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What is an Economic Cluster?

" system they belong to companies and industries to establish links of functional interdependence in the development of their production processes and to obtain certain products or, in other words, a" cluster "could be defined as a set or group of companies in different sectors, located in a limited geographical area, interrelated with each other in the vertical, horizontal and collateral about markets, technology and capital are productive dynamic industrial centers, forming an interactive system in which with strong support from the Administration can improve competitiveness. (http://www.hacienda.cl/internaletra.php?letra=C #)

In practicality, the cluster refers to a process of all the productive chain economic agents that directly and indirectly linked to an activity of a region or group of regions.

The Cluster also relates to certain link economic activity with technological development, scientific development, with the universities, our ability to in the scope of such activity.

also specialization and scale advantages, allowing the Cluster significant improvements in competitiveness, possibly including its successful penetration into world markets.

The rise and development of clusters Cluster begins in the early nineties, thanks to the work of Michael Porter, a professor of of Harvard University.
www.hno.harvard.edu/gazette/ 2000/12.07/01- michael porter . Html - 18k -

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Advantages and disadvantages of a Cluster of Clusters

Advantages of a Cluster

Undoubtedly

conglomerates group allows participants to enjoy it many benefits, they provides security and confidence in investment.

Cluster benefits are:

- The development of the economies of scale, enhancing its ability to enter the market, and increasing their profits.

- It increases the competitiveness, promoting the industry for the need for new products and better quality.

- Ensures permanence in the market, allowing companies to integrate to be stable, according to the survey conducted earlier.

- Mutual aid companies can stay in the markets, and research enables them to make progress together.

- Research Universities and technological research centers allow members of Cluster beneficiedos look together for the progress of technological organizations.

Disadvantages of a Cluster

The association of business centers in a cluster clustering can not only bring benefits to the business. Poor planning and lack of studies on the feasibility of a cluster can cause a bad light it, leading to lack of members and little interest from employers.

The disadvantages of a cluster are:

- Having a bad trade both spatial planning, Cluster members may lose the industrial feasibility, and lose their components by dropping to all members.

- The lack of studies and projects can make planning an economic Cluster
not having sufficient attraction for the business sector, limiting the amount of core business
entering it.

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Economic Examples

In United States has the largest number of Industrial Clusters (due in part to be the country that patented the idea), among them we find:

Silicon Valley: Economic Cluster located in northern California, whose main production of technological components and computers led to his coining of "Valley of sackcloth." Has a large number of affiliated universities to promote technological research.

Motor City: Located in Detrioit and is principally engaged in research and manufacturing of motor vehicles. Like Silicon Valley, the industrial cluster has several universities that provide technological advances.

Kista: Located north of the city of Stockholm, Sweden. Its main activity is research, while putting emphasis on the mobile phone manufacturing.

Maritime Cluster English: English economic cluster that covers all areas of maritime character of that country. In this clustering are makers of ships, fishing and marine tourism businesses.

As the above, there is worldwide economic clusters based on tourism, forestry companies, energy, telecommunications, manufacturing, digital research, mining, etc.

www. silicon valley . Com
www.americaslibrary.gov/ cgi-bin/page.cgi/es/mi/detroit_1 - 9k

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The Mining Cluster Cluster How does the mining?


have traditionally been two main ways of contribution to community enterprises: first the realization of social projects, which have highlighted some of the big mining companies in the private and, secondly, support the strengthening of the mining cluster.

Many wonder if there are clear advantages, why it requires extra effort to promote the Cluster?

The difficulty for the spontaneous development of the mining cluster and create the full value associated to mining companies and the community comes from the following contradiction:

· On the one hand, firms have the legitimate objective of minimizing costs and maximize efficiency, since they must sell their products in markets competitive. For this reason, looking to buy their supplies and services who offered the best combination of money, regardless of geographical origin or other products of that ilk. Should also remember that our great mining companies using cutting-edge mining technology, with high quality standards for its processes and inputs.
· In addition, potential suppliers of these companies still do not have standards of quality, competitive price, have great difficulty in taking on the risk involved in achieving those standards. These providers have no guarantee as to be able to gain market share representing these companies as they compete with experienced players and a solid reputation. However, to try to achieve, to develop skills required for major investments, which the Chilean capital market funding difficult.

