Click icon to add picture EDA KNOW YOUR REGION WEBINAR SERIES IN PARTNERSHIP WITH THE NADO RESEARCH FOUNDATION MARCH 14, 2012 Utilizing EDA Data Tools in Your CEDS

Timothy F. Slaper Indiana Business Research Center Kelley School of Business Indiana University

The Regional Data Toolkit 3 Innovation Tools – Occupation & Industry Clusters – Innovation Index Measuring Distress Retrieving Economic and Demographic Data

Data tools have much in common Powered by the IBRC database with 1 billion plus records (and growing) Easy-to-use At a price you can afford—free! Build you own region capability Graphing and mapping Nationwide comparisons Accurate and timely 4

Context Who needs the data…and for what purpose? Developing a sound regional development strategy Identify unique competitive advantage – Based on distinct economic assets Rural America, for example, often rests on its history of manufacturing and commodity agriculture…no longer viable How do we foster regional innovation? 5

Regional Conversations How do we act like a region with a shared future? Regional roundtables to design a strategy by and for the region—ownership of the vision Roundtable comprised of public, private and nonprofit leaders – Helpful to have a champion in private industry May need a change in culture and thinking to achieve the goal—paddling in the same direction Data-Driven Strategies 6

Steps for Data-Driven Strategies Identify region Build governance group Identify region’s competitive advantage and economic assets Map region’s assets—both economic and social—and potential futures Define best strategy (economic direction) and identify the resources needed to seize it 7 See for more “how to”

Identify Region 8 Who plays in our sand box? Is there a logical economic region? What is the commuter shed? The retail shed? Are there significant geographic barriers? Are there historical or cultural factors that affect the geography and people to include? Is there a common core of businesses that unite the region?

Regional Governance 9 Who are the private sector leaders? Who are the regional champions? Which non-profits or foundations can glue together politically disparate pieces? Which public officials will provide energy? Are there colleges/universities or other research assets (e.g., military labs) to provide intellectual heft?

Identify Economic Assets/Advantages 10 What are the economic trends? – Need data to track industry and employment changes What does the region specialize in? – Socio-economic benchmarking, location quotients Define and compare against the region’s peers – Economy, population, resources, transportation linkages, education, natural amenities What can be learned from peer leaders/laggards? What are the region’s existing and emerging clusters?

Identify Economic Assets/Advantages 11 What are the economic trends? What does the region specialize in? Define and compare against the region’s peers What can be learned from the leaders/laggards? What are the region’s existing and emerging clusters? What are the options? Where will you go for all your data needs?

Mapping a Region’s Assets 12 What are the region’s distinct (hard) economic assets? What are the region’s (soft) assets—Social capital? Networks? Human Capital? Are there unexploited assets that can be tapped? What are the region’s greatest economic barriers?

Measuring Distress Distress indicators for federal grants ― EDA guidelines for distress Nationwide ― counties, districts, tracts Region builder Calculates thresholds automatically Current, accurate source data 20

LAUS bulk download filesLAUS bulk download files for counties are also available.

LAUS bulk download filesLAUS bulk download files for counties are also available.

Click on the rank to get data for all counties

You’ll have to use the “edit-select all” and “copy” commands to move data into a spreadsheet.

Great tool for finding peers based on socio-economic characteristics

You’ll have to use the “edit-select all” and “copy” commands to move data into a spreadsheet.

All state data conveniently packaged in one Excel file

Questions? For more information, contact: Timothy Slaper or Carol Rogers Indiana Business Research Center Kelley School of Business Indiana University

36 Copyright 2012 © Professor Michael E. Porter ClusterMapping.us Rich Bryden Director of Information Products Institute for Strategy and Competitiveness Harvard Business School EDA Know Your Region webinar March 14, 2012

37 Copyright 2012 © Professor Michael E. Porter Agenda Why clusters? Identifying clusters ClusterMapping.us today ClusterMapping.us through March 2013

38 Copyright 2012 © Professor Michael E. Porter Strong Clusters Drive Regional Performace Specialization in strong clusters Breadth of industries within each cluster Strength in related clusters Presence of a region‘s clusters in neighboring regions Job growth Higher wages Higher patenting rates Greater new business formation, growth and survival Not significant Positions in “high-tech“ versus other clusters Source: Porter, The Economic Performance of Regions, Regional Studies, 2003; Delgado/Porter/Stern, Clusters and Entrepreneurship, Journal of Economic Geography, 2010; Delgado/Porter/Stern, Clusters, Convergence, and Economic Performance, mimeo., 2010.

