Industrial Clusters in Upstate New York: Linking Innovation and Job Growth in the 21st Century

Focusing on Job Creation in a Changing Economy

The approach to regional industry cluster analysis, developed at Cornell's City and Regional Planning Department, began with a focus on Upstate New York cities and regions.

This approach focuses on both innovation and job creation and on the linkages between the two. The approach is different from the typical industry clusters studies because it includes an analysis of the labor market and the regional economy as well as the industry. In a period of outsourcing, downsizing, and subcontracting, the organization of the labor market has changed substantially, and continues to do so.

To develop a successful economic development strategy for job growth, the analysis must accurately reflect the changing structure of the industry and the regional economy. Close attention to the distinctive local economic conditions and the character of regional institutions is thus critical.

Building Blocks for Sustainable Regional Economies

• High Quality (specialized) Labor Market
• Embedded Regional Specialization
• Institutional Infrastructure
• Innovative Environment
• Growth Potential (expansion of markets, jobs, and opportunities)
• Quality of Life

These criteria shift the emphasis in cluster development from inter-jurisdictional competition and the "zero-sum" economic development game to the sustainable growth of regional specialization in place.

Industrial Clusters Methodology

Steps in Identifying Growth Industries

1. Number of firms in the industry in a given region
2. Number of workers in the industry in a given region
3. Character of the industry's markets (old, new, growing, declining, consistent, persified, etc.)
4. Character of investment in the industry (venture capital, private or public investment, etc.)
5. Local knowledge (insights from key informants)
6. Historical clusters (industries identified previously by other organizations -- are the industries emerging, evolving, restructuring, declining, etc.)
7. Occupational structure (living wage jobs, career ladders, employment growth)
8. Regional connection (buyer/supplier relationships within region to related and/or supporting industries)

Steps in Developing a Strategic Plan for Industry Growth

1. Mapping the Firms (understanding the geographic organization of the firms)
2. Occupational Analysis (understanding the labor market needs and resources in the region)
3. Firm Surveys
4. Focus Groups
5. Strategic Planning Conference

Outcomes

1. Empirically identified regional economic clusters
2. Understanding of the linkage between industries and economic regions
3. Understanding of the labor market linkages to the industries
4. Clear policy recommendations
5. Direct information from firms and industries about their economic development needs and their interactions with regional economic development resources

Examples of Research in New York State

	The Optics, Imaging, and Photonics Industry in Rochester, New York This report, based on a study from 2001-2002, is part of a project to examine the role of the optics, imaging, and photonics industry in the Rochester regional economy, and to provide information for stakeholders to plan for the industry's future in the context of an increasingly globalized and competitive world economy.
	The New Media Industry in New York City (PDF: 255K)

Related Research

A Framework for Cluster-based Economic Development Policies (PDF: 2.4M) Robert Turner, Nelson A. Rockefeller Institute of Government, 2001

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