competitiveness and economic development

Clusters of Innovation Initiative Professor Michael E. Porter
Competitiveness and Economic Development:
Where Does Texas Stand?
This presentation draws on ideas from Professor Porter’s articles and books, in particular, The Competitive Advantage of Nations (The Free Press, 1990), “Clusters and the New Competitive Agenda for Companies and Governments” in On Competition (Harvard Business School Press, 1998), the Clusters of Innovation Initiative ( www.compete.org ), a joint effort of the Council on Competitiveness, Monitor Group, Professor Porter, and the Cluster Mapping Project at Harvard Business School, and on “Competitiveness in U.S. Rural Regions: Learning and Research Agenda,” a project report on rural economic development for the EDA with Christian Ketels, Kaia Miller, and Richard Bryden.
Additional information may be found at the website of the Institute for Strategy and Competitiveness, www.isc.hbs.edu
Audience of 500 – 700 people, including leaders from public and private sector
You will be introduced by Henry Cisneros
*
Comparative Performance of U.S. States
Wages, 1990 – 2004
Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director.
U.S. Average Wage Growth: 3.61%
U.S. Average Wage: $36,967
Wage Growth (CAGR), 1990-2004
Comparative Performance of U.S. States
Gross State Product per Capita, 1998 – 2005
Note: Southern states as defined by the U.S. census highlighted in blue. All figures in chained 2000 dollars.
Source: BEA, 2006.
Change in Real Gross State Product per Capita, CAGR, 1998-2005
New Jersey
BUT
It’s performance is less impressive when compared to the national average
*
What is Competitiveness?
Competitiveness is the productivity (value per unit of input) with which a nation, region, or cluster utilizes its human, capital, and natural resources. Productivity sets a nation’s or region’s standard of living (wages, returns on capital, returns on natural resources)
Productivity depends both on the value of products and services (e.g. uniqueness, quality) as well as the efficiency with which they are produced.
It is not what industries a nation or region competes in that matters for prosperity, but how firms compete in those industries
Productivity in a nation or region is a reflection of what both domestic and foreign firms choose to do in that location. The location of ownership is secondary for prosperity.
The productivity of “local” industries is of fundamental importance to competitiveness, not just that of traded industries
*
Innovation and Competitiveness
Related and Supporting Industries
Successful economic development is the process of enhancing the business environment to support and encourage increasingly sophisticated ways of competing
Sophisticated and demanding local customer(s)
Local needs that anticipate those elsewhere
Presence of high quality, business inputs
Human resources
Capital resources
Physical infrastructure
Wide availability of information
Natural resources
Access to capable, locally based suppliers and firms in related fields
Presence of clusters instead of isolated industries
Local rules, regulations, and norms that encourage investment and productivity
Open and vigorous local competition
*
Enhancing Competitiveness: Developing Clusters
Hospitality and Tourism in Cairns (Australia)
Sources: HBS student team research (2003) - Peter Tynan, Chai McConnell, Alexandra West, Jean Hayden
Hotels
Outsourcing/core competencies drive reliance on other companies
*
Equipment
Suppliers
Specialized
Technology
Services
*
Clusters and Competitiveness
Clusters Increase Productivity
Ease of coordination and transactions across firms
Rapid diffusion of best practices
Ongoing, visible performance comparisons and strong incentives to improve vs. local rivals
Clusters Stimulate and Enable Innovations
Enhanced ability to perceive innovation opportunities
Presence of multiple entities involved in specialized knowledge creation
Ease of experimentation given locally available resources
Clusters Facilitate Commercialization and New Business Formation
Opportunities for new companies and new lines of established business are more apparent
Commercializing new products and starting new companies is easier because of available skills, suppliers, financing, etc.
Clusters reflect the fundamental influence in competition of linkages and spill-overs
across firms and associated institutions
2
2
How do cluster affect companies and thus competitiveness
Stress the impact on innovation (this is something that Colombian companies understand they need to do but haven’t done in the past)
Levels of Clusters:
There is often an array of clusters in a given field in different locations, each with different levels of specialization and sophistication
Global innovation centers, such as Silicon Valley in semiconductors, are few in number. If there are multiple innovation centers, they normally specialize in different market segments
Other clusters focus on manufacturing, outsourced service functions, or play the role of regional assembly or service centers
*
Cluster Development
Boston University, UMass
Institutions for Collaboration
Economic Development Initiatives
Massachusetts Technology Collaborative
Mass Biomedical Initiatives
Informal networks
Center for Integration of Medicine and Innovative Technology (CIMIT)
Life Sciences Industry Associations
Massachusetts Hospital Association
General Industry Associations
University Initiatives
Technology Transfer offices
*
Specialization of Regional Economies
Select U.S. Geographic Areas
Entertainment
Chicago
Chemical Products
Oil and Gas
Note: Clusters listed are the three highest ranking clusters in terms of share of national employment
Source: Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School
Texas is NOT the relevant economy
*
The Composition of Regional Economies
United States, 2004
Average Wage
Relative Wage
Wage Growth
Relative Productivity
Note: 2004 data, except relative productivity which uses 1997 data.
Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School
Not all industries are subject to the same cluster effects
Differences in the way these three groups are exposed to international competition and the quality of business environments elsewhere
*
The Evolution of Regional Economies
San Diego
U.S. Military
Medical Devices
Biotech / Pharmaceuticals
Education and
Knowledge Creation
Talking Points:
1) Inherited Assets: Climate and Geography were inherited, but San Diego leveraged these assets to build a hospitality and tourism cluster.
2) Geography was important for attracting the US Navy to the region. But this was also a conscious strategy that involved government (eg local officials and representatives in DC) and business lobbying the federal government consistently over several years; dredging the harbor.
3) Climate and geography attracted Salk to SD, which was serendipitous. But then local government donated land to Salk for his Institute, the City zoned the Torrey Pines Mesa as a research area, local business was instrumental in attracting a UC campus, the President pushed hard to build-up the biosciences.
*
Plastics
Note: Clusters with overlapping borders or identical shading
have at least 20% overlap (by number of industries) in both directions
Sporting
New research indicates that regions derive particularly strong benefits from clusters if they specialize in related clusters that share industries, knowledge, etc.
*
The Process of Economic Development
Shifting Roles and Responsibilities
New Model
Economic development is a collaborative process involving government at multiple levels, companies, teaching and research institutions, and institutions for collaboration
Competitiveness must become a bottom-up process in which many individuals, companies, clusters, and institutions take responsibility
Every region and cluster can take steps to enhance competitiveness
Critical consequence of the change in focus from macro to micro is the need to move to a new model of economic policy
While macro is about policies that are right or wrong, there are many issues in micro that are principally “right”; leaders need in addition to identifying them also prioritize among them – a seemingly trivial but in reality crucial task to achieve effective change
Information about what is needed is dispersed among different government agencies, research and education institutions, companies, IFCs, etc
And the capability to act for competitiveness upgrading is also dispersed among different government agencies, research and education institutions, companies, IFCs, etc.
