Resources
What Are Industry Clusters?
Clusters are groups of businesses, institutions, and organizations working together within a shared industry or value chain.
Instead of competing in isolation, clusters help regions:
- Build on what they already do well Strengthen local supply chains
- Identify new market opportunities
- Collaborate to solve shared challenges
- Cluster-based strategies focus on growing from within—leading to stronger, more resilient regional economies.
What is Cluster Development?
Cluster development is a holistic approach to economic development that focuses on fostering the growth of specific industries or sectors within a geographic region. It involves a range of strategies and interventions aimed at creating a favorable environment for businesses to thrive, attract investment, and generate employment opportunities.
Key elements of cluster development include:
- Identifying and nurturing competitive advantages: This involves recognizing and building upon the unique strengths and resources of a region, such as its natural resources, skilled workforce, or research institutions.
- Encouraging collaboration and partnerships: Cluster development relies on strong collaboration among businesses, government agencies, educational institutions, and other stakeholders to create a supportive ecosystem for innovation and growth.
- Providing infrastructure and support services: Clusters require adequate infrastructure, such as transportation, energy, and telecommunications, as well as access to financing, business support services, and training programs.
- Promoting innovation and technology transfer: Clusters foster a culture of innovation and encourage the transfer of knowledge and technology between businesses, research institutions, and other organizations.
- Developing human capital: Investing in education and training programs is crucial for developing the skilled workforce needed to support cluster growth.
- Marketing and branding: Clusters often develop marketing and branding strategies to promote their unique offerings and attract businesses and investors.
SEDA has developed a three-phase Road Map to guide organizations in assessing and amplifying existing and emerging clusters. A Cluster Toolkit is available to SEDA members and aligns with the three phases of Appraisal, Mobilization and Implementation.
Why Clusters Matter in Saskatchewan
Saskatchewan’s economy is rooted in strong industries and resourceful communities. Cluster development helps unlock that potential.
Clusters help communities:
- Retain and grow local businesses
- Increase coordination across sectors
- Strengthen regional competitiveness
- Create new pathways for investment and innovation
With shifting markets and increasing pressure on rural economies, collaboration is no longer optional—it’s essential.