Enhancing the Yamacraw Cluster Prepared for: Yamacraw Prepared by: Jan Youtie and Robert Lann, Economic Development Institute Philip Shapira, School of Public Policy, Ivan Allen College William Drummond, City Planning Program, College of Architecture Georgia Institute of Technology and John Mathieson and Katherine Johnson, SRI International March 2002 Revised May 2002 Copyright 2002 Georgia Tech Research Corporation Centennial Research Building Atlanta, Georgia 30332 Table of Contents Acknowledgements............................................................................................................. 5 Executive Summary............................................................................................................ 6 Section 1. Introduction........................................................................................................ 8 Study Context.................................................................................................................. 8 Study Objectives ............................................................................................................. 8 Study Approach and Overview of Report....................................................................... 9 Section 2. Lessons from the Literature ............................................................................. 11 Why Cluster? ................................................................................................................ 11 Clusters and Technology-based Economic Development ............................................ 11 Why Do Some Clusters Work?..................................................................................... 12 Section 3. Case Studies..................................................................................................... 15 Case Study Design ........................................................................................................ 15 Case Study Implementation .......................................................................................... 15 Case Study Summaries ................................................................................................. 16 Cross-Case Analysis ..................................................................................................... 19 Section 4. What Yamacraw-like Clusters Look Like: A U.S. Perspective....................... 25 Defining Yamacraw Core Industries ............................................................................ 25 County-level Historical Data ........................................................................................ 28 Mapping Yamacraw Core Industries ............................................................................ 28 Upstream and Downstream Firms ................................................................................ 31 Summary....................................................................................................................... 35 Section 5. Lessons Learned from Leading U.S. Technology Clusters: Case Study Profiles ........................................................................................................................................... 37 Introduction................................................................................................................... 37 Selecting the Case Studies ............................................................................................ 38 Silicon Valley................................................................................................................ 38 Austin............................................................................................................................ 51 San Diego...................................................................................................................... 60 Research Triangle ......................................................................................................... 72 Phoenix ......................................................................................................................... 80 Summary....................................................................................................................... 89 Section 6. Analyzing Research Clusters: An International Perspective ........................... 90 Global Research Production—Analysis of Publications .............................................. 90 Analysis of Elements and Policies in Benchmark Clusters .......................................... 92 Research Clusters in Japan: Focus on Kanagawa......................................................... 93 Research Clusters Germany: Focus on Bavaria............................................................ 96 Research Clusters in United Kingdom: Central Scotland and Alba ........................... 100 Central Scotland and the Alba Centre......................................................................... 100 Profile of the U.S. Yamacraw Domain ....................................................................... 103 Summary..................................................................................................................... 106 Section 7. Recommendations.......................................................................................... 107 Targeting Prospective Companies Doing Corporate Research................................... 108 Four Scenarios for Yamacraw Cluster Development ................................................. 112 Summary of Findings and Recommendations ............................................................ 115 Enhancing the Yamacraw Cluster 3 Appendix – Partners, Customers, or Suppliers of Yamacraw Member Firms Interviewed ......................................................................................................................................... 118 References....................................................................................................................... 119 List of Figures Figure 2.1. Porter’s Diamond of Competitive Advantage ................................................ 11 Figure 4.1. For Some States, Including Georgia, Employment in Yamacraw Industries Is Concentrated in One Sector Whereas Others Are More Balanced........................... 27 Figure 4.2. Yamacraw Employment Within 25 Miles of County Centers, 1986 and 1997 ................................................................................................................................... 29 Figure 4.3. Input and Output Industries to Core Yamacraw Industry Cluster.................. 32 Figure 4.4. Ratio of Total Input Employees to Yamacraw Employees ............................ 34 Figure 4.5. Ratio of Total Output Employees to Yamacraw Employees.......................... 35 Figure 5.1. Silicon Valley Cluster..................................................................................... 49 Figure 5.2. Austin Cluster................................................................................................. 59 Figure 5.3. San Diego Cluster........................................................................................... 71 Figure 5.4. Research Triangle Cluster .............................................................................. 79 Figure 5.5. Phoenix Cluster .............................................................................................. 88 Figure 6.1. Yamacraw Research Domain—Total Number of Publications by Country .. 91 Figure 6.2. Large Corporate IT Cluster ............................................................................ 95 Figure 6.3. The Bavarian Technology Cluster.................................................................. 98 Figure 6.4. The Alba Regional Cluster Model................................................................ 102 Figure 7.1. Georgia Tech Turns Out Most of the Yamacraw Domain Research............ 107 List of Tables Table 3.1. Why Case Study Firms Were Selected............................................................ 16 Table 3.2. Yamacraw Member Company Characteristics ................................................ 21 Table 3.3. Yamacraw Member Company Assessment of Cluster Potential..................... 22 Table 4.1. Chronology of Major/Emerging Yamacraw Industry Clusters........................ 30 Table 4.2. National Ratios of Input Employment to Total Yamacraw Core Industry Employment.............................................................................................................. 31 Table 5.1. U.S. Case Study Selection Criteria .................................................................. 39 Table 5.2. Selected Core IT Companies Located in Silicon Valley ................................. 41 Table 5.3. Major Employers in Austin.............................................................................. 51 Table 5.4. Number of Degrees and Certificates Awarded Annually ................................ 57 Table 5.5. Selected Core IT Companies in Phoenix ......................................................... 84 Table 6.1. Output and Institutional Research Profile of Four Leading Yamacraw Research-Producing Countries.................................................................................. 92 Table 6.2. Publication Output by Regional Cluster in Japan Shows That Kanagawa Is the Leading Region......................................................................................................... 93 Table 6.3. Large Corporations Are the