Identifying and Targeting Industry Clusters

Identifying and Targeting Industry Clusters Donald H. Sebastian, Senior Vice President, Research &

Development, New Jersey Institute of Technology (Moderator) Jay C. Biggins, Executive Managing Director, Biggins Lacy

Shapiro & Co. Tracye McDaniel, President and Chief Executive Officer,

Choose New Jersey Dean J. Paranicas, President and Chief Executive Officer,

HealthCare Institute of New Jersey

Identifying and Targeting Industry Clusters

Clusters of InnovationA cluster, as defined by Professor Michael E. Porter of Harvard University, is a geographic concentration of competing and cooperating companies, suppliers, service providers, and associated institutions.

Identifying and Targeting Industry Clusters

J. Rockefeller

G.W. Merck

T. Edison

Johnson BrothersA. Bell

D. Sarnoff

J. CampbellL. Baekeland

Crucible of US Industry

Identifying and Targeting Industry Clusters

Cluster Growth ModelsHollowing Out: Companies, recognizing the

importance to their own innovation processes, reach progressively farther afield and eventually relocate these activities and perhaps ultimately all of their operations out of the region altogether.

Sustained Growth: Companies boost their innovation performance by strengthening ties with local firms, research and educational institutions. The local economy emerges as a center of new knowledge creation and application, attracting firms from elsewhere, and stimulating the formation of new local businesses.

Identifying and Targeting Industry Clusters

Building a Cluster

“UNIVERSITIES, INNOVATION, AND THE COMPETITIVENESS OF LOCAL ECONOMIES: A Summary Report from the Local Innovation Systems Project—Phase I”, Richard K. Lester, Industrial Performance Center, MIT

Innovation

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kill

Diversify Technologically

Transplant Existing Industry

Create a New Industry

Upgrade Mature Industry

Microprocessors Silicon Valley, CAWireless Helsinki, FINN

Consumer Electronics Taipei-Hsinchu,TWAutomobiles Greenville, SC

Opto-electronics Rochester, NYAdvanced Elastomers Akron, OH

Industrial Machinery Tampere, FINNCeramics Alfred-Corning, NY

Identifying and Targeting Industry Clusters

Regional Innovation Clusters

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