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stage and is in the early part of the exploratory expansion stage of cluster develop-
ment. Of course additional analysis using the seven-dimenison cluster life-cycle
approach is needed to validate this hypothesis.
These two examples have been selected because they appear to represent one of
the three most defensible situations for which support from higher levels of
government (nation and/or EU) is warranted: approaching exhaustion or reaching
it prematurely (South of Sweden); and, experiencing take-off or the early part of
the exploratory expansion stage (Pais Vasco). These are the situations where the
development and/or sustainability of innovative clusters are most vulnerable and at
the same time may only require modest investment to either restore an approach to
sustaining the cluster or growing it. While there are many reasons why investment
should be made at all stages of cluster development as noted above in the policy
suggestions relevant to the different stages of the cluster life-cycle the high vulner-
ability of the three cluster situations noted above, as noted, offer the best return on
public sector investment.
Acknowledgments An earlier version of this contribution was presented 53rd Meetings of
the Western Regional Science Association, San Diego, California—USA in February 2014. The
author recognizes the support he received from the Directorate General for Research and
Innovation: Economic Analysis and Indicators or the European Union in the conduct of research
leading to this and other papers regarding clusters and entrepreneurship, and cluster dynamics.
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