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Professor Michael E. Porter Institute for Strategy and Competitiveness Harvard Business School Stockholm, Sweden 22 January 2008
This presentation draws on ideas from Professor Porter’s articles and books, in particular, The Competitive Advantage of Nations (The Free Press, 1990), “The Microeconomic Foundations of Economic Development,” (with C Ketels, M Delgado) in The Global Competitiveness Report 2006, (World Economic Forum, 2005), “Clusters and the New Competitive Agenda for Companies and Governments” in On Competition (Harvard Business School Press, 1998), and the Cluster Initiative Greenbook (Ivory Tower, 2004) by C Ketels, O Solvell, and G Lindqvist. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical, photocopying, recording, or otherwise - without the permission of the author. Additional information may be found at the website of the Institute for Strategy and Competitiveness, www.isc.hbs.edu
The Changing Nature of International Competition
• Falling restraints to trade and investment • Globalization of markets • Globalization of value chains • Shift from vertical integration to relying on outside suppliers, partners, and institutions • Increasing knowledge and skill intensity of competition
• Nations and regions compete on becoming the most productive locations for business
European Cluster Policy 01-22-08 CK
Copyright 2008 © Michael E. Porter
• The role of clusters in overall competitiveness • How clusters work • The impact of clusters on regional prosperity and innovation • Cluster policy • Some implications for Europe
European Cluster Policy 01-22-08 CK
Copyright 2008 © Michael E. Porter
and Social Context Microeconomic Competitiveness Microeconomic Competitiveness Sophistication of Company Operations and Strategy Quality of the Business Environment State of Cluster Development European Cluster Policy 01-22-08 CK 4 Copyright 2008 © Michael E.Clusters and Competitiveness Macroeconomic. Legal. Legal. Porter . Political. Political. and Social Context Macroeconomic.
Porter .Clusters and Innovation Determinants of Innovative Capacity Innovative Capacity Innovative Capacity Company Innovation Orientation Common Innovation Infrastructure Quality of Linkages Cluster-Specific Conditions European Cluster Policy 01-22-08 CK 5 Copyright 2008 © Michael E.
What is a Cluster? A geographically proximate group of interconnected companies and associated institutions in a particular field. linked by commonalities and complementarities (external economies) European Cluster Policy 01-22-08 CK 6 Copyright 2008 © Michael E. Porter .
Enhancing Cluster Development Tourism Cluster in Cairns. Jean Hayden European Cluster Policy 01-22-08 CK 7 Copyright 2008 © Michael E.. e. e. theme parks.g.g.g. Cairns College of TAFE Cairns College of TAFE Industry Groups Industry Groups e.g.g. Local retail. health care. Queensland Tourism e.. theme parks. casinos. and health care. sports casinos. Great Barrier Reef Authority Great Barrier Reef Authority Educational Institutions Educational Institutions e. James Cook University. Souvenirs. Chai McConnell. Porter . Cruise Ships Cruise Ships Government agencies Government agencies e. e. Australian Tourism Commission. Alexandra West. Banks.g. Australian Tourism Commission. Foreign Foreign Exchange Exchange Maintenance Maintenance Services Services Airlines.g. Australia Public Relations & Public Relations & Market Research Market Research Services Services Travel agents Travel agents Tour operators Tour operators Local retail. Queensland Tourism Industry Council Industry Council Sources: HBS student team research (2003) . Duty Free Duty Free Banks. and other services other services Local Local Transportation Transportation Food Food Suppliers Suppliers Restaurants Restaurants Property Property Services Services Hotels Hotels Attractions and Attractions and Activities Activities e. James Cook University. Airlines.g.Peter Tynan. sports Souvenirs.
Tufts University. Porter European Cluster Policy 01-22-08 CK . Tufts University. Angel Networks Diagnostic Substances Diagnostic Substances Containers Containers Research Organizations Research Organizations Specialized Research Specialized Research Service Providers Service Providers Laboratory. MIT. MassBio. Legal Banking. MassBio. Clinical Testing Laboratory. Angel Networks VC Firms. Legal Specialized Risk Capital Specialized Risk Capital VC Firms. UMass 8 Copyright 2008 © Michael E. Accounting. others MassMedic. Accounting. Clinical Testing Analytical Instruments Analytical Instruments Educational Institutions Educational Institutions Harvard University. others Dental Instruments Dental Instruments and Suppliers and Suppliers Ophthalmic Goods Ophthalmic Goods Biological Biological Products Products BiopharmaBiopharmaceutical ceutical Products Products Specialized Business Specialized Business Services Services Banking. MIT. Boston University. UMass Boston University.The Boston Life Sciences Cluster Health and Beauty Health and Beauty Products Products Surgical Instruments Surgical Instruments and Suppliers and Suppliers Medical Equipment Medical Equipment Cluster Organizations Cluster Organizations Teaching and Specialized Hospitals Teaching and Specialized Hospitals MassMedic. Harvard University.
