The solution: The text fragment with
correct citations
The starting point is that cluster is an economic force in regional economics.
According to Porter (1998, p. 78), a cluster is defined as “geographic concentrations of
interconnected companies, specialized suppliers, service providers, firms in related
industries, and associated institutions in particular fields that compete but also co-
operate”. It is highly debated by t he academic society that firms participating in
clusters have a different kinds of benefits in comparison with non-clustering firms
(Delgado et al, 2014; Doloreux and Shearmur, 2012; Iammarino and McCann,
2006; Maskell, 2001). For example, the paper by Doloreux and Shearmur (2012)
has represented that firms in clusters may obtain easily knowledge and technological
spillovers. These types of spillovers may create the main information about new
products, services, or features. Delgado et al. (2014) point out that industries and
clusters which are co-located in nearby regions can take advantage of gain from inter-
regional spillovers. Moreover, the co-location of fir ms reduces the cost of accessing,
identifying or exchanging products and either services, or knowledge between firms
(Maskell, 2001). To summarize, clustering firms may obtain a set of benefits such as
lower transaction costs, knowledge spillover, knowledge externalities and the
advantage of specialized labor po ols.
22