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A “cluster” is a concentration or agglomeration of an industry that develops over time based on geographical proximity, in a way that boosts competition and collaboration that results in innovation. The process of clustering potentially creates greater economic benefits through higher productivity, better knowledge management, and entrepreneurial opportunities (Chuluunbaatara et al., 2014). The significance of economic and industrial clusters in regional and even national development has therefore become the object of a new economic theory (Porter, 1990) being taught now in business disciplines.

What impedes the success of late mover IT clusters despite economically favorable environments? A case study of an Indian IT cluster