Business Cluster Development

Creating business clusters has popular economic development policy in modern economies. Certain industries and business types are more highly concentrated in some places than in others. The competitive advantages of various regions of a country are best understood by the competitive advantages of their most prominent industries. Every place wants to be exceptionally good at something that can be translated into reputation and success in the marketplace.

Clustering enables companies to focus on what they know and do best; they need not do things they do not well. Firms also benefit from synergy. Companies are able to operate more or less as a system and can use their resources more efficiently and collectively produce more than the sum of their individual outputs.

Cluster-directed policies increase the efficiency of government in light of increasingly volatile and competitive markets and discriminating customers who expect rapid and customized responses and have eschewed loyalties. Successful companies must continually innovate to survive in the new environment and want a government that understands their special conditions, will be innovative itself, and can provide services in the same quick and customized ways that companies are expected to act.

The clusters may also lead to more self-sustaining state economic growth. The advantages of place draw similar and complementary enterprises; with encouragement, these enterprises can ultimately breed other clusters.

Under the programme, NCSMED is currently involved in the honey producing cluster in Ra, Pearl Farming in Savusavu, and vegetable farming in Sigatoka, Ra, and Nadarivatu. It is also exploring business cluster formation opportunities in other sectors in other parts of Fiji.