Clustered cloisters

Journal Entry #3

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"Clustered cloisters." The Economist. (21 February 2004). LexisNexis Academic. J. Murrey Atkins Library, UNC Charlotte, North Carolina. 13 July 2008. . 

This article takes an economic view on technology and how it clusters together. A cluster can be a geographically centered group of firms interdependent on one another. They have important similarities in technology and working environments, such as Silicon Valley. These clusters thrive on innovations, which drive technological advancement and economic growth. Clustering of technology allows face-to-face contact, social and cultural interaction, and an enhancement of knowledge and information. However, their strength is their weakness and if the cluster fails then numerous jobs are lost.

Specifically, Europe's much smaller version of Silicon Valley is in Cambridge, England. The Cambridge network originated from university and business ties. A cluster of technology not only has to work together to invent the product, but also has to mange, finance, protect, and sell the result. This proves tricky for Cambridge because their products are designed in England and made in Taiwan because they are cheaper. So with the increasing technological advances in the East, Cambridge may be seeing a grim future. Already, the housing is costly and scare, and transportation expensive. The tech firms need more venture capitalists and managers who bring money and knowledge, which is becoming better but not good enough.

Technology is much more complicated than meets the eye, and has a profound effect on the economy and society. There are also many attributes that influence the expansion and production of technology. The expense, bureaucracy, and time of the process can hold many new technologies back, because they are afraid to take the risk. Particularly, in Europe people are less obliged to take a risk because if a firm collapses there is not a Chapter 11 file for bankruptcy. So in some circumstances clusters are an advantage to technology, and then in other situations there just are not enough resources in order to succeed. Overall, fresh thinking, venture capitalists, and entrepreneurs are exceptionally important to the technology world.