How to resolve the dilemma? How to generate investment and improved competitiveness of local suppliers, without imposing less efficient mining companies?
This is the challenge to generate agreements and shorten paths. The spontaneous dynamics of the market could generate and strengthen the cluster itself, but may go astray, taking too long and ultimately, give way and opportunities to foreign competitors that ultimately have less to offer.

are various specific tasks could be undertaken to strengthen the regional cluster, such as the creation of organizational structures within companies for effective empowerment of local supply, the definition of quality indicators and best practices, widely accepted; the generation and dissemination of information on market opportunities, strengthening of regional institutions to support the Cluster, training of providers focused on the needs of the Cluster, etc..

addition, universities and training institutes and research have a key role to play. Development technology, availability of information and improvement of labor skills, are the substance that enables the consolidation of the Cluster.

The mining sector is recognized as a driving force to promote the development of other economic sectors and productive activities, which means improving the productivity and stability of the sector, ie build a competitive network with consequent economic and social benefits for all stakeholders.

To carry out this initiative is necessary to formulate regional policies in harmony with national policies to ensure economic growth and social and cultural. This

challenge invites all stakeholders to reflect and contribute ideas on how to harness and capitalize on the potential benefits to be derived from major mining development in the country.

In this regard it is of vital importance to define a strategy for coordination of interests, where the public sector to generate public policies and development space and the private sector to assume a strong identification with the regions where mining is inserted and contribute to a growth for being a participant to the entire community of the benefits of mineral development.

Today Chile has open spaces for investments in research, technology, knowledge and services to enable us begin the transformation from the current situation, characterized by an incipient industry of mining supplier and an exporter of raw materials, to be a global provider of technology and knowledge mining.

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Where does the Cluster mining? Cluster

In Chile, the origin of agglomeration mining is favored by the existence of a concentration of large deposits, especially in the north-important flows of foreign and domestic investment, as well as the existence of a stable legal framework.

The Mining Cluster arises at first as an aspiration Antofagasta Region, an area where most of the large deposits in Chile. In fact, since 2000, the Cluster was incorporated as one of the strategic guidelines of the Regional Strategy Development (ERD) of this region.

But the idea that only apply in the Second Region , is a concept that has been discussed elsewhere apply in other regions too. The idea is to create a linkage between large mining companies and small and medium industry service provider. There are many examples of this in different parts of the world. The idea ultimately is to look for that can generate a greater amount of work and services between each other, and thus the great copper industry to increase its amount of purchase and can generate an additional activity.

A concrete example is Antofagasta-beyond-what happens in the Eighth Region , which is under a copper or gold, but it offers an established infrastructure in the mining world as a provider of professional, technical, research and inputs for mining.

addition, the Cluster Development in Chile can find its natural projection neighbors and mining tradition. It is projected that by 2010 America will participate with 55% of copper production. In this context, neighboring countries and with mining potential as Chile, Argentina, Brazil or Peru, looming relevant opportunities for new business development. Taking into account the competitiveness of markets, an effective way of coping is to form blocks integrated that can enhance and complement that shape economies.

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The advantages of mining.

The Benefits of Mining Cluster

The proliferation of suppliers of goods, and services to the mining companies are able to offer competitive products in quality and price, is a valuable asset which strengthens the mining development. It is thus possible savings in freight and maintenance costs and ensures a fast and efficient access to technical assistance and supplies according to needs that are never completely predictable.

Therefore, for mining companies there is an attractive live in developing the regional mining cluster, as it improves their costs and returns. This, coupled with the benefits that arise from the long-term business development and integrated and responsible part of the community in which it operates.

If foster the development of the Cluster is clearly suitable for mining companies, no less obvious is the interest and the great benefits of this project for local suppliers, existing and potential mining, as well as local community and the entire nation. It is spreading to the rest of the community, a greater impact on the dynamism and success of mining, to generate, from the mining business, a network of activity consolidate economic productive capacity which by its excellence in quality and costs, constitute sources of stable and well paid employment.

In other words, the existence of a cluster generally allows:

• The existence of a joint action of the agents that comprise-mining companies, suppliers of goods, supplies and services, institutions, research and information, etc .- to solve common problems, innovate, or enter new markets.

• The existence of a specific qualified demand and as a catalyst for continued innovation in the Cluster.

• The existence of a strong competitive regime.

· The successful clusters have a high level of specialization among agents that enables the provision of specialized inputs and services, thereby raising the efficiency of the Cluster.

• Another characteristic of successful clusters is their high level of international competitiveness.

• Finally, it is important to note that the clusters are constantly evolving and maintaining its competitiveness and overall efficiency depends on how companies and institutions that shape react to internal shocks and external.

Currently, annual purchases of big business figures add up to around 5 billion dollars, of which half is done in Chile, and the rest abroad. In this area, which aims to advance, that most purchases are made in the country, impacting positively on the economic development of the mining regions, and across the country.

www.minmineria.cl