Clusters as actors of change in the SMCs: economic, institutional infrastructures and industrial policy strategies

This chapter aims at providing an in-depth analysis of the policy issues related to the process of cluster formation and performance in seven selected SMC: Algeria, Egypt, Jordan, Lebanon, Morocco, Palestine and Tunisia. We propose a review study of cluster development and policies, which focuses on the analysis of the institutional infrastructure and the policy framework at country level. An overall assessment will be proposed on the systemic factors that are responsible for the level of cluster agglomeration and performance in the various countries. Particular emphasis will be placed on the constraints that prevent the establishment of clusters and retard the innovation process, the role of different economic agents and institutions, as well as policy options to foster innovation and growth and to enhance the firms’ performances and their competitiveness. This type of comparative analysis to our knowledge has never been proposed for the SMC. We focus on two key issues: the first concerns two direct mechanisms of transmission: Innovation and competitiveness. This allows an evaluation of the clusters policies to enhance capacity building and networking activities, the level of internationalisation of clusters, the connection of clusters organisations with key actors. The second regards the environment framework/indirect mechanisms: promoting infrastructure and favorable business environment, simplification of administrative procedure, fiscal and legal frameworks.