Joe Parilla

Most regional economic development entities rely on industry clusters as the organizing principles for their work, to the point that clusters are practically synonymous with economic development strategy. This is mostly a positive development 2/10

Clusters are simply the reality of how regional economies are organized, and the concept can help EDOs develop industry-specific expertise that enables them to deliver relevant services to firms and strategically attract investment 3/10

But the reality is that regions do not see clusters as just a framework for understanding their economy and organizing programs 4/10

The popularity of clusters stems from the idea that cluster initiatives—major investments aimed at addressing the growth constraints of a cluster in which the region has a competitive advantage—can change the economic trajectory of a region, a la Pittsburgh 5/10

But in the context of major change, the track record of clusters has been less positive. For all the attention given to the concept of clusters over the past three decades, cluster initiatives in the U.S. have, for the most part, failed to live up to their expected potential 6/10