CEEG Seminar Series: Difference between Cluster and Industrial District

On Wednesday 19 October 2022 Venâncio Chirrime, from the Faculty of Economics of the University of Eduardo Mondlane (UEM), will present his recent study on the difference between cluster and industrial district.

The seminar is part of the CEEG Seminar Series, organized under the Inclusive growth in Mozambique (IGM) programme. The seminars offer a forum to share and discuss ongoing research on topics related to the work of the IGM programme and to foster a culture of research at the faculty and at UEM in general.

The series takes place at the Faculty of Economics of the University of Eduardo Mondlane (UEM). It is a public event open to everyone. The presentation will be given in Portuguese.

About the study

This study addresses the difference between Cluster and Industrial District. By way of introductory mention that both concepts have the same field of study and analysis, in other words, the same starting point, the territory or geographic space where the activities of a Clusters and Industrial District is the same. Therefore, from this perspective, it is necessary to differentiate the concept to better understand these two models of economic development of economically identifiable regions.

This study is based on the Doctoral Thesis Project in Management, whose title is Analysis of the Chókwé Agricultural Region as a Potential Agro-Industrial Cluster.

The main conclusion of the study is that Industrial Districts are understood as local communities whose identity is based on cultural, historical and social values. These also include local authorities that assume the dimension of private institutions and public and mainly act as intermediaries of the whole process and mechanics productive. In turn, Cluster is an aggregation of several Industrial Districts, whose criterion aggregation translates, empirically, in the valences that each district must aggregate value in a Cluster in order to compete in the international market and, for this purpose, the Cluster invests in specialized technologies, such as information, infrastructure and human resources.

Another notable difference that exists between Clusters and Industrial Districts, are the factors that multiply the flow of information within the Cluster. An example of this is the nature of personal relationships due to schooling, the bonds that evolve and build on community scientific or professional associations, remarkable community fellowship due to the proximity geographic area and trade associations that encompass Clusters.