Wyoming Competitiveness:                                   State and Cluster Economic Performance                         ...
Wyoming Performance Snapshot                                                Position                         Trend        ...
State Comparative PerformanceNGA 2011 – Wyoming – Rich Bryden                3                  Copyright © 2011 Professor...
Wyoming Competitiveness                                              Overall Economic Performance Indicators              ...
Long Term State Prosperity Performance                                                                                    ...
Near Term State Prosperity Performance                                                                                    ...
State Private Sector Wage Performance                                                                                   19...
Long Term State Labor Productivity Performance                                                                            ...
Near Term State Labor Productivity Performance                                                                            ...
Long Term State Job Growth                                                                         2000 to 2010           ...
Near Term State Job Growth                                                                                  2007 to 2010  ...
Long Term State Unemployment Rate                                                                                  2000 to...
Near Term State Unemployment Rate                                                                                 2007 to ...
Long Term State Patenting Performance                                                                                     ...
Wyoming Patents by Organization                                                                      Patents              ...
The Impact of Cluster Mix and Cluster Strength on Wages                                                                   ...
Effect of Urban and Rural Areas on Average State Wages                                                                    ...
Composition of the Wyoming Economy                                        and Cluster PerformanceNGA 2011 – Wyoming – Rich...
Composition of Regional Economies, United States                                                                          ...
Overall Composition of the Wyoming Economy, 2008                     80%                     70%                          ...
Composition of the Wyoming Economy                                            Employment by Traded Cluster, 2008          ...
Composition of the Wyoming Economy                                                                 Specialization by Trade...
Composition of the Wyoming Economy                                                                 Specialization by Trade...
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
Wyoming Competitiveness: State and Cluster Economic Performance
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Wyoming Competitiveness: State and Cluster Economic Performance

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Harvard Business School
Professor Michael E. Porter
National Governors Association Winter Meeting
February 26, 2011

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Wyoming Competitiveness: State and Cluster Economic Performance

  1. 1. Wyoming Competitiveness: State and Cluster Economic Performance Prepared for Governor Matthew Mead Professor Michael E. Porter National Governors Association Winter Meeting February 26, 2011NGA 2011 – Wyoming – Rich Bryden 1 Copyright © 2011 Professor Michael E. Porter
