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The Extent of Cluster-Based Policies and the Political/Institutional Context

Regional economic development strategies are becoming increasingly popular with policy makers. Yet the role of government in cluster development and sustainability is not clearly understood. This research attempts to fill the gap between cluster theory and public administration by testing a political/institutional context model. A total of 24 in-depth interviews focusing on the shipbuilding cluster in Alabama, Louisiana, and Mississippi were completed. Results indicate that the political culture of the region is a major limiting factor for the development of governance structures suitable for cluster-based economic development and upgrading. However, public administration’s network governance theory provides an ideal framework to build governance structures more suitable for cluster-based economic development and upgrading.