Technology clustering: The case of Greece

In the globalization era, economic research has consistently shown that innovation effects tend to be clustered. Greece is among the oldest members of the E.U., one of the laggards in productivity and competitiveness in the wider E.U. and ranks very low in attracting foreign investments. In this paper, the various sectors of economic activity in Greece have been assembled into clusters presenting similar technology and growth characteristics which have a significant influence upon the productivity and competitiveness of the economy, by applying the Cluster Analysis methodology. In this way, the twenty-one sectors of economic activity are divided into three main sectors (i.e. primary, secondary, and tertiary) which are, in general terms, consistent with the structure of the total economy. Finally, some comments are made concerning policy issues for Greece.