*
Economic Performance Indicators
% of US: 7.05%
in Texas: 2.35% (rank 12)
in the US: 1.50%
in Texas: $42,975 (rank 16)
in the US: $41,844
Texas % above US: 2.70%
in the US: $36,967
Texas % below US: 2.18%
Real Gross State Product per capita, annual growth rate, 1997- 2005
in the US: 1.83%
in the US: 3.61%
in the US: 29.3%
Change in Share of Employment in Traded Clusters, 1990 to 2004
in Texas: -2.6% (rank 23)
in the US: -4.8%
in the US: 7.29
in the US: 4.36%
in the US: 3.15%
in the US: 1.29%
Includes private, non-agricultural employment. Ranks are among the 50 US states plus the District of Columbia
Demographic Profile
Population, 2005
% of US: 7.71%
in the US: 1.16%
in Texas: 64.9 (rank 30)
US state median: 94.4
Texas
Rural and Metropolitan Wages, 2004
Rural employment is 10.5% percent of total in Texas versus 16.0% nationwide.
Texas is less rural than the US by this measure
The average wage in the Texas is higher than the national benchmark.
Average Wage, 2004
Texas
Patenting per 10,000 Employees, 2004
Texas patenting per employee rank: 16 of 51 states plus D.C.
Texas: 7.35 Patents Per 10,000 Employees
CA (14.7)
MA (12.5)
CO (10.8)
MI (9.5)
NY (7.9)
AZ (7.8)
Talking Points:
GOVERNORS, PLEASE SEE PAGE 17 OF YOUR PACKETS
1) This shows how we identify those clusters that add jobs to a regional economy.
2) Note that “high-tech” clusters account for relatively little job growth.
The lion’s share of new jobs are in
business services
Composition of the Texas Economy
Employment by Traded Cluster, 2004
Employment, 2004
Rank in US
Note: Ranks are among the 50 US states plus the District of Columbia.
Texas overall employment rank = 2.
*
Texas
Change in Share of US Cluster Employment, 1990-2004
Texas Overall Share of US Traded Employment: 6.76 %
Overall change in the Texas Share of US Employment: +0.84%
50,000 Employees
=
Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School.
Share of US Cluster Employment, 2004
Oil and Gas Products and Services
(39.8%, +2.9%)
Aerospace Vehicles
and Defense
Texas
Change in Share of US Cluster Employment, 1990-2004
50,000 Employees
=
Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School.
Share of US Cluster Employment, 2004
Overall change in the Texas Share of US Employment: +0.84%
Texas Overall Share of US Traded Employment: 6.76 %
Financial
Services
Fishing and Fishing Products
Texas Economic Growth
Job Creation, 1990-2004
+465,900
Indicates expected job creation given national cluster growth.*
*
Texas
Indicates expected job creation
given national cluster growth.*
*
Texas
+465,900
Indicates expected job creation given national cluster growth.*
* Percent change in national benchmark times starting regional employment. Overall traded job creation in Texas, if it matched national benchmarks, would be +205,776.
Talking Points:
business services
Information TechnologyPublishing and Printing
Power Generation and Transmission
Jewelry and Precious Metals
Lighting and Electrical Equipment
Agricultural Products
20061114 Texas –Draft 20061108a Copyright ©2006 Professor Michael E. Porter
Texas
Job Creation, 1990
national cluster growth.*
Source: Prof. Michael E. Porter, Cluster Mapping Project, Instit ute for Strategy and Competitiveness, Harvard Business School; R ichard Bryden, Project Director.
*
Composition of the Texas Economy
Wages by Traded Cluster vs. National Benchmarks
Wages, 2004
l Indicates average national wage in the cluster.
U.S. average traded wage: $49,367
Talking Points:
business services
Impact of Cluster Mix on Average Wages
Texas Traded Clusters, 2004
Percent Change from Current Wage Levels
Texas’ traded sector wages are 7.9% higher than they would be if Texas’ mix of employment by cluster matched the U.S. average
Texas’ traded sector wages are 6.35% lower than they would be if Texas’ wage levels per cluster matched the U.S. averages
$ 52,638
$ 45,590
Texas Traded Wages: $49,495
US Traded Wages: $49,367
One of the explanations we heard is that South Carolina’s wages lag because of the mix of clusters in the state. South Carolina has relatively large employment in some low-wage paying clusters, and that pulls down the overall average for the state.
We looked at that and found that yes, indeed, the particular mix of clusters in South Carolina accounts for some of the gap, 31% to be precise.
The other 69%, however, is accounted for by lower average wages across all clusters.
In other words, if we could wave a magic wand, and make South Carolina’s economy mirror the US’s economy, we’d only get about 1/3 of the way there.
*
Copyright © 2006 Professor Michael E. Porter
Top Patenting Universities and Research Institutes
Note: Texas organizations highlighted.
Texas
Top Patenting Organizations
Note: This listing assigns patents by location of the individual inventor(s) within the region. Universities and non-profit research institutes highlighted.
Copyright © President and Fellows of Harvard College.
Top 50 Patent Holders in New Jersey
Total of 1995-1998
State Data
U.S. Government
University
38
2
Alabama
0007240
ADTRAN
Corporation
32
3
Alabama
0386735
U.S. Government
U.S. Government
CRYSTAL MEDICAL TECHNOLOGY, A DIVISION OF FOLSOM METAL PRODUCTS, INC.
Corporation
5
25
Alabama
0732869
Corporation
5
29
Alabama
0161150
Corporation
4
32
Alabama
0460095
Institute
4
35
Alabama
0597250
U.S. Government
Corporation
3
42
Alabama
0017850
Corporation
3
49
Alabama
0599915
Corporation
2
6
Alaska
0597185
U.S. Government
Corporation
1
15
Alaska
0711591
Corporation
49
8
Arizona
0372575
Corporation
33
11
Arizona
0036665
Corporation
10
29
Arizona
0260265
Corporation
10
33
Arizona
0010835
Corporation
9
34
Arizona
0084080
Corporation
2
31
Arkansas
0682688
Corporation
2
36
Arkansas
0727123
University
940
2
California
0250060
University
231
18
California
0597270
U.S. Government
U.S. Government
