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.

Current economic realities have provided governors with a unique opportunity to assess their economic landscapes and change their approaches to economic development. This white paper and accompanying issue brief by the National Governors Association (NGA) focus on what states are doing—and what they can do—to make their economic development agencies more effective.

This 2012 industry report discusses the maritime business and technology innovation community that has flourished in the coastal city of San Diego, intersecting markets including fishing, ship building, defense and security, and offshore energy. The study shows that the city's maritime industry boasts $14 billion in total revenue and 46,000 direct jobs, with 8,000 in the traditional maritime space and 19,000 in "Blue Tech" or maritime technology.

This research paper focuses on the increasing interest of economic geography in explaining differences in prosperity levels across locations. It discusses the current state of the academic debate on cluster policy, providing an extensive review of the rapidly growing research. The first part of the article summarizes key findings about the existence and impact of clusters, while the second part addresses the issue of cluster policy itself.

This report illustrates the complementary advantages of applying cluster analysis to the established economy-wide analysis that is traditionally used in determining export competitiveness. Written in a non-technical perspective, this report provides an introduction to the cluster-based approach to competitiveness, 10 core tools used in cluster initiatives, discussion on the key stages involved in initiating cluster analysis, and finally discussion on the policy implications of a cluster-based approach. Also included is an annex of resource materials.

Image: Nick Lowndes

This report sponsored by the U.S. Economic Development Administration explores the fundamental changes within our economies: community, regional, state and national. It provides great insight into the current economic challenges and opportunities that cluster-based projects face in regions throughout the country as they aim for long-term economic prosperity.

Image: Nick Lowndes

This white paper, oriented toward a national policy audience, discusses the growing role of clusters as a fundamental economic unit in the modern economy and as an important driver of competitiveness. Clusters have long been a feature of economic geography, but their influence on competition has grown with the shifting nature of competition and the restructuring of how companies operate. Competition in advanced economies is increasingly driven by knowledge and skill, with low cost labor and other resources accessed in cheaper locations.

This paper evaluates the role of regional cluster composition in the economic performance of industries, clusters and regions. On the one hand, diminishing returns to specialization in a location can result in a convergence effect: the growth rate of an industry within a region may be declining in the level of activity of that industry.

The state of South Carolina has for years relied on a low-cost economic strategy, but with the rise in outsourcing manufacturing to China, Mexico, and other low-cost based economies, South Carolina has since come to trail the national average in several measures of economic standing. The South Carolina Competitiveness Initiative outlines its strategic vision to build on the existing structures and clusters of the South Carolina economy, capitalizing on the strengths of the automotive, textile, chemical products, tourism, forest products, production technology, and power generation and trans

This article focuses on a cluster-based analysis of the Berkshires region in Massachusetts, analyzing rural areas and the associated clusters. The Berkshires offer a unique quality of life—a setting rich in both natural beauty and cultural attractions—and this has encouraged skilled workers from manufacturing companies to stay, and has also attracted outside visitors.