Question

• Why do governments try to create clusters around groundbreaking research?

• Do you think that governments should undertake such efforts or leave it all to markets to determine successes and failures?

Answer 1

Answer: The government attempt to create cultures around the groundbreaking researches because it wants to stimulate economic growth by the development of new and innovative business models and ways of doing business. When new innovative business models and ways of doing business emerge it helps in the increase in the economic activity. Such clusters may act as a catalyst for creating new business, good job positions and opportunities. These systems also provide resources and eco system that is required for nurturing any new groundbreaking research as innovation needs support to become a practical business idea. The creation of clusters helps the innovations to get support that is required for them to bloom and develop. Therefore by doing so, governments actually help in developing innovation and supporting economic growth. The governments should develop such clusters and should not always rely on the market for determining the success or failure of the ground breaking research. Market forces are not always rational and the vested interests may come in the way of developing new business ideas and models as they often come as a threat to the older models and ideas. Thus such researches require support at least at the initial level.