  2. 2. Wyoming Performance Snapshot Position Trend Prosperity Productivity Labor Mobilization Top quintile Innovation 2nd quintile 3rd quintile 4th quintile Cluster Strength Lowest quintile • Oil and Gas Products and Services Leading Clusters • Chemical ProductsNGA 2011 – Wyoming – Rich Bryden 2 Copyright © 2011 Professor Michael E. Porter
  3. 3. State Comparative PerformanceNGA 2011 – Wyoming – Rich Bryden 3 Copyright © 2011 Professor Michael E. Porter
  4. 4. Wyoming Competitiveness Overall Economic Performance Indicators Prosperity Cluster Gross State Product per capita, 2009 Share of State Traded Employment in Strong Clusters, 2008 • In Wyoming: $68,981 Rank: 2 • In Wyoming: 32.5% Rank: 32 • In the US: $46,093 • In the US: 41.8% • State difference to US: 49.7% Change in Share of National Employment in Strong Clusters, 1998-2008 Growth in Gross State Product per capita, real annual rate, 1999-2009 • In Wyoming: 1.13% Rank: 3 • In Wyoming: 2.75% Rank: 2 • In the US: -0.06% • In the US: 0.86% Share of Employment in Traded Clusters, 1998-2008 • In Wyoming: 30.0% Rank: 11 • In the US: 27.4% Productivity Gross State Product per labor force participant, 2009 Change in Share of Employment in Traded Clusters, 1998-2008 • In Wyoming: $128,349 Rank: 3 • In Wyoming: 5.0% Rank: 1 • In the US: $92,382 • In the US: -2.2% • State difference to US: 38.9% Labor Mobilization Growth in Gross State Product per labor force participant*, 1999-2009 • In Wyoming: 2.83% Rank: 3 Population, 2009 • In the US: 1.09% • In Wyoming: 544,269 Rank: 51 • % of US: 0.18% Average private wage, 2008 • In Wyoming: $39,957 Rank: 20 Population growth, annual rate, 1999-2009 • In the US: $42,435 • In Wyoming: 1.02% Rank: 18 • State difference to US: -5.8% • In the US: 0.96% Private wage Growth, annual rate, 1998-2008 Labor Force Participation, 2009 • In Wyoming: 5.10% Rank: 1 • In Wyoming: 71.6 Rank: 7 • In the US: 3.32% • In the US: 65.4 Employment, 2010 (December) • In Wyoming: 274,329 Rank: 52 Innovation Output • % of US: 0.20% Patents Per 10,000 Employees, 2009 • In Wyoming: 2.66 Rank: 37 Employment growth, annual rate, 2000-2010 (December) • In the US: 6.83 • In Wyoming: 0.65% Rank: 10 • In the US: 0.11% Growth in total patents, annual rate, 1998-2009 • In Wyoming: 2.49% Rank: 4 Unemployment, 2010 (December) • In the US: 0.23% • In Wyoming: 6.4% Rank: 7 • In the US: 9.4% Traded establishment formation, annual growth rate, 1998-2008 • In Wyoming: 3.00% Rank: 8 Change in Unemployment, 2000-2010 (December) • In the US: 1.79% • In Wyoming: 2.6% Rank: 5 • In the US: 5.5%NGA 2011 – Wyoming – Rich Bryden 4 Copyright © 2011 Professor Michael E. Porter
  5. 5. Long Term State Prosperity Performance 1999 to 2009 $70,000 U.S. GDP per Capita Wyoming Delaware Real Growth Rate: 0.86% High but declining Alaska High and rising $65,000 versus U.S. Connecticut prosperity versus U.S. $60,000 Gross Domestic Product per Capita, 2009 New York New Jersey $55,000 Massachusetts Virginia Washington California Hawaii $50,000 Maryland North Dakota Colorado Nevada Illinois Minnesota U.S. GDP per Nebraska Iowa South Dakota Capita: $46,093 Louisiana Texas New Hampshire Rhode Island $45,000 Kansas Pennsylvania Oregon North Carolina Wisconsin Indiana Oklahoma Ohio Utah Vermont $40,000 Georgia Missouri Florida Tennessee Arizona Maine Michigan Kentucky Montana New Mexico Alabama $35,000 West Virginia Arkansas Idaho South Carolina Low and declining Mississippi Low but rising versus U.S. versus U.S. $30,000 -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% Gross Domestic Product per Capita Real Growth Rate, 1999 to 2009Notes: Real GDP figures in 2005 chained US dollars from the Bureau of Economic Analysis. Growth rate is calculated as compound annual growth rate. D.C. excludedNGA 2011 – Wyoming – Rich Bryden 5 Copyright © 2011 Professor Michael E. Porter
