Given our region's cluster portfolio, we can see that a regional cluster strategy for a next generation economy might need to emphasize the following:

Priority One: Support Expansion

It is of primary importance to assist existing clusters to expand in the region who are in fast growth markets or are fast growth firms in slow growth markets (Quadrants A and C). These industries, such as plastics, printing, motor vehicles (outside of fabricated metals) and hotel/motels require the development of regional advantages in those inputs that are nominally independent of any one firm and contribute to the cluster's overall performance. Training programs, transportation access and a competitive business environment are needed to enable the region's industry to maintain its comparative advantage.

Priority Two: Accelerate Formation

This region's economic portfolio holds few rapidly growing clusters in high growth markets. Attracting industries in these higher growth markets is important. However, this requires building up advantages that may take some time to grow, including skills, technology or suppliers. There are ways to accelerate local growth in emerging industries, by working from existing assets in the economy, and by new company formation and spin-offs from existing companies. The key to achieving this in our region is to create an environment that will nurture new enterprise. A large workforce is not a requirement for start-ups, but retaining start-ups in the region as they grow depends on meeting their evolving workforce, technology, financing and physical infrastructure needs. Creating an environment that supports enterprise formation with existing firms is less expensive and competitive than attracting new firms.

Priority Three: Prepare for Attraction

Some local companies are experiencing growth nationally and globally. Companies in these clusters are likely to be attracted to this region because it is close to their markets and to inputs they need. Among the industries that are attracted to the region is the automotive industry including the world headquarters of the Dana Corporation's Spicer Heavy Axle and Brake Division.

Among regional companies in growing clusters with growing markets, there is an abiding concern about recruiting new companies to the region. Competition for scarce labor is their primary concern. However, if there are companies that could be attracted to the region, and whose presence would diversify the breadth of players in our existing clusters, the region would benefit economically and synergistically. To some degree employees will be drawn to the region if there are appropriately prepared development sites (industrial and technology parks). However, to successfully attract most firms, the region would need to substantially and dramatically scale up its capacity to train and retrain as well as house workers in these industries. Regional clusters should not be placed at a competitive disadvantage to incoming industries as part of attraction incentive strategies. Having a level playing field is crucial to communicating that this region is desirable to all compatible industries.

As the cluster strategy component of the Regional EDGE report will show, the needs of our industry clusters are consistent with analytic conclusions. Our region needs to find the means to assist aggressively the expansion of its portfolio of existing companies; to help foster the formation of new enterprises that will add to the region's diversity; and, by adequate preparation on behalf of existing clusters to create a business environment that will naturally attract new industries that will help build our region's next generation economy.