Corporation
74
3
Colorado
0375225
University
58
10
Colorado
0280070
Corporation
43
14
Colorado
0705502
Corporation
26
27
Colorado
0693969
University
20
39
Colorado
0701615
U.S. Government
University
15
48
Colorado
0329825
U.S. Government
U.S. Government
Corporation
64
14
Connecticut
0635905
Corporation
36
22
Connecticut
0260265
Corporation
20
38
Connecticut
0618615
Corporation
18
43
Connecticut
0541085
Corporation
773
1
Delaware
0774265
Corporation
81
2
Delaware
0248780
Corporation
58
5
Delaware
0698482
Corporation
5
25
Delaware
0264840
Corporation
3
40
Delaware
0050370
U.S. Government
2
47
Delaware
0682289
L'AIR LIQUIDE, SOCIETE ANONYME POUR L'ETUDE ET L'EXPLOITATION DES PROCEDES GEORG
Corporation
2
49
Delaware
0019410
U.S. Government
U.S. Government
Corporation
2
13
Corporation
2
15
U.S. Government
U.S. Government
Corporation
1
28
Corporation
1
37
U.S. Government
Corporation
105
6
Florida
0625115
University
74
9
Florida
0599525
University
70
10
Florida
0505285
U.S. Government
Corporation
16
27
Florida
0296175
U.S. Government
University
39
15
Georgia
0706518
U.S. Government
Corporation
21
22
Georgia
0279145
Corporation
19
24
Georgia
0597175
U.S. Government
Corporation
17
27
Georgia
0705879
Corporation
17
28
Georgia
0064975
Institute
15
34
Georgia
0568391
U.S. Government
U.S. Government
Corporation
3
5
Hawaii
0698702
Corporation
2
10
Hawaii
0728955
Corporation
1
28
Hawaii
0716833
U.S. Government
UNIVERSITY OF HAWAII, OFFICE OF TECHNOLOGY TRANSFER AND ECONOMIC DEVELOPMENT
University
1
40
Idaho
0373440
Corporation
16
9
Idaho
0597195
U.S. Government
University
3
19
Idaho
0640380
Corporation
3
23
Idaho
0712390
Corporation
2
34
Idaho
0707299
Corporation
2
39
Idaho
0727067
Corporation
2
44
Idaho
0742101
U.S. Government
Corporation
50
25
Illinois
0161150
Corporation
29
40
Illinois
0597175
U.S. Government
U.S. Government
University
147
1
Iowa
0139275
University
56
6
Iowa
0538695
U.S. Government
University
28
1
Kansas
0726769
Corporation
10
10
Kansas
0019715
University
5
26
Kansas
0451390
Corporation
4
39
Kansas
0731498
University
4
35
Kansas
0189890
Corporation
4
43
Kansas
0729872
University
51
3
Kentucky
0280070
Corporation
8
16
Kentucky
0712306
Corporation
6
20
Kentucky
0565685
Corporation
5
25
Kentucky
0714062
Corporation
5
30
Kentucky
0608620
University
63
2
Louisiana
0186590
U.S. Government
University
5
20
Louisiana
0556975
U.S. Government
U.S. Government
Corporation
3
41
Louisiana
0304090
Corporation
3
47
Louisiana
0702518
Corporation
2
24
Maine
0575115
U.S. Government
U.S. Government
U.S. Government
Corporation
56
9
Maryland
0597190
U.S. Government
Corporation
51
12
Maryland
0067515
Corporation
49
14
Maryland
0280070
U.S. Government
U.S. Government
Institute
15
29
Maryland
0223975
U.S. Government
Corporation
12
34
Maryland
0019715
Corporation
10
44
Maryland
0212465
University
105
6
Massachusetts
0219905
Corporation
66
14
Massachusetts
0700253
Corporation
65
15
Massachusetts
0466005
U.S. Government
U.S. Government
Corporation
211
8
Michigan
0054330
U.S. Government
Corporation
29
40
Michigan
0244120
Corporation
1,548
1
Minnesota
0280070
University
109
8
Minnesota
0030220
Corporation
48
15
Minnesota
0497925
Corporation
48
16
Minnesota
0360355
Institute
46
17
Minnesota
0151760
Corporation
19
39
Minnesota
0545995
U.S. Government
U.S. Government
Corporation
7
10
Mississippi
0599745
Corporation
3
24
Mississippi
0373965
U.S. Government
Corporation
3
34
Mississippi
0122115
U.S. Government
Corporation
2
38
Mississippi
0407450
Corporation
2
43
Mississippi
0710495
Corporation
2
47
Mississippi
0705692
University
2
41
Mississippi
0429360
University
38
8
Missouri
0688897
Corporation
27
12
Missouri
0509320
Corporation
15
16
Missouri
0122115
Corporation
13
19
Missouri
0110325
Corporation
6
45
Missouri
0705675
Corporation
6
50
Montana
0504725
U.S. Government
Corporation
2
21
Montana
0597175
U.S. Government
Corporation
1
29
Montana
0504720
SEMITHERM
Corporation
1
30
Montana
0590855
Corporation
1
45
Montana
0714887
U.S. Government
U.S. Government
University
90
1
Nebraska
0285715
Corporation
9
6
Nebraska
0722326
U.S. Government
Corporation
3
23
Nevada
0715345
Corporation
3
30
Nevada
0701343
Corporation
2
34
Nevada
0193590
Corporation
13
18
U.S. Government
Corporation
9
32
U.S. Government
Corporation
113
16
Corporation
110
17
Institute
79
23
Corporation
66
26
Corporation
49
34
University
108
2
U.S. Government
U.S. Government
Corporation
13
8
University
5
16
U.S. Government
Corporation
3
32
University
3
26
Corporation
3
33
Corporation
3
37
U.S. Government
University
134
9
Corporation
131
11
Corporation
64
20
Institute
49
29
0387055
MOUNT SINAI SCHOOL OF MEDICINE OF THE CITY UNIVERSITY OF NEW YORK
University
35
43
Corporation
32
45
Corporation
64
10
Corporation
64
11
Corporation
29
22
Corporation
14
47
University
5
5
Corporation
2
10
Corporation
2
15
UNIVERSITY OF NORTH DAKOTA ENERGY AND ENVIRONMENT RESEARCH CENTER FOUNDATION
University
2
13
Corporation
1
27
Institute
1
18
Institute
1
24
U.S. Government
University
1
40
Ohio
0454215
U.S. Government
Corporation
60
16
Ohio
0122440
U.S. Government
Corporation
11
15
Oklahoma
0311265
Corporation
8
18
Oklahoma
0085650
Corporation
7
22
Oklahoma
0132965
Corporation
6
27
Oklahoma
0134470
Corporation
13
16
Oregon
0169175
U.S. Government
Corporation
250
3
Pennsylvania
0450155
Corporation
218
5
Pennsylvania
0367520
Corporation
75
20
Pennsylvania
0701194
University
70
23
Pennsylvania
0697373
U.S. Government
Corporation
28
50
U.S. Government
0695405
BOARD OF GOVERNORS FOR HIGHER EDUCATION, STATE OF RHODE ISLAND AND PROVIDENCE PL
State Government
Corporation
6
19
Corporation
4
31
Corporation
3
43
U.S. Government
Corporation
14
23
Corporation
9
32
University
8
37
Corporation
6
47
Corporation
2
17
Corporation
1
33
Corporation
1
41
University
1
24
University
1
28
Tennessee
0684735
Corporation
115
2
Tennessee
