Multi-Clusters In Delta County Can Create New Innovative Industries

The Theory of Transactional Clusters seeks to develop a working approach to raising economic activity in Delta County and the country in general. It is a work in progress theory that seeks to use a practical example for application. There is a continued push to increase manufacturing and economic activity but older methodologies have come and went seeing declining returns on economic activities and national rejuvenation. This theory is interactive in the sense that when the proper anchor industries are present to create clusters that interact within a wider environment in a way that creates spill overs of knowledge, resources, and activities much higher innovative economic growth can be found.

Ties, Proximity and Equivalence

Spill overs from one industry impact another industry. For example, in Delta County a shipping industry and resource extraction mixed with SME manufacturing could lead to shared knowledge. The same could be said for micro-manufacturing, tourism and shipping. As industry clusters borrow from others in terms of employees, resources, finance, etc... they can grow much more than they can in isolation.

According to interorganizational networks that utilize spill over reduce performance differentials by the following (Pallotti, Tubaro, & Lomi, 2015):

1. Strength of ties: How these clusters share resources and interact (Can also be virtual).

2.Social proximity: How close companies are (Can also be virtual).

3. Structural equivalence: Individual cluster growth based in an industry.

Anchor Industries

Organic clusters often form through these natural system of growing industries. Sometimes the market desires something new and the resources are there but no one put them together in a way that fosters higher growth. We can build these clusters but that would require the development, or working from, anchor industries that help enhance the supplier networks and in turn the spill over effects that can reach multiple clusters at one time.  

So we will need to add a 4th factor to clusters.....

4. Anchor industries: Where there is at least a cluster and an anchor industry incomes are higher, educational attainment improves,  which leads to a greater benefit for local inhabitants (Spencer, 2014). Such industries support other industries and push people to earn higher wages and go back to school to gain new knowledge. One of the reasons why Bay De Noc Community College and other schools within the area can become a support for growing industries.

Multi-Cluster Environmental Interactions

That leads to growth based in previous economic literature but doesn't necessary create the type of growth we need as a nation that springs forward through fast innovative development and enhance multiple industries at one time. To think beyond an industry cluster we can add anchor industries (i.e. Navy, Higher Edu., Tourism, SME Manufacturing, etc...) that are likely to work together and feed each other into greater strength and growth.

According to an article entitled The Discipline of Innovation in Harvard Business Review innovation comes from, "Drucker argues that most innovative business ideas come from methodically analyzing seven areas of opportunity, some of which lie within particular companies or industries and some of which lie in broader social or demographic trends (Drucker, 2002)."

Thus, there is a wider context to innovation. In the Theory of Transactonal Clusters we are seeking to take small clusters and build a pro growth environment where innovation allows the entrepreneurial mind to "connect the dots" of multiple industry needs to develop economically sustainable pro growth systems. When properly created the systems increase the resources, investment, and intellectual components that lead to innovation We are trying to take Capitalism to a new level!

 Connecting different entities often occur within the same industries based on the connections each has to the other through shared resources (i.e. labor, science, natural resources, etc...). However, to fully develop a more vibrant system that can move and adjust with changing economic times one will need to find a way of taking this cluster concept (individual clusters with similar firms in the same industry) and connecting them across industries (i.e. tourism, manufacturing, higher education, etc...) to create explosive growth.

5.  Multi-Cluster Environment Interactions: Building multiple industries through anchor businesses in a way that leads to higher levels of innovation through shared industry development.

New Unknown Innovative Industries

From the development of and interaction of multiple clusters within the same environment we begin to see opening possibilities of whole new industry developing that would become possible when clusters interact and develop to develop markets in new ways. Those leaps in development typically don't develop within the cluster themselves because of the training and limited scope of those industries. However, when they begin to develop off of other industries whole new products, technologies and industries can develop.

We as a nation need to start thinking more about long-term development and the creation of opportunities that are not currently in full swing but are still ripe for creation. The Internet has changed many of our economic assumptions and now that we are moving more industries online we have the capacity to develop advanced technologies and take a more scientific approach to the development of our environment. If we are able to spark innovation through proper management we have a chance to corner the market and make the U.S. the center of investment and development. Of course that comes with its own benefits through the quality of our lives and influence on a global scale.

