Traditionally, these clusters have been defined by specific geographies and colocation. The Cisco®Internet Business Solution Group (IBSG)  hypothesizes that with the advent of new communication and collaboration technologies, geography need not be the overriding factor for a successful cluster. By bringing together stakeholders, opportunities may exist to create
new global partnerships, accelerating the success of these economic clusters through enrichment of the ideation process and an increase in implicit exchanges.

These exchanges of ideas and information would not necessarily be conducted to create explicit transactions, but instead to support the greater community. If geographic proximity is a key direct factor in the development of clusters, formations of new, innovative partnerships are the most important indirect factor for successful economic development.

In these instances, technology can be used to optimize resources such as
capital, labor, and brainpower. These partnerships become “microentities,” empowered by strong, local roots. They can become dynamic intermediaries among dispersed communities of interest. Technologies that facilitate communication and cooperation can alter the impact and scale of partnerships’ actions, enabling significant results.

In this paper, Cisco IBSG proposes a new vision of innovation stimulation, targeting both locally based clusters and new forms of innovation hubs. The first section analyzes economic output and the role of clusters; the second part focuses on lessons to be learned from the successful Silicon Valley cluster; and the last section explores the roots of the new economic growth paradigm, as well as ways to strengthen innovation by empowering communities and facilitating the emergence of new partnerships beyond traditional boundaries.

Source: CISCO IBSG