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A Methodology for Identifying the Drivers of Industrial Clusters: The Foundation of Regional Competitive Advantage

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  • Edward W. Hill

    (Cleveland State University)

  • John F. Brennan

    (Cleveland State University)

Abstract

This article presents a theoretically based method for identifying the clusters of industries in which a region has a competitive advantage. The method combines cluster analysis with discriminant analysis, using variables derived from economic base theory and measures of productivity, to identify the industries in which a region has its greatest competitive advantage. These industries are called driver industries because they drive the region’s economy. The driver industries are linked to supplier and customer industries with information from a region-specific input-output model to form industry clusters. After introductory comments about cluster-based approaches to understanding regional economies, the authors present an overview of their method and the variables used. They then apply this method to the Cleveland-Akron Consolidated Metropolitan Statistical Area.

Suggested Citation

  • Edward W. Hill & John F. Brennan, 2000. "A Methodology for Identifying the Drivers of Industrial Clusters: The Foundation of Regional Competitive Advantage," Economic Development Quarterly, , vol. 14(1), pages 65-96, February.
    • Handle: RePEc:sae:ecdequ:v:14:y:2000:i:1:p:65-96
    DOI: 10.1177/089124240001400109
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    Cited by:

    1. Mirko Titze & Matthias Brachert & Alexander Kubis, 2014. "Actors and Interactions—Identifying the Role of Industrial Clusters for Regional Production and Knowledge Generation Activities," Growth and Change, Wiley Blackwell, vol. 45(2), pages 163-190, June.
    2. Peter B. Doeringer & Pacey Foster & Stephan Manning & David Terkla, 2013. "Project-based industries and craft-like production: structure, location and performance," Chapters, in: Frank Giarratani & Geoffrey J.D. Hewings & Philip McCann (ed.), Handbook of Industry Studies and Economic Geography, chapter 4, pages 99-151, Edward Elgar Publishing.
    3. Emanuela Todeva, 2015. "Market-Driven Clusters as Prerequisites and Consequences of Smart Specialisation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(2), pages 250-269, June.
    4. Karyn Morrissey, 2016. "A location quotient approach to producing regional production multipliers for the Irish economy," Papers in Regional Science, Wiley Blackwell, vol. 95(3), pages 491-506, August.
    5. Hamid Seddighi, 2015. "A Model of a Firm’s Innovation and Growth in a Knowledge-Based Economy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(2), pages 215-227, June.
    6. Anel Kireyeva & Dinara Mussabalina & Baurzhan Tolysbaev, 2018. "Assessment and Identification of the Possibility for Creating IT Clusters in Kazakhstan Regions," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(2), pages 463-473.
    7. F. Xavier Molina-Morales & Josep Capó-Vicedo & M. Teresa Martínez-Fernández & Manuel Expósito-Langa, 2013. "Social capital in industrial districts: Influence of the strength of ties and density of the network on the sense of belonging to the district," Papers in Regional Science, Wiley Blackwell, vol. 92(4), pages 773-789, November.
    8. Jaime Sobrino, 2014. "Urban competitiveness and industrial clusters in Mexico," Chapters, in: Pengfei Ni & Zheng Qiongjie (ed.), Urban Competitiveness and Innovation, chapter 15, pages 252-274, Edward Elgar Publishing.
    9. Titze, Mirko & Brachert, Matthias & Kubis, Alexander, 2010. "The Identification of Industrial Clusters – Methodical Aspects in a Multidimensional Framework for Cluster Identification," IWH Discussion Papers 14/2010, Halle Institute for Economic Research (IWH).
    10. Pengfei Ni & Zheng Qiongjie (ed.), 2014. "Urban Competitiveness and Innovation," Books, Edward Elgar Publishing, number 15020.
    11. Harold Wolman, 2014. "Economic competitiveness, clusters, and cluster-based development," Chapters, in: Pengfei Ni & Zheng Qiongjie (ed.), Urban Competitiveness and Innovation, chapter 14, pages 229-251, Edward Elgar Publishing.
    12. Huaxiang Chen & Lina Tang & Quanyi Qiu & Tong Wu & Ziyan Wang & Su Xu & Lishan Xiao, 2018. "Coupling between Rural Development and Ecosystem Services, the Case of Fujian Province, China," Sustainability, MDPI, vol. 10(2), pages 1-19, February.
    13. Julia Hoffmann & Stefan Hirsch & Johannes Simons, 2017. "Identification of spatial agglomerations in the German food processing industry," Papers in Regional Science, Wiley Blackwell, vol. 96(1), pages 139-162, March.
    14. Maureen Kilkenny & Mark D. Partridge, 2009. "Export Sectors and Rural Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 910-929.
    15. Anthony Pagano & Grace Wang & Onésimo Sánchez & Ricardo Ungo & Eddie Tapiero, 2016. "The impact of the Panama Canal expansion on Panama’s maritime cluster," Maritime Policy & Management, Taylor & Francis Journals, vol. 43(2), pages 164-178, February.
    16. Sedef Akgüngör & Nese Kumral & Aykut Lenger, 2003. "National Industry Clusters and Regional Specializations in Turkey," European Planning Studies, Taylor & Francis Journals, vol. 11(6), pages 647-669, September.
    17. Mirko Titze & Matthias Brachert & Alexander Kubis, 2011. "Local and regional knowledge sources of industrial clusters - methodical aspects in a multidimensional framework for cluster identification," ERSA conference papers ersa10p709, European Regional Science Association.
    18. Madalina Maticiuc, 2015. "Gaining Competitive Advantage Within Cluster Business Infrastructures," GUT FME Conference Publications, in: Blazej Prusak (ed.),ENTERPRISES IN UNSTABLE ECONOMY, chapter 8, pages 86-93, Faculty of Management and Economics, Gdansk University of Technology.
    19. Ming Zhang, 2014. "What can cities do to enhance competitiveness? Local policies and actions for innovation," Chapters, in: Pengfei Ni & Zheng Qiongjie (ed.), Urban Competitiveness and Innovation, chapter 8, pages 112-136, Edward Elgar Publishing.
    20. Vincent Claude B & Eastman Byron, 2009. "Defining the Style of Play in the NHL: An Application of Cluster Analysis," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 5(1), pages 1-23, January.
    21. Kumar, Indraneel & Zhalnin, Andrey & Kim, Ayoung & Beaulieu, Lionel J., 2017. "Transportation and logistics cluster competitive advantages in the U.S. regions: A cross-sectional and spatio-temporal analysis," Research in Transportation Economics, Elsevier, vol. 61(C), pages 25-36.

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