Companies engaged in clustering typically show comparative advantage in three or four key areas:

• Innovation and knowledge transfer: As part of a cluster, companies can better source new knowledge and pursue innovation opportunities through stronger links with institutions, service providers and educational establishments
• Business productivity: Companies operating in a cluster operate more efficiently by taking better advantage of economies of scale and shared resources
• Competitive advantage; companies can benefit through collaboration from joint participation in tenders and bids.
• Market awareness: Clustering allows companies to serve existing markets better and to respond to future market changes, through the establishment of closer links with local clients and markets.
  Companies in a cluster can also act co-operatively in sourcing market data.