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Utilizing EDA Data Tools in Your CEDS
EDA KNOW YOUR REGION WEBINAR SERIES
IN PARTNERSHIP WITH THE NADO RESEARCH FOUNDATION
MARCH 14, 2012
Timothy F. Slaper
Indiana Business Research Center
Kelley School of Business
Indiana University
The Regional Data Toolkit
• Innovation Tools
– Occupation & Industry Clusters
– Innovation Index
• Measuring Distress
• Retrieving Economic and Demographic Data
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Data tools have much in common
• Powered by the IBRC database with 1
billion plus records (and growing)
• Easy-to-use
• At a price you can afford—free!
• Build you own region capability
• Graphing and mapping
• Nationwide comparisons
• Accurate and timely
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Context
• Who needs the data…and for what purpose?
• Developing a sound regional development
strategy
• Identify unique competitive advantage
– Based on distinct economic assets
• Rural America, for example, often rests on its
history of manufacturing and commodity
agriculture…no longer viable
• How do we foster regional innovation?
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Regional Conversations
• How do we act like a region with a shared future?
• Regional roundtables to design a strategy by and
for the region—ownership of the vision
• Roundtable comprised of public, private and
nonprofit leaders
– Helpful to have a champion in private industry
• May need a change in culture and thinking to
achieve the goal—paddling in the same direction
• Data-Driven Strategies
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Steps for Data-Driven Strategies
• Identify region
• Build governance group
• Identify region’s competitive advantage and
economic assets
• Map region’s assets—both economic and
social—and potential futures
• Define best strategy (economic direction) and
identify the resources needed to seize it
See http://www.statsamerica.org/innovation/guide/practitioners_guide.pdf for more “how to”
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Identify Region
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•
•
•
•
Who plays in our sand box?
Is there a logical economic region?
What is the commuter shed? The retail shed?
Are there significant geographic barriers?
Are there historical or cultural factors that
affect the geography and people to include?
• Is there a common core of businesses that
unite the region?
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Regional Governance
• Who are the private sector leaders?
• Who are the regional champions?
• Which non-profits or foundations can glue
together politically disparate pieces?
• Which public officials will provide energy?
• Are there colleges/universities or other
research assets (e.g., military labs) to provide
intellectual heft?
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Identify Economic Assets/Advantages
• What are the economic trends?
– Need data to track industry and employment changes
• What does the region specialize in?
– Socio-economic benchmarking, location quotients
• Define and compare against the region’s peers
– Economy, population, resources, transportation linkages,
education, natural amenities
• What can be learned from peer leaders/laggards?
• What are the region’s existing and emerging
clusters?
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Identify Economic Assets/Advantages
•
•
•
•
•
What are the economic trends?
Where will you go for all your
What does the region specialize in?
data needs?
Define and compare against the region’s peers
What can be learned from the leaders/laggards?
What are the region’s existing and emerging
clusters?
• What are the options?
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Measuring Distress
• Distress indicators for federal grants ― EDA
guidelines for distress
• Nationwide ― counties, districts, tracts
• Region builder
• Calculates thresholds automatically
• Current, accurate source data
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LAUS bulk download files for counties are also available.
LAUS bulk download files for counties are also available.
Click on the rank to get
data for all counties
You’ll have to use the “edit-select all” and “copy” commands to move data into a spreadsheet.
Great tool for finding peers based
on socio-economic characteristics
Great tool for finding peers based on
socio-economic characteristics
You’ll have to use the “edit-select all” and “copy” commands to move data into a spreadsheet.
All state data conveniently packaged
in one Excel file
Questions?
For more information, contact:
Timothy Slaper
or
Carol Rogers
Indiana Business Research Center
Kelley School of Business
Indiana University
tslaper@indiana.edu
rogersc@iupui.edu
ClusterMapping.us
EDA Know Your Region webinar
March 14, 2012
Rich Bryden
Director of Information Products
Institute for Strategy and Competitiveness
Harvard Business School
www.isc.hbs.edu
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Copyright 2012 © Professor Michael E. Porter
Agenda
• Why clusters?
• Identifying clusters
• ClusterMapping.us today
• ClusterMapping.us through March 2013
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Copyright 2012 © Professor Michael E. Porter
Strong Clusters Drive Regional Performace
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Specialization in strong clusters
•
Job growth
•
Breadth of industries within each
cluster
•
Higher wages
•
Strength in related clusters
•
Higher patenting rates
•
Presence of a region‘s clusters in
neighboring regions
•
Greater new business
formation, growth and survival
Not significant
•
Positions in “high-tech“ versus other clusters
Source: Porter, The Economic Performance of Regions, Regional Studies, 2003; Delgado/Porter/Stern, Clusters and Entrepreneurship, Journal of Economic Geography,
2010; Delgado/Porter/Stern, Clusters, Convergence, and Economic Performance, mimeo., 2010.