  6. 6. Near Term State Prosperity Performance U.S. States, 2007 to 2009 $70,000 High but declining versus U.S. Wyoming Delaware Alaska High and rising $65,000 Connecticut prosperity versus U.S. U.S. GDP per Capita Real Growth Rate: -1.87% $60,000 Gross Domestic Product per Capita, 2009 New York New Jersey Massachusetts $55,000 Washington Virginia California Hawaii Colorado Maryland North Dakota $50,000 Nevada Illinois Minnesota Nebraska Iowa South Dakota Texas Louisiana New Hampshire U.S. GDP per $45,000 Rhode Island Kansas Pennsylvania Capita: $46,093 Oregon North Carolina Wisconsin Indiana Oklahoma Ohio Vermont Georgia Utah Missouri $40,000 Florida Arizona Tennessee Maine Michigan Montana New Mexico Kentucky $35,000 Alabama Arkansas South Carolina Idaho West Virginia Mississippi Low and declining versus U.S. Low but rising versus U.S. $30,000 -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% Gross Domestic Product per Capita Real Growth Rate, 2007 to 2009Notes: Real GDP figures in 2005 chained US dollars from the Bureau of Economic Analysis. Growth rate is calculated as compound annual growth rate.NGA 2011 – Wyoming – Rich Bryden 6 Copyright © 2011 Professor Michael E. Porter
  7. 7. State Private Sector Wage Performance 1998-2008 $60,000 High but declining versus U.S. High and rising wages New York relative to U.S. U.S. Average Wage Growth: 3.32% $55,000 Connecticut Massachusetts New Jersey $50,000 AlaskaAverage Wage, 2008 California Illinois Washington $45,000 Delaware Maryland U.S. Average Minnesota Virginia Wage: $ 42,435 Colorado Texas Pennsylvania New Hampshire Michigan Rhode Island $40,000 Oregon Georgia Wyoming Ohio Wisconsin Arizona Missouri Nevada Louisiana North Carolina Kansas Tennessee Florida Indiana Utah Hawaii Oklahoma Maine Nebraska $35,000 Kentucky New Mexico Iowa Vermont South Carolina Idaho Arkansas North Dakota Alabama West Virginia South Dakota Low and declining versus U.S. Mississippi Montana Low but rising versus U.S. $30,000 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% Wage Growth (CAGR), 1998-2008Source: Census CBP report; private, non-agricultural employment. Growth is calculated on nominal wage levels.NGA 2011 – Wyoming – Rich Bryden 7 Copyright © 2011 Professor Michael E. Porter
  8. 8. Long Term State Labor Productivity Performance 1999-2009 $150,000 High but declining versus U.S. U.S. GDP per Labor Force Participant Real Growth: 1.09% Highly productive and Delaware productivity rising versus U.S.Gross Domestic Product per Labor Force Participant, 2009 $140,000 $130,000 Alaska Wyoming Connecticut $120,000 New York $110,000 New Jersey Massachusetts Hawaii Louisiana California $100,000 Virginia Washington Illinois Maryland Colorado U.S. GDP per Labor Force Nevada Texas Participant: $92,382 $90,000 North Carolina Minnesota Nebraska North Pennsylvania Oklahoma Utah Dakota Georgia Indiana Rhode Island Iowa South Oregon Arizona Alabama Ohio Tennessee Wisconsin Kansas Dakota $80,000 Missouri Florida West Virginia New Mexico Michigan New Hampshire Mississippi Kentucky Arkansas South Carolina Maine Montana Idaho $70,000 Vermont Low and declining versus U.S. Low but rising versus U.S. $60,000 -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% Gross Domestic Product per Labor Force Participant Real Growth Rate, 1999-2009Source: Bureau of Economic Analysis. Notes: Growth rate calculated as compound annual growth rate (CAGR).NGA 2011 – Wyoming – Rich Bryden 8 Copyright © 2011 Professor Michael E. Porter
