clusters

The California Governor's Office of Business and Economic Development is preparing to launch four new Innovation Hubs (iHubs) across the state. iHubs, strategically placed within existing clusters, serve as centers of collaboration for regional economic development agencies, venture capitalists, incubators, and higher education to develop joint programming for entrepreneurship (see the September 4 issue). The program is supported by public, private and federal funding and, with the recent expansion, now hosts 16 centers across California. Three of the new hubs will serve specific regions, including the San Joaquin Area, Kern and Ventura Counties and Inland Southern California. The fourth hub will offer a statewide network of manufacturing support. Read more...

As the U.S. manufacturing sector continues to grow, so does the challenge for regions to find “middle-skill” workers who can fill job vacancies in advanced manufacturing. The Council on Foreign Relations has released a new report, Building the American Workforce, that suggests policymakers can fill this need by narrowing the skills gap for underserved, low-skilled workers. To meet this need, the report's recommendations include overhauling the national workforce development system and establishing a broad vision for workforce training that focuses on low-skilled, underserved workers. Examples include advanced manufacturing training programs in New Hampshire and Washington to demonstrate how the vision can be operationalized at the regional level.

Small businesses often are surrounded by a myriad resources and potential partners that could help leverage their products and services to innovate and grow, but they are not always aware of how to access them. In order to remedy this lack of strong regional networks, the Obama administration has attempted to connect existing businesses, institutions of higher education, economic development organizations, investors, small businesses, and startups to create regional clusters that stimulate economic growth through the Small Business Administration (SBA) and the Economic Development Administration (EDA) regional cluster initiatives. The EDA and SBA have led a total of 50 pilot programs around the nation thus far. A commissioned study of the first two years of the SBA's 10 pilot cluster initiatives in which the agency invested $1 million toward regional industries and advanced defense technologies found a significant correlation between these initiatives and economic growth.

The city of Los Angeles is working with a consortium of public and private partners to redevelop unused docklands into space that will support new industry cluster development. The project highlights a trend of high-profile projects across the country, with cities like Brooklyn and Philadelphia repurposing dockside warehouse space to seed tech startups and advanced manufacturing.

In an era of tightening fiscal constraints, states have to make tough decisions, establish clear economic development funding priorities and transform their economic development models to take advantage of immediate opportunities and position their state for long-term economic growth. Mississippi, Oklahoma and Washington have released state-specific strategic plans that make those tough decisions by focusing their resources on key science & technology (S&T) areas to address the economic impacts of the Great Recession and position the state for future prosperity. Each strategic plan also calls for state government to engage the private sector to build partnerships that will help reduce costs and increase impacts.

The Department of Commerce announced the winners of the Strong Cities, Strong Communities (SC2) Challenge, the Economic Development Administration-led competition seeking to help cities and regions develop a comprehensive economic development strategy. Greensboro, North Carolina, Hartford, Connecticut, and Las Vegas, Nevada each were awarded $1 million to assist in the refinement and implementation of their respective plans. This year's competition follows on the success of a 2011 pilot program, which made awards to six cities, and a Presidential Executive Order signed in March establishing the White House Council on Strong Cites, Strong Communities.

The Small Business Administration released a funding announcement for the Regional Innovation Cluster (RICs) Program. The SBA will announce up to seven RIC awards intended to support public-private partnerships that bring together businesses, academic institutions, economic development organizations and other local actors to lay the foundations of sustainable growth and economic competitiveness. Three of the awards will be set aside to support small businesses that provide cluster-related services. Proposals must be submitted by August 6, 2012. Read the announcement...

The Small Business Administration (SBA) plans to make seven awards to support organizations helping to build strong regional innovation clusters. The awards will support public-private partnerships that bring together businesses, academic institutions, economic development organizations and other local actors to lay the foundations of sustainable growth and economic competitiveness. Three of the awards will go to small businesses that provide cluster-related services. SBA intends to post a request for proposals on or about July 5. Learn more...

The Obama Administration has released details on this year's $26 million Advanced Manufacturing Jobs and Innovation Accelerator Challenge, a multi-agency initiative to assist in the development and implementation of regionally-driven economic development strategies that support advanced manufacturing and cluster development. The challenge will fund approximately 12 new awards, each with a project period of up to three years. The deadline for applications is July 9, 2012. An informational webinar for the Advanced Manufacturing Jobs Accelerator will be available in approximately two weeks at www.manufacturing.gov/accelerator/index.html

A large majority of U.S. manufacturing jobs are located in large metropolitan areas, according to a new paper from the Brookings Institution Metropolitan Policy Program. In 2010, about 79.5 percent of manufacturing employment was centered in large metros and in central metropolitan counties. Over the past two years, however, there has been a slight shift in manufacturing activity back towards non-metro areas, as U.S. manufacturing has experienced a small resurgence. On the whole, the move towards metropolitan areas since 1980 has been healthy for the national economy, since it has allowed different cities to develop specialized industry clusters, according to the report.