and other “public goods” (local outsourcing) – Ease of coordination and transactions across firms – Rapid diffusion of best practices – Ongoing. information. sophisticated customers. suppliers. services.g. • Clusters reflect the fundamental influence of linkages and spill-overs across firms and associated institutions in competition 9 European Cluster Policy 01-22-08 CK Copyright 2008 © Michael E.. training programs. etc.Clusters and Competitiveness • Clusters Increase Productivity / Efficiency – Efficient access to specialized inputs. employees. Porter . visible performance comparisons and strong incentives to improve vs. and concentrated demand – Commercializing new products and starting new companies is easier because of available skills. combinations of services or technologies) – Presence of multiple suppliers and institutions to assist in knowledge creation – Ease of experimentation given locally available resources • Clusters Facilitate Commercialization and New Business Formation – Opportunities for new companies and new lines of established business are more apparent – Spinoffs and startups are encouraged by the presence of other companies . unmet needs. commercial relationships. institutions. local rivals – Proximity of rivals encourages strategic differentiation • Clusters Stimulate and Enable Innovations – Greater likelihood of perceiving innovation opportunities (e.
Institutions for Collaboration Selected Massachusetts Organizations. Life Sciences Life Sciences Industry Associations Life Sciences Industry Associations Massachusetts Biotechnology Council Massachusetts Biotechnology Council Massachusetts Medical Device Industry Massachusetts Medical Device Industry Council Council Massachusetts Hospital Association Massachusetts Hospital Association University Initiatives University Initiatives Harvard Biomedical Community Harvard Biomedical Community MIT Enterprise Forum MIT Enterprise Forum Biotech Club at Harvard Medical School Biotech Club at Harvard Medical School Technology Transfer offices Technology Transfer offices General Industry Associations General Industry Associations Associated Industries of Massachusetts Associated Industries of Massachusetts Greater Boston Chamber of Commerce Greater Boston Chamber of Commerce High Tech Council of Massachusetts High Tech Council of Massachusetts Informal networks Informal networks Company alumni groups Company alumni groups Venture capital community Venture capital community University alumni groups University alumni groups Economic Development Initiatives Economic Development Initiatives Massachusetts Technology Collaborative Massachusetts Technology Collaborative Mass Biomedical Initiatives Mass Biomedical Initiatives Mass Development Mass Development Massachusetts Alliance for Economic Massachusetts Alliance for Economic Development Development European Cluster Policy 01-22-08 CK Joint Research Initiatives Joint Research Initiatives New England Healthcare Institute New England Healthcare Institute Whitehead Institute For Biomedical Whitehead Institute For Biomedical Research Research Center for Integration of Medicine and Center for Integration of Medicine and Innovative Technology (CIMIT) Innovative Technology (CIMIT) 10 Copyright 2008 © Michael E. Porter .
inputs.Cluster Specialization Selected Footwear Clusters Portugal • Production • Focus on shortproduction runs in the medium price range Romania • Production subsidiaries of Italian companies • Focus on lower to medium price range China • OEM Production • Focus on low cost segment mainly for the US market United States • Design and marketing • Focus on specific market segments like sport and recreational shoes and boots • Manufacturing only in selected lines such as hand-sewn casual shoes and boots Italy • Design. leather tanning • Shift toward higher quality products in response to Chinese price competition Vietnam/Indonesia • OEM Production • Focus on the low cost segment mainly for the European market Source: Research by HBS student teams in 2002 – Van Thi Huynh. Porter . and production of premium shoes • Export widely to the world market Brazil • Low to medium quality finished shoes. Evan Lee. marketing. Kevin Newman. Nils Ole Oermann European Cluster Policy 01-22-08 CK 11 Copyright 2008 © Michael E.