Drucker, P. (2002).The Discipline of Innovation. Harvard Business Review  https://hbr.org/2002/08/the-discipline-of-innovation

Spencer, G. (2014). Anchor Firms and Clusters. Local Indicator Database for Economic Analysis. Retrieved

https://localideas.org/2014/05/28/anchor-firms-and-clusters/

Pallotti, F., Tubaro, P., & Lomi, A. (2015). How Far do Network Effects Spill Over? Evidence from an Empirical Study of Performance Differentials in Interorganizational Networks. European Management Review, 12(3), 189–208. https://doi.org/10.1111/emre.12052

Game Theory-Decision Making and an American/Chinese New Market Example

Game theory has been known as an effective decision making tool in business, government, biology and in the military. It is a mathematical method of understanding possible outcomes based on the decisions of other members within a system. The theory has its advantages in terms of helping decision making but there are limitations and thus it should be used as a support but not necessarily supplant decision making. The brain is still the most powerful processing system for abstracts, contingencies and opportunities.

Game Theory as a Support

Game theory may help us make decisions but can't supplant good judgement. However, without such systems the "gut" feeling and intuition can damage the rational thinking process. Thus, strategic leaders should us such system to help themselves thing through potential alternatives. Using a rational system helps round out and provide more insight into there thinking strategies and systems.

That same finding was found ,

 "is perfect because different situations or problems within the organization have to be handled in different unique ways. The bottom line is that game theory can be used very effectively as a tool for decision making whether in political, psychological, economical, personal or business setting. However, this should not be used as a substitute for good judgment in strategic decision-making; it is just an enabler in critical thinking. Game theory only sheds a light on why businesses behave the way they do and why they go for specific strategies available through transparency."

How Game Theory Works

The theory started in 1944 by Von Neumann and economist Oskar Morgenstern who published a beautiful book called "Theory of Games and Economic Behavior". The theory helps people make choices by evaluating options and "pay off" based on the movement of players. To formalize thinking and create some quantitative level it is often placed into something called the "pay off matrix". Such a matrix is simply X and Y (many more levels as players enter and leave the game). 

The matrix helps us to factor in information we know about the market and the competition to determine which is the best approach. The "pay off" is based on what someone expects to make or not make in each of the scenarios. As the market changes and you make choices there are changes within your position and pay off of available options. No one truly wins until the last player is in checkmate sort of speak. 

Marketing and Product Lines as an Example

Let us assume that an American Company conducted a market analysis and plans to earn $25 million if they enter and manufacturing in a Chinese market. A Chinese Company is currently earning $5 million with a sub par product that doesn't capture market demand well. (This is only an example). If the Chinese company adapts to the change and uses the new acquired technology gained legally or illegally from the American company they could find themselves in 3 years to have parity of $15 million to $15 million as manufacturing and marketing come into full speed.

The game changes as the scenario changes. If the Chinese company solicits the government to place more regulations on the American company through restricting supplies, labor requirements, requiring Chinese vendors, location adjustment, higher taxes, etc....the Chinese Company will earn $20 million and the U.S Company position will be reduced to $10.  Parity is now lost.....

It there are other changes it may dwindle the competitive example of the American company and if there is theft they may end up loosing more than if they didn't invest in the market at all. Thus, the rational choice may be to not manufacture in China and try and sell products manufactured in the U.S. and sold into China.

This is only an example often discussed in the news but could apply to many different nations. 

Errors in Projection Creep In

There are some assumptions that each player is looking for a rational pay off. The key term is that rationality is the main point and based on what vantage point each of the players use. We sometimes assume that people are rational and we know that isn't always the case. With one understanding in the free market system companies compete against each other and therefore different rational assumptions will be made than if we were dealing with two different major political systems with different rational assumptions (Capitalism vs. Communism).

As an example, if the goal of the company is primarily to make a nation stronger and only secondary to make a profit that would change the assumptions of what decisions are likely to occur under different scenarios. Thus.....rationality is often bounded by culture, creed and political system that would impact the way the matrix is created. It furthermore increased the need for international trade to be functioning off of similar economic assumptions and basic universal value systems.

Such large scale matrix can be extremely in depth and complex. Something like the prisoners dilemma may be easy to understand but something like complex international business or national conflict could be much more difficult. As the contingencies grow so does the matrix and also the potential for miscalculation. We must make some assumptions such as how much capital a company has, labor resources, skill level of managers, government policies, etc... etc... etc... the more complex the game the more likely there will be errors in the projections. (...not only my grammar and spelling)

Good Decision Making and Game Theory

There are two ways to sort of look at rational choice. On one side we can use a rational system such as Game Theory, Scientific Method, Legal Logic, other Logos, etc... to determine what the best course of action. On the other side we can use our thinking and gut feeling (which is sometimes based in rationality and sometimes in emotion) to determine what the best course of action could be. My suggestion is that you use a little of both....Listen to your gut and experience as well as a formal decision making system like Game Theory to help you make decisions. Often go back and adjust your matrix and new factors way in (i.e. culture wars, tariffs, etc...)

