Regions Will Have Difficulty Picking Winners. A prerequisite to developing a cluster is the
identification of regional competitive advantage based on labor force characteristics, unique regional
attributes, availability and quality of public and private infrastructure, and proximity to input and
product markets. Industrialization efforts next must identify the targeted industry/firms and provide the
services and infrastructure necessary to insure that these businesses remain successful. Thus, the
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designing of an industry cluster program requires an extensive understanding of the region and its
economic processes.