are a concentration of interdependent businesses, institutions and regions or communities 'with active channels for business transactions, dialogue, and communications, that collectively shares common opportunities and threats. The presence of clusters generates specialised skills, new knowledge, innovation, competition, opportunities for cooperation, tailored infrastructure, and often attract specialized support and other services and related businesses.' (Rosenfeld, S. 1995)

Harvard Professor Michael Porter has defined an industry cluster as “...a geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementarities.” In English, this means that an industry cluster is a network of industry sectors that mutually support one another in a specific area (like one of the EGRs). Clusters are held together by mutually supporting linkages among different companies, institutions, and industries. Usually, but not always, these linkages take the form of supplier-customer relationships. Components of a cluster typically include: End-product or service companies. Suppliers of specialized inputs, components, machinery, financing, and services; Firms in related and downstream industries (channels, distribution networks, and customers). Producers of complementary products. Specialized infrastructure providers. Government and other institutions providing specialized training, education, information, research, and technical support. Standards-setting and influential governmental agencies. Trade associations and other collective private sector bodies.