Gretl a software for econometrics analysis

Here is a screen shot after program installation and the copy of a dataset from the Wooldridge textbook, "Introductory econometrics"

I ploted the xy scatterplot with wage on the y axis and years of education on the x axis.

The forest cluster concept

Exerpt from Small Processing and Large Clusters:

During the 1990's in different part of Europe, structural problems in the industry and national economies produced an increased interest in the age-old problems of economic development and international competitiveness. The traditional view of competitiveness holds that low prices in key production factors (i.e., wages, raw material, and energy) either in absolute or relative terms, determine the competitive capacity of the enterprise or the country. These are valid arguments for discussion. However, it has been found that higher factory prices can to some extent be compensated by better production technologies and higher productivity.

For example, in some countries the paper industry can raise the public debate on production cost factors - arguing that only companies that manage to cut production costs and increase productivity can prosper in global competition. Consequently, the main issues for the industry will be to cut or at least avoid the increase of labour costs. This should be at a rate greater than the forest industries of competing countries, so as to cut down wood costs at the mill or mitigate rising energy costs. At the same time, the industry tries to keep the productivity growth higher than its competitors.

The Cluster Concept

Other theories have entered into to the debate and including that introduced by Michael Porter (1990) in his book, The Competitive Advantage of Nations. Following his investigation of several countries and industries, Porter concluded that successful firms are seldom alone. Often a company's dominant market share and accelerated growth is supported by a unique combination of firms tied together by knowledge and production flows. He coined the term cluster to pinpoint such a group.