Investor Presentaiton

Cluster Policy versus Industrial Policy Industrial Policy Cluster-based Policy . • · Target desirable industries / sectors Focus on domestic companies Intervene in competition (e.g., protection, industry promotion, subsidies) Centralizes decisions at the national level • • • • All clusters can contribute to prosperity Domestic and foreign companies both enhance productivity Relax impediments and constraints to productivity Emphasize cross-industry linkages/ complementarities Encourage initiative at the state and local level Distort competition 59 59 CAON Taiwan Presentation 07-31-01 CK Enhance competition Copyright © 2001 Professor Michael E. Porter

View entire presentation