Defining Clusters of Related Industries
By Mercedes Delgado, Michael E. Porter, Scott Stern. 2014
501 citations recorded by the source corpus.
Clusters are geographic concentrations of industries related by knowledge, skills, inputs, demand, and/or other linkages. A growing body of empirical literature has shown the positive impact of clusters on regional and industry performance, including job creation, patenting, and new business formation. There is an increasing need for cluster-based data to support research, facilitate comparisons of clusters across regions, and support policymakers and practitioners in defining regional strategies. This paper develops a novel clustering algorithm that systematically generates and assesses sets of cluster definitions (i.e., groups of closely related industries). We implement the algorithm using 2009 data for U.S. industries (6-digit NAICS), and propose a new set of benchmark cluster definitions that incorporates measures of inter-industry linkages based on co-location patterns, input-output links, and similarities in labor occupations. We also illustrate the algorithm's ability to compare alternative sets of cluster definitions by evaluating our new set against existing sets in the literature. We find that our proposed set outperforms other methods in capturing a wide range of inter-industry linkages, including grouping industries within the same 3-digit NAICS.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/5be4ae0dfecb8c63ea8929ee22bafc1f5af90a59
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Citations in the corpus
- Relatedness, complexity and local growth (2020, methodology): “, 2018), input-output linkages and shared labour pools (Delgado et al., 2016), and patent applications (Boschma et al.”
- The State of American Entrepreneurship: New Estimates of the Quantity and Quality of Entrepreneurship for 32 US States, 1988–2014 (2020, unknown): “To do so, we take advantage of two features of the US Cluster Mapping Project (Delgado, Porter, and Stern, 2016), which categorizes industries into (a) whether that industry is primarily local (demand is primarily within the region) versus traded (demand is across regions) and (b) among traded indus”