1. Stronger Economies Together Cluster Module Bob Shriver & Karen Craig Nevada Venture Accelerator February 16, 2012

2. Cluster A geographic concentration of interdependent, collaborating and/or competing businesses and related institutions that draw productive advantage from their mutual proximity and connections…

3. All right, said another way… A CLUSTER IS An economic strategy focused on interconnected businesses within a regional area

4. Another Type of Target Cluster….

5. Cluster analysis Helps diagnose a region’s economic strengths and challenges Identifies realistic ways to shape the region’s economic future.

6. THE FOUNDATION OF A REGIONAL ECONOMY IS A GROUP OF CLUSTERS…. not a collection of unrelated companies!

7. Four Rules of High Performing Regions 1. Focus on your region not your jurisdiction 2. Competitive clusters drive regional performance 3. Create regional advantage to enable high performance 4. Collaborative culture enables high performing regions

8. Companies cluster together because Each one benefits from being located near other similar or related companies They have competitive strengths and needs

9. Groups are More Cost Effective It’s more beneficial and important to work with groups of companies on common problems – e.g., Skills training Tool & equipment modernization Finance capabilities

10. Lower Risk New suppliers proliferate within a cluster because a concentrated customer base lowers risk

11. Gaps Create New Businesses Individuals working within a cluster can more easily perceive gaps in products or services around which they can build a new business

12. Cluster thinking teaches policymakers & ED practitioners to: Build on unique strengths of your region Engage cluster members in your region Dialogue continuously with the companies and support entities in your clusters

13. What are Sectors? Primary: those industries involved in extraction or agriculture Secondary: industries that manufacture goods Tertiary: industries that provide services, e.g., financial, transportation, retail Quaternary: knowledge industry focused on technology R&D, design and development

14. Examples of Clusters We all know Silicon Valley…. Omaha’s telemarketing/data centers Back office telemarketing service – strategic air command center Las Vegas amusement/casino/conventions California Wine Industry

15. A Regional Cluster Example The greater Reno-Carson Area is a hub of small productions machining and electronic component job shops Many re-located to the are in the late 1980’s and 1990’s primarily from southern California due to the collapse of the aerospace industry

16. Regional Manufacturing Snapshot 125+ Machine (precision) shops 20+ High-performance automotive parts manufacturers 20+ Electronic components 10+ Gaming device 15+ Aerospace components 10+ Plastics/composites

17. Summary Business Cluster 101 ClustersProductivityProsperity

18. QUESTIONS? Discussion

19. For Example – Plan Similarities 2006 NVision 2010 Community Assessments 2012 GOED State Plan

20. Plans + Commonalities + Actions

21. NVision 2006

22. NVision 2006 Target Industry Recommendations

23. NVision 2006 Target Recommendations Per County

24. Community Assessment Commonalities

25. Nevada State Plan 2012

30. Mining Cluster Supply Chain

31. Regional strengths attractive to a wide range of people and businesses Abundant recreational opportunities Excellent business cost climate, with low taxes and energy costs Strong sense of community pride and excellent quality of life for families and retirees Central location in Western U.S., with easy access to mountains, coasts, and large urban areas Expanding presence on the national scene

33. Our Greatest Weakness!

34. Ten Priority Actions