January 2012

Briefing by: Koizumi Daisaku, Primante Angelo, Małajny Agnieszka

US Clusters:Silicon Valley, BostonLos Angeles and San Diego

Table of contents

What is a Cluster1

Cluster in details2

Selected US Clusters3

Silicon Valley4

Boston Clusters5

San Diego / Los Angeles Clusters6

What is a cluster ?

Clusters are geographic concentrations of interrelated organizations in a particular field or industry. This means that organizations such as companies, institutions, governmental bodies, media and other associations are the main players within a cluster.

ClusterIndustry

Public Bodies

UniversitiesOrganizations

for collaboration

Media

Finance

Clusters in detailsIncreases

PRODUCTIVITY / EFFICIENCY

Stimulates and enable INNOVATIONS

Facilitate commercialization and

new business formations

Efficient access to specialized imputs, services, employees, institutions, training programs and other „public goods” (local outsourcing)

Ease of coordination and transactions across firms

Rapid diffusion of better practices

Ongoing, visible performance comparison and strong incentives to improve vs local rivals

Proximity of rivals encourages strategic differenciation

Grater likelihood of perceiving innovation opportunities ; e.g. unmet needs, combination of services or technologies, sophisticated customers

Presence of multiple suppliers and institutions to assist in knowledge creation

Ease of experimentation given locally available resources

Patents [ following slide ]

Opportunities for new companies and new businesses are more apparent

Spinoffs and startups are are encourage by the presence of other companies, commercial relationships and concentrated demanad

Commercializing new products and starting new companies is easier becuase of avaible skills, suppliers etc.

United States Patents per employee 2009

36

17

12

7 7

2009

San Diego-Carlsbad-San Marcos, CASan Jose-San Francisco-Oakland, CA

Boston-Worcester-Manchester, MA-NH

US AverageLos Angeles-Long Beach-Riverside, CA

Patents per 10,000 Employees

Cluster categories

Source: Institute for Strategy and Competitivness , Harvard Business School, 2011

United States Regional Economies

Silicon Valley

Key Facts:

Area: 1.845 sq milesPopulation: 3 millions (2010)Employment: 1.3 millions (2010)Avarage annual earning:

79.978$Avarage age of residents: 35

Key fields: - microelectronics - information technolgies (IT) - biotechnologies - instrumentation

In Silicon Valley 20% of the world's 100 biggest electronics and software companies have taken root. 

Silicon Valley

Silicon Valley : Top Companies

Source: San Jose Mercury News, 2011 Silicon Valley 150 listings.

Silicon Valley: Wages and employmentAverage Wages ( area San Jose-San Francisco-Oakland )

average wages in 2009 were $59,261 -vs- $42,403 for the US, or 39.76% above the national average.Average Wage GrowthAverage wage growth per year from 1998-2009 was 3.7% -vs- 3.01% for the US (ranked 13 out of 179).

Source: U.S. Bureau of Labor Statistics, September 08, 2009.

Silicon Valley: Innovation

Boston Clusters

Key Facts:

Employment: 3,674,263

Avarage wage: $49,915

Patents: 11.53/10,000e

Biotech inv: 28%High-tech

employmentScience &

engineering graduatesR&D: 7% GDP2nd VC funding (SF

1st)

Key fields Specialized Clusters: 1. Analytical instruments2. Education and knowledge creation3. Communication equipment

Boston Clusters

Analytical Instruments: Life Sciences

Analytical Instruments: sub-clusters

Search and Navigation Equipment

Laboratory Instruments

Process InstrumentsOptical Instruments

Electronic Components

20,138$100,505N.1

7,601$77,066N.2

9,903$76,457N.1

4,471$67,588N.1

13,210$57,895N.2

San Diego Cluster

Key Facts:

Employment: 1,119,643,

Avarage wage: $44,894

Patents: 16.68 /10,000e

Key fields Specialized Clusters:

Leather and sporting goods

Power GenerationEducation and

Knowledge

San Diego cluster

Rank Organization Total Patents2005 through 2009 1 QUALCOMM, INC. 1,0092 HEWLETT-PACKARD DEVELOPMENT COMPANY, L.P. 3703 CALLAWAY GOLF COMPANY 3204 SONY CORPORATION 2515 BROADCOM CORPORATION 2026 KYOCERA WIRELESS CORP. 1827 ACUSHNET COMPANY 1588 UNIVERSITY OF CALIFORNIA, THE REGENTS OF 1529 TAYLOR MADE GOLF COMPANY, INC. 11810 ISIS PHARMACEUTICALS, INC. 112

San Diego – CLEANTECH

SAN DIEGO CLEAN TECH COMPANIES 822

MISSIONstimulate innovation and advance the adoption of clean technologies environmental and social benefit of the greater San Diego region

Launched in March 2010, Governor Schwarzenegger's iHub Initiative provides a platform for research clusters, startup companies, government entities, business groups and venture capitalists by leveraging assets such as research parks, technology incubators, universities, and federal laboratories to foster innovation and job creation statewide.

Los Angeles cluster

Key Facts:

Employment: 5,039,574

Avarage wage: $47,812

Patents: 7.65 /10,000e

Key fields Specialized Clusters:

ApparelBuilding

fixturesEquipment

and servicesEntertainment

Source Porter2009

Los Angeles cluster

Rank Organization Total Patents2005 through 2009 1 BROADCOM CORPORATION 1,3912 BOEING COMPANY 5133 CALIFORNIA INSTITUTE OF TECHNOLOGY 4404 UNIVERSITY OF CALIFORNIA, THE REGENTS OF 3495 NORTHROP GRUMMAN CORPORATION 3086 INTERNATIONAL RECTIFIER CORPORATION 2307 ALLERGAN, INC. 2288 PACESETTER, INC. 2119 RAYTHEON COMPANY 20310 HONDA KAISHA (HONDA MOTOR CO., LTD.) 196

Source Porter 2009

Los Angeles Cluster

Los Angeles Cluster

COMPANIES

Briefing by: Koizumi Daisaku, Primante Angelo, Małajny Agnieszka