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| Tool | Issues Addressed | Considerations | Examples | Analyzing Existing Industry in the Local Economy
Analyzing the composition of the local economy to help understand how dependent the community is on one or two industries, how well industries are performing, what the average wages are in each industry, how well the local economy compares to national or regional averages, and what gaps in the industry mix could be filled to enhance the local economy. Techniques used to analyze existing industry structure include cluster analysis, location quotients, and shift-share analysis. | - Not enough innovative economic development taking place
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- An examination of what businesses exist in the community, what assets are available to build on, and which industries show promise based on national and international trends, will help determine what types of businesses a community needs
- Data to implement this tool are difficult to acquire for political jurisdictions smaller than a county
- Many techniques compare the local area to a reference area, so the appropriate reference area must be chosen
- The task of determining what businesses your community needs requires a mixture of analysis and community consensus building
- There must be a reality check on results obtained in this analysis
- This tool is most useful for communities with a large and diverse economy, but for smaller, less diverse economies the tool can provide general background information
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State of Information Technology in Columbus
Implementation Examples Outside Georgia |
Analyzing Existing Industry in the Local Economy |
Guides For Implementing This Tool Understanding Your Economy A good overview of the techniques available to analyze local economic conditions and how they are implemented can be found in:
McLean, Mary L. and Voytek, Kenneth P. Understanding Your Economy. 1992. Planners Press, Chicago, IL.
The State and Local Policy Program, The Hubert H. Humphrey Institute of Public Affairs, University of Minnesota Provides a framework for identifying the key industries in an area's economy, identifies data sources and techniques for identifying key industries and clusters, and presents examples of areas where industry cluster strategies have been implemented. http://www.dca.state.ga.us/OITDSShared/asp/NavDisclaimer.asp?Leaving=GQGP&GoToURL=http://www.hhh.umn.edu/centers/slp/economic_development/index.htm
Appendix 2-7: Sector Analysis Contains a discussion of how ten economic sectors were evaluated for potential clusters including data sources, how to interpret and use the results, and how each sector differs in economic interactions. http://www.dca.state.ga.us/intra_nonpub/Toolkit/Guides/sectoranalysis_apndix.pdf
Broome County Plan for Sustainable Economic Development This PDF document contains a project plan, including the project components, participants and collaborators, and timeline for what they call a “sustainable economic development strategy” developed for Broome County, NY. The document was prepared as a presentation for the stakeholders identified as a first step in the process. http://www.dca.state.ga.us/OITDSShared/asp/NavDisclaimer.asp?Leaving=GQGP&GoToURL=www.angeloueconomics.com/bc/A_Guide_for_Stakeholders.pdf
Literature Review of Cluster Analysis A literature review, which includes reviews of qualitative works, such as those provided by Michael Porter, as well as quantitative discussions of the theory behind cluster formation and success, such as Hill and Brenen’s A Methodology for Identifying the Drivers of Industrial Clusters: The Foundations of Regional Competitive Advantage. http://www.dca.state.ga.us/OITDSShared/asp/NavDisclaimer.asp?Leaving=GQGP&GoToURL=http://www.ncsmartfinder.com/focuscleveland/focus%20cleveland/CGC%20Tech.Report-Appendices/Target%20Industry%20study/Appendix%20A/Appendix%20A%20Literature%20Review%20of%20Cluster%20Analysis%20.htm
Advantages and Disadvantages of Targeting Industry Clusters Contains a discussion of the different types of industry clusters, the advantages and disadvantages of industry cluster analysis, and how these advantages and disadvantages might affect regional industrial development policy. http://www.dca.state.ga.us/OITDSShared/asp/NavDisclaimer.asp?Leaving=GQGP&GoToURL=www.hogllc.com/library_materials/EHN-Cluster_pro_cons_clemson_2001.pdf
Rural Knowledge Clusters: The Challenge of Rural Economic Prosperity This is a guide focusing on rural knowledge clusters including how the cluster approach might be applied to rural settings, the evidence supporting the existence of rural knowledge clusters and three examples of such clusters in Minnesota. http://www.dca.state.ga.us/OITDSShared/asp/NavDisclaimer.asp?Leaving=GQGP&GoToURL=http://12.39.209.165/xp/EDAPublic/PDF/U.Minn.Lit.Rev3.pdf
Cluster Based Economic Development: A Key to Regional Competitiveness A guide specific for cluster-based analysis including a discussion of the infrastructure crucial to cluster development, how to decided if cluster-based approaches are appropriate to your situation, the stages of cluster-based strategy development, and lessons learned from cluster-based strategies is found at: http://www.dca.state.ga.us/OITDSShared/asp/NavDisclaimer.asp?Leaving=GQGP&GoToURL=http://12.39.209.165/xp/EDAPublic/PDF/1g3_5_cluster.pdf
Clustering as a Tool for Regional Economic Competitiveness This is an overview of clusters, what they are and how they are formed, the economic foundations for cluster formation, cluster life-cycles, how clusters were defined for Illinois, and their role in economic development. http://www.dca.state.ga.us/OITDSShared/asp/NavDisclaimer.asp?Leaving=GQGP&GoToURL=www.illinoisbiz.biz/tech/pdf/cluster_overview.doc
Model Ordinances No records available.