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Copyright 2012 © Professor Michael E. Porter
Clusters as a Tool For Economic Policy
• A forum for collaboration between the private sector, trade
associations, government, educational, and research institutions
• Brings together firms of all sizes, including SME’s
• Creates a mechanism for constructive business-government dialog
• A tool to identify problems and action recommendations
• A vehicle for investments that strengthen multiple firms/institutions
simultaneously
• Fosters greater competition rather than distorting the market
20111024 – Ecuador Competitiveness Presentation – FINAL – Prepared by RA Jem Hudson.ppt
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Copyright © 2011 Professor Michael E. Porter
Agenda
• Why clusters?
• Identifying clusters
• ClusterMapping.us today
• ClusterMapping.us through March 2013
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Copyright 2012 © Professor Michael E. Porter
Massachusetts Medical Devices Cluster
A geographically proximate group of interconnected companies and associated
institutions in a particular field, linked by commonalities and complementarities
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Copyright 2012 © Professor Michael E. Porter
The Composition of Regional Economies
United States
Natural
Resource-Driven
Traded
Local
27.4%
0.3%
71.7%
1.5%
0.9%
0.5%
$57,706
135.2%
3.7%
$36,911
86.5%
2.7%
$40,142
94.1%
2.4%
144.1
79.3
140.1
Patents per 10,000 Employees
21.5
0.3
1.6
Number of SIC Industries
Number of NAICS Industries
590
677
241
352
48
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Share of Employment
Employment Growth Rate
Average Wage
Relative Wage
Wage Growth Rate
Relative Productivity
Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director.
20110226 – NGA v0225b
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Copyright 2011 © Professor Michael E. Porter
Composition of the Economy
Linkages Across Clusters
Fishing &
Fishing
Products
Entertainment
Agricultural
Products
Processed
Food
Jewelry &
Precious
Metals
Financial
Services
Aerospace
Vehicles &
Information Defense
Tech.
Building
Fixtures,
Equipment &
Services
Lightning &
Electrical
Analytical
Equipment
Education &
Instruments
Power
Knowledge Medical
Generation
Creation
Devices
Communications
Publishing
Equipment
& Printing
Biopharmaceuticals
Chemical
Products
Apparel
Motor Driven
Products
Construction
Materials
Heavy
Construction
Services
Forest
Products
Heavy
Machinery
Production
Technology
Tobacco
Oil &
Gas
Plastics
Footwear
Prefabricated
Enclosures
Furniture
Transportation
& Logistics
Distribution
Services
Business
Services
Hospitality
& Tourism
Textiles
Leather &
Related
Products
Note: Clusters with overlapping borders or identical shading have at least 20% overlap
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(by number of industries) in both directions.
Mining & Metal
Automotive
Aerospace Manufacturing
Engines
Sporting
& Recreation
Goods
Copyright 2012 © Professor Michael E. Porter
Specialization of Regional Economies
Leading Clusters by U.S. Economic Area
Denver, CO
Business Services
Medical Devices
Entertainment
Oil and Gas Products and
Services
Chicago, IL-IN-WI
Metal Manufacturing
Lighting and Electrical Equipment
Production Technology
Plastics
Pittsburgh, PA
Education and Knowledge Creation
Metal Manufacturing
Chemical Products
Power Generation and
Transmission
Boston, MA-NH
Analytical Instruments
Education and Knowledge Creation
Medical Devices
Financial Services
Seattle, WA
Aerospace Vehicles and Defense
Information Technology
Entertainment
Fishing and Fishing Products
New York, NY-NJ-CT-PA
Financial Services
Biopharmaceuticals
Jewelry and Precious Metals
Publishing and Printing
San Jose-San Francisco, CA
Business Services
Information Technology
Agricultural Products
Communications Equipment
Biopharmaceuticals
Los Angeles, CA
Entertainment
Apparel
Distribution Services
Hospitality and Tourism
San Diego, CA
Medical Devices
Analytical Instruments
Hospitality and Tourism
Education and Knowledge Creation
Raleigh-Durham, NC
Education and Knowledge Creation
Biopharmaceuticals
Communications Equipment
Textiles
Dallas
Aerospace Vehicles and Defense
Oil and Gas Products and
Services
Information Technology
Transportation and Logistics
Houston, TX
Oil and Gas Products and
Services
Chemical Products
Heavy Construction Services
Transportation and Logistics
Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School;
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Richard Bryden, Project Director.
Atlanta, GA
Transportation and Logistics
Textiles
Motor Driven Products
Construction Materials
Copyright 2012 © Professor Michael E. Porter
Agenda
• Why clusters?
