Over the last decades, changes in the global economy and the emergence of Global Value Chains (GVCs) have raised interest in understanding the specific conditions and cross-company interactions within and across locations. For companies, the need to choose the right location for specific activities has moved from an operational to a strategic issue. For countries, regions and cities, competition raised the stakes of understanding how to improve productivity and attract firms in specific fields beyond providing low factor costs and subsidies. Many countries, from natural-resource-rich to transition economies and developed countries have launched competitiveness policies and cluster initiatives involving various stakeholders. This paper addresses how clusters can be leveraged for economic policy and what the role of different stakeholders in this process is. It summarises the cluster concept, focusing on the main theoretical framework and on recent empirical findings, and discusses key pillars of a cluster-based economic policy approach. The paper concludes with an application of the concept to resource-rich, oil-dependent economies.
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
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.
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 report from the Information Technology & Innovation Foundation suggests that the U.S. can boost its competitiveness by targeting the health of its traded sectors. Offering 50 federal policy recommendations for reviving traded sector establishments with examples including Boeing and Walmart, the report calls for a comprehensive strategy organized around the “4 Ts” (technology, tax, trade, and talent) to strengthen the ability of U.S. traded firms to compete in the global market.
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 2012 report from the New Jersey Chamber of Commerce and PlanSmart NJ details how appropriate infrastructure and investment play a critical role in the economic development and prosperity of regional innovation clusters. Recognizing the importance of cluster-based targeted economic growth, an advisory committee of state-wide leaders and experts shared its insight on the economic challenges and opportunities in New Jersey to inform this collaborative project and ground it in real world experience.
A new framing of competitiveness has clarified the role of regions in economic policy. Its empirical findings align well with existing literature on the drivers of regional economic performance, but there are opportunities for mutual learning. A step-change in the availability of data on clusters and cluster policies has enabled new research approaches, yet current cluster policies have been largely focused on strengthening existing agglomerations rather than creating new ones.