Harvard Business School Case Study. Porter and Örjan Sölvell. The Australian Wine Cluster – Supplement. and export Winemaker’s promotions Federation of Australia established 1950s Import of European winery technology 1960s Recruiting of experienced foreign investors. research. Porter . Wolf Bass 1970s Continued inflow of foreign capital and management 12 1980s Creation of large number of new wineries 1990s Surge in exports and international acquisitions Source: Michael E. market information.The Australian Wine Cluster Milestones 1930 First oenology course at Roseworthy Agricultural 1955 College Australian Wine Research Institute founded 1965 Australian Wine Bureau established 1970 Winemaking school at Charles Sturt University founded 1980 Australian Wine and Brandy Corporation established 1990 1991 to 1998 New organizations created for education.g. e. 2002 European Cluster Policy 01-22-08 CK Copyright 2008 © Michael E.
1 144.815 99.815 $35.2% 4.2% 137.4% 2.1 23.000 Employees Number of SIC Industries Note: 2004 data.367 137.3 0.4% $30.0% 70.4 0.5 3.5 2.416 $30.7% $49.0 590 590 70.1 140.The Composition of Regional Economies United States. Porter. Porter .7% 0.4% 3.416 84.3 3. Source: Prof.4 241 241 Relative Productivity Patents per 10.3 79.5 84.7% -1.0 23. except relative productivity which uses 1997 data.2% 4.3 48 48 Share of Employment Employment Growth Rate.2% -1.2% $35. Cluster Mapping Project.2% 144.3% 0.5 99.7% 0.1% 140. Harvard Business School European Cluster Policy 01-22-08 CK 13 Copyright 2008 © Michael E.3% 29. 2004 Traded Traded Local Local Natural Natural Resource-Driven Resource-Driven 0. 1990 to 2004 Average Wage Relative Wage Wage Growth 29.0% 2.1 3. Michael E.1% 2. Institute for Strategy and Competitiveness.367 $49.4% 79.
AK 35.000 45. 2003 40. CA Reno. 2003 14 .000 65.3205x + 13038 2 R = 0.000 15. NV y = 0.000 55.000 Raleigh-Durham-Cary.000 Copyright 2008 © Michael E. NC 20. NY-NJ-CT-PA Anchorage.Broad Composition of Regional Economies Local Wages.6493 p-value < 0. Porter Traded Wages.000 Las Vegas. NV 30.000 European Cluster Policy 01-22-08 CK 25.000 75.001 25.000 Traded versus Local Wages New YorkNewarkBridgeport.000 15.000 35.000 San JoseSan FranciscoOakland.
GA Atlanta. NC Communications Equipment Communications Equipment Information Technology Information Technology Education and Education and Knowledge Creation Knowledge Creation Los Angeles Area Los Angeles Area Apparel Apparel Building Fixtures. PA Construction Materials Construction Materials Metal Manufacturing Metal Manufacturing Education and Knowledge Education and Knowledge Creation Creation Seattle-BellevueSeattle-BellevueEverett. CO Leather and Sporting Goods Leather and Sporting Goods Oil and Gas Oil and Gas Aerospace Vehicles and Defense Aerospace Vehicles and Defense Chicago Chicago Communications Equipment Communications Equipment Processed Food Processed Food Heavy Machinery Heavy Machinery Pittsburgh.Specialization of Regional Economies Selected U. European Cluster Policy 01-22-08 CK 15 Copyright 2008 © Michael E. Building Fixtures. WA Aerospace Vehicles Aerospace Vehicles and Defense and Defense Fishing and Fishing Fishing and Fishing Products Products Analytical Instruments Analytical Instruments Wichita. PA Pittsburgh. NC Raleigh-Durham. Harvard Business School. Porter . GA Construction Materials Construction Materials Transportation and Logistics Transportation and Logistics Business Services Business Services Note: Clusters listed are the three highest ranking clusters in terms of share of national employment. Equipment and Equipment and Services Services Entertainment Entertainment San Diego San Diego Leather and Sporting Goods Leather and Sporting Goods Power Generation Power Generation Education and Knowledge Education and Knowledge Creation Creation Houston Houston Oil and Gas Products and Services Oil and Gas Products and Services Chemical Products Chemical Products Heavy Construction Services Heavy Construction Services Atlanta. KS Aerospace Vehicles and Aerospace Vehicles and Defense Defense Heavy Machinery Heavy Machinery Oil and Gas Oil and Gas Boston Boston Analytical Instruments Analytical Instruments Education and Knowledge Creation Education and Knowledge Creation Communications Equipment Communications Equipment San FranciscoSan FranciscoOakland-San Jose Oakland-San Jose Bay Area Bay Area Communications Communications Equipment Equipment Agricultural Agricultural Products Products Information Information Technology Technology Raleigh-Durham. Source: Cluster Mapping Project. WA Everett.S. CO Denver. 11/2006. KS Wichita. Geographic Areas Denver. Institute for Strategy and Competitiveness.
