Cluster Policy: the challenging and complex horizon in the 2020s.

Abstract

Cluster policies have been implemented for many years across Europe. Within an evolutionary perspective, industrial development policies need to be updated, and adapted to respond to new changing scenarios, challenges and demands of the social and economic community. It is the case of the challenges raised by climate change and the recent international summits and agreements (e.g. 2016 Paris Agreement or the recent COP27 in Sharm-el-Sheikh) or by exogenous shocks to supply and demand due to present international crises. This is the focus of this paper that analyses the evolution of cluster policies and identifies a specific gap that could and should be addressed soon. The policy literature thoroughly examines several areas that cluster policy should target to respond to the afore mentioned challenges. However, one component is not adequately considered. This is the social capital linked to the important migration waves that have modified the social spectrum of European economies and have produced a strong impact on the way industry clusters function. Specific actions are required to address these important transformations and to restore the ‘social embeddedness of economic action’ and the social capital that ignites the competitive capacity of clusters.