Cortright Cluster Seattle 2009


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Content Technology Cluster Presentation

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  • The region has build more green buildings than any other US city. The result has been to build the capacity of local architects, developers and suppliers to compete nationally in the green building market. LEED Building Counts:
  • Cortright Cluster Seattle 2009

    1. 1. Cluster Approaches to Content Technology Joe Cortright <ul><ul><ul><li>July 2009 </li></ul></ul></ul>
    2. 2. Roadmap <ul><li>Defining Clusters </li></ul><ul><li>Cluster Analysis & Organization </li></ul><ul><li>Strategies </li></ul><ul><li>Developing a Work Plan </li></ul>
    3. 3. 1. Defining Clusters
    4. 4. Clusters <ul><li>Ideas </li></ul><ul><li>Relationships </li></ul><ul><li>Place </li></ul>
    5. 5. Definition <ul><li>Cluster: A geographically bounded group of similar or related firms--connected by common markets, technologies or knowledge--their suppliers, their skilled workers and supporting institutions </li></ul>
    6. 6. What makes Clusters Tick? Source: Michael Porter, Harvard Business School Rivalry & Cooperation Customers Suppliers Inputs
    7. 7. The Microbrew Cluster Rivalry Suppliers Customers Inputs Competition & Brewer’s Guild Savvy Beer Drinkers, Homebrewers Small Restaurants Equipment Makers, Creative Services Hops, Water, Brewmasters
    8. 8. Typologies of Clusters <ul><li>Buyer-supplier and value chain </li></ul><ul><li>Inter-firm relationships </li></ul><ul><li>Geographic extent </li></ul><ul><li>Cluster life cycle </li></ul><ul><li>Other issues (Awareness) </li></ul>
    9. 9. Micro-foundations of Clusters <ul><li>Labor market pooling </li></ul><ul><li>Supplier specialization </li></ul><ul><li>Knowledge spillovers </li></ul><ul><li>Entrepreneurship </li></ul><ul><li>Path dependence and lock-in </li></ul><ul><li>Culture </li></ul><ul><li>Local demand </li></ul>
    10. 10. Clusters as a Framework for Policy <ul><li>An organizing principle for engaging a region in a discussion of its economic strengths and weaknesses </li></ul><ul><li>A flexible tool at the intersection of analysis and policy-making </li></ul><ul><li>Best efforts integrate quantitative and qualitative methods </li></ul>
    11. 11. 2. Analysis & Organization
    12. 12. Analyze – Organize – Act - Repeat Define Cluster Convene Firms Gather Data Take Action
    13. 13. Quantitative Approaches Starting Points
    14. 14. Employment Data <ul><li>Five Flavors </li></ul><ul><ul><li>Covered Employment and Wages (OED/BLS) </li></ul></ul><ul><ul><li>Current Employment (OED/BLS) </li></ul></ul><ul><ul><li>County Business Patterns (Census) </li></ul></ul><ul><ul><li>Regional Economics Information System (BEA) </li></ul></ul><ul><ul><li>Quality Workforce Information (Census) </li></ul></ul>
    15. 15. Firm Data <ul><ul><li>Dun & Bradstreet </li></ul></ul><ul><ul><li>Corp Tech </li></ul></ul><ul><ul><li>Superpages </li></ul></ul><ul><ul><li>Trade association directories </li></ul></ul>
    16. 16. Visualizing Clusters <ul><li>Diagramming clusters </li></ul><ul><li>Mapping clusters </li></ul><ul><li>Genealogies </li></ul>
    17. 17. Metals Industry Value Added Chain Primary Metals Fabricated Metals Machinery Transportation Equipment 343 85 192 30 141 120 Estimated Inter-Industry Purchases, $ Millions, 1992
    18. 18. Related Industries Commercial Printing (2752, 2754, 2759) Prepress (279) Ad. Signs (3993) Printing Staffing Agencies ( 7363) The Creative Services Cluster Newspapers (2711) Magazines (2721) Radio (4832) Cable (4841) Television (4833) Media Telecommunication & Cable Providers Education & Training Institutions Other Industries In-House “Shops” Additional Human Resource Providers Internet Service Providers Educational/Cultural Performing Arts Museums Art Schools Galleries Advertising/ Public Relations Film & Video Software/Multimedia SIC 737 Content Designers Multimedia Web Sites SIC 874, 731 SIC 781, 782 Film Video Allied Services Sound Studios (7389) Freelancers & Self-employed (Supporting all industry groups) Commercial photographers (7335) Graphic Design (7336) Writers (8999) Producers/Actors (792)
    19. 19. Understand Cluster Geography Source: ABI Directory Listings Only Oregon firms are shown but Cluster on Westside and in Central City
    20. 20. EDA Software Firms Cluster on Westside Source: Business Journal Top 25 List Electronic Design Automation (EDA) Software Firms support the region’s high technology industries by producing software to design electronic circuits and printed circuit boards. Circles are proportionate to number of employees.
