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term industrial cluster also know as Porterian Cluster, was introduced by Michael Porter in The Competitive Advantage of Nations (1990). Economists relate it with the Alfred Marshal’s concept of agglomeration economies. Michael Porter claims that a business cluster affect the competition in three different ways; first by enhancing the efficiency of the companies in the cluster, secondly by driving innovation in the field and lastly by stimulating new businesses in the field.

There are many types of cluster based on their location and knowledge (Saxenian, 1994);

Techno Clusters - These clusters are high technology-oriented, well adapted to the knowledge economy, e.g. Silicon Valley.

Historic Know-how-based Clusters - They founded on more passé activities that maintain their edge in know-how over the years even centuries. These clusters are often industry specific. For example: Ajrak making in Hala and wood work in Chinyot.

Factor Endowment clusters - They are created because a proportional lead they might have, linked to a geographical position. For example edible oil industry in Malaysia, because the environment and atmosphere suits the cultivation of Oil Palm.

Industrial cluster also occurred at a location where sufficient resources and capabilities accumulate, and every industrialist/capitalist wish to establish business there. A location can be industrialized and clusterized by giving it a key position in a specific branch of industry, with a vital/maintainable competitive advantage over other locations, or decisive world supremacy in that field.

1.2.1 Industrial/Business Clusters in Pakistan

There are many business clusters in Pakistan, some are in agriculture sector like Rice cultivation in Larkana and its spillovers e.g. rice factory, and banana farms in Dadu and Tando Allahyar. Manufacturing industrial clusters have also been developed here, for example electrical fan industry Gurjat, sports good and surgical instruments in Sialkot, textile industry in Faisalabad. Some clusters are centuries old like Ajrak making in Hala, while some are being emerged like motorcycle manufacturing and its allied industries in Hyderabad.

1.3 MOTORCYCLE INDUSTRY

Motorcycles are one of the most common and affordable type of motor vehicle and motor-powered conveyance in many portions of the world and, for most of the world's population. There are more than 200 million motorcycles are in use around the globe or about 33 motorcycles per 1000 people (Shuhei, 2006). 58% of total motorcycles are on the roads of Southern, Eastern and Pacific Asia.

Gottlieb Daimler and Wilhelm Maybach at Bad Cannstatt, Germany in 1885 designed the first motorcycle and named that Reitwagen ('riding car') (Tony Long, 2007). It was developed as a pragmatic test bed for their new internal combustion engine, rather than a true prototype vehicle, consequently it was not produced commercially. Before Reitwagen, steam propulsion two wheeler have been designed first by French Michaux-Perreaux in 1868 (Setright, 1979), followed by the American Sylvester H. Roper of Roxbury, Massachusetts in 1869 (Falco, Charles M., 1998). Roper also produced 10 more copies of the steam powered bike. Those motorcycle were very different from today’s one, in shape and technology.

Picture 2.1: Replica of the Daimler-Maybach Petroleum Reitwage