by Jennifer Clark
Lee Munnich, Patricia Love, and Jennifer Clark. "Industry Clusters: An Economic Development Strategy for Minnesota" State and Local Policy Program, Humphrey Institute of Public Affairs. Minneapolis. Jan. 1999.
As a region, state, and nation, we are being challenged to become more efficient, more intelligent, more ecological... more
As a region, state, and nation, we are being challenged to become more efficient, more intelligent, more ecological —in short—more competitive. Today, workforce shortages and shifting economic sands threaten even the most economically stable states.
It seems prudent in these times to make the most of our regional potentials and economic endowment. One of the ways we do this is to get smarter about our approach to economic development policy. We must begin to see industry, education, and other institutions in the context of the surrounding economy and begin to develop a unified approach to economic development problems. Today we know that the health of Minnesota is intimately connected to the health of our local and regional economies.
We believe you will find this preliminary report a sort of primer for understanding the industry cluster approach. We hope that this document will be useful to state policy makers, businesses and industry, as well as, to students and other individuals interested in economic development.
An industry cluster strategy offers Minnesota an opportunity to make its economic development efforts more effective and comprehensive. It will require the leadership from and collaboration among government, business, and education. This strategy would ensure that the state builds on its strengths and has the appropriate skills and infrastructure it needs to move the state forward. To be successful, Minnesota’s industry cluster strategy will also need to address both the needs of the state as a whole and the regions within it. Regional clusters located throughout greater Minnesota and also concentrated in major metropolitan areas play a vital role in the state’s overall economy. As awareness and interest in cluster strategies grows throughout the state, a first step in implementing clusters is for state leaders of industry, education, and government to explore together the costs and benefits of an industry cluster approach.
In Minnesota, the reasons for pursuing an industry cluster strategy include, opportunities to: • address the current and projected workforce shortages; • plan for and develop the infrastructure needed to move the state economy forward; • develop and strengthen rural communities and regions of the state;
• provide for strong companies and a strong workforce; and, • create more efficient and effective government
In this preliminary report, we have sought to provide a clear overview of an industry cluster approach. In Chapter 1, we clearly define industry clusters and provide examples of them. In Chapter 2, we articulate the benefits of an industry cluster approach both as a means of understanding industries and to initiate and facilitate a powerful statewide economic development policy that takes into account the full potential of the state’s regions. In Chapter 3, we provide examples of the industry cluster approach, and industries that have been studied by the State and Local Policy Program.
Finally, the appendices are replete with collaborators, examples, and resources that have aided this study greatly and may be valuable resources to the reader. We hope that you, the reader, will find this report helpful in understanding an important new approach to understanding economic development.
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