  9. 9. Near Term State Labor Productivity Performance 2007-2009 $150,000 High but declining versus U.S. Highly productive and $140,000 Delaware productivity rising versus U.S. U.S. GDP per Labor ForceGross State Product per Labor Force Participant, 2009 Participant Real Growth: -0.97% $130,000 Wyoming Alaska $120,000 Connecticut New York $110,000 New Jersey Massachusetts California Hawaii $100,000 Virginia Louisiana Washington Maryland Illinois Colorado U.S. GDP per Labor Force Texas Nevada Participant: $92,382 $90,000 Minnesota South North Carolina Pennsylvania Nebraska Dakota Oklahoma North Dakota Oregon Georgia Indiana Utah Iowa Rhode Island Alabama Arizona Wisconsin West Virginia $80,000 Florida Ohio New Mexico Missouri Michigan Arkansas South Carolina Kentucky Mississippi Maine Idaho Montana $70,000 Vermont Kansas Tennessee Low and declining versus U.S. New Hampshire Low but rising versus U.S. $60,000 -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% Gross State Product per Labor Force Participant Real Growth Rate, 2007-2009Source: Bureau of Economic Analysis. Notes: Growth rate calculated as compound annual growth rate (CAGR).NGA 2011 – Wyoming – Rich Bryden 9 Copyright © 2011 Professor Michael E. Porter
  10. 10. Long Term State Job Growth 2000 to 2010 9,000,000 California (15,945,558) New York Texas (11,202,388) Florida 8,000,000 U.S. Average Growth Rate: 0.11% 7,000,000 6,000,000 IllinoisNumber of Jobs 2010 Pennsylvania Ohio 5,000,000 Michigan Georgia New Jersey North Carolina 4,000,000 Virginia Massachusetts Washington 3,000,000 Indiana Wisconsin Maryland Arizona Tennessee Minnesota Missouri Colorado Louisiana 2,000,000 Alabama Kentucky South Carolina Oregon Connecticut Iowa Kansas Mississippi Oklahoma Arkansas Nevada Utah 1,000,000 Nebraska New Hampshire New Mexico West Virginia Rhode Island Maine Hawaii Idaho Delaware Montana North South Dakota Vermont Dakota Alaska Wyoming 0 -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% Losing Jobs Job Growth Rate (CAGR), 2000-2010 Gaining JobsSource: Bureau of Labor StatisticsNGA 2011 – Wyoming – Rich Bryden 10 Copyright © 2011 Professor Michael E. Porter
  11. 11. Near Term State Job Growth 2007 to 2010 9,000,000 California (15,945,558) Texas (11,202,388) New York Florida 8,000,000 U.S. Average Growth Rate: -1.52% 7,000,000 Illinois 6,000,000Number of Jobs 2010 Pennsylvania Ohio 5,000,000 Michigan Georgia North Carolina New Jersey Virginia 4,000,000 Massachusetts Washington 3,000,000 Wisconsin Arizona Indiana Minnesota Missouri Tennessee Maryland Colorado 2,000,000 Alabama Kentucky South Carolina Oregon Louisiana Oklahoma Connecticut Utah Arkansas Iowa Nevada Kansas Mississippi 1,000,000 West Virginia New Mexico Idaho Nebraska New Hawaii Maine Delaware Hampshire North Dakota Montana Rhode Island South DakotaVermont Alaska Wyoming 0 -4.0% -3.5% -3.0% -2.5% -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% Losing Jobs Job Growth Rate (CAGR), 2007-2010 Gaining JobsSource: Bureau of Labor StatisticsNGA 2011 – Wyoming – Rich Bryden 11 Copyright © 2011 Professor Michael E. Porter
