2 Clustering, a way to promote SMEs and local economic developmentSilicon Valley is as Santa Clara is known, the South Bay portion of San Francisco Bay in Northern California, United States. The pseudonym Silicon Valley comes from the association of the semiconductor chip manufacturing industry that uses silicon, fine sand, as its basic raw material. Its name is no longer associated with the raw material but with the most famous high-tech cluster in the world. This 1,290.10 square mile area is home to most of the headquarters of the largest technology companies, for example: Google, Intel, Apple Inc., Symantec, Hewlett Packard, and Facebook. In order to gain the productivity and innovation benefits that are achieved in Silicon Valley, high-tech companies based in other locations (both foreign and domestic), such as Dell, Sony, Nokia, and Siemens, have created subsidiaries in this cluster .2.1 Clusters According to Michael E. Porter (2000), clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, companies in related industries, and associated institutions (e.g., universities, standards agencies, and trade associations) in a particular field that compete but also cooperate. Its geographic concentration ranges from a state, a single city or nearby and bordering countries. As expected, clusters with more sophisticated and higher levels of competitive development are found in industrialized countries. In each of these countries it is possible to find clusters that have achieved world leadership in their sectors; such as the insulin cluster in Denmark, flowers in Holland, cork in Portugal and footwear, clothing and high fashion... middle of the paper... king of the domestic market demand for the products of the sector or service, refers the degree of market demand and the identification of demanding markets and customers. • Related and supporting industries: Existence of supplier industries in the country or other related industries that influence the development of companies. • Business Strategy, Structure and Rivalry: Refers to the rules and norms that govern companies and also their local competitors. To obtain the benefits of conglomeration: increase the productivity of companies and their sector, improve their innovative capabilities and encourage entrepreneurs to generate new companies; it is necessary that these factors and the relationship between them are adequate. This will also allow businesses, regions and countries to gain competitive advantages and not settle for comparative advantages alone.