Regional Innovation and Cooperation among Industries, Universities, R&D Institutes, and Governments - Technopolis: Best Practices for Science and Technology Cities - page 28

• An extensive culture of cooperation exists within the different actors of the
cluster. It is fostered by the chambers of commerce, the departments for
economic promotion, and institutions for collaboration.
• Clusters are based on networks of individuals, brought to life through informal
interaction.
• Connections to related branches are available.
• Highly skilled personnel are available.
• New technologies are available.
• Markets and demand are close by (Ketels et al. 2003 , p. 18).
Therefore, the entire value creation chain for a certain sector is present in a
cluster. Networks are strongly related to the economic sector of the cluster.
Knowledge as a factor is relevant in its regional production, availability, and
exploitation. In a well-functioning cluster, the value creation chain is made up of
regional demand for and regional supply of knowledge.
Thus, the research community includes the most important actors in a cluster,
apart from the enterprises. Due to the crucial role of social capital for successful
regional development, institutions of research and education which are part of the
value creation chain of the respective cluster are the hubs for cluster networks.
They hold a central position for knowledge spill over, for individual interaction
and thus for cooperation and innovation. Interactions among cluster participants
are fostered through institutions for collaboration. They create specialized plat-
forms that allow knowledge to flow more easily and enable the cluster to organize
collective activities. Thus, they operate as a mediator for cluster activities.
3.3 Development of Clusters
It has been argued repeatedly that lower costs and new technologies for com-
munication will cause a ''de-clustering'' of the economy or even the creation of
virtual clusters that supersede the need for physical proximity. However, empirical
findings suggest that so far this development has not occurred. In fact, many of the
cluster effects arise only because of proximity, for example the spill overs from
unplanned meetings (Ketels 2003 , p. 12). Physical proximity will most likely
remain the crucial factor for cluster development.
Not only economic factors, but also the so-called ''soft'' location factors are
relevant. Most soft location factors are regionally bounded and therefore belong to
the innate assets of a region. Soft location factors include for example:
• Social climate
• Modes of conduct of public administration
• Image of the location
• Presence of R&D institutions
• Institutions for education and qualification