Transcript NVA250 PowerPoint Presentation

Stronger Economies Together
Cluster Module
Bob Shriver & Karen Craig
Nevada Venture Accelerator
February 16, 2012
Cluster
• A geographic
concentration of
interdependent,
collaborating and/or
competing businesses
and related institutions
that draw productive
advantage from their
mutual proximity and
connections…
All right, said another way…
A CLUSTER IS
An economic strategy
focused on
interconnected
businesses within a
regional area
Another Type of Target Cluster….
Cluster analysis
• Helps diagnose a region’s economic strengths
and challenges
• Identifies realistic ways to shape the region’s
economic future.
THE FOUNDATION OF A REGIONAL ECONOMY IS
A GROUP OF CLUSTERS…
.
not a collection of unrelated companies!
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
Companies cluster together because
• Each one benefits from
being located near
other similar or related
companies
• They have competitive
strengths and needs
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
Lower Risk
• New suppliers
proliferate within a
cluster because a
concentrated customer
base lowers risk
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
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
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
Examples of Clusters
We all know Silicon Valley….
Omaha’s
telemarketing/data
centers
• Back office
telemarketing
service – strategic
air command
center
Las Vegas
amusement/casino/conventions
California Wine
Industry
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
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
Summary
Business Cluster 101
Clusters
Productivity
Prosperity
Discussion
QUESTIONS?
For Example – Plan Similarities
• 2006 NVision
• 2010 Community
Assessments
• 2012 GOED State Plan
Plans + Commonalities + Actions
NVision 2006
NVision 2006
Target Industry Recommendations
NVision 2006
Target Recommendations Per County
Community Assessment
Commonalities
Nevada State Plan 2012
Nevada State Plan 2012
Nevada State Plan 2012
Mining Cluster Supply Chain
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
Our Greatest Weakness!
Ten Priority Actions