US Cluster Mapping Launch - Humphrey School Of Public Affairs

1y ago
42 Views
2 Downloads
662.49 KB
27 Pages
Last View : 7d ago
Last Download : 4m ago
Upload by : Eli Jorgenson
Transcription

Reshaping Regional Economic Development:Clusters and Regional StrategyProfessor Michael E. PorterHarvard Business SchoolU.S. Cluster Mapping Launch EventUniversity of Minnesota, Minneapolis, MNSeptember 29th, 2014This presentation draws on ideas from Professor Porter’s articles and books, in particular, The Competitive Advantage of Nations (The Free Press, 1990), “Building the MicroeconomicFoundations of Competitiveness,” in The Global Competitiveness Report (World Economic Forum), “Clusters and the New Competitive Agenda for Companies and Governments” in OnCompetition (Harvard Business School Press, 2008), “Creating Shared Value” (Harvard Business Review, Jan 2011), the Social Progress Index Report (Social Progress Imperative)and ongoing related research. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical,photocopying, recording, or otherwise - without the permission of Michael E. Porter. For further materials, see the website of the Institute for Strategy and Competitiveness(www.isc.hbs.edu), FSG (www.fsg.org) and the Social Progress Imperative (www.socialprogressimperative.org).

The Challenge The US economy is slowly emerging from the deepest crisis wehave experienced in a generation However, the trajectory of the U.S. economy was already disturbingwell before 2008 and the long term trend is continuing The Midwest is no exception20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING2Copyright 2014 Professor Michael E. Porter

Disturbing TrendsRolling 10-year Compound Annual Growth Rate in Total Number of U.S.Private Nonfarm Employees, 1975-20133%1975-2001AVERAGE: ce: Bureau of Labor Statistics, Current Employment Statistics survey; author’s calculations.20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING3Copyright 2014 Professor Michael E. Porter

Disturbing TrendsPrivate, Nonfarm Employment by Type of Industry140Employment (in millions of jobs)120100INDUSTRIES SERVINGLOCAL MARKETS(CAGR 0.89%)806040INDUSTRIES EXPOSED TOINTERNATIONAL COMPETITION(CAGR 0.02%)2001998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Source: Prof. Michael E. Porter, Harvard Business School; U.S. Cluster Mapping 2014 Benchmark Definitions (Delgado-Porter-Stern 2013), Richard Bryden, Project Director.20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING4Copyright 2014 Professor Michael E. Porter

Real Hourly Wage Growth by Educational Attainment1979-2000 Versus 2000-2012Compound annual growth rate1.5%1.0%0.5%0.0%-0.5%-1.0%-1.5%Less than highschoolHigh schoolSome collegeCollege degreeAdvanceddegree1979-20002000-2012Source: Economic Policy Institute, “A Decade of Flat Wages,” August 2013. Based on Current Population Survey.20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING5U.S.COMPETITIVEN5Copyright 2014 Professor Michael E. Porter

Real GDP perCapita, 2012Prosperity Performance of U.S. States2001-2012 58,000Alaska( .74%, 61,156)Delaware(-.0076%, 61,183)High but decliningprosperity versus U.S. 55,000High and rising prosperityversus U.S.WyomingConnecticutNorth DakotaNew Jersey 50,000VirginiaWashingtonCaliforniaNorth CarolinaNevadaNewHampshireMissouri 35,000UtahWisconsinArizonaFloridaNew MexicoIdaho 30,000 25,000-1.0%-0.5%Average U.S. GDPPer Capita RealGrowth Rate: .64%0.0%OklahomaKentuckySouth CarolinaLow and declining prosperityversus U.S.IowaVermontIndianaTennesseeMaineSouth de IslandPennsylvania 40,000GeorgiaMarylandTexasColoradoU.S. Average GDP PerCapita, 2012: 42,784Oregon( 3.1%, 48,069)MinnesotaIllinois 45,000( 4.6%, 55,250)New YorkMassachusetts0.5%AlabamaArkansasMontanaWest VirginiaMississippiLow but rising prosperityversus U.S.1.0%1.5%2.0%Real Growth in Gross Domestic Product per Capita, 2001 to 2012Source: BEA. Notes: GDP in real 2005 dollars. Growth rate is calculated as compound annual growth rate.20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING6Copyright 2014 Professor Michael E. Porter

