Continuing to work on my book. These are more or less drafts and I can think about when I'm in the editing process. In this theory clusters develop around shared resources but can be designed in a way to offset market changes through hedging. in this cases we were just discussion how businesses are connected and sharing such resources and if we find those that fit within the existing structure they are more likely to be successful attracted and retained.
The Interconnectivity of Firms
There is interconnectivity between firms that includes shared resources. However, putting those internal and external resources in an environment that is designed to interact and connect in a way that they enhance each other is a different sort of plane of performance. It takes a level of collaboration internally to achieve certain milestones and requires a basic understanding of community and cluster identity to encourage coordination. among anchor industries, suppliers, entrepreneurs, and the community.
All firms have and use resources to achieve their goals and missions through active options and choices. They do so within the context of their local (national, and international) environment and the opportunities that environment presents. Often these resources take on various forms that include financial, physical, human capital, geographical, etc. The type of buisnesses present will determine the type of resources the cluster will need
Some could rely more on wood products, others may rely on steel, rail infrastructure might be important, some could rely on intellectual capital, and others on various forms of energy. Each cluster will be a little different in its origin and make up. Most are going to have a few things that are similar for many of the businesses within the cluster and in turn designing the inputs and outputs like a system helps to ensure the right resources are present at the right time.
Supply changes may need to change to feed the cluster and provide resources where they are needed. The inputs and outputs of a cluster impact not only local economic development but because of the supply chain differences are also likely to impact everything vertically and horizonatally on that supply chain. This means that if you enhance a cluster in one area you are also likely to enhance other areas along the way. There could be additive effects.
In this example of Delta County/Escanaba a developed cluster of businesses would likely have an impact on all of the smaller communities in the area as well as possibly help support Marinette-Menominee as well as Manistique. That doesn't even include the places that are sending the supplies and those receiving the products/output of cluster creation. Thus developing one area could create new growth patterns in other areas.
Internal-Transactional: The environment within a cluster will determine the success of businesses. There are a range of factors that are going to influence investment, performance and industry adaptation. They include investment capacity, infrastructure, skill development, recreation, etc. People, information, resources and money are shared within a cluster and knowledge on the type resources, flow of resources, and the transactional nature of a cluster as an entity can be measured (i.e. amount of dollars, contracts, labor spill over, return on investment infrastructure, etc.)
At present there are about 7 business filings in Delta County in 2023. With additional effort on bringing forward entrepreneurs and drawing them to the area it could not only help in supporting our downtowns but also the diverse make up of those businesses ot ensure economic resilience. We can think of what things a local community can do to impact the most amount of businesses and encourage new investment in the area. Would that include zoning changes, finding financing, a stronger coordinated marketing campaign, export focus, etc..? New Business Filings
A Few Key Ideas
-Firms are based on interconnectivity
-The firms within the cluster share resources
-Cluster development impacts the supply chains, regional, and surrounding development.
-Thinking about the resources needed to supply and enhance most amount of businesses can be helpful.
-Businesses should be attracted that have the greatest amount of success for themselves and the cluster.
Giglio, C. et. al. (2023). Cooperation between large companies and start-ups: An overview of the current state of research. European Management Journal, ISSN 0263-2373, https://www.sciencedirect.com/science/article/pii/S0263237323000919
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