Professor Michael E. Porter, Harvard University Monitor Group ontheFRONTIER Council on Competitiveness CLUSTERS of INNOVATION: Regional Foundations of U.S. Competitiveness SAN DIEGO Pharmaceuticals / Biotechnology Communications WICHITA PITTSBURGH Plastics Pharmaceuticals / Biotechnology Aerospace Vehicles Production Technology and Defense RESEARCH TRIANGLE ATLANTA Pharmaceuticals / Biotechnology Financial Services Communications Transportation and CLUSTERS OF INNOVATION INITIATIVE INNOVATION PRODUCTIVITY ECONOMIC PERFORMANCE ECONOMIC COMPOSITION BUSINESS ENVIRONMENT SPECIALIZATION CLUSTERS STRATEGY COLLABORATION This report may not be reproduced, in whole or in part, in any form beyond copying permitted by sections 107 and 108 of the U.S. copyright law and excerpts by reviewers for the public press, without written permission from the publishers. ISBN 1-889866-23-7 To download this report or learn more about the Clusters of Innovation Initiative, please visit www.compete.org or write to: Council on Competitiveness 1500 K Street, NW Suite 850 Washington, DC 20005 Tel: (202) 862-4292 Fax: (202) 682-5150 Email:
[email protected] Copyright ©October 2001 Council on Competitiveness Professor Michael E. Porter, Harvard University Monitor Group Printed in the United States of America CLUSTERS of INNOVATION: Regional Foundations of U.S. Competitiveness Professor Michael E. Porter, Harvard University Monitor Group ontheFRONTIER Council on Competitiveness CLUSTERS OF INNOVATION INITIATIVE: REGIONAL FOUNDATIONS OF U.S. COMPETITIVENESS CONTENTS Foreword by the Chairman of the Council on Competitiveness . iv Foreword by the Co-Chairs of the Clusters of Innovation Initiative . v Acknowledgments . vi National and Regional Steering Committee Members of the Clusters of Innovation Initiative . vii Executive Summary . ix Introduction . 1 1 Regional Competitiveness and Innovative Capacity . 5 2 The Economic Performance of Regions .