Spatial Clusters in Organic Farming – A Case Study of Pulses Cultivation in Karnataka

19 Pages Posted: 6 Aug 2012

See all articles by Gopal Naik

Gopal Naik

Indian Institute of Management (IIMB), Bangalore - Department of Economics and Social Sciences

Vishnuprasad Nagadevara

Indian Institute of Management (IIMB), Bangalore

Date Written: December 24, 2010

Abstract

Spatial cluster has become an important concept in economic development research and policy practice, especially after its popularization in the Competitive Advantage of Nations. Clusters are geographic concentrations of firms in related industries that benefit not only from agglomeration economies derived from their spatial proximity, but also from the increased competitive pressure as a result of the co-location. Policymakers and professional developers use industry clusters to select, describe and promote groups of regional industries that already exhibit or have the potential to develop a regional competitive advantage. Herr argues that 'industry cluster identification and analysis can also allow planners to identify local industries that have concentration of employment beyond the national average that may be an indicator of current stability and future growth or an ideal focus for the investment.' Clusters development has so far been very successful in transforming the economy of many countries as well as in the spread of multi-national companies (MNCs). However, the concept has not gained adequate attention in the development of micro, small and medium enterprises (SMEs) where there is enormous potential for enhancing inclusive growth. The introduction of clusters in these enterprises can offer various advantages compared to a situation where such small businesses are located in geographically scattered areas. Such advantages include improved efficiency in production and marketing as well as conducive environment for innovation

Suggested Citation

Naik, Gopal and Nagadevara, Vishnuprasad, Spatial Clusters in Organic Farming – A Case Study of Pulses Cultivation in Karnataka (December 24, 2010). IIM Bangalore Research Paper No. 316, Available at SSRN: https://ssrn.com/abstract=2124370 or http://dx.doi.org/10.2139/ssrn.2124370

Gopal Naik (Contact Author)

Indian Institute of Management (IIMB), Bangalore - Department of Economics and Social Sciences ( email )

Bannerghatta Road
Bangalore, Karnataka 560 076
India
2699-3194 (Phone)

Vishnuprasad Nagadevara

Indian Institute of Management (IIMB), Bangalore ( email )

Bannerghatta Road
Bangalore, Karnataka 560076
India

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