Business Insight (A Special Report); Group Analysis: Why some regional clusters work better than others
Geographic clusters of interconnected research institutions, businesses and suppliers -- think Boston and the biotechnology industry -- play a key role in fostering innovation.</br></br>But not all of these regional systems are created equal. The best ones generate a greater number of jobs, attract more start-ups, and create more new products and services. So what do the most successful clusters have in common?</br></br>We studied more than 15 on three continents over the past four years. These networks are often anchored by an academic center or research institution, and nurtured by private or government-sponsored development agencies. The academic centers generate a constant stream of ideas and graduates, attracting companies looking for products and services to develop. The companies, in turn, pay royalties to the institutions, creating a virtuous circle of innovation and commercialization.</br></br>While good science is at the core, we found three other factors to be especially powerful in determining a cluster's competitiveness and growth potential.</br></br>-- NEW-VENTURE-ORIENTED: The most-successful clusters are marked by research centers and companies that value innovation and risk-taking. They aren't afraid to venture outside established areas and into new markets.