Technology

Technological cluster is the process of concentrating companies that are closely interconnected in terms of proving services and products of close range. Such clusters are developed to improve efficiency and are more cost effective than the single unit. This cluster model maximizes on the utilization of monetary resources e.g. less resources are spent in coordination communication and travel for everybody (George, 2008). The clusters also help in efficient use of human capital as well. Therefore, the impact of these technology clusters is not only on the economic arena only but has also significant impacts in social, institutional and cultural impacts as well.

The technology clusters can affect their surrounding in various ways. For example, many technology clusters have led to advancement in economies of various regions leading to change of social classes for example, the development of leisure classes within the society. Another socioeconomic impact that these technology clusters have is production of by products, pollution which can impact on the social life of its surrounding as well as exhausting the available natural assets of a region to the peril of the environment.

Another way in which technological clusters may impact on culture is the development of subcultures. This occurs when the culture within a technological cluster is adopted by the surrounding society in a way that it adopts it as its own culture which reflects the culture of the technology cluster. The impact may either enhance the culture of the society in a positive or negative way depending on the nature and values of the technology centre. The underlying aim of any attempt of technology clusters is basically to create organizational functionality through a well coordinated approach into its operations.