nga – western regional competitiveness forum april 5, 2002 10:30 am - 12:00 noon
TRANSCRIPT
NGA – Western Regional Competitiveness Forum
April 5, 2002 10:30 am - 12:00 Noon
Emerging Clusters
What is an industry cluster?
Interdependence: Each member firm’s competitive position depends on one, some, or all other members of the group.
Trading sectors
Intermediate suppliersCapital good suppliersProducers servicesConsultantsContract R&D
Supporting
institutions
Education (univ., colleges)Training (cc’s)R&D (univ., fed labs)Development agenciesRegulatory agencies
Related sectors
Similar technologiesShare pool of laborSimilar strategies
Identifying industry clusters
Linkage
Time Geography
Emerging
Potential
Existing
Statewide
Regional
Value chain
Labor needs
ThreeDimensions
Cluster Types
Local Trading
• Clusters improve competitiveness through cooperative competition and proximity.
• Clusters give local producers specialization and first mover advantages
Clusters Fuel for Strong Economies
Clusters Fuel for Strong Economies
Technology Clusters
• Human Health and Development
• Biosciences
• Information Technology & Communications
• Environmental & Energy Technologies
• Materials Science & Advanced Manufacturing
Opportunity AreasOpportunity Areas Kentucky Center for Natural
Products
Center for Cardiac Assist Devices
Kentucky First
Kentucky Visioning Center
Energy and Environmental Consortium
Rural Business Building Initiative
Safety and Security
Industry Cluster FormationIndustry Cluster Formation
Technology Clusters
I. Human Health and Development
II. Biosciences
III. Information Technology and Communications
IV. Environmental and Energy Technologies
V. Materials Science and Advanced Manufacturing
Opportunities
1. Natural Products Center
2. Center for the Development of Circulatory Assist Devices
3. Kentucky First
4. Kentucky Visioning Center
5. Kentucky Energy and Environmental Consortium
6. Safety and Security
7. Rural New Economy Business Building Initiative
NewEconomyIndustryClusters
How can state governments build industrial clusters?
How can state governments build industrial clusters?
Identify existing, emerging and potential export-oriented or
trading industry clusters.
Key Elements to Successful New Economy
Formation
Key Elements to Successful New Economy
Formation
Commercialization
R & D
Workforce
Identify state’s
research and
development
capacity.
Identify state’s
research and
development
capacity.
Partner with the Private Sector
States Must Blur the Lines Between.
States Must Blur the Lines Between.
Government
Academia
Business
Target economic
development efforts to support
industrial clusters.Note: Do
Not Bet on Winners.
Target economic
development efforts to support
industrial clusters.Note: Do
Not Bet on Winners.
The Key: Monitoring Return
on Investment
• States must develop a Return on Investment Model.
• States must work smarter.
• States must deploy its resources strategically so that they maximizes return on investment.