Regional Economic Development: Prevailing Approaches“Open forBusiness”“Big GameHunting” Improve thegeneral businessenvironment Competeaggressively forplants and newinvestments Attempt to match thepolicies of peers Zero Sum“The NextBig Thing” Enter new hightech/ high growthindustries Many competingfor the same “Winner’s curse”industries – e.g. Long lists of areas for High cost, low returnbiotech, ‘creativeimprovement, withunless addressclass’limited progressunderlying Very few regions Table stakesweaknesseshave the assets to Neglects the existingsucceed in thembase20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING7“Build it andThey WillCome” Invest in largeinfrastructure/industrial zoneprojects Rarely offer a strongadvantage versusother regions Generic infrastructurewill not offset lack ofskills, otherweaknesses, andabsence of relatedbusinessesCopyright 2014 Professor Michael E. Porter

Towards a New Economic Development Model Traditional approaches to economic development are not working We must reshape the approach to economic development in the U.S.based on a deeper understanding of the drivers of competitiveness in themodern global economyThe New Direction Focus on competitiveness, not job creation per se Cluster-based, reflecting the core drivers of jobs and wages Build on existing and potential strengths, versus rely on reducingweakness Develop an overall strategy rather than a list of actions Prioritized and sequenced, not treating all weaknesses equally Data driven, not political or based on wishful thinking20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING8Copyright 2014 Professor Michael E. Porter

What is Competitiveness?A nation or region is competitive to the extent that firms operating there are ableto compete successfully in the regional and global economy while maintainingor improving wages and living standards for the average citizen Competitiveness depends on the long-run productivity and efficiency of alocation as a place to do business- The productivity of existing firms and workers- The ability to achieve high participation of citizens in the workforce Competitiveness is not:- Low wages- A weak currency- Jobs per se20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING9Copyright 2014 Professor Michael E. Porter

Defining the Geographic Unit for CompetitivenessNationStatesRegions Regions are essential economic units for competitiveness20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING10Copyright 2014 Professor Michael E. Porter

What Determines Competitiveness?Endowments Endowments, including natural resources, geographical location, population, and land area, create afoundation for prosperity, but true prosperity arises from productivity in the use of endowments20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING11Copyright 2014 Professor Michael E. Porter

What Determines Competitiveness?Macroeconomic CompetitivenessHuman Developmentand EffectivePolitical InstitutionsSound Monetaryand Fiscal PoliciesEndowments Macroeconomic competitiveness sets the economy-wide context for productivity to emerge, but is notsufficient to ensure productivity Endowments, including natural resources, geographical location, population, and land area, create afoundation for prosperity, but true prosperity arises from productivity in the use of endowments20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING12Copyright 2014 Professor Michael E. Porter

What Determines Competitiveness?Microeconomic CompetitivenessQuality of theBusinessEnvironmentState of ClusterDevelopmentSophisticationof CompanyOperations andStrategyMacroeconomic CompetitivenessHuman Developmentand EffectivePolitical InstitutionsSound Monetaryand Fiscal PoliciesEndowments Productivity ultimately depends on improving the microeconomic capability of the economy and thesophistication of local competition revealed at the level of firms, clusters, and regions Macroeconomic competitiveness sets the economy-wide context for productivity to emerge, but is notsufficient to ensure productivity Endowments, including natural resources, geographical location, population, and land area, create afoundation for prosperity, but true prosperity arises from productivity in the use of endowments20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING13Copyright 2014 Professor Michael E. Porter

