Development of Cluster Theory-A Conceptual Framework

Abstract

Although the industry clusters drew researchers' attention after 1990s with Michael E. Porter, actually it was based on much older various theories. The aim of this study is examining development of cluster theory by discussing older theories which contribute to the current cluster theory. First developed theories like Traditional Place and Agglomeration and Industrial District mostly stressed geographic concentration which is essential for clustering. Then, Italian Industry District and Creative Milieu, New Industrial Spaces, and New Economic Geography Theories emphasized social relationship between members unlike their predecessors. As a result, it can be said that cluster theory which is associated with Porter in nowadays is largely based on the previous theories. However, it is important to note Porter's valuable contributions to cluster theory. The Learning Regions and Regional Innovation Systems theories both involves other theories and highlights innovation