    21. 21. Multimedia Software Firms Located in Central City Multimedia firms are located primarily in the Central City with some located on the Westside Source: Business Journal Top 25 List
    22. 22. Evolution of Firms
    23. 23. Qualitative Approaches Narrative and Dialog
    24. 24. Remember the Diamond? Rivalry & Cooperation Customers Suppliers Inputs
    25. 25. This Suggests Some Questions Who are your competitors? Who do you sell to? Who do you buy from? Where do you get Inputs and workers?
    26. 26. Questions to Ask <ul><li>Who is in your industry cluster? </li></ul><ul><ul><li>Principal customers </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><ul><li>Competitors </li></ul></ul><ul><li>What is your firm’s (your industry cluster’s) source of competitive advantage? </li></ul><ul><li>How has your industry changed in the last 10 years? </li></ul><ul><li>What are the biggest challenge’s your industry cluster faces in the next 5 to ten years? </li></ul><ul><li>Where do the people in your industry cluster come from? </li></ul><ul><li>Who else should be in the room? </li></ul>
    27. 27. SWOT <ul><li>A Standard Approach </li></ul><ul><ul><li>Strengths </li></ul></ul><ul><ul><li>Weaknesses </li></ul></ul><ul><ul><li>Opportunities </li></ul></ul><ul><ul><li>Threats </li></ul></ul>
    28. 28. Refine Cluster Definitions <ul><li>Group industries based on common technology, markets, labor, input-output relationships </li></ul><ul><li>Triage </li></ul><ul><ul><li>Blatant </li></ul></ul><ul><ul><li>Latent </li></ul></ul><ul><ul><li>Emerging </li></ul></ul>
    29. 29. How Good Are You? <ul><li>High Tech </li></ul><ul><ul><li>Produce 10% of all US semiconductors </li></ul></ul><ul><ul><li>High Location Quotients in Employment & R&D </li></ul></ul><ul><ul><li>Relatively Higher Wages </li></ul></ul><ul><ul><li>Outperformed US industry </li></ul></ul><ul><li>Biotech </li></ul><ul><ul><li>Rank in 30s in size of industry/ research </li></ul></ul><ul><ul><li>Very Low Location Quotient </li></ul></ul><ul><ul><li>Wages below US average </li></ul></ul><ul><ul><li>No significant growth </li></ul></ul>
    30. 30. Biotechnology
    31. 31. 3. Strategies
    32. 32. Biotech <ul><li>San Diego </li></ul><ul><li>One of 3 Leading Biotech Centers </li></ul><ul><li>Research </li></ul><ul><li>VC </li></ul><ul><li>Startups </li></ul>
    33. 33. Strategies <ul><li>Research Investment </li></ul><ul><li>Networking </li></ul><ul><ul><li>UCSD Connect </li></ul></ul>
    34. 34. Microbreweries <ul><li>Largest Center of Microbreweries in US </li></ul><ul><li>29 in City of Portland </li></ul><ul><li>5 times as likely to drink microbrew as typical US consumer </li></ul>
    35. 35. Cluster Strategies <ul><li>Deregulation </li></ul><ul><li>Support for Marketing </li></ul>
    36. 36. Specialty Food <ul><li>Natural, Organic & Local Foods </li></ul><ul><li>Chef/Farmer Collaborative </li></ul><ul><li>Ranks Second in restaurants per capita </li></ul>
