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Clusters Of Grapes And Wine

Cluster, the noun, has several connotations. For one, a cluster is a collection of things of the same kind, originally of grapes, but also of fruits or flowers, growing closely together. The relevant connotation here is, however, "A number of persons, animals, or things gathered or situated close together; an assemblage, group, swarm, crowd" (Oxford English Dictionary on the web). Of course, Porter (1998) uses a more precise definition of clusters. He defines clusters as "geographic concentrations of interconnected companies and institutions in a particular field" (Porter 1998) and he emphasizes two characteristics that set clusters apart from industries or supply chains. First, the firms and organizations that are part of a cluster usually belong to different industries that are related to each other, and second, clusters may embrace downstream sales channels, suppliers of various complementary products and services, as well as government agencies and non-profit organizations that are useful for the core firms of the cluster.