An economic cluster is a geographic concentration of interdependent competitive firms in related industries that do business with each other. Each cluster includes companies that sell inside and outside of the region as well as support firms that supply raw materials, components and business services. Clusters develop over time and often stem from economic foundations, existing companies and local demand for products and services. An economic foundation provides the support and infrastructure that allows industry to flourish and includes capital, physical infrastructure, information networks and human resources.
Foundations help clusters become more competitive.
As a result, businesses within the clusters grow, creating new jobs, taxes, purchases, volunteers and contributions for the community. According to DOC, economic clusters become a powerful magnet for businesses to locate in an area and create a spawning ground for start-up companies. California's Silicon Valley is an example of highly developed cluster-based economy. Such a program would include assessing community telecom needs, implementing a strategic telecom planning process, telecom infrastructure surveying and mapping and establishment of electronic teleconferencing capabilities. The appropriation is exempt from lapsing.