39 Copyright © 2011 Professor Michael E. Porter – Ecuador Competitiveness Presentation – FINAL – Prepared by RA Jem Hudson.ppt Clusters as a Tool For Economic Policy A forum for collaboration between the private sector, trade associations, government, educational, and research institutions Brings together firms of all sizes, including SME’s Creates a mechanism for constructive business-government dialog A tool to identify problems and action recommendations A vehicle for investments that strengthen multiple firms/institutions simultaneously Fosters greater competition rather than distorting the market

40 Copyright 2012 © Professor Michael E. Porter Agenda Why clusters? Identifying clusters ClusterMapping.us today ClusterMapping.us through March 2013

41 Copyright 2012 © Professor Michael E. Porter Massachusetts Medical Devices Cluster A geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementarities

42 Copyright 2011 © Professor Michael E. Porter – NGA v0225b Traded Local Natural Resource-Driven 27.4% 0.3% $57, % 3.7% % 0.3% $57, % 3.7% % 1.5% $36, % 2.7% % 1.5% $36, % 2.7% % 0.5% $40, % 2.4% % 0.5% $40, % 2.4% Share of Employment Employment Growth Rate Average Wage Relative Wage Wage Growth Rate Relative Productivity Patents per 10,000 Employees Number of SIC Industries Number of NAICS Industries The Composition of Regional Economies United States Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director.

43 Copyright 2012 © Professor Michael E. Porter Furniture Building Fixtures, Equipment & Services Fishing & Fishing Products Hospitality & Tourism Agricultural Products Transportation & Logistics Composition of the Economy Linkages Across Clusters Plastics Oil & Gas Chemical Products Biopharma- ceuticals Power Generation Aerospace Vehicles & Defense Lightning & Electrical Equipment Financial Services Publishing & Printing Entertainment Information Tech. Communi- cations Equipment Aerospace Engines Business Services Distribution Services Forest Products Heavy Construction Services Construction Materials Prefabricated Enclosures Heavy Machinery Sporting & Recreation Goods Automotive Production Technology Motor Driven Products Mining & Metal Manufacturing Jewelry & Precious Metals Textiles Footwear Processed Food Tobacco Medical Devices Analytical Instruments Education & Knowledge Creation Note: Clusters with overlapping borders or identical shading have at least 20% overlap (by number of industries) in both directions. Apparel Leather & Related Products

44 Copyright 2012 © Professor Michael E. Porter Specialization of Regional Economies Leading Clusters by U.S. Economic Area Boston, MA-NH Analytical Instruments Education and Knowledge Creation Medical Devices Financial Services Boston, MA-NH Analytical Instruments Education and Knowledge Creation Medical Devices Financial Services Los Angeles, CA Entertainment Apparel Distribution Services Hospitality and Tourism Los Angeles, CA Entertainment Apparel Distribution Services Hospitality and Tourism San Jose-San Francisco, CA Business Services Information Technology Agricultural Products Communications Equipment Biopharmaceuticals San Jose-San Francisco, CA Business Services Information Technology Agricultural Products Communications Equipment Biopharmaceuticals New York, NY-NJ-CT-PA Financial Services Biopharmaceuticals Jewelry and Precious Metals Publishing and Printing New York, NY-NJ-CT-PA Financial Services Biopharmaceuticals Jewelry and Precious Metals Publishing and Printing Seattle, WA Aerospace Vehicles and Defense Information Technology Entertainment Fishing and Fishing Products Seattle, WA Aerospace Vehicles and Defense Information Technology Entertainment Fishing and Fishing Products San Diego, CA Medical Devices Analytical Instruments Hospitality and Tourism Education and Knowledge Creation San Diego, CA Medical Devices Analytical Instruments Hospitality and Tourism Education and Knowledge Creation Chicago, IL-IN-WI Metal Manufacturing Lighting and Electrical Equipment Production Technology Plastics Chicago, IL-IN-WI Metal Manufacturing Lighting and Electrical Equipment Production Technology Plastics Denver, CO Business Services Medical Devices Entertainment Oil and Gas Products and Services Denver, CO Business Services Medical Devices Entertainment Oil and Gas Products and Services Raleigh-Durham, NC Education and Knowledge Creation Biopharmaceuticals Communications Equipment Textiles Raleigh-Durham, NC Education and Knowledge Creation Biopharmaceuticals Communications Equipment Textiles Atlanta, GA Transportation and Logistics Textiles Motor Driven Products Construction Materials Atlanta, GA Transportation and Logistics Textiles Motor Driven Products Construction Materials Dallas Aerospace Vehicles and Defense Oil and Gas Products and Services Information Technology Transportation and Logistics Dallas Aerospace Vehicles and Defense Oil and Gas Products and Services Information Technology Transportation and Logistics Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director. Houston, TX Oil and Gas Products and Services Chemical Products Heavy Construction Services Transportation and Logistics Houston, TX Oil and Gas Products and Services Chemical Products Heavy Construction Services Transportation and Logistics Pittsburgh, PA Education and Knowledge Creation Metal Manufacturing Chemical Products Power Generation and Transmission Pittsburgh, PA Education and Knowledge Creation Metal Manufacturing Chemical Products Power Generation and Transmission