0717826
Corporation
65
3
Tennessee
0573320
University
41
7
Tennessee
0604200
Corporation
27
10
Tennessee
0134625
Corporation
17
13
Tennessee
0689576
Corporation
15
17
Tennessee
0538695
Corporation
14
19
Tennessee
0597195
U.S. Government
Institute
11
29
Tennessee
0417130
Corporation
9
40
Tennessee
0512795
Corporation
112
15
Texas
0569900
University
55
30
Texas
0597260
U.S. Government
Corporation
35
44
Texas
0438920
University
82
2
Utah
0385825
Corporation
7
36
Utah
0731564
Corporation
7
38
Utah
0597180
U.S. Government
U.S. Government
Corporation
2
42
Vermont
0387725
U.S. Government
U.S. Government
Corporation
70
3
Virginia
0715944
U.S. Government
Corporation
49
10
Virginia
0094790
University
44
12
Virginia
0625545
University
41
16
Virginia
0182940
U.S. Government
Corporation
19
22
Virginia
0491065
Corporation
18
24
Virginia
0259770
Corporation
12
30
Virginia
0725056
University
12
31
Virginia
0287600
Corporation
8
40
Virginia
0687394
University
8
47
Virginia
0361691
Corporation
42
12
Washington
0508245
Institute
22
24
Washington
0619075
University
10
43
Washington
0201875
Corporation
78
1
Corporation
42
4
U.S. Government
Corporation
6
10
U.S. Government
Corporation
2
39
Corporation
158
4
Wisconsin
0730644
Corporation
39
17
Wisconsin
0317840
Corporation
31
25
Wisconsin
0456255
U.S. Government
Corporation
16
42
Wisconsin
0176415
Corporation
15
45
Wisconsin
0706643
University
3
4
Wyoming
0352475
Corporation
2
17
Wyoming
0027120
Corporation
1
26
Wyoming
0710399
Corporation
1
28
Wyoming
0716661
Corporation
1
32
Wyoming
0722267
Corporation
1
34
Wyoming
0730130
Corporation
1
39
Wyoming
0745448
U.S. Government
University
38
Alabama
3
ADTRAN
Corporation
32
Alabama
4
U.S. Government
U.S. Government
Corporation
5
Alabama
26
Corporation
5
Alabama
30
Corporation
4
Alabama
33
Institute
4
Alabama
36
U.S. Government
Corporation
3
Alabama
43
Corporation
3
Alabama
50
Corporation
2
Alaska
4
U.S. Government
Corporation
1
Alaska
16
Corporation
49
Arizona
9
Corporation
33
Arizona
12
Corporation
10
Arizona
30
Corporation
10
Arizona
34
Corporation
9
Arizona
35
Corporation
2
Arkansas
38
Corporation
2
Arkansas
37
University
940
California
3
University
231
California
19
U.S. Government
U.S. Government
Corporation
74
Colorado
4
University
58
Colorado
11
Corporation
43
Colorado
15
Corporation
26
Colorado
28
University
20
Colorado
40
U.S. Government
University
15
Colorado
49
U.S. Government
U.S. Government
Corporation
64
Connecticut
15
Corporation
36
Connecticut
23
Corporation
20
Connecticut
39
Corporation
18
Connecticut
44
Corporation
773
Delaware
2
Corporation
81
Delaware
3
Corporation
58
Delaware
6
Corporation
5
Delaware
26
Corporation
3
Delaware
41
U.S. Government
2
Delaware
49
Corporation
2
Delaware
50
U.S. Government
U.S. Government
Corporation
2
Corporation
2
U.S. Government
U.S. Government
Corporation
1
Corporation
1
U.S. Government
Corporation
105
Florida
7
University
74
Florida
10
University
70
Florida
11
U.S. Government
Corporation
16
Florida
28
U.S. Government
University
39
Georgia
16
U.S. Government
Corporation
21
Georgia
23
Corporation
19
Georgia
25
U.S. Government
Corporation
17
Georgia
28
Corporation
17
Georgia
29
Institute
15
Georgia
35
U.S. Government
U.S. Government
Corporation
3
Hawaii
6
Corporation
2
Hawaii
11
Corporation
1
Hawaii
29
U.S. Government
University
1
Hawaii
1
Corporation
16
Idaho
10
U.S. Government
University
3
Idaho
21
Corporation
3
Idaho
24
Corporation
2
Idaho
35
Corporation
2
Idaho
40
Corporation
2
Idaho
45
U.S. Government
Corporation
50
Illinois
26
Corporation
29
Illinois
41
U.S. Government
U.S. Government
University
147
Iowa
2
University
56
Iowa
7
U.S. Government
University
28
Kansas
2
Corporation
10
Kansas
11
University
5
Kansas
30
Corporation
4
Kansas
40
University
4
Kansas
41
Corporation
4
Kansas
44
University
51
Kentucky
4
Corporation
8
Kentucky
17
Corporation
6
Kentucky
21
Corporation
5
Kentucky
26
Corporation
5
Kentucky
31
University
63
Louisiana
3
U.S. Government
University
5
Louisiana
21
U.S. Government
U.S. Government
Corporation
3
Louisiana
42
Corporation
3
Louisiana
48
Corporation
2
Maine
25
U.S. Government
U.S. Government
U.S. Government
Corporation
56
Maryland
10
U.S. Government
Corporation
51
Maryland
13
Corporation
49
Maryland
15
U.S. Government
U.S. Government
Institute
15
Maryland
31
U.S. Government
Corporation
12
Maryland
35
Corporation
10
Maryland
45
University
105
Massachusetts
7
Corporation
66
Massachusetts
15
Corporation
65
Massachusetts
16
U.S. Government
U.S. Government
Corporation
211
Michigan
9
U.S. Government
Corporation
29
Michigan
41
Corporation
1,548
Minnesota
2
University
109
Minnesota
9
Corporation
48
Minnesota
16
Corporation
48
Minnesota
17
Institute
46
Minnesota
18
Corporation
19
Minnesota
40
U.S. Government
U.S. Government
Corporation
7
Mississippi
11
Corporation
3
Mississippi
25
U.S. Government
Corporation
3
Mississippi
35
U.S. Government
Corporation
2
Mississippi
39
Corporation
2
Mississippi
44
Corporation
2
Mississippi
41
University
2
Mississippi
48
University
38
Missouri
9
Corporation
27
Missouri
13
Corporation
15
Missouri
17
Corporation
13
Missouri
20
Corporation
6
Missouri
46
Corporation
6
Missouri
1
U.S. Government
Corporation
2
Montana
16
U.S. Government
Corporation
1
Montana
30
SEMITHERM
Corporation
1
Montana
31
Corporation
1
Montana
46
U.S. Government
U.S. Government
University
90
Nebraska
2
Corporation
9
Nebraska
7
U.S. Government
Corporation
3
Nevada
24
Corporation
3
Nevada
31
Corporation
2
Nevada
35
Corporation
13
U.S. Government
Corporation
9
U.S. Government
Corporation
113
Corporation
110
Institute
79
Corporation
66
Corporation
49
University
108
U.S. Government
U.S. Government
Corporation
13
University
5
U.S. Government
Corporation
3
University
3
Corporation
3
Corporation
3
U.S. Government
University
134
Corporation
131
Corporation
64
Institute
49
43
