The FINANCIAL — MINNEAPOLIS — Michael E. Porter, Harvard’s Bishop William Lawrence University Professor, based at Harvard Business School, launched the new U.S. Cluster Mapping tool this morning in Minneapolis as part of a two-day conference called Mapping the Midwest’s Future and held by the University of Minnesota’s Humphrey School of Public Affairs, according to President & Fellows of Harvard College.
The conference hosted over 150 business leaders, policymakers, economic development officials and academics from twelve Midwest states (Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin) and four Canadian provinces (Alberta, Manitoba, Ontario, and Saskatchewan).
Based on path-breaking research led by Professor Porter, the U.S. Cluster Mapping tool provides detailed data on the presence of “clusters” — regional concentrations of related industries such as aerospace and defense in Kansas and recreational goods in Wisconsin – and regional economies throughout the United States. It is useful to view economic development through the lens of clusters rather than specific types of companies, industries, or sectors, because clusters capture the important linkages and potential spillovers of technology, skills, and information that cut across firms and industries. The cluster perspective provides a powerful understanding of the specific profile and industry dynamics shaping a regional economy and highlights opportunities for coordination and joint action, according to President & Fellows of Harvard College.
The U.S. Cluster Mapping tool allows for new regional perspectives on economies and the competitive industry landscape at national, state, and local levels. It can also offer insights into new and emerging clusters in different regions. Charts and maps from the tool illustrate, for example, that the Midwest, generally regarded as the country’s “breadbasket,” is also a major center of production technology and heavy machinery.
There are many positive examples of clusters helping to drive regional development initiatives in the Midwest, from Milwaukee’s Water Council, which aims to align the regional freshwater research community and water-related industries to further establish the Milwaukee Region as a world hub for water-related research and economic development, to NorTech, a technology-focused organization that strengthens Northeast Ohio’s economic vitality by accelerating the pace of innovation in the region. As Professor Porter discussed in his presentation, the U.S. Cluster Mapping tool helps drive better regional economic strategy by positioning clusters as a framework that can organize the implementation of many public policies and investments directed at economic development, according to President & Fellows of Harvard College.
The U.S. Cluster Mapping tool provides powerful insights to support a region’s efforts to develop an economic strategy to create more jobs, income, and innovation. Effective regional economic strategies are based on private-public collaboration to identify and strengthen the distinctive competitive position of a region in light of its location, existing strengths, and business environment qualities. In contrast, prevailing regional economic development efforts are often government driven, fail to identify the location’s unique value proposition, and revolve around chasing investment in generically “attractive” industries, according to President & Fellows of Harvard College.
In his speech to conference attendees, Professor Porter laid out a cluster-based approach to economic development and growth, focusing on competitiveness and innovation. He emphasized the need for a bottom-up approach led by the private sector and highlighted the critical role of “institutions for collaboration” (that is, cluster- supporting organizations like chambers of commerce, trade unions, and industry and professional associations) and the necessary alignment with other economic development policies such as workforce development, export promotion, and specialized infrastructure and research initiatives.
Porter concluded with a call to action to business leaders and other influencers to explore the data available through the tool, register their organization, engage with partners, and work with peers around the country to develop and enhance the practice of cluster-based economic development, according to President & Fellows of Harvard College.
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