A cluster is a geographic concentration of interconnected businesses, suppliers, and associated institutions in a particular field. Clusters increase the productivity of participating firms and drive innovation forward.
Cluster, also known as a business cluster, competitive cluster, or Porterian cluster, was introduced and the term cluster popularized by Michael Porter.
The City of Toronto is recognized around the world as Canada’s national centre for financial services.
Toronto is home to the headquarters of Canada’s five largest banks and to approximately 80% of the headquarters of foreign banks operating in Canada.
The Toronto Stock Exchange is the largest exchange in Canada.
About the Finance Cluster
Financial services contribute significantly to the nation’s total exports, GDP and employment.
Ontario is the only province with a trade surplus in financial services with inter-provincial trade expanding at an annual growth rate of 7% since 1992.
Issues facing the Finance Cluster
The financial services sector is experiencing a period of instability as forces of change with respect to globalization, regulatory changes, consolidations, and advances in technology change the entire context of financial services throughout the world.
The cluster must push for global recognition.
Areas in which to Grow
Strides toward improved post secondary options in financial services will help to sustain further cluster growth.
Mississauga: Cluster Member
Mississauga, with strength in a broad range of business sectors, is home to one of Canada’s largest Finance, Insurance and Real Estate (FIRE) clusters.
Companies in the FIRE sector are attracted to Mississauga due to its culturally diverse labour force and vast pool of highly skilled and knowledgeable people; its well-developed transportation
net work; its state-of-the-art telecommunication infrastructure; and its
close proximity to Canada’s financial centre.
Mississauga: Cluster Member cont.
These healthy economic factors have
contributed to the unprecedented growth in the FIRE sector.
• The City of Mississauga’s FIRE sector is the third largest in Canada
• Mississauga’s FIRE sector employs more than 23,500 people
• Direct GDP contribution to the Mississauga region was estimated at $5.9 billion (2002)
• Combined direct and indirect GDP contribution to the Mississauga region is
estimated at $10.5 billion (2002)
• Over 70% of all Canadian banks and insurance companies are headquartered in
the Greater Toronto Area (GTA)
• The FIRE sector is the single largest contributor to the Canadian economy
London Financial Cluster
London has over 50 per cent of UK employment in management of financial markets, venture capital, security broking and trading, funds and management and bank HQs.
The financial cluster generates large scale demand for telecommunication services, consultancy, legal services, software, data processing and information
New York Financial Cluster
The Financial Services cluster consists of firms in three major sub-clusters – banking, securities and insurance.
Financial services employment in New York was 500,899 in 2001, about 7.3% of New York’s private sector employment.
New York City had the greatest concentration of employment in financial services in New York State. Two-thirds of the state’s financial services employment is in New York City.
Advantages of the Toronto Cluster
Toronto is a significant economic center with:
entertainment design, and
The most diverse population in the world
Like London, but unlike most major U.S. cities, Toronto offers schools that work, low crime, and safe streets. Unlike London — or New York, Los Angeles, and San Francisco — Toronto also remains reasonably affordable, which allows it to retain residents from a wide mix of social and economic classes.
The End Thank you sources: Who’s Your City?: How the Creative Economy Is Making Where to Live the Most Important Decision of Your Life by Richard Florida http://www.berr.gov.uk/files/file21312.pdf http://www.omicc.ca/benefits-2.html http://www.toronto.ca/invest-in-toronto/clusteroverview.htm