• Identifying clusters
• ClusterMapping.us today
• ClusterMapping.us through March 2013
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Copyright 2012 © Professor Michael E. Porter
ClusterMapping.us
Today
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Copyright 2012 © Professor Michael E. Porter
ClusterMapping.us
Regions
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Copyright 2012 © Professor Michael E. Porter
Traded Cluster Composition of the South Carolina Economy
3.5%
Overall change in the South Carolina
Share of US Traded Employment: -0.29%
South Carolina national employment share, 2009
Power Generation and
Textiles
Transmission
Construction Materials
(-5.19%, 11.65%)
(-0.65%, 4.63%)
Forest Products (+1.05%,3.81%)
Motor Driven Products (+2.46%,6.12%)
Automotive
(+1.37%, 3.03%)
3.0%
Lighting and Electrical Equipment
Production Technology
2.5%
Chemical Products
(-2.87%, 2.41%)
Apparel
2.0%
Hospitality and Tourism
1.5%
Furniture (-1.77%, 1.57%)
Plastics
Heavy Construction Services
Biopharmaceuticals
South Carolina Overall Share of US
Traded Employment: 1.37%
Communications
Equipment
Business
Services
1.0%
Building Fixtures,
Equipment and Services
Heavy Machinery
Metal
Leather and
Manufacturing Related Products
Information
Technology
Prefabricated Enclosures
Aerospace Engines
Transportation and
Logistics
Medical Devices
Processed Food
Publishing and Printing
Fishing and
Fishing Products
Aerospace Vehicles and Defense
Entertainment
Education and Knowledge Creation
Financial
Services
Distribution Services
0.5%
0.0%
-1.0%
Agricultural Products
Analytical Instruments
Jewelry and Precious Metals
Sporting, Recreational and
Oil and Gas
Children’s Goods
Products and Services
-0.5%
0.0%
0.5%
Change in South Carolina share of National Employment, 1998 to 2009
Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director.
2011 – State Competitiveness – Rich Bryden
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1.0%
Employees 4,600 =
Copyright © 2011 Professor Michael E. Porter
2011 State Competitiveness – Rich Bryden
-80,000
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Textiles
Apparel
Chemical Products
Heavy Construction Services
Furniture
Production Technology
Power Generation and Transmission
Communications Equipment
Metal Manufacturing
Processed Food
Construction Materials
20,000
Entertainment
Financial Services
Building Fixtures, Equipment and Services
Biopharmaceuticals
Sporting, Recreational and Children's Goods
Publishing and Printing
Prefabricated Enclosures
Analytical Instruments
Lighting and Electrical Equipment
Forest Products
Plastics
Jewelry and Precious Metals
Leather and Related Products
Hospitality and Tourism
Footwear
Oil and Gas Products and Services
Heavy Machinery
Fishing and Fishing Products
Agricultural Products
Aerospace Engines
Motor Driven Products
Aerospace Vehicles and Defense
Automotive
-60,000
Medical Devices
Distribution Services
Business Services
Information Technology
Education and Knowledge Creation
Transportation and Logistics
Job Creation, 1998 to 2009
South Carolina Job Creation in Traded Clusters
1998 to 2009
40,000
Net traded job creation,
1998 to 2009:
-106,029
0
-20,000
-40,000
Indicates expected job creation
given national cluster growth.*
* Percent change in national benchmark times starting regional employment. Overall traded job creation in the state, if it matched national benchmarks, would be -102,702
Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director.
Copyright © 2011 Professor Michael E. Porter
South Carolina Wages in Traded Clusters
vs. National Benchmarks
Power Generation and Transmission
Aerospace Vehicles and Defense
Information Technology
Forest Products
Chemical Products
Medical Devices
Biopharmaceuticals
Financial Services
Business Services
Distribution Services
Analytical Instruments
Production Technology
Metal Manufacturing
Heavy Machinery
Heavy Construction Services
Automotive
Plastics
Lighting and Electrical Equipment
Publishing and Printing
Processed Food
Construction Materials
Furniture
Transportation and Logistics
Textiles
Building Fixtures, Equipment and Services
Leather and Related Products
Sporting, Recreational and Children's Goods
Agricultural Products
Motor Driven Products
Education and Knowledge Creation
Prefabricated Enclosures
Jewelry and Precious Metals
Entertainment
Hospitality and Tourism
Apparel
Oil and Gas Products and Services
Communications Equipment
Aerospace Engines
Tobacco
Fishing and Fishing Products
Footwear
$0
l
Indicates average
national wage in
the traded cluster
South Carolina average
traded wage: $40,142
U.S. average
traded wage: $56,906
$25,000
$50,000
$75,000
$100,000
$125,000
Wages, 2009
Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director.
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Agenda
• Why clusters?
• Identifying clusters
• ClusterMapping.us today
• ClusterMapping.us through March 2013
52
Copyright 2012 © Professor Michael E. Porter
New directions for website
1. Engaging &
Educating
2. Community
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Copyright 2012 © Professor Michael E. Porter
BEA Economic Regions
3. Customize
Regions
VT
Albany Economic Area
NH
Boston Economic Area
NY
MA
CT
PA
RI
Hartford Economic Area
NJ
New York Economic Area
Economic Area definitions from U.S. Bureau of Economic Analysis
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Copyright 2012 © Professor Michael E. Porter
4. Macro View
of Clusters
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Wired Magazine
Copyright 2012 © Professor Michael E. Porter
National Association of Development Organizations (NADO)
and the NADO Research Foundation
400 North Capitol Street, NW | Suite 390 | Washington, DC 20001
Ruraltransportation.org | Knowyourregion.org | Regionalcouncilguide.org
202.624.7806 | Info@nado.org
NADO.org
Regional Strategies. Solutions. Partnerships.
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Copyright 2012 © Professor Michael E. Porter