Deficiencies in the framework conditions surrounding the cluster also create internal costs for firms. Poor public education
imposes productivity and remedial-training costs. Poor transportation infrastructure drives up the costs of logistics. Gender or
racial discrimination reduces the pool of capable employees. Poverty limits the demand for products and leads to
environmental degradation, unhealthy workers, and high security costs. As companies have increasingly become disconnected
from their communities, however, their influence in solving these problems has waned even as their costs have grown.