Improving the Quality of the Business EnvironmentContext forFirm Strategyand Rivalry Local rules and incentives thatencourage investment and productivityFactor(Input)Conditions Improving access to high qualitybusiness inputs––––Qualified human resourcesCapital availabilityPhysical infrastructureScientific and technologicalinfrastructure– Administrative and regulatoryinfrastructure– e.g. incentives for capital investments,IP protection Sound corporate governance Open and vigorous local competition Openness to competition Strict competition lawsDemandConditions Sophisticated and demanding localneedsRelated andSupportingIndustries– e.g., Strict quality, safety, andenvironmental standards– Sophisticated demand in the privatesector or government Availability and quality of suppliers andsupporting industries Many things matter for competitiveness Successful economic development is a process of successive upgrading, in which thebusiness environment improves to enable increasingly sophisticated ways of competing20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING14Copyright 2014 Professor Michael E. Porter

The Composition of Regional Economies Serve national and globalmarkets Exposed to competition fromother regions Serve almostexclusively thelocal market Little exposureto international orcross-regionalcompetition foremploymentTradedClustersLocal Clusters Note: Cluster data includes all private, non-agricultural employment.Source: Michael E. Porter, Economic Performance of Regions, Regional Studies (2003); Updated via ClusterMapping Project, Institute for Strategy and Competitiveness, Harvard Business School (2008)20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING15Copyright 2014 Professor Michael E. Porter

Clusters and CompetitivenessMassachusetts Life Sciences20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING16Copyright 2014 Professor Michael E. Porter

Institutions for CollaborationSelected Massachusetts Organizations, Life SciencesLife Sciences Industry Associations University InitiativesMassachusetts Biotechnology CouncilMassachusetts Medical Device IndustryCouncilMassachusetts Hospital Association General Industry Associations Informal networksAssociated Industries of MassachusettsGreater Boston Chamber of CommerceHigh Tech Council of Massachusetts Economic Development Initiatives Company alumni groupsVenture capital communityUniversity alumni groupsJoint Research InitiativesMassachusetts Technology CollaborativeMass Biomedical InitiativesMass DevelopmentMassachusetts Alliance for EconomicDevelopment20140929—US Cluster Mapping Launch Event —FINAL FOR POSTINGHarvard Biomedical CommunityMIT Enterprise ForumBiotech Club at Harvard Medical SchoolTechnology Transfer offices 17New England Healthcare InstituteWhitehead Institute For BiomedicalResearchCenter for Integration of Medicine andInnovative Technology (CIMIT)Copyright 2014 Professor Michael E. Porter

Traded Cluster Composition of theMinneapolis EconomyMinneapolis Share ofNational Employment2001-20123.5%Medical Devices( .065%, 4.9%),Overall change in the Minneapolis Shareof US Traded Employment: -.055%Information Technologyand Analytical InstrumentsPrinting Services3.0%Lighting and ElectricalEquipment( 1.1%, 2.9%)InsuranceServicesMetalworking Technology2.5%Transportationand LogisticsPerformingArts2.0%Marketing, Design,and PublishingFinancialServicesDistribution andElectronic duction Technologyand Heavy Machinery1.5%1.0%Food Processingand ManufacturingUpstream MetalManufacturingDownstreamChemical ProductsWoodProductsHospitalityand TourismAutomotive0.5%0.0%-0.75%Electric PowerGeneration andTransmissionConstructionProductsand ServicesCommunicationsEquipment and ServicesAerospaceVehiclesand Defense-0.50%Education andKnowledge CreationFurniturePlasticsMinneapolis OverallShare of US TradedEmployment: 1.7%Paper il and Gas Productionand Transportation-0.25%0.00%0.25%AddedJobsLost Jobs0.50%Change in Minneapolis Share of National Employment 2001-20120.75% 0.85%Employees 15,000 Source: Prof. Michael E. Porter, Harvard Business School; U.S. Cluster Mapping 2014 Benchmark Definitions (Delgado-Porter-Stern 2013), Richard Bryden, Project Director.Copyright 2014 Professor Michael E. Porter20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING18

