Application of Industrial Cluster Concept in Increasing Collective Competitiveness

Abstract

This study examines the application of the industrial cluster concept in enhancing the collective competitiveness of the industrial sector in Indonesia. In the era of globalization and rapid technological development, the national industry faces the challenge of shifting paradigms in economic development. The shift from comparative advantages, such as cheap natural resources and low-wage labor, to sustainable competitive advantages through technology mastery and value chain enhancement, is fundamental. The industrial cluster concept emphasizes the agglomeration of companies and synergy among industrial actors that mutually support each other through supplier networks, economic infrastructure, and value-added development. The application of this concept has proven effective in improving industrial competitiveness, not only at the individual company level but also at the business community level. These findings highlight the importance of cluster-based industrial development strategies to ensure sustainable competitive advantage for Indonesia in the global market.