NGA – Western Regional Competitiveness Forum April 5, 2002 10:30 am - 12:00 Noon.

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Presentation transcript:

NGA – Western Regional Competitiveness Forum April 5, :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 suppliers Capital good suppliers Producers services Consultants Contract R&D Supporting institutions Education (univ., colleges) Training (cc’s) R&D (univ., fed labs) Development agencies Regulatory agencies Related sectors Similar technologies Share pool of labor Similar strategies

Identifying industry clusters Linkage TimeGeography Emerging Potential Existing Statewide Regional Value chain Labor needs Three Dimensions

Cluster Types LocalTrading

Clusters improve competitiveness through cooperative competition and proximity. Clusters give local producers specialization and first mover advantages Clusters Fuel for Strong Economies

Technology Clusters Human Health and Development Biosciences Information Technology & Communications Environmental & Energy Technologies Materials Science & Advanced Manufacturing

Opportunity 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 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 New Economy Industry 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 Commercialization R & D Workforce

Identify state’s research and development capacity.

Partner with the Private Sector

States Must Blur the Lines Between. Government Academia Business

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.