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Internet Clusters Analysis 2000Joint Venture: Silicon Valley Network
Master in Engineering Policy and Management of Technology (2001)
Carlos Mora, Nelson Marques, Nuno Constantino
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Agenda
• Definition• Context• Key Characteristics• Evolution • 2nd Generation Characteristics• Challenges• Conclusions
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Definition• A cluster is a group of entities geographically
contained, where balanced relationships allow cooperation and growth, in a very different way form the traditional linear value chain
• A internet cluster is a special kind of cluster specifically aimed at the new economy
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Context
• Internet economy grew to $524 billion• In 1999 supported 2.5 million jobs (US only)• Globalization is complete• Pace of growth is accelerating
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Key Characteristics
• Talent
• Pillar companies
• Universities
• Capital
• Support Services
• Supportive Government
Programs
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Evolution
• Cities, regions and countries are competing to attract internet clusters
• Actions are based on the secondary characteristics enunciated in the previous slide
• Within three years Europe will overtake US number of users
• Hong Kong cyber-port will accommodate 30 medium/large and 50 small companies
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Evolution
• Cities, regions and countries are competing to attract internet clusters
• Actions are based on the secondary characteristics enunciated in the previous slide
• Within three years Europe will overtake US number of users
• Hong Kong cyber-port will accommodate 30 medium/large and 50 small companies
Core characteristics are becoming widely available
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2nd Generation Characteristics• Proximity to partners
• Local presence in foreign markets
• Minimize costs of doing business
• Relocations due to Merger&Acquisitions
• Quality of life
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Challenges
• Cost of contracting, training and maintaining employees
• Housing prices
• Traffic congestion worsens
• Digital divide
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Conclusions
• Clusters are simultaneously horizontal and vertical connections between firms
• Horizontaly because it implements the “learning region” concept
• Verticaly because
it consists of the
“extended vertical
chain”