Prepared by Ignacio Guerrero, February 2013
Outline
Background on SBA clusters
 Alignment with GEOHuntsville vision
 SBA Cluster Services
 Options moving forward
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SBA Definitions (http://www.sba.gov/clusters/)
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Clusters are geographic concentrations of
interconnected companies, specialized suppliers,
academic institutions, service providers and
associated organizations with a specific industry
focus
They provide high-value, targeted connecting of
small and large businesses, including networking
with potential industry partners abroad.
Clusters form strong partnerships between
universities and private industry, facilitating
technology transfer and commercialization of new
technology.
Clusters can play a critical role in meeting innovation
needs in sectors such as energy or defense faster
and cheaper than traditional procurement
processes.
Initial SBA Clusters
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In the fall of 2010, through an open competition,
SBA funded 10 pilot clusters selected from among
173 applicants.
Why small companies participate
in the clusters?
Why large companies participate
in the clusters?
GEOHuntsville Vision (From white paper)
GEO Huntsville is a collaborative effort among
businesses, academia and government entities
in our region to support workforce growth and
economic development.
We will accomplish this by bringing awareness to
the professional expertise that exists in the area
and identifying job opportunities that will
continue to build the economic base.
Comparing…
Clusters are geographic
concentrations of interconnected
companies, specialized suppliers,
academic institutions, service
providers and associated
organizations with a specific industry
focus
They provide high-value, targeted
connecting of small and large
businesses, including networking with
potential industry partners abroad.
Clusters form strong partnerships
between universities and private
industry, facilitating technology
transfer and commercialization of
new technology.
Clusters can play a critical role in
meeting innovation needs in sectors
such as energy or defense faster and
cheaper than traditional procurement
processes.
GEO Huntsville is a collaborative
effort among businesses, academia
and government entities in our region
to support workforce growth and
economic development.
We will accomplish this by bringing
awareness to the professional
expertise that exists in the area and
identifying job opportunities that will
continue to build the economic base.
Takeaways
GEOHuntsville objectives are very well
aligned with SBA cluster objectives
 GEOHuntsville can leverage for SBA
Clusters conceptual model and tactical
methods…why reinvent the wheel
 GEOHuntsville can learn from the
cluster experiences and localize as
appropriate
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Background
This is a summary of cluster services
from the first year evaluation of the SBA
regional cluster initiative
 The full report can be found at:
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http://www.sba.gov/sites/default/files/files/Cluster%20Evaluation.pdf
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It is provided here to illustrate cluster
activities and see how they fit with
GEOHuntsville objectives
Services Objectives
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Facilitating alliances and collaborations
among cluster participants
Increasing small businesses’ access to
capital
Enhancing small businesses’ development
or commercialization of new technology
Improving small businesses’ marketing
strategies,
Increasing exports
Assisting with intellectual property issues
and patent applications
1. Propagation of information
on industry supply chain
Due to their vantage points, clusters have
an inherent advantage in identifying
opportunities for small businesses in their
industry supply chains and disseminating
this information
 Some of the clusters participating in SBA’s
Cluster Initiative have utilized supply chain
mapping and used website portals to
disseminate this market intelligence.
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2. Propagation of information
about opportunities
Propagation of information regarding
funding, sourcing, and teaming
opportunities is another primary service
provided by clusters to their members
 The majority of clusters in industries
where this information is relevant
monitor federal requests for proposals,
select those suitable to their
participants, and post them to a website
or include them in a newsletter
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3. Provision of industry-specific
training and certifications
In some industries, certifications and
highly specific training can be promoted
and provided by clusters.
 This service significantly lowers an
important barrier to entry in the industry,
promoting both entry of companies in
related industries and the creation of
new businesses.
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4. Networking opportunities
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Clusters connect small businesses with
other businesses and government
agencies through networking events and
also through individual referrals.
5. Provision of assistance with
grants (e.g., SBIR/STTR, NSF)
Disseminating relevant funding
opportunities to small businesses
 Providing a forum through which
businesses’ grant proposals are reviewed
by experts
 Connecting small businesses with other
firms or academics that add value to the
grant application.
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6. Assistance with identification
of financing opportunities
Workshops focused on external
financing
 Recruiting angel and venture capitalists
to provide feedback on the investor
pitches of small businesses
 Facilitating introductions between small
businesses and angel and venture
capitalists.
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7. Showcase events for participants
to gain exposure and identify
potential clients
Business plan competitions
 Showcase events open to members to
which representatives from various
stakeholder agencies are invited
 White papers demonstrating the
capabilities of small businesses to DoD
and other federal agencies.
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8. Workforce development
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Identifying the workforce needs of small
businesses and assisting in the
alignment of the regional workforce
resources with these needs is another
important service provided by the
clusters
9. “Think tank” sessions at which
participants can discuss problems
facing the industry and small
businesses can discuss how to
mitigate these issues through their
technology and products
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Clusters bring together stakeholders in a
region and industry to exchange ideas in
various forums.
10. Other
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Export Assistance
 Workshops
 Networking with potential industry partners
abroad.
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Technology transfer.
 Clusters can assist small businesses on
issues of technology transfer
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Provision of testing and development
facilities
Options
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Consider applying for SBA cluster designation
○ What is the likelihood of SBA funding a second cluster
in Huntsville?
○ This will require a legal structure to receive funding
○ Management resources will bee needed for
administration
○ We need to carefully look at possible restrictions
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Maintain independence
○ At a minimum GEOHuntsville can leverage from the
concepts, process and tactics of SBA clusters
○ Work closely with the Huntsville Advanced Defense
Technology Cluster through joint programs