National Governors Association

  • 550 views
Uploaded on

 

More in: Technology , Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
550
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
4
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. National Governors Association Clusters and Economic Development June 6-7, 2002 Stuart Rosenfeld Regional Technology Strategies
  • 2. Clusters are economic ecosystems, not membership organizations Rule of Thumb 1 : Select clusters based on systemic relationships that provide market advantage
  • 3. Critical mass attracts externalities, cooperation creates externalities Rule of Thumb 2 : The minimum firm density necessary is what will produce external economies
  • 4. Hard externalities
    • Externality > Benefit
    • Supply chains > efficiency
    • Specialized labor > productivity
    • Specialized services > access
    • More choice > costs, quality
    • Range of firms > joint ventures
  • 5. Soft Externalities
    • Externality > Benefit
    • Association > Vision, planning, influence
    • Trust > Networking
    • Learning (1) > Tech transfer, innovation
    • Learning (2) > Know how
    • Informal Labor Markets > Career ladders
  • 6. Dynamics of Clusters
    • Flows of: Lead to:
    • Information Greater knowledge of markets, labor markets, technologies.
    • Ideas Diffusion of improvement, innovation
    • People Increased experience, career ladders,
    • Goods More efficient value-added chains
    • Services Expanded expertise, choices
    • Capital Support for modernization, startups
  • 7. Boundaries of clusters are determined by members --and are not constraining Rule of Thumb 3 : Boundaries are set by distances people will travel to work, associate, and network
  • 8. Clusters have life cycles Rule of Thumb 4 : Stages of Development of a cluster shape its needs and interests - Embryonic - Growth - Mature - Decaying
  • 9. Success Factors
    • Concepts - Innovation - Imitation and competition - Entrepreneurship
    • Connections - Networks and networking - Connections and Intermediaries
    • Competencies - Specialized labor force - Industry leaders - Talent - Knowledge
  • 10. Common Concerns
    • Can states create clusters?
    • Is there a risk of being too specialized?
    • Do clusters constitute favoritism?
    • Are firms too competitive to cooperate?
    • Is a rural cluster an oxymoron?
    • Will Internet negate proximity advantage?
    • Do clusters serve low income people/places?
    • Do decaying clusters have an afterlife?
  • 11. Origins of Clusters
    • Chance
    • Plastics-combs
    • 1760
    • NC Mass.
    • Labor,wood
    • Furn.-Futorian
    • 1948
    • Tupelo, MS
    • University
    • Biotech-Research
    • 1950
    • San Diego
    • Costs, distr.
    • Toys-Immigrants
    • 1968
    • Los Angeles
    • Local clay
    • Tiles-Rubbiani
    • 1600
    • Sausoulo, IT
    • Chance
    • Carpet-craft tufters
    • 1918
    • Dalton, GA
    • Marine ind.
    • Telecom-SP Radio
    • 1948
    • Aalborg, DK
    • Reason
    • Cluster/Origin
    • Year
    • Cluster
  • 12. State Policies Levers
    • For organizing its service delivery
    • For targeting its investments
    • For strengthening networking opportunities
    • For developing its human resources
  • 13. Understanding Regional Economies
    • Identify clusters - measures of scale & concentration - local views and intelligence
    • Map systemic relationships - competitiveness factors - supply chains - knowledge chains
    • Benchmark against competitors
  • 14. Cluster themes/advantages Prisons, Northern NY Other Software, Fairfield, IA Other Ports, SE Louisiana Distribution Wood, Arkansas Resources New media, Manhattan Skills/talent Optics & imaging, Rochester Technology Aerospace in Seattle Value chain Plastics in CT Process Carpets in Dalton, GA Product
  • 15. MAJOR 2-DIGIT MANUFACTURING SECTORS, 1996-1999 Fabricated Metals Electronic & Other Electric Equipment Industrial Machinery Lumber & Wood Products Furniture & Fixtures Printing & Publishing Food Products Paper Apparel Chemicals Rubber & Plastics Products Textiles Stone, Clay & Glass Products Primary Metal Industries JOB GROWTH, LOW WAGES JOB GROWTH, HIGH WAGES JOB LOSS, LOW WAGES JOB LOSS, HIGH WAGES WAGES, AS % OF NONRETAIL AVG. JOB GROWTH, 1996-99 size of bubble indicates number of employees
  • 16. RHODE ISLAND’S CLUSTERS
    • JEWELRY
    • BOAT BUILDING
    • ELECTRONICS & INSTRUMENTS
    • SOFTWARE
    • TOURISM
    • PRECISION METAL WORKING
    • AQUACULTURE
    • FINANCIAL SERVICES
    • BIOMEDICAL
  • 17. ARIZONA’S CLUSTERS NOW AND THEN
    • 1993
    • AEROSPACE
    • AGRICULTURE, FORESTRY, FOOD
    • BUSINESS SEVICES
    • HEALTH/BIOMEDICINE
    • INFORMATION
    • MINING & MATERIALS
    • OPTICS
    • TOURISM
    • TRANSPORTATION & DISTRIBUTION
    • 2001
    • BIOINDUSTRY
    • ENVIRONMENTAL TECH.
    • FOOD FIBER & NATURAL PRODUCTS
    • HIGH TECHNOLOGY
    • MINING & MATERIALS
    • OPTICS
    • PLASTICS & COMPOSITES
    • SENIOR INDUSTRIES
    • SOFTWARE & INFORMATION
    • TOURISM
  • 18. Cluster Benchmarks
    • R&D capacity • Work force & skills
    • Education & training • Proximity to suppliers
    • Capital availability • Specialized services
    • Tool builders/software • Social capital
    • Entrepreneurship • Innovation/imitation
    • Market leaders • Specialized services
    • External connections • Vision and leadership
  • 19. Measures of Social Capital
    • # of business, trade, professional associations
    • Sector advisory board membership
