Cluster Studies

Cluster Mapping

• • Jun 2017

  Cluster Mapping as a Tool for Development

  by Christian H.M. Ketels

This report builds on the foundational work on cluster mapping that Prof. Michael E. Porter has led at the Institute for Strategy and Competitiveness (ISC), Harvard Business School over the last two decades. He launched the U.S. Cluster Mapping Initiative in the late 1990s, developing the first robust set of data-driven cluster definitions. They were applied in his 2003 paper on U.S. regions (Porter, 2003) and in subsequent research papers with other scholars that fundamentally changed the perception of clusters in the U.S. policy community (Delgado, Porter, Stern, 2010, 2014). The cluster definitions were then further developed, leading to the current benchmark cluster definitions (Delgado, Porter, Stern, 2016). Cluster mapping data was made available by ISC both through its website and location-specific analysis and reports. All U.S. governors received a customized cluster mapping data deck in 2002. In 2010 the data was offered to a wider practitioner community through the U.S. cluster portal www.clustermapping.us. The website, developed with support from the Economic Development Administration, provides in-depth open data on regional cluster portfolios across the U.S. and offers a platform for cluster-oriented economic development organizations to collaborate and profile their work. In the meantime the cluster mapping approach developed at ISC has been adopted in a wide range of countries, including all member countries of the European Union, Canada, Mexico, and India. Further research efforts have been conducted in countries ranging from Australia, Brazil, China, and Russia to Turkey. The Institute for Strategy and Competitiveness offers its support to these and all other countries that want to use cluster mapping as a part of their economic development strategy.

Research on Clusters

• • Mar 2011

  Clusters, Convergence, & Economic Performance

  by Mercedes Delgado, Michael E. Porter, Scott Stern

This paper evaluates the role of regional cluster composition in the economic performance of industries, clusters and regions. On the one hand, diminishing returns to specialization in a location can result in a convergence effect: the growth rate of an industry within a region may be declining in the level of activity of that industry. At the same time, positive spillovers across complementary economic activities provide an impetus for agglomeration: the growth rate of an industry within a region may be increasing in the size and “strength” (i.e., relative presence) of related economic sectors. Building on Porter (1998, 2003), we develop a systematic empirical framework to identify the role of regional clusters – groups of closely related and complementary industries operating within a particular region – in regional economic performance. We exploit newly available data from the US Cluster Mapping Project to disentangle the impact of convergence at the region-industry level from agglomeration within clusters. We find that, after controlling for the impact of convergence at the narrowest unit of analysis, there is significant evidence for cluster-driven agglomeration. Industries participating in a strong cluster register higher employment growth as well as higher growth of wages, number of establishments, and patenting. Industry and cluster level growth also increases with the strength of related clusters in the region and with the strength of similar clusters in adjacent regions. Importantly, we find evidence that new industries emerge where there is a strong cluster environment. Our analysis also suggests that the presence of strong clusters in a region enhances growth opportunities in other industries and clusters. Overall, these findings highlight the important role of cluster-based agglomeration in regional economic performance.

Cluster Assessment & Strategy

• • Feb 2003

  New Jersey Life Science Super-Cluster Initiative

  by Michael E. Porter & Monitor Group

The study assessed the current competitive position of the Life Science super-cluster in New Jersey; identified its key strengths and weaknesses, challenges and opportunities; and developed an action agenda that is being used as a blueprint to improve the cluster's competitive position.