. Types of Industries Industries can be classified on the basis of (a) Users : If the output is consumed by the final consumer, it is called a consumer goods sector. If the output is consumed by another producer, it is called a capital goods sector. There are industries that produce raw materials for other industries such as cement and steel.
Such industries are called basic goods industries. (b) Type of Inputs Used : Industries are also classified based on the kind of raw material used such as agro-processing, textiles sector, rubber products, leather goods, etc. (c) Ownership : Firms may be privately owned, publicly owned (by the government, central or state), jointly owned by the private and public sector, joint sector or cooperatively owned (cooperatives). - - .
. AM - - . . AM Industrial Clusters in Tamil Nadu Sectoral specialisation Close inter-firm collaboration Inter-firm competition based on innovation A socio-cultural identity, which facilitates trust Multi-skilled workforce Active self-help organisations, and Supportive regional and municipal governments.
Firms are therefore expected to collaborate and compete with one another at the same time. By collaborating, they can expand their capacity and also learn from one another. Through competition, they are forced to become more efficient. How Do Clusters Originate?
Clusters may arise due to many factors. Certain clusters evolve over a long time in history when artisans settle in one locality and evolve over centuries. Handloom weaving clusters are one example of this development. Or else, in some sectors, when a large firm is established, a cluster of firms may emerge to take care of its input and service requirements.
At times, governments may decide to encourage manufacturing using raw materials from a region, which may also lead to emergence of clusters.