2. EU Macro-regions e.g. Baltic Sea Region Macro-regions e.g. Baltic Sea Region National Regional City-regions Cluster Policy in Europe Local

4. Innovation Science Industry Regional Entrepreneurship Networks/SME Market integration Investment Attraction Competition Trade Export promotion Environment Energy Social International affairs

5. Early 1990s: Pioneer countries and regions Mid-1990s to mid 2000s: Cluster policy entrepreneurs Mid 2000s onwards: Cluster policy moving into the mainstream Concerns about distortions Concerns about effectiveness

6. Path dependency Information asymmetries Coordination failures Local Externalities Target Public Policy at Clusters Create Platforms for Joint Action

7. Specialized Physical Infrastructure Natural Resource Protection Environmental Stewardship Science and Technology Infrastructure (e.g., centers, university departments, technology transfer) Education and Workforce Training Business Attraction Export Promotion Setting standards Market Information and Disclosure Clusters Target Public Policy at Clusters

8. Upgrading of company operations and strategies across a group of companies Strengthening of networks to enhance spill-overs and other economic benefits of clusters Upgrading of cluster- specific business environment conditions Create Platforms for Joint Action

9. MORE (agglomeration) BETTER (competi- tiveness) FINISH

10. Broader set of industries Regional perspective Enhancing own strength Demand- driven approach Public-private collaboration Productivity Focus

11. Challenges Bias towards collaboration, not competition Scale of impact Emerging clusters Impact assessment