    • Membership, meetings, attendance
    • Networks formed
    • Civic leadership by businesses
  • 20. Putnam’s Regional Survey Factors
    • Social trust • Informal socializing
    • Interracial trust • Diversity of friends
    • Convent. Politics • Giving, volunteering
    • Protest politics • Faith based engage.
    • Civic leadership • Social cap equality
    • Associational involvement
  • 21. Policies for service delivery
    • Aggregate,collect, sort information by cluster
    • Form cross-agency quick response teams
    • Encourage and support multi-firm activity
    • Build incentives for multi-firm proposals into funding programs
  • 22. Forming Networks
    • Publicize concepts
    • Train brokers
    • Identify multipliers
    • Provide startup incentives
    • Assessment
  • 23. USNet State Programs: Examples
    • Delaware DE Manufacturing Alliance
    • Florida Enterprise Florida
    • Illinois Dept of Com/Comm Affairs
    • Louisiana Depart of Economic Dev.
    • Massachusetts Bay State Skills
    • Minnesota Minnesota Technology
    • New York Empire State Development
    • Oklahoma Alliance for Mfg Excellence
    • Washington Dept of Comm. Development
  • 24. Broker Certification in Arkansas
  • 25.  
  • 26. The Northeast Oklahoma Manufacturers’ Council, Inc.
    • Formed in 1993 as a 501-C3.
    • Began with a few core members locally
    • Grew to around 40 members and held steadily for several years
    • With growth in new economy has grown to over 80+ active members today
    • The NEOMC, Inc. was the first organized collaborative in Oklahoma, now there are over 25!
  • 27. Connecticut Plastics Council: From Network to Cluster
    • 1993: Six companies in Naugatuck Valley approached by MTC
    • 1994: $500,000 ConnSTEP grant
    • 1996: Hartford seminar
    • 1997: Growth to 48 members along Rte 8 corridor, become CPC
    • 1997: Incorporated as 501c3
    • 2001: Officially launched by state as “cluster”
  • 28. Target Investments to clusters
    • Invest in cluster R&D
    • Build cluster-based tech centers/parks
    • Support cluster entrepreneurial activity
    • Employ specialized expertise
    • Market clusters
  • 29. Cluster Technology Centers
    • PT-CAM (Greensboro)
    • CITER (Carpi)
    • TC2 (Raleigh)
    • Advanced Mfg Tech Center (Lynchburg)
    • Candy Institute (Chicago)
    • WIRENet (Cleveland)
  • 30. Strengthen Networking and build bridges
    • Establish/recognize cluster organizations
    • Facilitate external linkages
    • Encourage cluster communications channels
  • 31. Strengthen Networking and build bridges
    • Establish/recognize cluster organizations
    • Facilitate external linkages
    • Encourage cluster communications channels
  • 32. Cluster Organizations
    • Arizona Optics Industry Assoc.
    • CIT.MS
    • Connecticut Plastics Council
    • Carolina Hosiery Assoc.
    • New York New Media Assoc.
    • Tri-State Manufacturers Assoc.
    • Rhode Island Plastics Partnership Council
  • 33. External Linkages are Crucial
    • Prevent lock-in
    • Source of inspiration, innovation
    • Benchmarking
    • Potential markets/customers
  • 34. Legsource Services
    • Industry Communication Infrastructure
    • Maintain Mill Database
    • Assist Mills in Website Development
    • Search for New Ind. Business Opportunities
    • Government Procurement Assistance
    • Video Conferencing Technology
    • E-Commerce Assistance to Suppliers
  • 35. Develop human resources
    • Develop a skilled and specialized labor force
    • Qualify people for cluster employment
    • Establish cluster skill centers
    • Support regional skill alliances
    • Engage CBO intermediaries
  • 36. Actions for Building a Cluster’s Workforce
    • Develop specialized labor force
    • Contextualize curricula
    • Form industry cluster skills hubs
    • Build partnerships between education & clusters
    • Form regional skills alliances
    • Work with non-profits
  • 37. Educational Advantages of Cluster Skills Centers
    • Improves content and quality of E&T (codified knowledge)
    • Increased rates of and means for informal learning (tacit knowledge)
    • Increases access to employment information and opportunities (labor markets)
  • 38. Characteristics of Community College Cluster Hubs
    • Staff experienced in cluster
    • Develops & updates curricula, case studies
    • Engages and works with cluster leaders
    • Technology and market scanning
    • Maintains contacts with other regions
    • Brokers specialized services
    • Conducts needs assessments, research
    • Organizes forums, workshops, study tours
  • 39. Examples of College Hubs
    • Itawamba Community College, MS - Upholstered Furniture Technology Center
    • Catawba Valley Community College, NC - Hosiery Technology Center
    • Northampton Community College , PA- Electrotechnology Applications Center
    • Alabama Southern Community College - Chemical Processing Technology Center
  • 40. Intermediaries that raise incomes, build career ladders
    • Garment Industry Development Corp.
    • Jane Addams Resource Center
    • Wisconsin Regional Training Partnership
    • ACENet
  • 41. Achieving equity
    • Qualify people for employment
    • Include community based intermediaries in clusters
    • Provide incentives and subsidies
    • Support industry networks in distressed areas
    • Encourage social responsibility
  • 42. Stuart A. Rosenfeld Regional Technology Strategies, Inc. Carrboro, NC 27510 919-933-6699 [email_address] WWW.RTSINC.ORG