2001 300 250 200 150 100 50 0 Economic Areas Source: U. Patent and Trademark Office. Porter .S. U. CHI Research. Economic Areas Patents per 100.Innovation Performance of Regions Patenting Intensity.S. The Economic Performance of Regions”. 2003 European Cluster Policy 01-22-08 CK 16 Copyright 2008 © Michael E. Vol. 37. Porter. Michael E.000 Inhabitants. Regional Studies.
Innovation Performance of Regions Patenting Intensity. 2003 NUTS 2 Regions Source: Eurostat (2008) European Cluster Policy 01-22-08 CK 17 Copyright 2008 © Michael E. European NUTS 2 Regions Patents per 100.000 Inhabitants. Porter .
Internal combustion engines. tools. rings.c. Transportation equipment. n. n. jigs and fixtures Metalworking machinery. Porter .Automotive Cluster Narrow Cluster Definition SUBCLUSTERS (16) Motor Vehicles Automotive Parts SIC 3711 2396 3230 3592 3714 3824 3052 3061 3322 3465 3210 3544 3549 3799 3519 LABEL Motor vehicles and car bodies Automotive and apparel trimmings Products of purchased glass Carburetors.c. Tank & Stationary Engines European Cluster Policy 01-22-08 CK 18 Copyright 2008 © Michael E.e. valves Motor vehicle parts and accessories Fluid meters and counting devices Rubber and plastics hose and belting Mechanical rubber goods Malleable iron foundries Automotive stampings Flat glass Special dies.c. n.e.e. pistons. Automotive Components Forgings and Stampings Flat Glass Production Equipment Small Vehicles and Trailers Marine.
Porter .S..Traded Clusters By Employment U. 2004 Service-oriented High-Tech Other European Cluster Policy 01-22-08 CK 19 Copyright 2008 © Michael E.
7) Regions with high cluster specialization (LQ>1.43.r >LQc 80-th Percentile) Weak clusters with large employment size in high population areas European Cluster Policy 01-22-08 CK 20 Copyright 2008 © Michael E. LQc.5%) & high cluster specialization (LQ>1. SHARE=19. MI (LQ=7.Automotive Clusters by Economic Areas. share>1.7 .36%) Adjacent EAs tend to specialize in the same Regions with high share of US automotive employment ( in top 10% of all regions. Porter . 1997 Detroit-Warren-Flint.
1997 Minneapolis-St Paul-St-Cloud.24. CO Regions with high share of US financial services employment ( in top 10% of all regions. SHARE=18. IL-IN-WI Hartford.01) Regions with high cluster specialization (LQ>1.r >LQc 80-th Percentile) Weak clusters with large employment size in high population areas European Cluster Policy 01-22-08 CK 21 Copyright 2008 © Michael E. MN-WI Chicago-Naperville-Michigan City. Porter .2%) Denver-Aurora-Boulder. SHARE=3%) New York-Newark-Bridgeport (LQ=2. LQc. share>2. CT (LQ=3.40.03 .Financial Services Clusters by Economic Areas.5%) & high cluster specialization (LQ>1.
Cluster Employment Strength and Wages U. DC-MD-VA-WV Anchorage. AK Detroit.000 y = 6077. CA Austin. WA Economic Area Average Wage. Economic Areas 50.000 25.5 1 1. NY-NJ-CT-PA 45.5 Economic Area Cluster Employment Strength. CO 30. CA New York-Newark-Bridgeport.3371 p-value <0. Porter Stern 2007. MI San Diego. European Cluster Policy 01-22-08 CK 22 Copyright 2008 © Michael E.000 Colorado Springs.S.000 Seattle-Tacoma-Olympia. IL-IN-WI 40.5 2 2.8x + 25158 2 R = 0. 2003 Chicago-Naperville-Michigan City.) See Delgado. TX 35.001 20. 2003 Note: Cluster strength is measured as share of regional traded employment in strong clusters (weighting by the overlap among the strong clusters. Porter .000 Washington-BaltimoreNorthern Virginia.000 0 0.000 San Jose-San Francisco-Oakland.
