Similar businesses meet, network and cooperate, often leading to successes far greater than any of them could achieve alone. Some of the pay-offs of clusters are:

One good example of IT cluster in a developing economy context is the software industry cluster in Bangalore in the southern part of India. South of India has large pool of software engineers and programmers and their productivity appears to have been enhanced by the organization of the industry into a technologically dynamic cluster in Bangalore.

The Hong Kong Government is inviting applications for Cyber-Port; the site will be able to accommodate about 150 to 200 companies of different sizes. According to the Information Technology and Broadcasting Bureau (ITBB), many companies have shown interest in leasing at cyber port which includes IBM, Legend, Microsoft, Oracle, Silicon Graphics, Softbank, Sybase and Yahoo! According to Clayton, who runs the Australian arm of the North American consulting firm C3 "Companies and industries have largely stopped being vertically integrated. These days, you need all your suppliers and outsourcers in the same area.

Effect of clusters:
In year 2000 thirteen European areas (cities or geographic regions) secured 32 percent of all FDI projects, an increase from 25 percent in 1999. These include Dublin, a strong profile in software, Stockholm and the Cote d'Azur which have developed strong clusters of information and communications technology design centers. Ireland, Scotland and the Netherlands remain the focal point for customer contact centers, also known as call centers.