Professor Michael E. Porter, Harvard University Council on Competitiveness Monitor Group ontheFRONTIER Pittsburgh CLUSTERS OF INNOVATION INITIATIVE ATLANTA PITTSBURGH RESEARCH TRIANGLE SAN DIEGO WICHITA 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 1-889866-52-0 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) 682-4292 Fax: (202) 682-5150 Email:
[email protected] Copyright ©April 2002 Council on Competitiveness Professor Michael E. Porter, Harvard University Monitor Group ontheFRONTIER Printed in the United States of America cover photo by John Wee Pittsburgh CLUSTERS OF INNOVATION INITIATIVE 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 Co-Chairs of the Clusters of Innovation Initiative . iv Acknowledgments . v National Steering Committee Members and Regional Advisors . vii Report Overview . .viii Highlights . .ix Executive Summary . xii Introduction . 1 1 Economic Competitiveness and Regional Innovative Capacity . 3 2 Regional Study Methodology . 14 3 Assessment of the Pittsburgh Regional Economy . 20 4 Competitiveness of Selected Clusters . 47 The Biotechnology / Pharmaceutical Cluster . 47 The Information Technology Cluster . 68 The Production Technology Cluster . .85 Sustaining Competitive Advantage: 5 Lessons, Challenges, and Opportunities . 103 Endnotes . 117 Appendices . 121 1. Definition of Measurements .