The Era of Clusters for Economic Growth and Industrial Change, Egypt Case.

Abstract

The Arab Republic of Egypt witnessed an industrial development in the nineteenth century while at the beginning of the twenty-first century, Egypt began another phase characterized by the development of the Egyptian industry, raising the competitiveness of Egyptian manufacturing within the framework of an integrated program that contributes to raising exports to effectively join the global economy. The industrial sector in the Egyptian state represents an advanced rank in the national economy. It comes at the forefront of the economic sectors in terms of its contribution to the GDP, with a rate of 18% in the GDP. In addition, the industrial sector has many relationships with many services and commercial sectors, it also has a role in developing foreign trade and revitalizing the balance of payments. The paper suggests that in order to maximize the economic return of the industrial sector, the planning of industrial zones should be designed for cluster building. Many authors have agreed that clusters and agglomerations are the best way to achieve industrial growth. This paper seeks to demonstrate the importance of clusters for many countries and helps to clarify different policies and strategies that could help the Egyptian government build a view that enables the decision-makers to choose the best way that could help economic development. The paper’s main finding is that 93 targeted clusters for the Egyptian industry are classified by technological intensity: Medium-high and high technology, Medium technology, and Low technology.