What drives development? How much of the process is determined by people’s assets, skills, and opportunities; by the regulatory environment; or by the location, arrangement, and dynamics of interconnected economic activities? Whereas the first two of these criteria have attracted considerable attention, much less research has been directed at the influence of the intensity and degree of concentration of economic activity. A study of how industrial clusters are organised and function should contribute to a better understanding of this issue. Industrial clusters—localised networks of production, processing and distribution enterprises along the manufacturing and marketing chain—occur throughout the world. Firms in.