CLUSTER
DEVELOPMEN
T STRATEGY
URBAN PLANNING 3
Fuentes, Rhara Joy
Ipanag, Patricia Mae
Mercader, Tiara Elijah
Romez, Renie
What is Cluster Development Strategy?
• Clusters are geographic concentrations of interconnected companies in a particular field,
with upstream links that include suppliers of inputs and services, downstream entities
such as customers and marketing outlets, and horizontal links among enterprises with
similar technology and inputs, or complementary products.
• Clusters are geographic concentrations of competing and collaborating firms that tend to
produce innovation and higher than average wages.
What is Cluster Development Strategy?
Cluster Development Strategy has the
followings:
• Common economic base, complementary resources, high growth and export
potentials and strong economic linkages:
• Same cultural background and has same dialect:
• Geographically contiguous and linked by infrastructure networks:
• Has complementary functional roles within the urban structure:
• Boundaries coincides with the administrative boundaries of the LGUs
• Experiences similar environmental problems and uses common resources
Purpose and Benefit of Cluster
Development Strategy
• Purpose:
• Used consensus building in reaching decisions affecting
the cluster.
• Observance of multi-stakeholder participation
• Actions involvement of the private sector, Dynamic
leadership at the local level
• Support of the international community
• Presence of a champion
Purpose and Benefit of Cluster
Development Strategy
• Benefits:
• The nature of the interconnectedness enables firms
within the cluster to be more productive and
competitive.
• Firms can have access to stable source's of inputs and
market and technical information.
• The linkages facilitate dealings and lower transaction
cost.
Problems and Weaknesses of Cluster Development Strategy
• Like any other enterprise, firms within clusters
experience operational and market constraints and
limitations. Yet in the same way that the multi-firm
nature of clusters enhances its benefits, so does it
magnify problems and weaknesses.
Common Cluster to Clusters
• Weak infrastructure support,
• Unmanageable and costly procedures of doing business.
• For clusters that are in the rural areas there is limited availability of skilled
labor mainly due to migration and low level of technological capability
• For industry clusters comprising of micro-, small-, and medium-sized
enterprises (MSMEs),
• Prevalent problems are access to finance and market information,
• And low productivity and competitiveness due to limited resources
• Oftentimes, MSMEs lack acceptable collateral and credit history to
establish credit worthiness.
Important Factors for Successful Cluster Development Strategy
• A qualified work force is important for the quality and sustainability
of clusters.
• Access to financial institutions
• A link to a center or institute of research development
• Strong link of cooperation among enterprises within the cluster, and
of support from institutions outside the cluster.
• Enterprises must have commitment to devote time and resources,
and willingness and trust to act collectively.
Important Factors for Successful Cluster Development Strategy
• Clusters are also greatly supported and sustained by facilitating
entities or, in general, “institutions for collaboration.” These
consist of trade associations, standard setting agencies, non-
governmental organizations, and technology centers, for example,
that provide connections to market players, and correct for
market and public failures, among others.
Application of the Cluster Development Strategy in Metro Iloilo-
Guimaras
Application of the Cluster Development Strategy in Metro Iloilo-
Guimaras
Programs and Projects of the Cluster
Integrated water resource management
Iloilo River rehabilitation
Panay Area business development project (Includes
agricultural and fishery products exports, and tourism)
Iloilo flood control project
Solid waste management
Infrastructure projects (airport and circumferential roads)
WALKING
BIKING JOGGING
PROPOSED ILOILO-GUIMARAS-NEGROS-CEBU LINK BRIDGE
By 2023 the bridge connecting Iloilo and Guimaras would have
been complete already, according to the Department of Public
Works and Highway (DPWH).
Construction may start by the second quarter of 2021,
Secretary Mark Villar told the Senate Committee on Finance
during the deliberation of its proposed 2020 budget.
Ilonggo senator Franklin Drilon urged the DPWH to speed up
the project which was committed by the Duterte administration
in 2016, citing the Iloilo Strait motorboat mishaps in August 7,
2019 that killed 31 people.
ILOILO-GUIMARAS-NEGROS-
CEBU LINK BRIDGE
End.
