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One of the most widely discussed issues in community and economic development today is the role of industry clusters as engines of regional growth and development. Many communities are undertaking cluster studies or initiating cluster planning exercises as a way to organize development strategies to promote key local economic strengths or to shore up identified weaknesses. A large consulting industry has emerged to serve governments’ interest in clusters and the research literature on the topic is growing rapidly. At the same time, some analysts have likened clusters to another economic development fad that will eventually be supplanted by the next “hot” strategy.
Industry Clusters and Economic Development: A Learning Resource is designed to provide a non-technical overview to industry clusters and their implications for community and economic development planning and policy making. The tool, a series of slides with popup dialog boxes and hyperlinks to additional resources on the web, is an abridged version of a five part course module conducted annually for the ACCRA Center for Applied Community Research by Prof. Edward Feser of the University of Illinois at Urbana-Champaign.

The tool provides a basic background to the cluster concept, including a summary of Harvard professor Michael Porter’s “diamond” framework; clarifies the definition of clusters while emphasizing the highly flexible nature of the concept; summarizes what clusters imply for development policy making; explains basic approaches to industry cluster analysis; and highlights pitfalls communities often encounter when they decide to pursue cluster initiatives or undertake cluster studies. Because so many communities rely on consultants for research and advice, the tool provides a set of guides for properly commissioning cluster studies. Finally, it lists a number of web sources and academic references providing further information on the topic.

Development agencies at all jurisdictional levels are expending considerable effort and treasure on industry cluster strategies and studies. The best defense against wasting scarce resources on a cluster planning exercise that does not deliver expected results is to fully understand concepts, theories, and methods associated with industry clusters. This tool provides a first step toward that understanding.