Spatial clusters in organic farming: A case study of pulses cultivation in Karnataka

Abstract

Introduction Spatial cluster has become an important concept in economic development research and policy practice, especially after its popularization in the Competitive Advantage of Nations2. Clusters are geographic concentrations of firms in related industries that benefit not only from agglomeration economies derived from their spatial proximity, but also from the increased competitive pressure as a result of the co-location. Policymakers and professional developers use industry clusters to select, describe and promote groups of regional industries that already exhibit or have the potential to develop a regional competitive advantage3. Herr4 argues that "industry cluster identification and analysis can also allow planners to identify local industries that have concentration of employment beyond the national average that may be an indicator of current stability and future growth or an ideal focus for the investment . . ." Clusters development has so far been very successful in transforming the economy of many countries as well as in the spread of multi-national companies (MNCs). However, the concept has not gained adequate attention in the development of micro, small and medium enterprises (SMEs) where there is enormous potential for enhancing inclusive growth. The introduction of clusters in these enterprises can offer various advantages compared to a situation where such small businesses are located in geographically scattered areas. Such advantages include improved efficiency in production and marketing as well as conducive environment for innovation.