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.

This paper examines the role of regional clusters in regional entrepreneurship, focusing on the distinct influences of convergence and agglomeration on growth in number of start-ups, as well as employment in such new firms in a given region-industry. While reversion to the mean and diminishing returns to entrepreneurship at the region-industry level can result in a convergence effect, the presence of complementary economic activity creates externalities that enhance incentives and reduce barriers for new business creation.

This paper examines the regional economic performance, composition of regional economies, and role of clusters in the U.S. economy from 1990 to 2000. 

The performance of regional economies varies markedly in terms of wage, wage growth, employment growth and patenting rate. Based on distribution of economic activity across geography, the paper classifies U.S. industries into traded, local, and resource-dependent categories. Traded industries account for only about one-third of employment, but register much higher wages and rates of innovation and influence local wages. 

This collection of reports and summaries by The Water Council explores the water cluster in Milwaukee, sometimes called the "Silicon Valley of Water" due to its innovative water technology and expertise in the study, treatment, and movement of water resources. The overview document focuses on the Milwaukee water cluster as a global leader in water research and industry, as well as the Water Council's significant activities and initiatives in 2010 and 2011.

Hosted by the U.S. Department of Commerce, the 2008 National Summit on American Competitiveness held in Washington, DC on September 18, 2007 gathered the nation's premier leaders in business, government, and academia to address steps that the public and private sectors should take to help secure America's competitive position in the global economy. Core components and lessons included education and workforce issues, energy independence, and partnerships in innovation. Participants included former U.S.

This commentary from the Journal of International Business Studies documents highlights from an interview with Professor Michael Porter in 2006 on his research and ideas relating to the microeconomic foundations of global competitiveness, lending a microeconomic perspective on some of the key areas of his recent research in business strategy, industrial economics, competitiveness, clusters, U.S. economic leadership, and economic growth and development.

This report on New Carolina, South Carolina's Council on Competitiveness, is a study on how private sector leaders in South Carolina embraced the cluster development concept to upgrade their region’s competitiveness. It provides insights into their motivation, explains what they did, discusses the impact they have had, and lays out the key lessons learned. "New Carolina” also offers real-world examples of how cluster-based economic development works as part of modern economic policy at the regional level.