Cluster Initiatives

The Oakland Partnership has adopted a cluster-based collaborative approach to economic development. On the basis of the Taking Stock of Oakland’s Economy report prepared by McKinsey & Company, seven industry clusters were identified in the Spring of 2007 as existing or potential drivers of the Oakland regional economy. These include:

Healthcare & Life Sciences
Biotechnology
International Trade & Logistics
Green Technology
Creative Arts

In June 2007, the Oakland Metropolitan Chamber of Commerce began convening and implementing development strategies shaped by private sector-led groups in each of these clusters. For a list of cluster meetings and a timeline of this effort, go to www.oaklandpartnership.com.

What Are Industry Clusters?

Industry clusters are geographically specific groupings of inter-connected companies (specialized suppliers, service providers and support institutions) which, by locating near each other, increase their productivity, accelerate innovation, and stimulate new business formation. In the broader sense, clusters also include all of the elements of the economy that contribute to the success of the companies: education and workforce training providers; governmental regulators; financial service companies; research and development organizations; labor organizations; and community groups.

Why Start With Cluster-based Collaboration?
A cluster-based, collaborative approach to economic development is one way to re-shape a region’s way of doing business. The challenge of the 21st Century is the creation of urban systems in which public and private interests continually re-assess their goals and orientations and in which these interests have a clear, mutually reinforcing channel of communication which allows for the prosperity of all and the long-term preservation of the environment.

A cluster-based, collaborative approach strives to be just that: it strives to articulate a clear vision for a region that is informed by the market. It is cluster-based in that the private sector is organized around a series of industry clusters, which, by locating near each other, increase their productivity, accelerate innovation, and stimulate new business formation.

A cluster-based, collaborative approach is collaborative in that it strives to be an inclusive process that allows various groups (public sector, private sector, institutional, or other) to come to the table and work together towards a shared vision and a set of strategies for attaining that vision. The elements of a cluster based, collaborative:

The most enduring outcome of a cluster-based, collaborative process is a new paradigm for how the public and private sectors work together to achieve a shared vision for their community. The essential characteristics of the process are a gradual building of mutual trust, identification of specific obstacles to development, and the engagement of local business leaders in creating change strategies that work for them. Some more specific outcomes that take the shape of initiatives launched by each clusters, with the public sector, can include:

During the cluster development process, cluster working group sessions are facilitated by an outside facilitator (provided by the Economic Competitiveness Group). Each cluster group then generates a vision statement and a set of action initiatives containing specific action steps with a timeline, defined leadership, and criteria for success. This very dynamic process continues under local leadership with assistance from outside facilitators, and some of these initiative descriptions may change and grow. From an economic development point of view, this is a positive sign. It means that the community, and particularly the private sector leaders who are most directly affected, embrace this approach and are actively working to shape these initiatives and implement them. As documented in the book “Civic Revolutionaries: Igniting the Passion for Change in America's Communities” by Douglas Henton, John G. Melville, Kimberly A. Walesh, those communities that learn to mobilize their civic entrepreneurs to produce positive change are more likely to enjoy healthy economies and a sustained high quality of life.¹

Experience teaches us that businesses need to be part of a participatory process that helps guide them to a future of their cluster that is consistent with the goals of their region. They need to be at the table – being informed of regional policies and goals – but also to help shape them in the light of their day-to-day economic realities. What does it take to operate a business in Oakland and East Bay region? What are the impacts of regional, national, and international trends on business? Only local business owners know, only they can inform the public-private dialogue about how best to “target” them in an effort to support their growth. This can be achieved through the cluster-based collaborative framework.

¹ Doug Henton, et al. “Civic Revolutionaries: Igniting the Passion for Change in America's Communities,” 2003.