| Summary: | This paper illustrates how an industrial cluster can be created when there is little established industry from which the cluster can evolve. Industrial clusters are known to give firms superior performance by improving the competitiveness of regions. There is significant debate on effective strategies to create new industrial clusters.Incorporating evidence from a systematic literature review supported by quantitative data this study demonstrates that an industrial cluster can be created without a preestablished industrial base. The medical device cluster in Galway, Ireland is used for the study.The results show how government policies supported the cluster's creation. The engagement of key institutions and stakeholders improved the competitive factors in a self-reinforcing cycle. Using a theoretical model, the growth of the cluster is explained. The paper suggests measures to assess the health of a cluster and identifies the importance of geographic location. Policies to improve a cluster need to be focused on closely bounded regions and not dispersed.
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