Success Factors
What makes clusters thrive? Rank the factors that matter most
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Section 3 of 5What Determines Cluster Success?
Clusters don't just happen—they require specific conditions and deliberate cultivation. Michael Porter identified four key elements: Factor conditions (skilled labor, infrastructure), demand conditions (sophisticated local customers), related industries (suppliers, complementors), and firm strategy/rivalry (competitive pressure). But modern research adds more: knowledge institutions (universities anchor innovation clusters), risk capital (VCs fuel startups), government coordination (infrastructure, R&D, standards), and entrepreneurial culture (norms around risk-taking and failure). No single factor is sufficient—successful clusters combine multiple advantages. Silicon Valley has elite universities (Stanford, Berkeley), deep venture capital, specialized labor (engineers from failed startups), lead customers (Apple, Google testing new tech), and high tolerance for failure. Clean tech clusters must replicate this ecosystem: Denmark's offshore wind cluster combines port infrastructure (Esbjerg), research institutions (DTU), government support (feed-in tariffs), and demanding utilities (Ørsted) driving cost reduction.
Interactive Success Factor Ranking Tool
Prioritize the factors that matter most for cluster development
🎯 Drag to Rank Success Factors
Drag factors to prioritize them. Position 1 = highest importance. See impact score and trade-offs update live.
Geographic Proximity
Physical co-location of firms
Specialized Labor Pool
Skilled workers in cluster
Knowledge Institutions
Universities, research labs
Supply Chain Depth
Local suppliers and services
Risk Capital Access
VCs, angel investors
Government Support
Policy, infrastructure, funding
Industry Associations
Trade groups, standards bodies
Lead Customers
Demanding local buyers
Entrepreneurial Culture
Risk-taking norms
Infrastructure Quality
Ports, energy, telecom
Total Weighted Impact
Based on your priority ranking (higher = more weight)
⚠️ Strategy Trade-Offs
- •High proximity without supply chain may limit scalability
- •Weak coordination may hinder collective action
💡 Key Insight
There is no universal cluster recipe—priorities depend on industry and stage. Early-stage innovation clusters need research institutions and risk capital. Mature manufacturing clusters need supply chain depth and infrastructure. Clean tech clusters bridging both phases need coordinated policy to align long-term R&D with short-term deployment.