This document discusses industry clusters in different countries and regions. It provides details on identifying clusters in Arizona based on business interdependence, export orientation, concentration, and size or growth. It then lists some of Arizona's key clusters and how they relate to research at Arizona State University. It also discusses cluster activities in Arizona and examples of industry clusters and local economic systems in the Marche region of Italy. Finally, it outlines Saudi Arabia's plans to develop several industry clusters as part of the country's economic transformation, including clusters focused on metals processing, automotive, solar energy, plastics and packaging, and oil and gas products and services.

1. Clusters in Different
Countries

3. Identifying Industry Clusters in
Arizona
• Business Interdependence:
Arizona chose clusters where businesses relate to each other through the
buyer-supplier “food chain,” as competitors, or as partners.
• Export Oriented:
Many of the companies in the cluster sell products or services to companies
outside the region.
• Concentration:
Employment in the cluster is more concentrated in the region than the national
average, and the cluster is an existing or emerging area of specialization.
• Significant Size or Rapid Growth:
The cluster is of a significant size or, if new, has an above average growth rate
compared to that of the U.S. as a whole.

4. Arizona Clusters
• High Technology (aerospace and information)
• Food, Fiber, Natural Products
• Minerals and mining
• Tourism
• Transportation
• Business Services
• Bioindustry
• Software
• Environmental Technology
• Optics
• Senior Industries
• Plastics & Advanced Materials

5. AZ’s Industry Clusters and
ASU Research
Optics
High
Technology
Bioindustry
Software &
Information Industry
Transportation &
Distribution
Environmental
Technology
Planetary
Sciences
Environmental
Sciences
Materials
Manufacturing
Biosciences &
Bioengineering
Information Science &
Information Technology

6. Arizona Cluster Activities
Co-inform
Co-learn
Co-market
Co-purchase
Co-produce
Co-build economic foundations

7. TheMarcheRegion:a fewdata
• Area: 9,700 km2
• Population: 1.48 million
• Capital town: Ancona
• (~100,000 inhabitants)
• 4 Provinces
(Pesaro e Urbino, Ancona,
Macerata,
Ascoli Piceno)

8. Clusterand developmentroutes:
a “valley”model?
• URBINO
• S.BENEDETTO
DEL TRONTO
• CIVITANOVA
MARCHE• FABRIANO
Wood - Furniture
Mechanics
Footwear - Clothing
The
Comb

9. KEFVII,PLVI,PoliciesforRegional
Innovation
9
Main clusters in the Marche Region
Local Economic Systems
 Mechanics
 Footwear and leather
 Wood-furniture
 Textile-clothing
 Food-processing
 Others (electronics, plastics, etc.)

10. Turkey
IranSyria
Egypt
Sudan
Oman
Qatar
Kuwait
UAE
Bahrain
Iraq
Pakistan
Saudi Arabia is investing in value added
manufacturing serving 400 million
consumers
 A center serving over 400 million
consumers
 Vast oil, Petrochemicals and
Mineral resources
 Competitive power cost (3.2
cents/KWH)
 Rapid growth of young educated
Saudi’s
 1st economy in the MENA & 23rd
globally
 7th globally in rewarding Tax
system (20% flat tax)
 13th globally in ease of doing
business
 Largest free market in MENA
region
MENA- Middle East and North Africa

11. The chosensectorsare exportoriented&
being developedas clusters that are globally
competitive
Home Appliances
Automotive
Metals Processing
Plastics & Packaging
Solar Energy
Oil & Gas Offshore*
Energy Goods & Services*
* Initiative championed by Saudi Aramco

12. The Metals Cluster will producematerial &
productsto servethe new industriesand the
exportmarkets
Anchor Projects
 Aluminum flat rolling mill – 400 k tons
 Steel flat rolling mill – 1.75 million tons
 Aluminum casting
 Steel casting & forging
 Aluminum cable & wire
Supporting businesses and services
s and services
Cluster
services
Industry
Association
Research &
training
Metals Products
Intermediates
Basic
materials

13. The Automotive cluster to
capture a significant portion of
the fast growing $75 billion
market in the region
Tier N
Tier 2
Tier 0.5/1
Auto
Companies
Supporting businesses and services
Research &
Training
Industry
Association
Cluster
Services
Import
Anchor Projects
 120 k unit Car assembly plants
 25 k unit Truck assembly plants
 8 million Tire plant
 600 k unit Paowertrain plant

14. A major playerin the Solar industryfrom R&D
through manufacturingof productsand
ultimately exportof power
IngotPoly Silicon Wafer Cell Module System
The crystalline PV value chain
Module
Substrate
(e.g. glass)
System
The thin-film PV value chain

15. Plastic and Packagingis increasingvalue by
becominga consumerproductsgoods center
for the regionand beyond
SAUDI ARABIA POLYMER CAPACITY FORECAST
(2008, thousand tons per year)
SAUDI ARABIA POLYMER FORECAST
(thousand tons per year)
Note: In the right-hand chart, “Others” represent a number of new products such as :
SBR, EPR, PBR, Carbon Black, EPDM, PPMA, PA, EVOH, PACN, POM, Carbon Fibers, etc…
0
5,000
10,000
15,000
20,000
25,000
production

16. EnergyGoodsCluster targeting30 “Anchor
Projects”worth$5 billioninvestmentsincreasing
localsourcing to70%
Current Locally manufactured
Highly Engineered
Immediate target projects
28%
22%
50%
 Pipe
 OCTG
 Valves
 Pumps
 Specialty Chemicals
 Heat Exchangers
 Vessels
 Compressors
 Mechanical Seals
 Drill Bits
 Well Heads
 Subsea Cables

17.  Offshore Exploration & Drilling
 Offshore Platform Fabrication
 Offshore Submersible Pumps
 Subsea Valves & Cables
 Surveying
 Industrial Marine Services
 Pipeline Scrapping & Laying
 Environmental Services
The Oil & Gas OffshoreCluster’stargeting
platformfabricationand specializedservices
capabilities