Development of small and medium enterprises through clusters and networking : a comparative study of India, Pakistan and Sri Lanka

Clusters have several advantages. These include a high degree of networking which stimulates productivity, ability to diversify and to acquire the capacity to new products when the demand for existing products falls. The policy makers are searching ways to create new clusters. With an even more globalized world and increased competition the appeal of clusters has become stronger and more urgent. Yet, the formation and the sustenance of the clusters has somehow remained a mystery. There has been a limited research carried out in this direction. No doubt it is a complex area and no figurative results can be highlighted to show as to how the development of industrial clusters has taken place. The authors go about seeking answers to these questions by examining the experience of some of the prominent and successful clusters, their formation and sustenance in the three countries. The study further investigates various initiatives, the role and the results thereof in development of clusters.peer-reviewe