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This paper studies how firm performance is influenced by the strength of the industrial cluster (or industrial district) in which it is located. The paper presents estimates of firm-level growth models for a range of two-digit industries in the UK. In these models, employment in the firm's own sector and employment in other sectors is taken as a measure the strength of the cluster. Strong positive clustering effects are found in many industries, but nevertheless some clustering effects are negative. The strongest cluster effects are found in computer, motor, aerospace and communications manufacturing, along other industries in the financial sector.