drives. Internal combustion engines. valves Motor vehicle parts and accessories Fluid meters and counting devices Rubber and plastics hose and belting Mechanical rubber goods Malleable iron foundries Automotive stampings Flat glass Special dies. n. metal forming types Machine tool accessories Industrial patterns Welding apparatus Industrial trucks and tractors Aluminum die-castings Copyright 2008 © Michael E. Porter Automotive Components Forgings and Stampings Flat Glass Production Equipment Small Vehicles and Trailers Marine. except aluminum Bolts. rings.c. and washers Steel springs. and gears Electric lamps Motors and generators Tanks and tank components Cold finishing of steel shapes Metal heat treating Machine tools.e. metal cutting types Machine tools.c. tools. jigs and fixtures Metalworking machinery. Nonferrous die-casting. Transportation equipment. nuts. n. n. Tank & Stationary Engines Related Parts Motors and Generators Related Vehicles Metal Processing Machine Tools Related Process Machinery Industrial Trucks and Tractors Die-castings European Cluster Policy 01-22-08 CK .c.e. except wire Wire springs Ball and roller bearings Speed changers.Automotive Cluster Broad Cluster Definition SUBCLUSTERS (16) Motor Vehicles Automotive Parts NARROW CLUSTER DEFINITION SIC 3711 2396 3230 3592 3714 3824 3052 3061 3322 3465 3210 3544 3549 3799 3519 3364 3452 3493 3495 3562 3566 3641 3621 3795 3316 3398 3541 3542 3545 3543 3548 3537 3363 23 LABEL Motor vehicles and car bodies Automotive and apparel trimmings Products of purchased glass Carburetors. rivets.e. pistons.
Linkages Across Clusters Fishing & Fishing Products Agricultural Products Distribution Services Jewelry & Precious Metals Transportation & Logistics Entertainment Hospitality & Tourism Textiles Prefabricated Enclosures Furniture Building Fixtures. Note: Clusters with overlapping borders or identical shading have at least 20% overlap (by number of industries) in both directions. European Cluster Policy 01-22-08 CK . Porter Aerospace Vehicles & Information Defense Tech. Equipment & Services Construction Materials Business Services Financial Services Apparel Leather & Related Products Footwear Processed Heavy Lightning & Food Construction Electrical Analytical Services Education & Instruments Equipment Forest Power Knowledge Medical Products Generation Creation Devices Communications Publishing Equipment & Printing BiopharmaHeavy ceuticals Machinery Production Motor Driven Chemical Technology Products Products Tobacco Oil & Gas Plastics Automotive Metal Aerospace Manufacturing Engines Sporting & Recreation Goods 24 Copyright 2008 © Michael E.
U.S. Porter .The Evolution of Regional Economies San Diego Hospitality and Tourism Climate Climate and and Geography Geography Transportation and Logistics Power Generation Aerospace Vehicles and Defense Sporting Goods Communications Equipment Information Technology U. Military Military Analytical Instruments Education and Knowledge Creation Medical Devices Bioscience Bioscience Research Research Centers Centers Biotech / Pharmaceuticals 1910 European Cluster Policy 01-22-08 CK 1930 1950 25 1970 1990 Copyright 2008 © Michael E.S.
Porter. (2003) European Cluster Policy 01-22-08 CK 26 Copyright 2008 © Michael E.Clusters and Regional Prosperity Recent Findings Higher Regional Job Growth. Porter . Wages. and Patenting • Specialization in strong clusters • Breadth of positions within clusters • Positions in related clusters • Region‘s clusters also present in neighboring regions Not significant • Positions in High-Tech versus other clusters Source: Porter/Stern/Delgado (2007).
not just general challenges all companies are exposed to European Cluster Policy 01-22-08 CK 27 Copyright 2008 © Michael E. companies.The Process of Economic Development Shifting Roles and Responsibilities Old Model Old Model New Model New Model •• Government drives economic Government drives economic development through policy development through policy decisions and incentives decisions and incentives •• Economic development is a Economic development is a collaborative process involving collaborative process involving government at multiple levels. Porter . teaching and companies. companies. and institutions take responsibility • Clusters provide a platform to address the specific barriers companies face in a given market. teaching and research institutions. and research institutions. and institutions for collaboration institutions for collaboration • Competitiveness must be a bottoms-up process in which many individuals. government at multiple levels.