    37. 37. Cluster Strategies <ul><li>Marketing assistance </li></ul><ul><li>Farmers markets </li></ul><ul><li>Certification </li></ul>
    38. 38. Recreational Vehicles <ul><li>Second largest cluster of RV makers in US </li></ul><ul><li>Coburg, Oregon </li></ul><ul><li>Monaco, Marathon, local suppliers </li></ul>
    39. 39. Cluster Strategies <ul><li>Workforce Training </li></ul><ul><li>Cooperative Curriculum </li></ul>
    40. 40. Green Buildings <ul><li>More LEED accredited green buildings (70) than any other city in the US </li></ul><ul><li>Direct payrolls associated with green building are estimated to range between $350 and $960 million annually in Portland </li></ul>
    41. 41. Cluster Strategies <ul><li>Industry organization </li></ul><ul><li>Local regulations </li></ul><ul><li>National marketing </li></ul>
    42. 42. Athletic Apparel & Footwear <ul><li>Nike, Adidas, Columbia </li></ul><ul><li>Nearly 10,000 employees </li></ul><ul><li>Leading center for design </li></ul><ul><li>Attracting others, creating startups </li></ul>
    43. 43. Cluster Strategies <ul><li>???? </li></ul>
    44. 44. Nursery Products <ul><li>$800 million annual sales </li></ul><ul><li>1,000 producers </li></ul><ul><li>Economies of scope </li></ul>
    45. 45. Cluster Strategies <ul><li>Industry association </li></ul><ul><li>Land use planning </li></ul><ul><li>Regulatory cooperation </li></ul>
    46. 46. Biotech <ul><li>San Diego </li></ul><ul><li>One of 3 Leading Biotech Centers </li></ul><ul><li>Research </li></ul><ul><li>VC </li></ul><ul><li>Startups </li></ul>
    47. 47. Strategies <ul><li>Research Investment </li></ul><ul><li>Networking </li></ul><ul><ul><li>UCSD Connect </li></ul></ul>
    48. 48. <ul><li>Developing a Work Plan </li></ul>
    49. 49. Cluster Definition <ul><li>What is “content technology” </li></ul><ul><li>Who’s in? </li></ul><ul><li>Who’s out? </li></ul>
    50. 50. Convening Firms <ul><li>Public/quasi-public as “convenor” </li></ul><ul><li>Start the discussion </li></ul><ul><li>Industry-led, industry-owned </li></ul>
    51. 51. Outlook and Aspiration <ul><li>Focus on the future of the industry </li></ul><ul><li>Where is it headed? </li></ul><ul><li>What matters? </li></ul><ul><li>Who are competitors? </li></ul><ul><li>Be open-ended </li></ul>
    52. 52. Balance Top-Down and Bottom-Up <ul><li>Top-down: the cluster umbrella </li></ul><ul><ul><li>Everybody is included </li></ul></ul><ul><ul><li>Broad consensus/low commitment </li></ul></ul><ul><ul><li>Position </li></ul></ul><ul><li>Bottoms-up: multi-firm collaboration </li></ul><ul><ul><li>Self-identified sub groups </li></ul></ul><ul><ul><li>Narrow focus/high commitment </li></ul></ul><ul><ul><li>Action </li></ul></ul>
    53. 53. Policy Options <ul><li>Let policy options emerge from industry discussion </li></ul><ul><li>Let industry set priorities </li></ul><ul><li>Allow options you can’t influence, i.e. federal or politically “impossible” </li></ul>
    54. 54. Cluster Approaches to Content Technology Joe Cortright <ul><ul><ul><li>July 2009 </li></ul></ul></ul>