Small Fast Growing Dynamic Economies in Europe : A Case Study of the Port Cities of Klaipeda and Cork

Abstract: The future economic potential of Klaipėda, Lithuania is considered in view its position as a port city and in view of the historical, political and social transitions that have culminated in adoption of a liberal free trade based economy and accession to the EU. Cork, Ireland is used as a comparison port city which has developed rapidly in the last several decades. The economic cluster concept, with particular emphasis on the cultural dimension, is used as a development model framework within which the economic potential is considered. Several aspects of close correspondence between the two cities are found, but differences are also identified and neither city is found to exhibit clear examples of clusters. Klaipėda is shown to have advantages that could enhance its potential to develop quickly if local policy choices are consistently directed toward creating a stable economic environment conducive to adaptable, knowledge based business activity.