Reconceptualising Porter's Diamond for the Australian Context.

Porter's Diamond Factor Model (DFM) is a theoretical framework that achieved prominence in Australian economic policy development since its inception in 1990. Despite its widespread adoption, however, Australia has remained significantly below the OECD average in terms of its industrial clusters' contributions to innovation and real wealth creation. In order to conceptualise the specific role that Porter's DFM might play in the Australian policy development context, this paper analyses the 25-year history of the interaction between the Tasmanian state government and the Tasmanian Light Shipbuilding Industry cluster. This analysis provides an insight into the set of government roles that facilitated the development of one of Australia's most internationally competitive industry clusters, and proposes a re-conceptualisation of Porter's DFM that will potentially increase its value as a predictive tool for regional economic development.