There is mounting evidence that clustering and networking help small firms to compete and grow.
By working together, firms can gain the benefits of collective efficiency, enabling them to challenge larger competitors and break into national and global markets. Many of the most impressive examples in Italy, Brazil, Pakistan, and elsewhere have emerged largely spontaneously. But research suggests that governments can assist the process. The keys to success seem to be a customer-oriented focus, a collective approach, and a cumulative effort to ensure continuous, rather than one-off, improvements.
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