Understanding the current situation in, and prospects for, specific sectors and sub-sectors of the economy is important for national, regional and local government and for individual firms. For the public sector at the national level, the intention may be to reshape policy frameworks or guide strategic dialogues with major firms. At the regional level there may be a need to publicize strengths as part of a promotional or marketing campaign. Or there may be a concern to understand particular problems or weaknesses of restructuring (e.g in the light of a major firm’s cutbacks or closure) or to help foster productivity improvements in individual firms, perhaps through supply chain initiatives. HDL’s scope covers different sectors and will constantly undertake series of projects which will involve evaluations of assistance programmes, training in entrepreneurship skills, establishment of a regional network and market research for major infrastructure developments to serve the needs of emerging markets.

Alongside sectors, clusters have increasingly been recognized as serious vehicles for economic development. Through clustering behaviour, it has been argued that the competitiveness of firms, and by implication the local economies in which they are based, can be enhanced significantly. However the concept of clusters has frequently been misused. In particular there has often been a slippage between the identification of places as clusters, and the form of business behaviour that is consistent with clustering. 

HDL has worked out a number of sectors and geographical contexts in order to explore the scope and potential for cluster building. We have undertaken research aimed at developing the cluster concept, and continue to work with partners in order to develop initiatives that might be put in place to enhance their competitiveness.