University
35
Corporation
32
Corporation
64
Corporation
64
Corporation
29
Corporation
14
University
5
Corporation
2
Corporation
2
University
2
Corporation
1
Institute
1
Institute
1
U.S. Government
University
1
U.S. Government
Corporation
60
Ohio
17
U.S. Government
Corporation
11
Oklahoma
16
Corporation
8
Oklahoma
19
Corporation
7
Oklahoma
23
Corporation
6
Oklahoma
28
Corporation
13
Oregon
17
U.S. Government
Corporation
250
Pennsylvania
4
Corporation
218
Pennsylvania
6
Corporation
75
Pennsylvania
21
University
70
Pennsylvania
24
U.S. Government
Corporation
28
Pennsylvania
1
U.S. Government
12
State Government
Corporation
6
Corporation
4
Corporation
3
U.S. Government
Corporation
14
Corporation
9
University
8
Corporation
6
Corporation
2
Corporation
1
Corporation
1
University
1
University
1
Corporation
115
Tennessee
3
Corporation
65
Tennessee
4
University
41
Tennessee
8
Corporation
27
Tennessee
11
Corporation
17
Tennessee
14
Corporation
15
Tennessee
18
Corporation
14
Tennessee
20
U.S. Government
Institute
11
Tennessee
30
Corporation
9
Tennessee
41
Corporation
112
Texas
16
University
55
Texas
31
U.S. Government
Corporation
35
Texas
45
University
82
Utah
3
Corporation
7
Utah
37
Corporation
7
Utah
39
U.S. Government
U.S. Government
Corporation
2
Vermont
43
U.S. Government
U.S. Government
Corporation
70
Virginia
4
U.S. Government
Corporation
49
Virginia
11
University
44
Virginia
13
University
41
Virginia
17
U.S. Government
Corporation
19
Virginia
23
Corporation
18
Virginia
25
Corporation
12
Virginia
31
University
12
Virginia
32
Corporation
8
Virginia
41
University
8
Virginia
48
Corporation
42
Washington
13
Institute
22
Washington
25
University
10
Washington
44
Corporation
78
Corporation
42
U.S. Government
Corporation
6
U.S. Government
Corporation
2
Corporation
158
Wisconsin
5
Corporation
39
Wisconsin
18
Corporation
31
Wisconsin
26
U.S. Government
Corporation
16
Wisconsin
43
Corporation
15
Wisconsin
46
University
3
Wyoming
6
Corporation
2
Wyoming
18
Corporation
1
Wyoming
27
Corporation
1
Wyoming
29
Corporation
1
Wyoming
33
Corporation
1
Wyoming
35
Corporation
1
Wyoming
40
Corporation
5
5
U.S. Government
Corporation
4
8
Institute
4
16
Corporation
113
Missouri
U.S. Government
Corporation
110
Missouri
Corporation
3
18
Institute
79
Missouri
Corporation
3
25
U.S. Government
University
38
2
Alabama
0007240
ADTRAN
Corporation
32
3
Alabama
0386735
U.S. Government
U.S. Government
Corporation
5
25
Alabama
0732869
Corporation
5
29
Alabama
0161150
Corporation
4
32
Alabama
0460095
Institute
4
35
Alabama
0597250
U.S. Government
Corporation
3
42
Alabama
0017850
Corporation
3
49
Alabama
0599915
Corporation
2
6
Alaska
0597185
U.S. Government
Corporation
1
15
Alaska
0711591
Corporation
49
8
Arizona
0372575
Corporation
33
11
Arizona
0036665
Corporation
10
29
Arizona
0260265
Corporation
10
33
Arizona
0010835
Corporation
9
34
Arizona
0084080
Corporation
2
31
Arkansas
0682688
Corporation
2
36
Arkansas
0727123
University
940
2
California
0250060
University
231
18
California
0597270
U.S. Government
U.S. Government
Corporation
74
3
Colorado
0375225
University
58
10
Colorado
0280070
Corporation
43
14
Colorado
0705502
Corporation
26
27
Colorado
0693969
University
20
39
Colorado
0701615
U.S. Government
University
15
48
Colorado
0329825
U.S. Government
U.S. Government
Corporation
64
14
Connecticut
0635905
Corporation
36
22
Connecticut
0260265
Corporation
20
38
Connecticut
0618615
Corporation
18
43
Connecticut
0541085
Corporation
773
1
Delaware
0774265
Corporation
81
2
Delaware
0248780
Corporation
58
5
Delaware
0698482
Corporation
5
25
Delaware
0264840
Corporation
3
40
Delaware
0050370
U.S. Government
2
47
Delaware
0682289
Corporation
2
49
Delaware
0019410
U.S. Government
U.S. Government
Corporation
2
13
Corporation
2
15
U.S. Government
U.S. Government
Corporation
1
28
Corporation
1
37
U.S. Government
Corporation
105
6
Florida
0625115
University
74
9
Florida
0599525
University
70
10
Florida
0505285
U.S. Government
Corporation
16
27
Florida
0296175
U.S. Government
University
39
15
Georgia
0706518
U.S. Government
Corporation
21
22
Georgia
0279145
Corporation
19
24
Georgia
0597175
U.S. Government
Corporation
17
27
Georgia
0705879
Corporation
17
28
Georgia
0064975
Institute
15
34
Georgia
0568391
U.S. Government
U.S. Government
Corporation
3
5
Hawaii
0698702
Corporation
2
10
Hawaii
0728955
Corporation
1
28
Hawaii
0716833
U.S. Government
University
1
40
Idaho
0373440
Corporation
16
9
Idaho
0597195
U.S. Government
University
3
19
Idaho
0640380
Corporation
3
23
Idaho
0712390
Corporation
2
34
Idaho
0707299
Corporation
2
39
Idaho
0727067
Corporation
2
44
Idaho
0742101
U.S. Government
Corporation
50
25
Illinois
0161150
Corporation
29
40
Illinois
0597175
U.S. Government
U.S. Government
University
147
1
Iowa
0139275
University
56
6
Iowa
0538695
U.S. Government
University
28
1
Kansas
0726769
Corporation
10
10
Kansas
0019715
University
5
26
Kansas
0451390
Corporation
4
39
Kansas
0731498
University
4
35
Kansas
0189890
Corporation
4
43
Kansas
0729872
University
51
3
Kentucky
0280070
Corporation
8
16
Kentucky
0712306
Corporation
6
20
Kentucky
0565685
Corporation
5
25
Kentucky
0714062
Corporation
5
30
Kentucky
0608620
University
63
2
Louisiana
0186590
U.S. Government
University
5
20
Louisiana
0556975
U.S. Government
U.S. Government
Corporation
3
41
Louisiana
0304090
Corporation
3
47
Louisiana
0702518
Corporation
2
24
Maine
0575115
U.S. Government
U.S. Government
U.S. Government
Corporation
56
9
Maryland
0597190
U.S. Government
Corporation
51
12
Maryland
0067515
Corporation
49
14
Maryland
0280070
U.S. Government
U.S. Government
Institute
15
29
Maryland
0223975
U.S. Government
Corporation
12
34
Maryland
0019715
Corporation
10
44
Maryland
0212465
University
105
6
Massachusetts
0219905
Corporation
66
14
Massachusetts
0700253
Corporation
65
15
Massachusetts
0466005
U.S. Government