Aids For Visualizing This Tool No records available.
Georgia Implementation Examples Muscogee County, GA - A cluster study of information technology in Columbus, prepared by Georgia Tech’s Economic Development Institute, begins with an asset inventory including such items as workforce characteristics, educational resources, an information technology inventory, local government programs and capabilities, and others, leading to a discussion of the existing technology clusters. (To view the study, see "more information.")
Implementation Examples Outside Georgia Alaska - An economic base analysis was conducted for Anchorage, Alaska. The analysis includes population and demographic trends, employment and wages, labor force and unemployment, top employers, economic performance, foreign direct investment, trade, and intellectual and innovative capacity. (To view the study, see "more information.")
Louisiana - A January, 2003 draft report on St. Tammany Parish, Louisiana, includes an economic base analysis focusing on various demographic measures. The report includes commuting patterns, sources of wages, employment and unemployment patterns over time, business formation (including “gazelles”, i.e., small businesses with growth potential) location quotients, and technology resources. (To view the study, see "more information.")
Nevada - The University of Nevada at Reno conducted a study for Eureka County in 2001. The study uses local and regional growth rates to identify likely new branch plants, data on commodity imports, industry desirability factors and cluster analysis applied to rural areas to identify industry targets. (To view the study, see "more information.")
New York - An industry targeting strategy for Broome County, New York, includes recommendations for growing specific high impact industries within the region. To identify the target industries best suited for the county, the consulting team looked at the community from a variety of angles, including demographics, available infrastructure, state and local incentives, and current industry composition. Comparisons with other similarly-sized regions were also done. The approach uses such tools as location quotients, shift-share analysis, and cluster analysis to arrive at its conclusions. (To view the study, see "more information.")
North Carolina - In 2001 a cluster analysis demonstrating the use of location quotients was conducted in Guilford County, North Carolina. The central purpose of the analysis was to identify existing and emerging industry clusters that hold the most promise to “drive” quality economic growth in the county. This analysis took into account the county's inherent strengths and assets, and its competitive position within the larger economic region of which it is a part. (To view the study, see "more information.")
Ohio - A study for low-income areas in Cleveland, Ohio, proposes using industry clusters for economic development. (The study is titled ”Bridging Community and Economic Development: A Strategy for Using Industry Clusters to Link Neighborhoods to the Regional Economy.”) The study has the following objectives: to view clusters from a practitioner's standpoint, to identify and understand the determinants of cluster competitiveness, and to learn how economic development intermediaries in selected case studies are adding unique value, particularly to small firms. Finally, the study sets specific cluster strategies for business development activities resulting in stronger connections to the regional economy and more competitive businesses in neighborhoods. (To view the study, see "more information.")
Other Resources Cluster Based Economic Development Overview of cluster-based economic development including a discussion of the microeconomic foundations for cluster development (with examples), an overview of U.S. clusters, the process of cluster development, critical success factors relating to cluster-based economic development strategy, different approaches to cluster development, and appropriate roles for government. http://www.dca.state.ga.us/OITDSShared/asp/NavDisclaimer.asp?Leaving=GQGP&GoToURL=http://12.39.209.165/xp/EDAPublic/PDF/EDA-Photo/PPT/DrKetels.pdf
File Format HelpGIF (Graphic Image File format) A widely supported image-storage format promoted by CompuServe that gained early widespread use on on-line services and the Internet. Limited to 8 bits of colour.
JPEG (Joint Photographic Experts Group) JPEG is used to refer to the standard they developed for still-image compression, which is sanctioned by the International Standards Organization (ISO).
PDF The PDF file format is the best choice for printing reports and other documents, viewing graphically intensive documents, and observing documents in their original format. You must have the free Adobe Acrobat Reader installed on your computer to view PDF documents. PDF is a very common format for viewing documents on the Internet so installing the Acrobat Reader will be useful on other websites as well. To download Acrobat Reader or to learn more about the product, click on the Adobe icon below.
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