Bringing business clusters into the mainstream of economic development

Abstract Business clusters have been observed and studied since the turn of the century, yet the phenomenon has been vastly underrated and undervalued in economic development and planning policy. As long as branch plants dominate economic development policy, interest in clustering involves merely seeking suppliers for these customers. Today though, as industry restructures, becoming leaner and more flexible, the importance of lateral inter‐firm relationships takes higher policy priority. A comparison of cases from Tupelo, Mississippi and Castel Goffredo, Lombardia, shows the relevance of clustering to localized economic development.