Clusters and Economic Policy Dimensions European Cluster Policy 01-22-08 CK 28 Copyright 2008 © Michael E. Porter .
university departments.g. centers.. Porter .Clusters and the Implementation of Economic Policy Business Attraction Education and Workforce Training Science and Technology Infrastructure (e. technology transfer) Setting standards Export Promotion Clusters Market Information and Disclosure Specialized Physical Environmental Stewardship Infrastructure Natural Resource Protection • Clusters provide a framework for formulating and implementing effective public policies and making public investments to foster economic development European Cluster Policy 01-22-08 CK 29 Copyright 2008 © Michael E.
Porter . not just government • Preserving and enhancing market competition.Principles of Cluster Policy • Neutral across clusters • Enhancing productivity of multiple firms/institutions • Facilitating/capturing linkages and externalities • Facilitating the flow of information/knowledge across actors • Engaging the private sector. not retarding it European Cluster Policy 01-22-08 CK 30 Copyright 2008 © Michael E.
. not just transfer money Policies need to change the environment for many companies in the cluster.e. Porter .e. health.e.. not just a few European Cluster Policy 01-22-08 CK 31 Copyright 2008 © Michael E.. Improving the sophistication of local demand – Public procurement programs – Environmental.Improving the Cluster-Specific Business Environment Context for Context for Firm Firm Strategy Strategy and Rivalry and Rivalry I.e. Improving the investment climate – Depreciation rules Factor Factor (Input) (Input) Conditions Conditions Demand Demand Conditions Conditions I. quality. Investments in specialized – Physical infrastructure – Research facilities – Workforce development programs Related and Related and Supporting Supporting Industries Industries I. Attracting supporting industries • • Policies need to have an impact on productivity and innovation.. or consumer protection standards I.
Porter .Cluster Strength in Europe versus the United States Share of Employment in Strong Clusters 35% 30% 25% 20% 15% 10% 5% 0% Median Region Source: European Clusterobservatory European Cluster Policy 01-22-08 CK Europe United States Median Cluster 32 Copyright 2008 © Michael E.
2004 Share of Traded Employees in Strong Clusters*. ISC/CSC cluster codes 1. dataset 20070510 European Cluster Policy 01-22-08 CK 33 Copyright 2008 © Michael E. 2005 Note: Strong clusters defined by LQ>2.0. Porter .Clusters and European Regional Prosperity Cluster Strength and Prosperity. EU-15 NUTS 2 Regions GDP per Capita (PPP adjusted). NUTS Regions excluding Portugal and Greece. Source: European Cluster Observatory.
Implications for Europe • Specialization in a set of clusters what drives competitiveness and innovation. not the driver – Government responsibilities for cluster development should be allocated across geographic levels. Porter . with a focus on the regional level – European support for cluster development must be based on competitive principles European Cluster Policy 01-22-08 CK 34 Copyright 2008 © Michael E. not homogenization • Limited regional specialization is an important determinant of Europe’s lagging competitiveness • Further integration of European markets is essential to enable a more efficient economic geography and stronger clusters • Government can be an important actor in European cluster policy but government must play the right role – Government must act as facilitator.
Back-Up European Cluster Policy 01-22-08 CK 35 Copyright 2008 © Michael E. Porter .
S.000 25. Economic Areas 50. 2003 Note: Cluster strength is measured as share of regional traded employment in strong clusters (weighting by the overlap among the strong clusters.) See Delgado. Porter .4 0.6 Economic Area Cluster Employment Strength.000 y = 7662.000 30.Cluster Employment Strength and Wages U.6x + 25257 2 R = 0.1766 p-value < 0.8 1 1. NY-NJ-CT-PA 45. MANH 40.000 Economic Area Average Wage.4 1.000 0 0.2 1. Porter Stern 2007. European Cluster Policy 01-22-08 CK 36 Copyright 2008 © Michael E.000 35. 2003 Boston-Worcester-Manchester.6 0.001 20.000 San Jose-San Francisco-Oakland. CA New York-Newark-Bridgeport.2 0.