Economics at work—the Greater Cleveland Growth Association - Economics at Work

Business Economics, April, 2002 by Jack E. Kleinhenz

The Cluster Project began by first commissioning research to be completed by Cleveland State University, Case Western University, and Applied Development Economics. The four integrated investigations sought to determine which industries--when strategically identified, supported, and promoted--would contribute the most significant rates of growth to the region. From these reports, and in particular from using a statistical model developed by Cleveland State University that examined all industries, seven key clusters were initially identified. These included: five driving industries that fuel the regional economy; two emerging industries that offer substantial growth opportunities; and local serving industries that meet the demand for products and services of local businesses.

To validate these results and to gain insights regarding the region's industries that could not be inferred from the data, we conducted interviews and group meetings with regional companies. This information was compiled with the quantitative data into profiles or briefing papers and used to convene cluster forums. Taking the "analysis to action" began in 1998 by convening cluster forums where nearly 120 firms articulated a five-year vision for each industry and identified requirements for success. As part of this framework, short-term and long-term strategies and actions have been specified. Such strategies include raising the level of workforce quality to match the common needs of firms throughout the cluster. Some actions proposed are being carried out by businesses, others by business and area colleges and universities, and others reach across the state and are by business and government.

Since 1998, the project has met with notable successes, all of which underscore the importance of community-wide collaboration between firms across several industries and with academia and economic development entities. Though we have "locked in" real projects that should have tangible signs of progress, it will take a long time to measure the success and the return on the investment of time and resources of this economic development initiative.

Conclusions

As you can see the organization that I joined six years ago has relied on the skills that economists bring to the daily workplace. Quantitative abilities, analytics, and knowledge about markets, industries and products have been important ingredients in setting our economic development strategies and our work agenda. The value-added proposition mentioned at the start of this article has certainly stretched me as an individual and a business economist.