The correct answer is: d) All of the above.
Industrial clusters are geographic concentrations of interconnected companies, suppliers, service providers, firms in related industries, and associated institutions in a particular field. They are important because they can help to improve economies of scale, facilitate technology sharing, and promote local value chains.
Economies of scale are cost savings that a company can achieve by increasing the size of its production. When companies are located in a cluster, they can often share resources and equipment, which can lead to lower costs.
Technology sharing is the process of exchanging information and knowledge about new technologies. When companies are located in a cluster, they are more likely to share information and knowledge with each other, which can lead to the development of new technologies.
Local value chains are networks of companies that are involved in the production of a particular product or service. When companies are located in a cluster, they are more likely to be involved in local value chains, which can lead to increased economic activity in the region.
In conclusion, the government encourages the development of industrial clusters because they can help to improve economies of scale, facilitate technology sharing, and promote local value chains.