stronger economies together cluster module
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Stronger Economies TogetherCluster Module
Bob Shriver & Karen CraigNevada Venture Accelerator
February 16, 2012
Cluster
• A geographic concentration of interdependent, collaborating and/or competing businesses and related institutions that draw productive advantage from their mutual proximity and connections…
All right, said another way… A CLUSTER IS
An economic strategy focused on
interconnected businesses within a
regional area
Another Type of Target Cluster….
Cluster analysis
• Helps diagnose a region’s economic strengths and challenges
• Identifies realistic ways to shape the region’s economic future.
THE FOUNDATION OF A REGIONAL ECONOMY IS A GROUP OF CLUSTERS…
.
not a collection of unrelated companies!
Four Rules of High Performing Regions
1. Focus on your region not your jurisdiction
2. Competitive clusters drive regional performance
3. Create regional advantage to enable high performance
4. Collaborative culture enables high performing regions
Companies cluster together because
• Each one benefits from being located near other similar or related companies
• They have competitive strengths and needs
Groups are More Cost Effective
• It’s more beneficial and important to work with groups of companies on common problems– e.g.,
• Skills training• Tool & equipment
modernization• Finance capabilities
Lower Risk
• New suppliers proliferate within a cluster because a concentrated customer base lowers risk
Gaps Create New Businesses
• Individuals working within a cluster can more easily perceive gaps in products or services around which they can build a new business
Cluster thinking teaches policymakers & ED practitioners to:
• Build on unique strengths of your region
• Engage cluster members in your region
• Dialogue continuously with the companies and support entities in your clusters
What are Sectors?• Primary: those
industries involved in extraction or agriculture
• Secondary: industries that manufacture goods
• Tertiary: industries that provide services, e.g., financial, transportation, retail
• Quaternary: knowledge industry focused on technology R&D, design and development
Examples of Clusters We all know Silicon Valley….
Omaha’s telemarketing/data centers
• Back office telemarketing service – strategic air command center
Las Vegas amusement/casino/conventions California Wine Industry
A Regional Cluster Example• The greater Reno-Carson
Area is a hub of small productions machining and electronic component job shops
• Many re-located to the are in the late 1980’s and 1990’s primarily from southern California due to the collapse of the aerospace industry
Regional Manufacturing Snapshot
• 125+ Machine (precision) shops• 20+ High-performance automotive parts
manufacturers• 20+ Electronic components • 10+ Gaming device• 15+ Aerospace components• 10+ Plastics/composites
SummaryBusiness Cluster 101
Clusters
Productivity
Prosperity
QUESTIONS?Discussion
For Example – Plan Similarities
• 2006 NVision
• 2010 Community Assessments
• 2012 GOED State Plan
Plans + Commonalities + Actions
NVision 2006
NVision 2006 Target Industry Recommendations
NVision 2006 Target Recommendations Per County
Community AssessmentCommonalities
Nevada State Plan 2012
Nevada State Plan 2012
Nevada State Plan 2012
Mining Cluster Supply Chain
Regional strengths attractive to a wide range of people and businesses• Abundant recreational opportunities • Excellent business cost climate, with low taxes
and energy costs • Strong sense of community pride and excellent
quality of life for families and retirees • Central location in Western U.S., with easy access
to mountains, coasts, and large urban areas • Expanding presence on the national scene
Our Greatest Weakness!
Ten Priority Actions
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