U.S. Government
Corporation
211
8
Michigan
0054330
U.S. Government
Corporation
29
40
Michigan
0244120
Corporation
1,548
1
Minnesota
0280070
University
109
8
Minnesota
0030220
Corporation
48
15
Minnesota
0497925
Corporation
48
16
Minnesota
0360355
Institute
46
17
Minnesota
0151760
Corporation
19
39
Minnesota
0545995
U.S. Government
U.S. Government
Corporation
7
10
Mississippi
0599745
Corporation
3
24
Mississippi
0373965
U.S. Government
Corporation
3
34
Mississippi
0122115
U.S. Government
Corporation
2
38
Mississippi
0407450
Corporation
2
43
Mississippi
0710495
Corporation
2
47
Mississippi
0705692
University
2
41
Mississippi
0429360
University
38
8
Missouri
0688897
Corporation
27
12
Missouri
0509320
Corporation
15
16
Missouri
0122115
Corporation
13
19
Missouri
0110325
Corporation
6
45
Missouri
0705675
Corporation
6
50
Montana
0504725
U.S. Government
Corporation
2
21
Montana
0597175
U.S. Government
Corporation
1
29
Montana
0504720
SEMITHERM
Corporation
1
30
Montana
0590855
Corporation
1
45
Montana
0714887
U.S. Government
U.S. Government
University
90
1
Nebraska
0285715
Corporation
9
6
Nebraska
0722326
U.S. Government
Corporation
3
23
Nevada
0715345
Corporation
3
30
Nevada
0701343
Corporation
2
34
Nevada
0193590
Corporation
13
18
U.S. Government
Corporation
9
32
U.S. Government
Corporation
113
16
Corporation
110
17
Institute
79
23
Corporation
66
26
Corporation
49
34
University
108
2
U.S. Government
U.S. Government
Corporation
13
8
University
5
16
U.S. Government
Corporation
3
32
University
3
26
Corporation
3
33
Corporation
3
37
U.S. Government
University
134
9
Corporation
131
11
Corporation
64
20
Institute
49
29
0387055
University
35
43
Corporation
32
45
Corporation
64
10
Corporation
64
11
Corporation
29
22
Corporation
14
47
University
5
5
Corporation
2
10
Corporation
2
15
University
2
13
Corporation
1
27
Institute
1
18
Institute
1
24
U.S. Government
University
1
40
Ohio
0454215
U.S. Government
Corporation
60
16
Ohio
0122440
U.S. Government
Corporation
11
15
Oklahoma
0311265
Corporation
8
18
Oklahoma
0085650
Corporation
7
22
Oklahoma
0132965
Corporation
6
27
Oklahoma
0134470
Corporation
13
16
Oregon
0169175
U.S. Government
Corporation
250
3
Pennsylvania
0450155
Corporation
218
5
Pennsylvania
0367520
Corporation
75
20
Pennsylvania
0701194
University
70
23
Pennsylvania
0697373
U.S. Government
Corporation
28
50
U.S. Government
0695405
State Government
Corporation
6
19
Corporation
4
31
Corporation
3
43
U.S. Government
Corporation
14
23
Corporation
9
32
University
8
37
Corporation
6
47
Corporation
2
17
Corporation
1
33
Corporation
1
41
University
1
24
University
1
28
Tennessee
0684735
Corporation
115
2
Tennessee
0717826
Corporation
65
3
Tennessee
0573320
University
41
7
Tennessee
0604200
Corporation
27
10
Tennessee
0134625
Corporation
17
13
Tennessee
0689576
Corporation
15
17
Tennessee
0538695
Corporation
14
19
Tennessee
0597195
U.S. Government
Institute
11
29
Tennessee
0417130
Corporation
9
40
Tennessee
0512795
Corporation
112
15
Texas
0569900
University
55
30
Texas
0597260
U.S. Government
Corporation
35
44
Texas
0438920
University
82
2
Utah
0385825
Corporation
7
36
Utah
0731564
Corporation
7
38
Utah
0597180
U.S. Government
U.S. Government
Corporation
2
42
Vermont
0387725
U.S. Government
U.S. Government
Corporation
70
3
Virginia
0715944
U.S. Government
Corporation
49
10
Virginia
0094790
University
44
12
Virginia
0625545
University
41
16
Virginia
0182940
U.S. Government
Corporation
19
22
Virginia
0491065
Corporation
18
24
Virginia
0259770
Corporation
12
30
Virginia
0725056
University
12
31
Virginia
0287600
Corporation
8
40
Virginia
0687394
University
8
47
Virginia
0361691
Corporation
42
12
Washington
0508245
Institute
22
24
Washington
0619075
University
10
43
Washington
0201875
Corporation
78
1
Corporation
42
4
U.S. Government
Corporation
6
10
U.S. Government
Corporation
2
39
Corporation
158
4
Wisconsin
0730644
Corporation
39
17
Wisconsin
0317840
Corporation
31
25
Wisconsin
0456255
U.S. Government
Corporation
16
42
Wisconsin
0176415
Corporation
15
45
Wisconsin
0706643
University
3
4
Wyoming
0352475
Corporation
2
17
Wyoming
0027120
Corporation
1
26
Wyoming
0710399
Corporation
1
28
Wyoming
0716661
Corporation
1
32
Wyoming
0722267
Corporation
1
34
Wyoming
0730130
Corporation
1
39
Wyoming
0745448
U.S. Government
University
38
Alabama
3
ADTRAN
Corporation
32
Alabama
4
U.S. Government
U.S. Government
Corporation
5
Alabama
26
Corporation
5
Alabama
30
Corporation
4
Alabama
33
Institute
4
Alabama
36
U.S. Government
Corporation
3
Alabama
43
Corporation
3
Alabama
50
Corporation
2
Alaska
4
U.S. Government
Corporation
1
Alaska
16
Corporation
49
Arizona
9
Corporation
33
Arizona
12
Corporation
10
Arizona
30
Corporation
10
Arizona
34
Corporation
9
Arizona
35
Corporation
2
Arkansas
38
Corporation
2
Arkansas
37
University
940
California
3
University
231
California
19
U.S. Government
U.S. Government
Corporation
74
Colorado
4
University
58
Colorado
11
Corporation
43
Colorado
15
Corporation
26
Colorado
28
University
20
Colorado
40
U.S. Government
University
15
Colorado
49
U.S. Government
U.S. Government
Corporation
64
Connecticut
15
Corporation
36
Connecticut
23
Corporation
20
Connecticut
39
Corporation
18
Connecticut
44
Corporation
773
Delaware
2
Corporation
81
Delaware
3
Corporation
58
Delaware
6
Corporation
5
Delaware
26
Corporation
3
Delaware
41
U.S. Government
2
Delaware
49
Corporation
2
Delaware
50
U.S. Government
U.S. Government
Corporation
2
Corporation
2
U.S. Government
U.S. Government
Corporation
1
Corporation
1
U.S. Government
Corporation
105
Florida
7
University
74
Florida
10
University
70
Florida
11
U.S. Government
Corporation
16
Florida
28
U.S. Government
University
39
Georgia
16
U.S. Government
Corporation
21
Georgia
23
Corporation
19
Georgia
25
U.S. Government
Corporation
17
Georgia
28
Corporation
17
Georgia
29
Institute
15
