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Regional Diagnostics: The Important Role of Industry Cluster Data and Tools Presenters: Carol Rogers, IBRC; Christine No

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 Kathan US Economic Development Administration.

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Regional Diagnostics: The Important Role of Industry Cluster Data and Tools Presenters: Carol Rogers, IBRC; Christine No

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  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 region’s 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, where’s the data? www.ibrc.indiana.edu/innovation On the web, for your convenience!

  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

  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@purdue.edu or Carol Rogers, Indiana Business Research Center, Tel: 317-274-2205 rogersc@indiana.edu www.ibrc.indiana.edu/innovation

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