In these clusters, a single large firm, or small group of large firms, buys components from an extensive range of local suppliers to make products for markets external to the cluster. These clusters represent the spatial logic of just-in-time production systems.

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Flexible production hub-and-spoke clusters are characterized by a central firm (or a small group of firms) that sources components from a wide array of local suppliers. This setup is integral to just-in-time production systems, where the goal is to reduce inventory costs and increase production efficiency by receiving goods only as they are needed in the production process.

In These Clusters, a Single Large Firm, or Small Group