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The benefits of membership in policy-stimulated clusters in Hungary

ABSTRACT The purpose of this article is to describe the successes and failures of policy-stimulated business clusters based on regional Hungarian experiences. The after-subsidy survival rate, affected industry domains, and the occurrent advantages of such cooperation for cluster members were examined. Primary data were collected at the member level. The research covers all clusters set up before 2015 with deeds of foundation, in two very different regions. Results show that 24% of the clusters were working between 2015-2016, two years after the period of government subsidy ended. The main benefits to cluster members include better personal connections and increased trust and knowledge transfer, although cost reductions, easier access to finance and product specialization were not reported. Based on this knowledge, cluster policies can be fine-tuned, resulting in more sustainable initiatives, while clusters can be made potential partners in regional planning, research and development policy, as well as in smart specialization.