Vertical relationships are links between trading partners. The ultimate examples
of vertical clusters are those created by a single ‘‘channel master,’’ such as
‘‘Toyota City’’ or the cluster of aviation suppliers servicing Boeing in Everett,
Washington. As an example of the wider economic effect of such a channel master,
consider Shain’s (2009) description of the impact of the BMW plant in Greer,
South Carolina. It employs 5,000 workers, yet it supports over 23,000 jobs in the
state, as many suppliers decided to co-locate around Greer.
Vertical relationships are links between trading partners. The ultimate examplesof vertical clusters are those created by a single ‘‘channel master,’’ such as‘‘Toyota City’’ or the cluster of aviation suppliers servicing Boeing in Everett,Washington. As an example of the wider economic effect of such a channel master,consider Shain’s (2009) description of the impact of the BMW plant in Greer,South Carolina. It employs 5,000 workers, yet it supports over 23,000 jobs in thestate, as many suppliers decided to co-locate around Greer.
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