Georgia
35
U.S. Government
U.S. Government
Corporation
3
Hawaii
6
Corporation
2
Hawaii
11
Corporation
1
Hawaii
29
U.S. Government
University
1
Hawaii
1
Corporation
16
Idaho
10
U.S. Government
University
3
Idaho
21
Corporation
3
Idaho
24
Corporation
2
Idaho
35
Corporation
2
Idaho
40
Corporation
2
Idaho
45
U.S. Government
Corporation
50
Illinois
26
Corporation
29
Illinois
41
U.S. Government
U.S. Government
University
147
Iowa
2
University
56
Iowa
7
U.S. Government
University
28
Kansas
2
Corporation
10
Kansas
11
University
5
Kansas
30
Corporation
4
Kansas
40
University
4
Kansas
41
Corporation
4
Kansas
44
University
51
Kentucky
4
Corporation
8
Kentucky
17
Corporation
6
Kentucky
21
Corporation
5
Kentucky
26
Corporation
5
Kentucky
31
University
63
Louisiana
3
U.S. Government
University
5
Louisiana
21
U.S. Government
U.S. Government
Corporation
3
Louisiana
42
Corporation
3
Louisiana
48
Corporation
2
Maine
25
U.S. Government
U.S. Government
U.S. Government
Corporation
56
Maryland
10
U.S. Government
Corporation
51
Maryland
13
Corporation
49
Maryland
15
U.S. Government
U.S. Government
Institute
15
Maryland
31
U.S. Government
Corporation
12
Maryland
35
Corporation
10
Maryland
45
University
105
Massachusetts
7
Corporation
66
Massachusetts
15
Corporation
65
Massachusetts
16
U.S. Government
U.S. Government
Corporation
211
Michigan
9
U.S. Government
Corporation
29
Michigan
41
Corporation
1,548
Minnesota
2
University
109
Minnesota
9
Corporation
48
Minnesota
16
Corporation
48
Minnesota
17
Institute
46
Minnesota
18
Corporation
19
Minnesota
40
U.S. Government
U.S. Government
Corporation
7
Mississippi
11
Corporation
3
Mississippi
25
U.S. Government
Corporation
3
Mississippi
35
U.S. Government
Corporation
2
Mississippi
39
Corporation
2
Mississippi
44
Corporation
2
Mississippi
41
University
2
Mississippi
48
University
38
Missouri
9
Corporation
27
Missouri
13
Corporation
15
Missouri
17
Corporation
13
Missouri
20
Corporation
6
Missouri
46
Corporation
6
Missouri
1
U.S. Government
Corporation
2
Montana
16
U.S. Government
Corporation
1
Montana
30
SEMITHERM
Corporation
1
Montana
31
Corporation
1
Montana
46
U.S. Government
U.S. Government
University
90
Nebraska
2
Corporation
9
Nebraska
7
U.S. Government
Corporation
3
Nevada
24
Corporation
3
Nevada
31
Corporation
2
Nevada
35
Corporation
13
U.S. Government
Corporation
9
U.S. Government
Corporation
113
Corporation
110
Institute
79
Corporation
66
Corporation
49
University
108
U.S. Government
U.S. Government
Corporation
13
University
5
U.S. Government
Corporation
3
University
3
Corporation
3
Corporation
3
U.S. Government
University
134
Corporation
131
Corporation
64
Institute
49
43
University
35
Corporation
32
Corporation
64
Corporation
64
Corporation
29
Corporation
14
University
5
Corporation
2
Corporation
2
University
2
Corporation
1
Institute
1
Institute
1
U.S. Government
University
1
U.S. Government
Corporation
60
Ohio
17
U.S. Government
Corporation
11
Oklahoma
16
Corporation
8
Oklahoma
19
Corporation
7
Oklahoma
23
Corporation
6
Oklahoma
28
Corporation
13
Oregon
17
U.S. Government
Corporation
250
Pennsylvania
4
Corporation
218
Pennsylvania
6
Corporation
75
Pennsylvania
21
University
70
Pennsylvania
24
U.S. Government
Corporation
28
Pennsylvania
1
U.S. Government
12
State Government
Corporation
6
Corporation
4
Corporation
3
U.S. Government
Corporation
14
Corporation
9
University
8
Corporation
6
Corporation
2
Corporation
1
Corporation
1
University
1
University
1
Corporation
115
Tennessee
3
Corporation
65
Tennessee
4
University
41
Tennessee
8
Corporation
27
Tennessee
11
Corporation
17
Tennessee
14
Corporation
15
Tennessee
18
Corporation
14
Tennessee
20
U.S. Government
Institute
11
Tennessee
30
Corporation
9
Tennessee
41
Corporation
112
Texas
16
University
55
Texas
31
U.S. Government
Corporation
35
Texas
45
University
82
Utah
3
Corporation
7
Utah
37
Corporation
7
Utah
39
U.S. Government
U.S. Government
Corporation
2
Vermont
43
U.S. Government
U.S. Government
Corporation
70
Virginia
4
U.S. Government
Corporation
49
Virginia
11
University
44
Virginia
13
University
41
Virginia
17
U.S. Government
Corporation
19
Virginia
23
Corporation
18
Virginia
25
Corporation
12
Virginia
31
University
12
Virginia
32
Corporation
8
Virginia
41
University
8
Virginia
48
Corporation
42
Washington
13
Institute
22
Washington
25
University
10
Washington
44
Corporation
78
Corporation
42
U.S. Government
Corporation
6
U.S. Government
Corporation
2
Corporation
158
Wisconsin
5
Corporation
39
Wisconsin
18
Corporation
31
Wisconsin
26
U.S. Government
Corporation
16
Wisconsin
43
Corporation
15
Wisconsin
46
University
3
Wyoming
6
Corporation
2
Wyoming
18
Corporation
1
Wyoming
27
Corporation
1
Wyoming
29
Corporation
1
Wyoming
33
Corporation
1
Wyoming
35
Corporation
1
Wyoming
40
U.S. Government
Corporation
66
Missouri
2
University
38
27
U.S. Government
Corporation
49
Missouri
10
U.S. Government
Corporation
5
50
8AMERICAN CYANAMID COMPANYCorporation181
18BOC GROUP, INC.Corporation109
24HOECHST CELANESE CORPORATIONCorporation73
25HOFFMANN-LA ROCHE INC.Corporation69
RankOrganization TitlePatentor Type
27HOECHST-ROUSSEL PHARMACEUTICALS, INC.Corporation64
35NEC RESEARCH INSTITUTE, INC.Corporation48
1
98
41
2 INTERNATIONAL BUSINESS MACHINES CORPORATION 2491
3 ADVANCED MICRO DEVICES, INC. 1674
4 HEWLETT-PACKARD / COMPAQ 892
5 MOTOROLA, INC. 696
8 HALLIBURTON ENERGY SERVICES, INC. 524
9 BAKER HUGHES INCORPORATED 483
10 EXXON-MOBIL 433
14 ERICSSON, INC. 258
15 STMICROELECTRONICS, INC. 228
18 WEATHERFORD/LAMB, INC. 152
20 RAYTHEON COMPANY 150
22 SOUTHWEST RESEARCH INSTITUTE 142
23 MICRON TECHNOLOGY, INC. 141
24 LUCENT TECHNOLOGIES INC. 141
25 SMITH INTERNATIONAL INC. 137
31 TEXAS A&M UNIVERSITY SYSTEM 98
41 BAYLOR COLLEGE OF MEDICINE 70
Source: Cluster Mapping Project, Institute for Strategy and Comp
etitiveness, Harvard Business School (www.
