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A Cluster Approach at CIS
Industry
clusters have been around for a long time, but the focus on clusters in
economic development is getting a lot of attention recently. We are all aware of the automotive cluster
that grew around Detroit, the technology cluster that developed in the Silicon
Valley, and the music industry that has grown in Nashville. In short, clusters are groups of
inter-related industries that drive wealth creation in a region. But, clusters are more than a collection of
companies in a particular region that share similar business interests. An entire value chain exists within a
cluster, where suppliers, manufacturers, distributors, academic institutions,
researchers, and workforce training providers, as well as those who provide
relevant support services draw a competitive advantage from each other.
The
cluster approach to economic development has been around for a while (the
concept was popularized by Michael Porter in 1990 as an approach to help
regions achieve a competitive advantage), and the economic development
community is watching its effectiveness as an economic development
strategy. There is agreement, however,
that a targeted, partnership approach that focuses resources across all elements
of the economic ecosystem is needed. In
today’s global economy, companies, both large and small, recognize the value of
doing business in regions that allow them to make strategic connections with
each other and with resources that can enhance their growth and
development. And, states and regions are
increasingly building economic development strategies and investments around nurturing
key drivers of their economies. The
cluster development approach also extends to the federal level, where significant
investments are being made in developing the partnerships, programs, and
infrastructure needed to grow regional clusters.
The
Center for Industrial Services is actively engaged in three federally funded
initiatives aimed at growing key clusters in Tennessee by extending growth and
innovation resources to companies. Two
federal Jobs and Innovation Accelerator initiatives are accelerating the growth
of clusters in East Tennessee: the ACE Accelerator project, which is focused on
growing the advanced composites/carbon fiber cluster; and the Advanced
Manufacturing Prototyping project, which is focused on growing the advanced
manufacturing cluster in the region.
And, CIS is a key partner in the recently awarded Investing in
Manufacturing Communities Partnership DRIVE initiative led by IPS, which will
focus efforts of 14 state and regional partners in growing the dynamic
automotive supply chain that exists within a 69-county, 4-state core region of
the Tennessee Valley. These three
initiatives are part of a framework at CIS and IPS that leverages the key
innovation assets of our state, including the University of Tennessee, Oak
Ridge National Laboratory, Board of Regents Institutions, the State of
Tennessee, and regional economic development organizations to improve regional
economic competitiveness and strengthen economic vitality.
While
CIS has long focused its services to specific sectors through programs such as
the Manufacturing Extension Partnership, the Procurement Technical Assistance
Center, and the SBIR Assistance Center, these new initiatives provide an
opportunity to join other key stakeholders in taking an in-depth look at what
is needed to capitalize on opportunities for job and cluster growth and develop
and deliver specialized services to its customers.
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