Adolfo F. Chiri, CENTRUM – PUCP, Peru
Abstract: The paper examines how countries are changing the way they compete in the new global business environment. The paper argues that while countries compete among each other to offer the multinational corporations the most favourable business environment, these policies are not sufficient to foster economic development in the host country. A way to accomplish both objectives, is to design a cluster-based economic strategy. This strategy implies a new way of thinking about economic development, competition, and innovation and that clusters permit an increase in productivity, efficiency and enhanced competitiveness.
