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The Problem of Agency

Author:

Esther Russell

Publishing date:

21.03.2005 11:54

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Most existing clusters were not planned but grew spontaneously and have continued to be self-organised and self-sustaining. However, sometimes clusters do not maximise their capabilities due to a lack of structure or incapability to self-govern. In these cases, public intervention is the preferred policy.
This paper discusses business-government collaboration, commonly known as an agency, and the effects this can have on the cluster.

An agency is built up of a system of associational activities, trade associations and unions, consortia of firms. They mould it, enhancing the concept and practice of a co-operative, collectivist democracy.

In this domain the agency plays the role of ‘hub actor’ which co-ordinates inter-organisational processes and activities, mainly aimed at boosting innovation and competitiveness, and manages both tangible and intangible assets.

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Attached files

Paper on the problems that can arise with government intervention in clusters.  
agency problems.pdf (376.78 KB)

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