Strong Traded Clusters Drive Regional PerformanceResearch Findings Presence of strong clusters Job growth Breadth of industries within eachcluster Higher wages Higher patenting rates Greater new business formation,growth and survival Resilience in downturns Build on the region’s existing and emerging clusters rather than chase hot fieldsSource: “Cluster and Entrepreneurship” by Mercedes Delgado, Michael E. Porter, and Scott Stern (2010); “The Economic Performance of Regions” by Michael E. Porter(2003); “Clusters, Convergence, and Economic Performance“ by Mercedes Delgado, Michael E. Porter, and Scott Stern (2014)20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING19Copyright 2014 Professor Michael E. Porter

Related Clusters and Economic DiversificationFishing &FishingProductsEntertainmentHospitality& TourismAgriculturalProductsProcessedFoodJewelry &PreciousMetalsTransportation& LogisticsAerospaceVehicles quipment &ServicesLighting &ElectricalEquipmentAnalyticalEducation &InstrumentsPowerKnowledgeMedicalGeneration ngServices& ootwearTextilesPrefabricatedEnclosuresOil & tructionServicesForestProductsHeavyMachineryMotor DrivenProductsCoal spaceEnginesLeather ng,MarineRecreational & EquipmentChildren’sGoodsNote: Clusters with overlapping borders or identical shading have at least 20% overlap (by number of industries) in both directions.20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING20Copyright 2014 Professor Michael E. Porter

Strong Traded Clusters Drive Regional PerformanceResearch Findings Presence of strong clusters Job growth Breadth of industries within eachcluster Higher wages Higher patenting rates Greater new business formation,growth and survival Resilience in downturns Strength in related clustersPresence of a region‘s clusters inneighboring regions Build on the region’s existing and emerging clusters rather than chase hot fields Economic diversification usually occurs within clusters and across related clustersSource: “Cluster and Entrepreneurship” by Mercedes Delgado, Michael E. Porter, and Scott Stern (2010); “The Economic Performance of Regions” by Michael E. Porter (2003)20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING21Copyright 2014 Professor Michael E. Porter

What is an Economic Strategy?PolicyImprovementEconomicStrategy Implementing best practices ineach policy area An overall agenda for creating amore competitive anddistinctive position for acountry or region, based on itsparticular circumstances There are a huge number ofpolicy areas that matter No region or country can (orshould try to) make progress inall areas simultaneously20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING22Copyright 2014 Professor Michael E. Porter

Developing a Regional Economic StrategyRegional Value Proposition What is a distinctive competitive position for the region given itslocation, legacy, existing strengths, and potential strengths?– What unique advantages as a business location?– For what types of activities and clusters?– What roles in the surrounding regions, countries, and the global economy?Achieving and Maintaining Paritywith PeersDeveloping Unique Strengths What elements of the businessenvironment can be unique strengthsrelative to peers/neighbors? What existing and emerging clusterscan be built upon? What weaknesses must be addressed toremove key constraints and achieve paritywith peer locations? Priorities and sequencing are fundamental to successful economic development20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING23Copyright 2014 Professor Michael E. Porter

Clusters as a Tool for Economic Development Leverages the power of spillovers and linkages to drive rapid economicdevelopment A vehicle for policies and investments that strengthen multiple relatedfirms/institutions simultaneously Enhances the efficiency and effectiveness of traditional economic policyareas, such as training, R&D, export promotion, FDI attraction, etc.20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING24Copyright 2014 Professor Michael E. Porter

Organize Public Policy around ClustersBusiness AttractionEducation andWorkforce TrainingExport PromotionMarket Informationand DisclosureClustersSpecialized PhysicalInfrastructureNatural Resource ProtectionScience and TechnologyInfrastructure(e.g., centers, universitydepartments, technologytransfer)Quality and Environmentalstandards Clusters provide a framework for organizing the implementation of manypublic policies and public investments directed at economic development20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING25Copyright 2014 Professor Michael E. Porter

