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Stronger Economies Together Cluster Module

Stronger Economies Together Cluster Module. Bob Shriver & Karen Craig Nevada Venture Accelerator February 16, 2012. Cluster.

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Stronger Economies Together Cluster Module

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  1. Stronger Economies TogetherCluster Module Bob Shriver & Karen Craig Nevada Venture Accelerator February 16, 2012

  2. Cluster • A geographic concentration of interdependent, collaborating and/or competing businesses and related institutions that draw productive advantage from their mutual proximity and connections…

  3. All right, said another way… A CLUSTER IS An economic strategy focused on interconnected businesses within a regional area

  4. Another Type of Target Cluster….

  5. Cluster analysis • Helps diagnose a region’s economic strengths and challenges • Identifies realistic ways to shape the region’s economic future.

  6. not a collection of unrelated companies! THE FOUNDATION OF A REGIONAL ECONOMY IS A GROUP OF CLUSTERS….

  7. 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

  8. Companies cluster together because • Each one benefits from being located near other similar or related companies • They have competitive strengths and needs

  9. 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

  10. Lower Risk • New suppliers proliferate within a cluster because a concentrated customer base lowers risk

  11. 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

  12. 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

  13. 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

  14. Examples of Clusters We all know Silicon Valley…. Omaha’s telemarketing/data centers Las Vegas amusement/casino/conventions California Wine Industry • Back office telemarketing service – strategic air command center

  15. 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

  16. 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

  17. SummaryBusiness Cluster 101

  18. Discussion QUESTIONS?

  19. For Example – Plan Similarities • 2006 NVision • 2010 Community Assessments • 2012 GOED State Plan

  20. Plans + Commonalities + Actions

  21. NVision 2006

  22. NVision 2006 Target Industry Recommendations

  23. NVision 2006 Target Recommendations Per County

  24. Community AssessmentCommonalities

  25. Nevada State Plan 2012

  26. Nevada State Plan 2012

  27. Nevada State Plan 2012

  28. Mining Cluster Supply Chain

  29. 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

  30. Our Greatest Weakness!

  31. Ten Priority Actions

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