Summary | 7
Cluster Strategy
One method of enhancing implementation and attracting appropriate new industries would
be to adopt a cluster strategy similar to what’s being done in Portland, Oregon. As outlined
in the Portland Economic Development Strategy, their plan uses a cluster strategy as a way
to organize their efforts to attract, retain, and develop like-minded and synergistic firms and
businesses. The cluster strategy can be coordinated “in a manner that makes more efficient
use of resources and creates synergies in otherwise unrelated activities (e.g.; coordinated
training and research at local universities). In addition, in-depth knowledge of particular
sectors fuels catalytic initiatives that move business development efforts beyond traditional
assistance. A cluster strategy is especially critical for a market like Portland, where limited
resources require selective investments in the groups of firms that demonstrate the most
promise of growth”.
In addition to clustering, cities employ a variety of available financing tools and strategies
to develop and support the entrepreneurial culture and industry innovation that encourages
business attraction, development. An effective funding strategy according to research
conducted by the PEDS should provide:
• Reliable multi-year operating support for the key initiatives in the strategy, including
work supporting job growth in target industries and thriving small businesses, promoting
international trade; assisting small neighborhood businesses;
• A range of innovative debt products to finance the growth of existing businesses and
serve as incentives for attracting firms to the city;
• Investment capital for start-up and emerging businesses in target industries and those
identified through economic gardening;
• Strategic investment funds to jump-start new programs and facilitate collaboration
among existing programs, particularly for workforce development and research and
development initiatives;
• Financial incentives through regulations and policies designed to promote growth within
target industries and firms adopting sustainable business practices.
One study adapted from “How to Meet the Needs of Corporations in Locating New
Facilities,” by Allen R. Wood, Economic Development Review, Winter 1990” proposes 10
basic things economic developers can do to meet the needs of locating a new facility:
• Make sure community leaders are ready, willing and able to assist in attracting
prospective industries.
• Conduct periodic labor surveys to keep tabs on the labor supply.
• Have managers of local, existing industries meet with prospective industries to discuss
suitable wage rates, benefits, etc.
• Identify several good industrial sites that have good roads and utilities in place, or can
be developed quickly. .Have local technical colleges host tours of their facilities and
provide information on their services to prospective industries.
• Use state government resources for financial and technical assistance available to new
industry.
• Communicate with federal and state elected officials about issues affecting
development in the area.
• Have up-to-date community information, which presents pertinent data that a company
requires.