  12. 12. Long Term State Unemployment Rate 2000 to 2010 3.0 % Below average unemployment North Dakota Nebraska South Dakota % 5.0 New Hampshire Vermont Iowa Wyoming Hawaii Virginia Oklahoma Kansas Unemployment Rate, 2010 % 7.0 Minnesota Maine Maryland Montana Wisconsin Utah Massachusetts New York Arkansas Louisiana Alaska Delaware Texas New New Mexico Colorado Pennsylvania Jersey Alabama U.S. Average % 9.0 Connecticut Illinois Washington Missouri Unemployment Rate: 9.4% Indiana Ohio Idaho West Virginia North Carolina Georgia Mississippi Kentucky Oregon Tennessee South Carolina 11.0 % Arizona Rhode Island Florida Michigan California % 13.0 Change in US Average Employment Rate: 5.5% Above average Nevada Unemployment rising unemployment 15.0 % % 10.0 % 9.0 % 8.0 % 7.0 % 6.0 % 5.0 % 4.0 % 3.0 % 2.0 % 1.0 % 0.0 Change in Employment Rate, 2000 to 2010Source: Bureau of Labor StatisticsNGA 2011 – Wyoming – Rich Bryden 12 Copyright © 2011 Professor Michael E. Porter
  13. 13. Near Term State Unemployment Rate 2007 to 2010 3.0 % Below average Change in US Average North unemployment Employment Rate: 4.4% Dakota Nebraska South Dakota % 5.0 New Hampshire Vermont Wyoming Hawaii Iowa VirginiaUnemployment Rate, 2010 Kansas % 7.0 Oklahoma Minnesota Montana Maine Utah Maryland Wisconsin Louisiana Arkansas New York Alaska Delaware Texas New Mexico Washington Pennsylvania Massachusetts Colorado U.S. Average % 9.0 Alabama Connecticut Idaho Arizona Missouri Illinois Unemployment Rate: 9.4% Indiana Tennessee West Virginia Ohio North Carolina Georgia Mississippi Oregon Kentucky 11.0 % South Carolina New Jersey Rhode Island Florida Michigan California % 13.0 Nevada Unemployment rising Above average unemployment 15.0 % % 10.0 % 9.0 % 8.0 % 7.0 % 6.0 % 5.0 % 4.0 % 3.0 % 2.0 % 1.0 % 0.0 Change in Employment Rate, 2007 to 2010Source: Bureau of Labor StatisticsNGA 2011 – Wyoming – Rich Bryden 13 Copyright © 2011 Professor Michael E. Porter
  14. 14. Long Term State Patenting Performance U.S. States, 1999 to 2009 14 High and declining Idaho U.S. average Growth Rate innovation of Patenting: -0.30% California 12 Vermont Massachusetts Washington (+8.0%, 13.53) Oregon (+4.9%, 10.31)Patents per 10,000 Employees, 2009 10 Minnesota Connecticut High and improving 8 Delaware New Hampshire innovation rate versus U.S. Michigan New Jersey Colorado New York 6 Texas Utah Arizona U.S. average Patents per Wisconsin 10,000 Employees: 5.96 Illinois Pennsylvania Rhode Island Ohio Maryland North Carolina Iowa 4 Indiana New Mexico Kansas Georgia Florida Missouri Virginia Montana (-5.7%, 1.58) Nevada South Carolina North Dakota Louisiana (-6.0%, 1.34) Tennessee Nebraska Wyoming 2 Kentucky Arkansas (-6.9%, 0.76) Oklahoma Maine Alabama West Virginia Mississippi Hawaii South Dakota Alaska Low and declining innovation Low and improving innovation 0 -5% -4% -3% -2% -1% 0% 1% 2% 3% Growth Rate of Patenting, 1999 to 2009 3,000 patents issued in 2009 =Source: USPTO, Bureau of Labor Statistics. Note: Growth rate calculated as compound annual growth rate (CAGR).NGA 2011 – Wyoming – Rich Bryden 14 Copyright © 2011 Professor Michael E. Porter
  15. 15. Wyoming Patents by Organization Patents Patents Rank Organization Rank Organization 2005-2009 2005-2009 1 University Of Wyoming 14 25 International Business Machines 1 Corporation 2 General Electric Company 6 25 Marathon Oil Company 1 2 Alces Technology, Inc. 6 25 Proxim, Inc. 1 4 University Of Wyoming Research 5 25 Scripps Research Institute 1 Corporation 5 Conair, Inc. 4 25 Teledyne Industries, Inc., Teledyne Water 1 Pik 5 In-Situ; Inc. 4 25 Unicover Corporation 1 5 WoodworkerS Supply, Inc. 4 25 University Of Texas 1 5 Biolase Technology, Inc. 4 25 Stanford University 1 9 Stratagene 3 25 En Novative Technologies, Inc. 1 9 Halliburton Energy Services, Inc. 3 25 Harsco Technologies Corporation 1 9 Medicinelodge, Inc. 