Clusters as a Tool for Economic Policy Leverage the power of spillovers and linkages to drive rapid economicdevelopment A vehicle for policies and investments that strengthen multiple relatedfirms/institutions simultaneously Enhances the efficiency and effectiveness of traditional economic policyareas, such as training, R&D, export promotion, FDI attraction, etc. A forum for collaboration between the private sector, trade associations,government, educational, and research institutions–A mechanism for constructive business-government dialog Brings together firms of all sizes, including SME’s Clusters initiatives are a powerful private/public vehicle to identify and getalignment on problems and action recommendations Cluster upgrading fosters greater and more sophisticated competition ratherthan distorting the market Sound cluster policy addresses all existing and emerging clusters, and doesnot pick winners20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING26Copyright 2014 Professor Michael E. Porter

U.S. Cluster Mapping National economic initiative based at HBS and sponsored by the U.S.Department of Commerce’s Economic Development Administration. To help drivebetter regional economic strategy, the interactive website provides data to:– Help regions understand their current competitiveness and sources ofpotential differentiation– Help clusters assess their competitive position and highlight areas forpotential growth– Help Institutions for Collaboration engage with peers within and beyondtheir home region and cluster20140929—US Cluster Mapping Launch Event —FINAL FOR POSTING27Copyright 2014 Professor Michael E. Porter

Selected Massachusetts Organizations, Life Sciences Economic Development Initiatives Massachusetts Technology Collaborative Mass Biomedical Initiatives Mass Development Massachusetts Alliance for Economic Development Life Sciences Industry Associations Massachusetts Biotechnology Council Massachusetts Medical Device Industry Council

Related Documents:

concept mapping has been developed to address these limitations of mind mapping. 3.2 Concept Mapping Concept mapping is often confused with mind mapping (Ahlberg, 1993, 2004; Slotte & Lonka, 1999). However, unlike mind mapping, concept mapping is more structured, and less pictorial in nature.

Humphrey Fellows at selected U.S. universities. The Humphrey Program was initiated in 1978 to honor the memory and accomplishments of the late Senator and VicePresident, Hubert H. Humphrey. Fellows are selected based on their potential for national leadership and commitment to public service, in either the public or private sector.

Hubert H. Humphrey Fellowship Program M ichigan State University Humphrey FellowshipAlumni gathered in Johannesburg, South Africa on September 14-16, 2018 to celebrate the 40th Anniversary of the Hubert H. Humphrey Fellowship Program. Pictured above are Kouakou Bruno Tano, Sonia Joao Buvana, Dera Zafindravaka, CASID Director Robert

Hubert H. Humphrey Fellowship Program. 5 Another key component of the Humphrey Fellowship is the idea of exchange—culturally, educationally, and in service. All Humphrey Fellows at MSU are assigned host families, who often include the fellows in family and community activities. Fellows are not here just to learn and

On HP-UX 11i v2 and HP-UX 11i v3 through a cluster lock disk which must be accessed during the arbitration process. The cluster lock disk is a disk area located in a volume group that is shared by all nodes in the cluster. Each sub-cluster attempts to acquire the cluster lock. The sub-cluster that gets

Argument mapping is different from mind mapping and concept mapping (Figure 1). As Davies described, while mind mapping is based on the associative connections among images and topics and concept mapping is concerned about the interrelationships among concepts, argument mapping “ is interested in the inferential basis for a claim

Mapping is one of the basic elements in Informatica code. A mapping with out business rules are know as Flat mappings. To understand the basics of Mapping in Informatica, let us create a Mapping that inserts data from source into the target. Create Mapping in Informatica. To create Mapping in Informatica, open Informatica PowerCenter Designer .

Mind mapping Mind mapping (or ‘‘idea’’ mapping) has been defined as ‘visual, non-linear representations of ideas and their relationships’ (Biktimirov and Nilson 2006). Mind maps comprise a network of connected and related concepts. However, in mind mapping, any idea can be connected to