Economic clusters are geographic concentrations of interconnected businesses, suppliers, and institutions in a particular field. These clusters enhance productivity, innovation, and competitiveness by fostering collaboration and knowledge sharing among companies. For example, the Silicon Valley cluster in California is known for its technology firms and startups, which benefit from proximity to skilled labor and venture capital. Clusters can also include related industries, research institutions, and support services that contribute to the overall ecosystem. This interconnectedness allows businesses to access resources, share ideas, and respond quickly to market changes, ultimately driving economic growth in the region.