Answer:
Existence of supplier clusters
Explanation:
Clusters increase productivity. This is because clusters include companies in the same industry or technology areas that share suppliers and distribution network. Meaning that companies withing their sphere can compete.
Several clusters serve as a driving force in regional economies. This clustering concept was popularized by Micheal Porter. A strong cluster can include the suppliers of raw materials and distributors and also primary producers, specialized services in finance, marketing, education, trade associations etc. Clusters can result in a lot of benefits such as increased productivity, rapid innovation and new business formation.
