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Regional Diagnostics: The Important Role of Industry Cluster Data and Tools

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Source: Cleveland State University; Minnesota Metropolitan Council; San Diego ... Adapted from work by Cleveland State University. Other Ways to Look at Clusters ... – PowerPoint PPT presentation

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Title: Regional Diagnostics: The Important Role of Industry Cluster Data and Tools


1

The Many Faces of Regionalism From the Mega to
the Micro
  • Regional Diagnostics The Important Role of
    Industry Cluster Data and Tools
  • Presenters Carol Rogers, IBRC Christine Nolan,
    PCRD
  • Moderator Donald KathanUS Economic Development
    Administration

Purdue Center for Regional Development
Conference, April 16th 2008
2

Back to the Basics Clusters 101 Revisited
Purdue Center for Regional Development
3
What are Clusters?
  • Local and regional concentrations of competitive
    firms that
  • Buy and sell from each other
  • Use similar technologies
  • Share a labor pool
  • Share supply chains
  • Include supporting services and specialized
    infrastructure
  • Include both high and low-value added employment
  • Produce for export outside the region
  • Drive the creation of wealth in a region

Source Cleveland State University Minnesota
Metropolitan Council San Diego Association of
Governments.
4
Why Conduct Cluster Analysis?
  • To Improve
  • Understanding of the economy
  • Understanding of the Labor Market
  • Jobs/skills match in the area
  • Knowledge of Competitive Advantages
  • Possibilities for import substitution
  • Strategic targeting of resources

Source Cleveland State University Minnesota
Metropolitan Council San Diego Association of
Govts.
5
What is the Cluster Approach?
  • The cluster approach to economic development
    undertakes a sequence of steps designed to
  • Identify the clusters present in a regions
    economy
  • Analyze the clusters strength and weaknesses
  • Create a framework for collaboration to
  • Maintain or increase the competitive strength of
    the clusters that are present, by strategic
    targeting of resources (including education and
    workforce training)
  • Build new cluster strength in the area, through
    the identification and support of emerging
    clusters

Source Christine Nolan, Purdue Center for
Regional Development
6
How is this approach different?
  • Traditional economic development
  • One firm at a time
  • Individual problems and needs
  • Clusters offer additional approaches
  • Solve groups of industry problems/needs
  • Reveal groups of industries that have similar
    workforce needs
  • Build sustained business-to-business connections
  • Invest and assist groups of firms to build
    synergy and economic impact

Source Battelle Memorial Institute, 2003
7
Why adopt a cluster-based economic development
strategy?
  • Comprehensive information foundation Framework
    for collaboration
  • Enables planning from strengths
  • Leads to better jobs and a stronger economy
  • Gives key stakeholders a good reason to work
    together
  • Creates significant opportunities for places and
    regions
  • Creates an image of the region as a world-class
    competitor
  • Creates identity and improves marketing
    effectiveness

Source Cleveland State University Minnesota
Metropolitan Council San Diego Association of
Govts.
8
What does a cluster look like?
Biomed Cluster Example
Adapted from work by Cleveland State University
9
Other Ways to Look at Clusters

Indiana Economic Growth Region 8
Source PCRD with data supplied by IBRC
10
Clusters are an Advanced Form of Network
  • Clusters are not just about agglomeration
    economies.
  • They are mainsprings of economic development in
    rural and urban areas.
  • Provide focal points for investment.
  • Assist commercialization of research.
  • Build value chains into export markets.
  • Engage otherwise unconnected people.
  • Workers and businesses can learn from each other
  • Identify champions to drive engagement process.
  • Involve public sector, and address infrastructure
    issues (whereas ordinary networks rarely do)

Source Brown Genoff Associates, Australia
11
Cluster Tools How do we Measure and Evaluate
Clusters?
Source PCRD with data provided by IBRC
12
So, wheres the data?
On the web, for your convenience!
  • www.ibrc.indiana.edu/innovation

13
Topics and Tables
Clusters Economic Clusters Education Attainment
Employment and Wages Census of Employment and
Wages (CEW) Housing and Households Building
Permits Household Makeup Housing Units
Income Income and Poverty
Labor Force Resident Labor Force Population
(Census Estimates) Population Population by
Age Population by Race Ethnicity Migration,
Births, Deaths Rurality Index of Relative
Rurality USDA Rurality Codes Distance to
Nearest Metro Area USA Counties in Profile
14
Cass County Clusters
sort Estab.sort Jobs.sort Total Payroll sort
Total All Industries 746 15,365 453,786,000
Advanced Materials 23 470 18,207,170
Agribusiness, Food Processing Technology 47 170 4,909,673
Apparel Textiles 2
Arts, Entertainment, Recreation Visitor Industries 19 58 752,562
Biomedical/Biotechnical (Life Sciences) 31 299 10,832,480
Business Financial Services Cluster 58 250 8,876,136
Chemicals Chemical Based Products 10 351 14,044,720
15
The Toolkit
Geography ala carte and nationwide
All the clusters, plus totals to compare them to
Multiple ways to save the data
16
Build Your Own Region
17
Frequent Updates
  • Maintained by the IBRC for your benefit and any
    rural area wanting to get a sense of their
    cluster context
  • Sources include USDA, Census, Economic Analysis,
    Labor Statistics and more

18
  • For further information about this presentation
    and other cluster materials contact
  • Christine Nolan,
  • Purdue University Center for Regional
    Development,
  • Tel 765-494-9262
  • cenolan_at_purdue.edu
  • or
  • Carol Rogers,
  • Indiana Business Research Center,
  • Tel 317-274-2205
  • rogersc_at_indiana.edu

www.ibrc.indiana.edu/innovation
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