45 Copyright 2012 © Professor Michael E. Porter Agenda Why clusters? Identifying clusters ClusterMapping.us today ClusterMapping.us through March 2013

46 Copyright 2012 © Professor Michael E. Porter ClusterMapping.us Today

47 Copyright 2012 © Professor Michael E. Porter ClusterMapping.us Regions

– State Competitiveness – Rich Bryden Copyright © 2011 Professor Michael E. Porter Change in South Carolina share of National Employment, 1998 to 2009 South Carolina national employment share, 2009 Employees 4,600 = Traded Cluster Composition of the South Carolina Economy Overall change in the South Carolina Share of US Traded Employment: -0.29% Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director. South Carolina Overall Share of US Traded Employment: 1.37% Textiles (-5.19%, 11.65%) Chemical Products (-2.87%, 2.41%) Furniture (-1.77%, 1.57%) Apparel Sporting, Recreational and Children’s Goods Power Generation and Transmission (-0.65%, 4.63%) Heavy Construction Services Biopharmaceuticals Entertainment Construction Materials Communications Equipment Production Technology Hospitality and Tourism Processed Food Financial Services Oil and Gas Products and Services Jewelry and Precious Metals Analytical Instruments Agricultural Products Distribution Services Publishing and Printing Education and Knowledge Creation Aerospace Vehicles and Defense Fishing and Fishing Products Medical Devices Transportation and Logistics Aerospace Engines Prefabricated Enclosures Plastics Lighting and Electrical Equipment Heavy Machinery Building Fixtures, Equipment and Services Metal Manufacturing Leather and Related Products Information Technology Forest Products (+1.05%,3.81%) Automotive (+1.37%, 3.03%) Business Services Motor Driven Products (+2.46%,6.12%)

State Competitiveness – Rich Bryden Copyright © 2011 Professor Michael E. Porter South Carolina Job Creation in Traded Clusters 1998 to 2009 Job Creation, 1998 to 2009 Net traded job creation, 1998 to 2009: -106,029 Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director. * Percent change in national benchmark times starting regional employment. Overall traded job creation in the state, if it matched national benchmarks, would be -102,702 Indicates expected job creation given national cluster growth.*

50 South Carolina Wages in Traded Clusters vs. National Benchmarks Wages, 2009 South Carolina average traded wage: $40,142 Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director. U.S. average traded wage: $56,906 l Indicates average national wage in the traded cluster

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52 Copyright 2012 © Professor Michael E. Porter Agenda Why clusters? Identifying clusters ClusterMapping.us today ClusterMapping.us through March 2013

53 Copyright 2012 © Professor Michael E. Porter New directions for website 2. Community 1. Engaging & Educating

54 Copyright 2012 © Professor Michael E. Porter BEA Economic Regions Economic Area definitions from U.S. Bureau of Economic Analysis Boston Economic Area Hartford Economic Area Albany Economic Area New York Economic Area NY PA NJ CT VT NH MA RI 3. Customize Regions

55 Copyright 2012 © Professor Michael E. Porter 4. Macro View of Clusters Wired Magazine

56 Copyright 2012 © Professor Michael E. Porter National Association of Development Organizations (NADO) and the NADO Research Foundation 400 North Capitol Street, NW | Suite 390 | Washington, DC Ruraltransportation.org | Knowyourregion.org | Regionalcouncilguide.org | NADO.org Regional Strategies. Solutions. Partnerships.