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Cluster Development
Cluster-based economic
development is a key component of creating competitive regional
economies.
In healthy regions, competitiveness and innovation are
concentrated in Clusters, or interrelated industries in which a
region specializes. The Cluster concept represents a new way of
thinking about the economy and signifies new roles for companies,
academic institutions and governments at all levels. This concept
is rapidly taking hold as communities look at successes such as
Silicon Valley and the Canadian Technology Triangle.
Regional Clusters succeed because they are able to innovate more
rapidly. A growing body of evidence suggests that regions with
strong Clusters not only have higher rates of innovation, but also
higher productivity growth, new business formation and wages (The
U.S. National Innovation Summit, April 2001).
In the new economy, clusters are identified as a means of regional
growth and development with proven results. Becoming identified
with skills and expertise in specific areas creates international
recognition and attracts new business, jobs and research to a
region.
| Cluster
areas in the US… generate average wages nearly 55% higher
than the pay average in the rest of the economy, have
productivity levels that are about 43% higher than the rest
of the economy and produce 16 patents per 10,000 employees,
compared with one/10,000 in the rest of the economy.
(Ontario's Institute for Competitiveness and Prosperity) |
Marketing of local industry
clusters and their success stories accelerates cluster growth (by
attracting new skilled knowledge workers, related companies and
suppliers and R&D funding) and lends credibility when branding
a region. In the knowledge-based global economy, industry clusters
are one of the key sources of wealth creation for city/regions, as
they create ongoing innovation and lead to the development of
specializations that generate competitive advantage.
The Breken Group facilitates
visioning and planning exercises for municipalities small to
large, recently working for the Ottawa Partnership and
facilitating the Strategic Planning sessions for the Economic
Development Council of Ontario. Breken has worked on Cluster
Development in several regions and has been instrumental in the
recent launch of a bio-tech/DNA Cluster based in Peterborough,
Ontario.
Breken's YourLocalMarketplace
software is also designed with Cluster development in mind. YourLocalMarketplace
is a business directory software designed to help economic
development professionals increase economic activity in their
regions, incorporating the information and communication needs
required for Cluster development. These include tracking and
benchmarking cluster activity, including employment changes over
time, number of patents generated and venture capital attracted,
as well as group contact management capabilities.
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