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Why Industry Clusters?

Oregon Economic & Community Development Department Industry Cluster Strategy: Progress & Direction April 28, 2004. Why Industry Clusters?. Sources of state competitive advantage Sources of innovation and new products Sources of new markets and jobs for Oregon

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Why Industry Clusters?

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  1. Oregon Economic & Community Development Department Industry Cluster Strategy: Progress & DirectionApril 28, 2004

  2. Why Industry Clusters? • Sources of state competitive advantage • Sources of innovation and new products • Sources of new markets and jobs for Oregon • New approach to focus overall economic development strategies

  3. OECDD Traded Clusters 2001 Employment High Technology/Software 66,850 Forest/Wood/Paper Products 62,412 Food Processing 48,208 Apparel/Sporting Goods 18,413 Transportation Equipment 14,972 Creative Services 16,345 Recreation 11,907 Metals 9,215 Nursery Products 10,247 Professional Services 4,417 Biomedical 3,404 Total 266,390

  4. OECDD Cluster-based Strategy: Goals • Center business recruitment, expansion and retention efforts on 11 major clusters • Understand challenges and opportunities in selected clusters (co. visits & roundtables) • Align business development policies with needs of clusters (tax credits, workforce programs and business finance policies) • Leverage federal resources to support industry cluster (Rural Business Investment Program, Small Business Innovation Program)

  5. Progress to date:Cluster Roundtables Food Processing Cluster (natural foods) • Some major challenges • Gaps in input supply chain • Limited appropriate suppliers • Product contamination risks • Limited emphasis in higher education on natural foods • How the state could help • Recruit more natural food producers • Develop regulations to reduce contamination risks • Increase public awareness of natural foods value • Promote higher ed opportunities in natural foods • Strengthen input supply chain

  6. Cluster Roundtables (continued) High Tech/Software Cluster (electronic display) • Some major challenges • Limited availability of new entrepreneurs and innovators, need new tech savvy workers • Limited courses on electronic display in college curriculum • Lack of start-up and operational capital for small businesses • Weak collaboration/links with higher education • Where the state could help • Strengthen links with higher education for workforce development and research purposes • Address financing problems (venture capital, state equity) • Develop signature research centers (innovation and testing) • Increase cluster visibility (trade-shows, conferences)

  7. Upcoming Roundtables • Wood Products Manufacturing • Veneer, plywood and engineered wood products • Wood windows and doors • Wood container and pallets • Sawmills and wood preservation • Transportation Equipment Manufacturing • Heavy duty trucks • Motor trailers • Aircrafts and parts • Ship and boat building • Recreational vehicles

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