3 25 Collaboration Properties, Inc. 1 9 Abet Technologies, Llc 3 25 Bettina Corporation 1 9 Tgi, Inc. 3 25 Bpb Plc 1 14 Coe Manufacturing Company 2 25 Automated Merchandising Systems, Inc. 1 14 Weatherford/Lamb, Inc. 2 25 Cardinal Glass Industries, Inc. 1 14 Defense Technology Corporation Of 2 25 Shoot The Moon Products Ii, Llc 1 America 14 Dow Agrosciences Llc 2 25 Mountain Engineering Ii. Inc. 1 14 B & B Homes Corp. 2 25 Bonfire Snowboarding, Inc. 1 14 Aerocast.Com, Inc. 2 25 Taser International, Inc. 1 14 Acueity, Inc. 2 25 The Brunton Company, Inc. 1 14 Ec Ranch 2 25 Signature Control Systems 1 14 Yates Petroleum Corporation 2 25 Electronic Classroom Furniture System, Lc 1 14 Particle Drilling Technologies, Inc. 2 25 Depuy Mitek, Inc. 1 14 Mine Rite Technologies, Llc 2 25 Chap Up, Llc 1 25 General Instrument Corporation 1 25 Valentx, Inc. 1 Universities and Research Institutions Government OrganizationsSource: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director.NGA 2011 – Wyoming – Rich Bryden 15 Copyright © 2011 Professor Michael E. Porter
  16. 16. The Impact of Cluster Mix and Cluster Strength on Wages U.S. States, 2008 State Traded State Traded Wage versus Relative Wage versus Relative National Cluster Mix Cluster National Cluster Mix Cluster State Average Effect Wage Effect State Average Effect Wage Effect New York + 34,578 5,188 29,390 North Carolina -10,673 -5,131 -5,543 Connecticut + 20,008 6,898 13,109 Missouri -10,953 -1,634 -9,319 Massachusetts + 17,308 5,191 12,117 Rhode Island -11,089 -1,370 -9,719 New Jersey + 12,157 4,638 7,519 Florida -11,780 -1,473 -10,307 California + 9,597 121 9,476 Oklahoma -12,225 1,533 -13,758 Maryland + 6,435 2,778 3,657 Alabama -12,301 -4,713 -7,588 Washington + 4,827 3,058 1,769 Tennessee -13,063 -3,987 -9,076 Virginia + 2,550 945 1,605 Vermont -13,095 -2,936 -10,159 Illinois + 2,501 -61 2,562 Indiana -13,309 -5,495 -7,814 Alaska + 2,386 -3,044 5,431 Nebraska -14,659 41 -14,699 Texas +1,400 2,796 -1,396 Utah -14,947 327 -15,274 Colorado + 753 2,292 -1,539 South Carolina -15,256 -5,694 -9,562 Delaware + 612 13,346 -12,733 Nevada -15,429 -2,829 -12,600 Louisiana -4,172 573 -4,745 Maine -15,826 -726 -15,100 Minnesota -4,404 43 -4,448 North Dakota -16,437 2,940 -19,378 Wyoming -4,423 1,408 -5,831 Iowa -16,963 -2,602 -14,361 Michigan -4,981 -2,534 -2,447 New Mexico -16,991 -125 -16,866 Pennsylvania -5,182 -1,064 -4,118 Kentucky -17,303 -5,013 -12,291 New Hampshire -6,359 1,224 -7,584 West Virginia -17,357 -4,290 -13,067 Georgia -7,262 -1,923 -5,338 Arkansas -17,616 -5,171 -12,445 Arizona -8,662 1,557 -10,219 Hawaii -18,103 -14,124 -3,980 Kansas -8,828 1,820 -10,648 Idaho -18,636 -1,567 -17,069 Ohio -9,766 -1,436 -8,330 Mississippi -20,859 -6,165 -14,694 Oregon -9,774 -2,355 -7,420 South Dakota -21,211 955 -22,166 Wisconsin -10,479 -3,341 -7,138 Montana -22,488 -3,494 -18,994 Cluster mix: a region’s particular mix of lower and higher average wage clusters Relative cluster wage: a region’s cluster wage relative to the average national wage in that cluster The cluster mix and the cluster wage level effects add up to the total difference between a region’s average wage and the national average wage. On average, the wage level effect is responsible for 76.3% of the total difference in state wages to the national average.NGA 2011 – Wyoming – Rich Bryden 16 Copyright © 2011 Professor Michael E. Porter
