulties of making the above concepts analytically operational is beyond<br />

the scope of the present review. Nevertheless we will touch upon their implications<br />

that were integrated into the approach used in our study. The reason why<br />

these concepts were not successful was not because policy makers did not consider<br />

them important: the source of growth <strong>and</strong> the origins of disparities have<br />

remained central to the preoccupations of policy makers <strong>and</strong> analysts. The unresolved<br />

issues that underlie the wide use of the “cluster” concept are related to<br />

the following questions: Why do activities cluster? Why is clustering important?<br />

How can the clustering process be managed? Is that possible? What are the possible<br />

tools <strong>and</strong> factors that could influence clustering in certain regions? Can,<br />

<strong>and</strong> should, one do something about it?<br />

Michael Porter in his book “The Competitive Advantage of Nations” presented<br />

some answers <strong>and</strong> explanations for many of the above questions. He<br />

incorporated implicitly many previous developments, mentioned above in the<br />

knowledge base (Rouvinen <strong>and</strong> Ylä-Anttila, 1999). Although, according to<br />

these authors, the framework presented by Porter is rewrap of old ideas, they<br />

agree that the “diamond” model is internally consistent <strong>and</strong> in the line with

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