Post on 28-Dec-2015
Links Between Industry Clusters and Workforce Development
National Governors’ Association Workforce Development Policy Forum
December 6, 2001
Cynthia D. Liston
Clusters are…
…a geographically bounded concentration of similar, related or complementary businesses with active channels for traded and un-traded transactions, dialogue, and collaboration that share specialized infrastructure,labor markets, and services.
Advantages of Clustering
Localization economies (lower transaction costs; supply chains; specialized services)
Opportunities for joint actions (networks)
Knowledge spillovers (no secrets)
Labor market pooling
Foundations of Clusters
Products (Dalton, GA - carpets)
Processes (Berkshire, MA - plastics)
Technologies (Rochester, NY - optics)
Natural resources (Rotorua, NZ - wood)
Skills (Portland OR - multimedia)
Distribution (Kinston, NC - transport)
Dynamics of Clusters
Flow of: ResultsInformation Greater knowledge of markets, tech.
Ideas Diffusion of innovation
People Productive, knowledgeable workers
Goods More effective value-added chains
Services Expanded expertise, choice
Capital Support for modernization, startups
State Cluster Economic Development Initiatives
OregonNew YorkMississippiNorth CarolinaMinnesotaArizonaLouisianaConnecticutMassachusettsand others…
Link Between Education &WFD and Clusters
Pipeline for skilled workers (youth)Source of skill upgrading and worker training (incumbent)Intermediaries for networks, skills alliances, benchmarking, etc.Repository of expertise and information (cross-fertilization among firms)
Advantages of Cluster- Targeted Education & Training for Students
Improves content and quality of E&T (codified knowledge)
Increased rates of and means for informal learning (tacit knowledge)
Increases access to employment information and opportunities (labor markets)
Community College/Cluster Hubs
Teach specialized skillsEmploy faculty experienced in clusterEngage and work with business leadersEquipped with advanced technologiesKeep up to date with changes and trendsProvide or broker other specialized servicesKeep students informed of opportunitiesContribute to social infrastructure
Centers and Hubs
Technology
Centers
Cluster
Hubs
Driver Technology Industry
Emphasis Hard skills Hard and Soft skills
Major Links Equip. vendors SMEs
Context Generic mfg process All aspects of industry
Added Functions Demonstrate tech. Brokering
Economic Goals Modernization Competitiveness
Advantages of Community College-Based Cluster Hubs
Regional responsibility and focusPipeline for new, credentialed workersOffers adults a “second chance”Serves less advantaged populationsSource of skill upgrading and incumbent worker trainingIntermediary for networks, benchmarking
Hosiery Technology Center: Catawba Valley CC
Trains entry level workers and techniciansTrains management and customers (w/ NCSU)Brokers networks (production, training)Provides testing facility, develops industry quality standardsDemonstrates new equipmentMaintains web site for jobs, market opportunitiesDevelop new markets: exporting
Central Virginia: Metalworking
Began by small group of SMEs in need of machinists—approached college but no interestDecided industry initiative would be faster, more effective—incorporated and hired directorAcquired equipment from vendors, offered short term trainingNamed by state as Regional Technology CenterApproached new college president and merged Center with collegeNow offers credit and non-credit courses
The Northeast Oklahoma Manufacturers’ Council, Inc.
Formed in 1993 as a 501-C3. Began with a few core members locallyGrew to around 40 members and held steadily for several yearsWith growth in economy has grown to over 80+ active members todayThe NEOMC, Inc. was the first organized collaborative in Oklahoma, now there are over 25
Membership Benefits
Save costs due to shared use of expertise, services, and consultants
Share expenses for employee education and other joint ventures
Help prepare a larger, more dedicated pool of skilled labor
Share contract procurement assistance Increase Quality and Quality Assurance Programs
NEOMC Lessons
Lead organization may have to hand-hold in beginning (must have a committed leader)
Organize and meet face-to-face on a regular basis (relationships take time to form)
Build and share resource matrix Electronic infrastructure is a must Develop work-based learning programs with schools Communicate and be visible (market and grow concept)
Silicon Valley: Computers and IT
Seven colleges support computer/IT clusterMission pays attention to semiconductors, DeAnza to computer systems, Evergreen to e-commerce, etc. Business & industry programs provide non-credit educationPartner with state technology diffusion centers
10 Northern CA community colleges, also regional partnerships across the country
Develop links to industry
Design new curricula
Teacher training
Needs assessments
Increase participation of under-represented students
Bio-Link: NSF-funded ATE Center at City College of SF
Silicon Alley: NY’s New Media Cluster
Growing internship (students) and externship (faculty) programs at schools managed by NY New Media and NY Software industry associations.New “Center for Multimedia Programming, Design, and Production” at Borough of Manhattan Community College (BMCC)High concentration of IT programs in city collegesNew, New Media business incubator at BMCC, Arts tech at LaGuardia CCClose ties between colleges at NM/IT associations
Other Examples of Cluster Hubs
Itawamba Community College, MS - Upholstered Furniture Technology CenterAlabama Southern Community College - Chemical Processing Technology Center
International Examples
Sligo Institute of Technology - Toolmaking industry research and advisory centreCork IT - Clean technology centreLimerick Inst. of Tech. - Irish knitwear, CAD/CAM training & design centreGalway-Mayo Inst. Tech.- Furniture CollegeManakua Polytechnic - Plastics technologiesNelson Polytechnic - NZ School of Fisheries
Good programs are:
Demand driven Industry ledTransparent Known content and outcomesContextual Uses cluster applications; all aspects of businessCollaborative Partners to increase value
And are:
Connected Aware of best practices for industry- intern’l
Experienced Faculty/trainers from industry
Specialized Finds niche and builds reputation
Entrepreneurial Tries new ideas
And also are:
Accessible and flexible To fit needs and schedules of working adults and companies
Reliable Will produce on schedule and as promised
Policy Recommendations
Work with companies that can see the benefits of cluster approach
Intermediary facilitates participation but industry drives the initiative
Identify the key initiatives that will bring the cluster together - “low hanging fruit” (workforce is usually a good starting pt.)
Clusters and Disadvantaged Populations/Regions
RTS organized a Ford Foundation-supported meeting this week to develop strategies and recommendations on how cluster-based initiatives can be used as a tool to benefit disadvantaged populations/regions.
Workforce development will be an area of emphasis in the policy document that we will publish in Spring 2002. Stay tuned...