Problematic of Building Industrial Cluster in Jordan

Abstract

In a free economy, enterprises tend to be concentrated in specific locations. These clusters provide economies known as “location economies” or “external economies”. Industrial clusters are formed by intensive cooperation and interaction of a number of enterprises and institutions that collectively build a “value chain". Clusters offer the potential of innovation and competitiveness, and therefore, could be considered as a structure and a mean for regional development. This study discusses the possibility of building an industrial cluster in the engineering industries located in “King Abdullah the Second Industrial Estate” in Sahab (Southeast of Amman). It is obvious that the structure of the enterprises as well as the social institutions prevailing in Jordan make the building of an industrial cluster a challenging task.