Showing posts with the label clusters

Can Innovative Clusters Protect the Economy from Recession?

Recessions can be brutal and countries often suffer from the magnitude of global changes and shifts that can impact their economic well-being. While they search for solutions to strengthen their economic position among lower cost emerging nations they should consider the benefits of developing clusters. According to a study entitled Coping with Economic Crisis-The Role of Clusters published in European Planning Studies , clusters offer a ray of hope in fortifying an economy from recession. When the global economy adjusts there will be winners and losers. Some nations will pick up additional manufacturing while others will lose manufacturing. When times are good more people will be employed, while when times are bad people will be unemployed.  Europe and the U.S. has lost jobs over the past few decades due to the cheaper cost of manufacturing in places like China, Asia and India. The only true competitive position that Western countries can make is to be more innovative and develop

Collaborative Investing in Local Clusters Leads to Economic Development

Group investment is not a novel idea but can be significant in developing stronger local growth models . A “ hot ” market is one that draws substantial investment interest that encourages growth among market relevant businesses . Pack investing offers opportunities to create multiple points of capital infusion that lead to the growth of a battery of related companies . Companies do not work in a vacuum and rely on different local stakeholders to feed the building of their business . They need resources , human capital , science , facilities , suppliers, partners , and customers to develop momentum . If they lack the right environment , their business is doomed to failure before it gets started . Pack investing offers the opportunity to take a local core competency with a solid industry base and infuse large amounts of capital at various points to encourage mutual growth . Multiple investors may

Streets of Gold or Pathways to Poverty: Reviving America's Cities

Streets of gold look a little more like pathways to poverty . American cities have been on the decline for decades as investments diverted from urban areas to emerging countries that rolled out the red carpet . The infrastructure that was built when American cities were at the height of their economic might is still mostly intact waiting for visionary investors. Getting investment interest and better city governance can lead to mutual growth for business and job-hungry residents if the two can come to a mutual understanding . Pick any major city in the country and follow its historic rise and fall . You may notice that as people moved to the city , built homes , and invested their resources these collections of people grew in wealth and influence . The collective action of small and large investors created a synergy of growth that pushed profit margins to higher levels. Money , gove

Advanced Industries Power Exports

Advanced industries are those that develop innovative solutions to market problems. When matched with labor skills, education, business clusters and progressive policies spur exports and employment at a levels unseen in other industries. A report by the Brookings Institution finds that advanced industries only account for 9% of employment but accounts for 60% of exports and 17% of Gross Domestic Product. The development of products requires a level of innovation where research, skill, investment, and industry come together to create an exportable product. Many of the county's strongest industries are clustered in metro areas which make it possible to rejuvenate these areas while still strengthening the nation. We can see this example in places like Detroit and San Jose California. As to date national economic policy has not been focused on developing hubs and clusters that are better able to meet market needs and push the nation even further ahead of the competition. There have

Wider Supply Chain Integration Leads to Performance Advantages

Supply chain management and integration has important functions for businesses that desire to create higher levels of financial performance. Since all companies work with related companies in either formal or informal linkages, such as suppliers and distributors, it is important to ensure information is transferred effectively between entities to enhance operations on both sides. Research by Kannan & Keah (2010) show how companies that integrate their supply chains to a wider extent develop a number of advantages.  Supply chain management entails businesses associated with the development, building, distributing, and returning of products/services. It has been defined as the “ cross functional integration within the firm and across the network of firms that comprise the supply chain ” (Lambert, 2004). The management of supply chain has come to mean better integration with the supply chain elements to produce value.  Integration is the creation of inter-firm linkages

Enhancing Entrepreneurial Clusters with Global Supply Chain Networks

Global entrepreneurship is a concept that has made its way into recent economic literature. Small business has the opportunity to reach geographically dispersed customers that was not possible just a few decades ago. These entrepreneurs work within clusters and rely on effective supply chains to ensure that products are distributed to end users. Research by Wu, et. al. (2010) presents a framework for understanding global entrepreneurship where supply chain management serves as a platform for resource collection, market development, and risk mitigation.  Before one can effective discuss the mechanisms of global entrepreneurship it is beneficial to understand what the term means. Fundamentally, entrepreneurs focus on value creation, development of new products/services, sparking ventures, and encourage market innovations (Brush, et. al., 2003). Entrepreneurs can exist within organizations or own small businesses.  It is also possible to see entrepreneurs as the un-academic