Industry Cluster Data: Why It's Useful
The industry cluster data tool helps the practitioner see networks of businesses that are creating wealth in their local or regional economy. The tool focuses on 17 clusters across the United States in order to provide a framework that is easy to understand. It also allows users to combine individual counties to define custom regions.
With data provided by the tool, users can create a matrix to show industry employment location quotients for each county in the region and for the region as a whole. This matrix enables users to see the overall competitive strengths of the region, as well as those of individual counties.
The table below shows a region in Indiana with location quotients over 1.2 (A location quotient over 1.0 means that a region has a higher concentration of employment in a particular industry than the national average. Using a location quotient of 1.2 or more provides a conservative estimation for this example.)
The data show that the region is strong in advanced materials, concentrated in Owen and Lawrence counties. At the same time, Brown County has competitive strength in apparel and textiles.
Can the competitive strengths in advanced materials be connected to the businesses in apparel and textiles? Is there a future, for example, in using nano-structured coatings that provide wear-resistance and water-proofing for fabrics in apparel and textiles? Chances are, the people managing apparel and textile businesses in Brown County have no idea of what is taking place with advanced materials in Owen and Lawrence counties. By using the data provided through this tool, economic development professionals can start these conversations.
|Clusters with Location Quotients = 1.2 in Counties of Indiana Economic Growth Region 8|
|Agribusiness, Food Processing and Technology||1.4||6.3|
|Apparel and Textiles||4.1||1.4||1.6|
|Arts, Entertainment, Recreation and Visitor Industries||4.5||1.8|
|Biomedical/Biotechnical (Life Sciences)||1.3||2.7||1.2|
|Business and Financial Services|
|Chemicals and Chemical-Based Products||1.7||3.8||2.6|
|Defense and Security||10.8|
|Education and Knowledge Creation||5.6|
|Energy (Fossil and Renewable)||3.5||1.5||2.7||1.3|
|Forest and Wood Products||2.3||11.4||2.2|
|Glass and Ceramics||1.9||4.7|
|Information Technology and Telecommunications|
|Computer and Electronic Product Mfg|
|Electrical Equip, Appliance and Component Mfg||7.1||5.4|
|Fabricated Metal Product Mfg||2.6|
|Primary Metal Mfg||18.1||3.3|
|Transportation Equipment Mfg||4.9|
|Printing and Publishing||1.2||1.4|
|Transportation and Logistics||1.5|