Authors: Dimitrios Bourletidis, Dimitrios Balios, Nikolaos Eriotis, Dimitrios Vasiliou

Title: Clusters Orientation and Financing Models: Advantages & Disadvantages

Abstract

A cluster is a geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementarities. Some of the different definitions of cluster in the literature are given. Every cluster initiative has its own characteristics and there is no common and single way to form and sustain a successful cluster. The financing models can be found in various variations in reality with the degree of public and private financing mix often depending on the life cycle of the initiative, the particular goals of regional policy makers, and the degree of private engagement – particularly by SME – reached. The various financing models can affect the cluster organizations’ ability to provide public goods and services. Cluster organizations can be financed by public and/or private sector funds. These funds are used to cover various costs of cluster development including costs of cluster staff, cluster events, cluster branding, collaborative projects, study trips, competence building, etc.