Industrial clustering in regional Australia: The role of chance, entrepreneurs and government in the Tasmanian Light Ships Industry

Abstract

Australia has had unfortunate experience in industrial cluster development, and despite widespread government action remains below OECD averages in terms of cluster contribution to economic wealth. We use Porter's cluster theory to examine the contrary case: the highly successful Tasmanian Light Ships Cluster, to determine the roles of government, chance and local culture in cluster success. We conclude that cluster development is a dynamic process. Governments should only provide infrastructure support and only this for new ideas that fall within the scope of local knowledge, and existing chance related entrepreneurial activity.