isc
Rank
U.S. Government
Corporation
113
17
Corporation
110
18
Institute
79
24
Corporation
66
27
Corporation
49
35
Total of 1995
Rank
Organization
1
2107
2
434
7
220
14
215
15
200
18
170
23
116
59
Regions in the Texas Economy
Comparative Wage Performance of Economic Areas
CAGR of Wages, 1990–2004
Average Wages, 2004
US Average Wage: $36,161
*
Copyright © 2001 Professor Michael E. Porter; Council on Competitiveness; Monitor Company Group, L.P.; and ontheFRONTIER
RCGA Boston visit 04-39-02 CK
The Determinants of Regional Competitiveness and Innovative Capacity
A strong physical and information infrastructure is a baseline requirement to establish and sustain a prosperous regional economy
A strong K–12 educational system is important for developing local talent and attracting outside talent
Universities and specialized research centers are the driving force behind innovation in nearly every region
Commercialization is a vital step in the innovation process
Specialized talent and training are more important than abundant labor
Poor coordination among local jurisdictions impedes efforts to improve the business environment
Government can have a significant influence on the business environment, both positively and negatively
Regions face the need for strategic transitions, as success at one strategy creates the need for a new strategy
For Discussion Purposes Only
Regions in the Texas Economy
Comparative Employment Performance of Economic Areas
CAGR of Employment, 1990–2004
CAGR of Wages, 1990–2004
Data: private, non-agricultural employment. Source: Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School
US Average Wage Growth: 3.61%
US Average Employment Growth: 1.50%
Dallas-Fort Worth
Copyright © 2001 Professor Michael E. Porter; Council on Competitiveness; Monitor Company Group, L.P.; and ontheFRONTIER
RCGA Boston visit 04-39-02 CK
The Determinants of Regional Competitiveness and Innovative Capacity
A strong physical and information infrastructure is a baseline requirement to establish and sustain a prosperous regional economy
A strong K–12 educational system is important for developing local talent and attracting outside talent
Universities and specialized research centers are the driving force behind innovation in nearly every region
Commercialization is a vital step in the innovation process
Specialized talent and training are more important than abundant labor
Poor coordination among local jurisdictions impedes efforts to improve the business environment
Government can have a significant influence on the business environment, both positively and negatively
Regions face the need for strategic transitions, as success at one strategy creates the need for a new strategy
For Discussion Purposes Only
Texas
Texas Economic Development Strategy
Advanced Technologies and Manufacturing
Biotechnology and Life Sciences
Business Climate
Levels of Clusters:
*
2
2
Levels of Clusters:
*
Activate and institutionalize the cluster development process
Upgrade institutions for collaboration
Organization of Department of Economic Development and Tourism
2
2
Levels of Clusters:
*
Minnesota’s Medical Device Cluster
Context for Firm Strategy and Rivalry
Related and Supporting Industries
Active medical technology licensing through University of Minnesota
State-formed Greater Minnesota Corp. to finance applied research, invest in new products, and assist in technology transfer
State sanctioned reimbursement policies to enable easier adoption and reimbursement for innovative products
Aggressive trade associations (Medical Alley Association, High Tech Council)
Effective global marketing of the cluster and of Minnesota as the “The Great State of Health”
*
Focus public policy implementation around clusters
2
2
Levels of Clusters:
*
Clusters and Public Policy
Education and Workforce Training
Business Attraction
Export Promotion
Clusters provide a framework for organizing the implementation of public policy and public investments towards economic development
Setting standards
General education system
2
2
Levels of Clusters:
*
Drive economic development to the regional level
2
2
Levels of Clusters:
*
Create an explicit strategy for addressing economically distressed urban and rural communities
2
2
Levels of Clusters:
*
Create an explicit strategy for addressing economically distressed urban and rural communities
Create an overall organizational structure for economic development
Develop explicit action plans around cross-cutting initiatives
2
2
Levels of Clusters:
*
Organizing to Compete
Research / Investment
Executive Committee
Measuring Progress
Convenes working groups, provides direction and strength, holds working groups accountable
Acts as sustainable, long-term guider of economic strategy
Drives initiative and acts as the primary decision-making body in between Council meetings
Task Forces
Education / Workforce
Coordinating Staff
Cluster Committees
Small full-time staff
Work organized on basis of individual accountability
Business, academic, and government executives
Start-ups / Local Firms
*
Organizing to Compete
Cost of Doing Business
Little media attention, impact without footprints
Membership
Business, government, and academic leaders
CEOs of major companies
University presidents
Staffing
Support for working groups from multiple professional service firms in Boston
Monitor provided overarching guidance and support
Rank Organization
2 HARVARD UNIVERSITY 698
5 UNIVERSITY OF TEXAS 454
6 STANFORD UNIV ERSITY, LELAND JUNIOR, THE BOARD OF TRUSTEES OF 434
7 JOHNS HOPKINS UNIVERSITY 397
8 WISCONSIN ALUMNI RESEARCH FOUNDATION 361
9 UNIVERSITY OF MICHIGAN 293
10 COLUMBIA UNIVERSITY 266
12 CORNELL RESEARCH FOUNDATION IN C. 235
13 PENN STATE RESEARCH FOUNDATION, INC. 220
14 RESEARCH FOUNDATION OF STATE UNIVERSITY OF NEW YORK 215
15 UNIVERSITY OF WASHINGTON 209
16 MICHIGAN STATE UNIVERSITY 205
17 UNIVERSITY OF MINNESOTA, THE REGENTS OF 200
18 DUKE UNIVERSITY INC. 188
19 UNIVERSITY OF ILLINOIS 187
20 GEORGIA TECH RESEARCH CORP. 184
21 UNIVERSITY OF PENNSYLVANIA 184
22 UNIVERSITY OF FLORIDA BOARD OF REGENTS 170
23 NORTH CAROLINA STATE UNIVERSITY 167
24 THE SCRIPPS RESEARCH INSTITUTE 165
25 SOUTHWEST RESEARCH INSTI TUTE 155
40 TEXAS A&M UNIVERSITY SYSTEM 116
59 BAYLOR COLLEGE OF MEDICINE 81
120 TEXAS TECH UNIVERSITY 24
$20,000
$30,000
$40,000
$50,000
$60,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
010,00020,00030,00040,00050,00060,00070,00080,00090,000
Information Technology
Footwear 1
Textiles 10
Biopharmaceuticals 10
Apparel 7
Heavy Machinery 5
Chemical Products 1
Entertainment 4
Distribution Services 3
Heavy Construction Services 2
-2.00%-1.00%0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
RuralMetropolitan
Texas
U.S.
NY
CT
MA
NJ
CA
DE
AK
IL
WA
MD
MN
MI
VA
CO
NH
TEXAS
PA
GA
RI
OR
OH
NV
WI
AZ
IN
TN
MO
NC
FL
KS
HI
ME
VT
KY
UT
NE
AL
WY
IA
LA
SC
OK
ID
NM
AR
ND
WV
SD
MS
MT
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
34
tiveness; Monitor Company Group, L.P.; and
ontheFRONTIER
city
l
A strong physical and information infrastructure is a baseline r
equirement to
l
and attracting outside talent
rce behind
l
l
labor
l
mprove the
business environment
Government can have a significant influence on the business envi
ronment,
l
l
Regions face the need for strategic transitions, as success at o
Regions face the need for strategic transitions, as success at o
ne
ne
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
-40,000
10,000
60,000
110,000
160,000
20061114 Texas –Draft 20061108a Copyright ©2006 Professor Michael E. Porter
Texas
Job Creation, 1990
Agricultural Products
1990-2004: +465,900
Indicates expected job creation
given national cluster growth.*
Source: Prof. Michael E. Porter, Cluster Mapping Project, Instit ute for Strategy and Competitiveness, Harvard Business School; R ichard Bryden, Project Director.
* Percent change in national benchmark times starting regional e mployment. Overall traded job creation in Texas, if it matched n ational benchmarks, would be +205,776.
241,290 jobs created in
traded clusters with wages