The role of clustering strategy for small and medium size enterprises in gaining competitive advantage and a case study

Clusters emerged in various parts of the world in the history of economic relatios due to closeness to natural resources, an entrepreneur starting business in the region, potential customers awareness of the agglomeration, a technological breakthrough in the region, availability of appropriate human resources in the region and accordingly they either developed into more complex cluster structure, or divided into sub clusters, or died of natural causes.Clusters play an important role in developmet of Small and Medium Size Enterprises. Clusters are agglomerations of companies within the same sector or supporting sectors, which are efected from similar opportunities and threats and cooperate with each other for growth and development.Clusters and Regional Development are inherenetly related. Competence level of clusters positively effect the regional development and on the other side developed regions offer advantages that proliferate clusters.Today, the important role of clusters in regional and national development is generally accepted at different parts of the world. At the same time; understanding the clusters in a comprehensive way, making policies that foster cluster development, and implementing cluster programmes play a crucial role. Clusters with their role in providing jobs, creating new business areas, developing technology, cooperation with international businesses, generating export income, developing talent and human resources, cooperation with universities and research institutions are key to regional and national development.In this study; the objection is to understand both cluster and clustering concepts and also the role of clusters in SME?s gaining competitive advantage by means of examining various cases from different industries and different countries and also by a through examination of a natural born cluster and cluster development work carried on this cluster.Key words: Cluster, clustering, innovation, competition, regional development, cooperation, employement, value chain