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Mapping a nation of regional clusters

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      A cluster is a regional concentration of related industries that arise out of the various types of linkages or externalities that span across industries in a particular location. The U.S. Benchmark Cluster Definitions are designed to enable systemic comparison across regions. View and compare clusters across the U.S.

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    • Frequently Asked Questions

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      A region is broadly defined as a county, economic area (EA), metro/micropolitan statistical area (MSA), or state. The U.S. Benchmark Cluster Definitions use the U.S. Bureau of Economic Analysis defined economic areas. View and compare regions across the U.S.

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      The Community of Practice enables practitioners to share Resources, post Blogs, and find partner Organizations. View and contribute content of interest to the cluster based economic development community.

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The Adam Smith Address: Location, Clusters, and the "New" Microeconomics of Competition

by Michael E. Porter, National Association for Business Economics November 15, 2013

The new microeconomics of competition is contained in frameworks that structure the complexity of competition and inform managers of choices that they must make. The role of location has shifted from factor endowments and size to productivity growth; factor inputs are abundant and accessed via globalization. To increase productivity, factor inputs must improve in efficiency, quality, and ultimately specialization in particular cluster areas, which are critical masses of companies in a particular location. Governments have significant roles in creating an environment that supports rising productivity, and companies have an agenda that stems beyond building offices or factories. This paper also relates the impacts of this approach to contemporary policy issues, particularly the environment and inequality.

Image: Getty Images

PDF icon The_Adam_Smith_Address-_Location__Clusters__and_the__New__Microeconomics_of_Competition.pdf
Academic Research
Source: 
U.S. Cluster Mapping
Organization: 
Harvard Business School, Institute for Strategy and Competitiveness
Author: 
Michael E. Porter
Publication/Specific Source: 
National Association for Business Economics
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Copyright © 2018 President and Fellows of Harvard College.
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The U.S. Cluster Mapping Project is led by Professor Michael E. Porter at the Institute for Strategy and Competitiveness, Harvard Business School.

This project is funded by the U.S. Department of Commerce, Economic Development Administration.