Abstract:

Regional economic development could be facilitated and achieved through increased overall competitiveness. Clusters and special economic zones (SEZs) play important roles as tools to achieve higher levels of regional competitiveness. The study objective is to identify guidelines for best practice principles regarding cluster and SEZ development in developing regions. The methodology included a comprehensive document analysis process based on a literature review of the research by some of the most prominent authors on cluster and SEZ development. The main result of the document analysis process was the identification of 13 broad themes or best practice principles for policy formulation. The themes were also ranked based on the number of times keywords appeared in the document analysis process. The highest ranked theme/best practice principle was “Creation of cooperation and partnership to the benefit of all firms with improved connections and networking”, followed by “Improvement of competitiveness through various factors which could include an enabling environment and optimal utilization of capacity and resources”. All 13 broad themes are however important policy development themes and should be included in the process of assessing clusters and SEZs. The implications of the study are that if the broad best practice principles are included in development policy and well implemented, regions could successfully implement clusters and SEZs, which in turn could lead to higher levels of competitiveness within the global economic environment.