Clustering in Dresden

Several years after reunification, the situation of economic instability and social dissatisfaction demanded an ambitious plan to develop regions in East Germany. The key idea was to attract investment and business to the region. The peripheral situation of Saxony, and Dresden especially, has led to a focus on the non-traditional economic activities and sectors. Confronted with the challenge, policy-makers were able to find an imaginative solution: drawing on the inventive history of Dresden and the reputed Technische Universitat Dresden. The public leaders chose the high-tech path the moment the information technology business was booming. A cluster was created as a driver of prosperity in Dresden. A cluster means co-location of producers, service providers, educational and research institutions and other private and government institutions related through linkages of different types. The model of cluster can be understood as an analytical method of planning as well as a regional economic development policy. Dresden would be an interesting case study to identify the main operative elements of the term economic cluster.