  17. 17. Effect of Urban and Rural Areas on Average State Wages U.S. States, 2008 Average Average Overall Overall Wage Relative Relative Wage Relative Relative Difference Metro- Metro Rural Difference Metro- Metro Rural State to U.S. Rural Mix Wage Wage State to U.S. Rural Mix Wage Wage New York + 15,412 982 14,078 353 Nevada -4,560 815 -5,752 377 Connecticut + 10,919 1,013 9,592 315 Louisiana -4,739 -630 -4,764 655 Massachusetts + 10,197 1,674 8,333 190 Kansas -5,371 -2,175 -2,535 -661 New Jersey + 8,488 1,631 6,765 92 North Carolina -5,505 -1,262 -3,796 -446 Alaska + 6,538 -1,438 5,158 2,818 Tennessee -5,992 -538 -4,973 -481 California + 5,584 1,476 3,844 265 Florida -6,132 -128 -6,074 70 Illinois + 3,427 411 3,277 -261 Indiana -6,225 -630 -5,665 70 Washington + 3,013 832 2,122 58 Oklahoma -6,501 -2,030 -4,496 25 Delaware + 2,664 -191 2,895 -40 Hawaii -6,583 -1,892 -4,871 179 Maryland + 2,201 1,159 775 267 Utah -7,054 169 -7,273 50 Virginia +1,182 509 709 -36 Vermont -7,280 -6,080 -968 -232 Minnesota +1,024 -903 2,130 -202 Nebraska -7,419 -2,652 -3,621 -1,146 Colorado +539 -110 -66 714 Alabama -7,544 -1,206 -5,701 -636 Texas +325 350 -234 209 Maine -7,697 -2,479 -5,243 24 New Hampshire -504 -2,856 924 1,428 Kentucky -7,978 -2,179 -5,285 -515 Pennsylvania -1,184 262 -1,480 34 Iowa -8,096 -3,123 -4,509 -464 Michigan -1,785 -165 -1,576 -44 New Mexico -8,531 -1,843 -6,548 -140 Rhode Island -2,143 1,720 -3,846 -17 South Carolina -9,137 -609 -8,203 -325 Wyoming -2,478 -6,929 -2,304 6,755 Arkansas -9,482 -2,207 -6,283 -992 Georgia -3,136 -120 -2,542 -475 Idaho -9,766 -1,928 -6,872 -966 Ohio -3,925 -224 -3,799 98 North Dakota -9,973 -2,963 -6,607 -403 Arizona -3,962 937 -4,897 -2 West Virginia -10,074 -3,104 -7,013 43 Oregon -4,116 -359 -3,505 -251 South Dakota -10,976 -3,811 -5,475 -1,690 Wisconsin -4,336 -910 -3,419 -7 Mississippi -11,446 -4,569 -5,493 -1,383 Missouri -4,540 -573 -3,103 -865 Montana -11,792 -5,468 -5,495 -829 Metro-rural mix: average wage impact from a state’s relative proportion of metro and rural regions Relative metro wage: average wage impact from state relative performance in metro regions Relative rural wage: average wage impact from state relative performance in rural regions On average 66.3% of the average wage gap in a state is due to the metro wage effect.Note: Data are based on private, non-agricultural employment.Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director.NGA 2011 – Wyoming – Rich Bryden 17 Copyright © 2011 Professor Michael E. Porter
  18. 18. Composition of the Wyoming Economy and Cluster PerformanceNGA 2011 – Wyoming – Rich Bryden 18 Copyright © 2011 Professor Michael E. Porter
  19. 19. Composition of Regional Economies, United States Traded Clusters • Serve markets in other regions and countries • Free to choose location • Exposed to competition Local Clusters 27.4% of from other regions employment • Serve almost 37.3% of income exclusively the local market 71.7% of 96.4% of patents employment • Not exposed to 61.8% of income cross-regional competition for 3.5% of patents employment Resource-based Clusters • Location determined by resource availability • <1% of income,Source: Michael E. Porter, Economic Performance of Regions, Regional Studies (2003); Updated via employment, and patents inCluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School (2008) the U.S.NGA 2011 – Wyoming – Rich Bryden 19 Copyright © 2011 Professor Michael E. Porter
  20. 20. Overall Composition of the Wyoming Economy, 2008 80% 70% US WY 71.7%Private Employment 60% 66.7% 50% 40%Percent of Total 30% WY US 20% 29.5% 27.4% 10% WY 3.9% US 0.9% 0% Traded Clusters Local Clusters Natural Endowment DependentNote: Data throughout this section of the report are based on private, non-agricultural employment.Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director.NGA 2011 – Wyoming – Rich Bryden 20 Copyright © 2011 Professor Michael E. Porter
