Clusters suggests that much of the competitive advantage lies outside a given company or even outside its industry, residing instead in the locations of its business units. eg: Odds of building a world class mutual fund company are much higher in Boston than in any other location or a textile related companies in North Carolina (although I would rather move them to China).Clusters attract foreign investments. (You can build world class facilities, but without presence of conducive clusters its difficult to attract industries. This explains why efforts by governments to divert industries to specific locations has failed so often -- Butibori in Nagpur)