  21. 21. Composition of the Wyoming Economy Employment by Traded Cluster, 2008 Rank in US Oil and Gas Products and Services 6 19,312 Heavy Construction Services 38 11,017 Hospitality and Tourism 46 10,635 Business Services 51 5,484 Entertainment 47 3,347 Transportation and Logistics 47 2,564 Chemical Products 35 2,327 Distribution Services 50 1,578 Education and Know ledge Creation 51 1,363 Financial Services 51 1,349 Pow er Generation and Transmission 45 707 Publishing and Printing 50 651 Building Fixtures, Equipment and Services 48 650 Information Technology 51 628 Metal Manufacturing 48 623 Heavy Machinery 45 500 Production Technology 48 485 Prefabricated Enclosures 39 445 Agricultural Products 47 431 Plastics 47 395 Processed Food 50 331 Motor Driven Products 44 235 Construction Materials 49 200Sporting, Recreational and Childrens Goods 42 185 Automotive 48 170 Furniture 48 160 Leather and Related Products 45 140 Biopharmaceuticals 47 130 Analytical Instruments 48 110 Apparel 44 90 Aerospace Vehicles and Defense 45 63 Forest Products 50 60 Textiles 49 50 Lighting and Electrical Equipment 49 20 Jew elry and Precious Metals 50 20 Tobacco 29 10 Medical Devices 51 10 Fishing and Fishing Products 49 10 Wyoming overall employment rank = 51 Aerospace Engines 45 10 0 5,000 10,000 15,000 20,000 25,000 Employment, 2008Note: Ranks are among the 50 US states plus the District of Columbia.Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director.NGA 2011 – Wyoming – Rich Bryden 21 Copyright © 2011 Professor Michael E. Porter
  22. 22. Composition of the Wyoming Economy Specialization by Traded Cluster, 1998 to 2008 Oil and Gas Heavy Products 0.7% Construction and Services Services Overall change in the (+1.19%, 3.37%) Wyoming Share of US Traded Employment: +0.07%Wyoming’s national employment share, 2008 0.6% Chemical Products 0.5% Hospitality and Tourism 0.4% Power Generation and Transmission Entertainment Sporting, 0.3% Recreational and Children’s Goods Wyoming Overall Share of US Prefabricated Traded Employment: 0.20% 0.2% Enclosures Heavy Machinery Construction Employment Materials 1998-2008 0.1% Added Jobs Motor Driven Products Lost Jobs 0.0% -0.20% -0.10% 0.00% 0.10% 0.20% 0.30% 0.40% Change in Wyoming share of National Employment, 1998 to 2008 Employees 3,500 =Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director.NGA 2011 – Wyoming – Rich Bryden 22 Copyright © 2011 Professor Michael E. Porter
  23. 23. Composition of the Wyoming Economy Specialization by Traded Cluster, 1998 to 2008 Heavy Agricultural Machinery Products 0.14% Leather and Related Transportation and Products LogisticsWyoming’s national employment share, 2008 0.12% Building Construction Fixtures, Materials Equipment Business Services and Services 0.10% Motor Driven Products 0.08% Distribution Services Publishing Production and Printing Technology Furniture Information Technology Financial Services 0.06% Plastics Metal Apparel Manufacturing Biopharmaceuticals 0.04% Education and Knowledge Processed Creation Food Analytical Instruments Employment Textiles 1998-2008 0.02% Forest Products Added Jobs Automotive Lost Jobs 0.00% -0.05% -0.03% -0.01% 0.01% 0.03% 0.05% 0.07% Change in Wyoming share of National Employment, 1998 to 2008 Employees 3,500 =Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director.NGA 2011 – Wyoming – Rich Bryden 23 Copyright © 2011 Professor Michael E. Porter
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