Askikomurwa, V. & Mohaisen, M. (2015). Game theory and business intelligence in strategic business decisions-A review. Proceedings of 5 th ISERD International Conference, Bangkok, Thailand, 17 th June 2015, ISBN: 978-93-85465-36-9
https://pdfs.semanticscholar.org/cbb9/eec05fd28391668be109d9edc6c97ad778db.pdf?_ga=2.14394423.1845398781.1594515126-1106180317.1594515126

Governor Whitmer Discusses Mask Wearing and Potential Penalties

The Governor discusses mask wearing and the potential penalties. She indicates there may be some coordination of other states in the region.

Finding a Boat Telescope Pole While Diving

I know its not very exciting to most people but finding a telescope pole is kind of cool. I'm just getting into diving and when I go I like to pick up something like a lure, tool, or in this case a pole. This one looked brand new so I doubt it has been under there for very long.

John James vs. Senator Gary Peters: How Money Increases Marketing Reach?

An article by Craig Mauger (July 19th, 2020) entitled James Raises more Cash than Peters in Michigan Senate Race for 4th Strait Time discusses the amount of money earned by two Senate candidates. As the race heats up this money will have an influence on the results of the election through marketing reach. Money creates more purchasing power but it is the marketing message and the use of the money that will have the biggest impact. How can campaign money be used to increase marketing reach and votes?

The Raising of Money

I'm focused more on understanding our political process than I am on candidates and who you should vote for. That really isn't my purpose although I have my own political leanings that are not so easy to define as all this and all that. Its more important for people to understand become aware of how politics impacts our lives and how it influences the direction of our country.

It is also beneficial for people who have an interesting in marketing to gain greater knowledge of how political marketing functions within a campaign and its eventual creation of value for the candidates. In this case the amount of money may have less influence than how it is utilized to create the media channels and messages to reach a receptive voter base.

One candidate raised $5.2 million and the other $6.4 million over April, May and June. The information also shows primary level donations on both sides and a fairly even $18.6 and $19 million total raised for the election cycle thus far. The amount of money raised by each and the type of grassroots low donations means they will need to rely on something else beside the power of money.

First, lets talk about what money does for a campaign. Donations and money allow one to create reach in their campaigns through purchasing power of "air time". "Political marketing has the opportunity to build a marketing framework that focuses on delivering value to a core target market (voters, supporters) and addressing the needs of society at large (Hughes & Dann, 2009)."

Thus money is about reach to one's audience and it allows for the creation of coordinated campaigns of higher resonate value. Yet money isn't the only determinant of whether or not someone will succeed in their campaigns.

Three Stage Political Marketing Model

A three stage model of political marketing can help us better see what is occurring Curmaz & Ykup, 2016). That model includes the political product, the political organization, and the political environment. As the candidates create their campaigns they should keep that in mind as it is going to impact how they use their resources to create reach to their supporters (i.e. customers).

• Political Product: The candidate, their values, impressions and what they believe.
• The Political Organization: The party formation, operations, impressions, volunteering and functioning of that party.
• The Political Environment: The environment in which politics is occurring such as ideologies, values, economics, cultures and traditions. We can consider movements such as BLM, China, employment and COVID in this arena.

Based on this model we can say that each candidate will need to find a message in their campaign that resonates not only with their traditional political followers but also those that sit on the fence or who are questioning their values. The candidates will need to find a voice and match that with other available information in a message with the longest potential reach. The management of their campaigns are likely to have some levels of influence in the ability to get that message out. That means having more volunteers and supporters among the different classes in society. Finally, but not least the political environment and what has changed over the past year with BLM, COVID, Employment Opportunities and more will change the impressions these messages will create. 

A Couple of Other Marketing Ideas

• Create a few parsimonious messages that can be used as central themes in different media channels.
• Develop shareable media to attract a larger younger population.
• Ensure that emotion and logic in advertisement is balance to spark cognitive interest but then agreement that leads to action (pushing the voting button).
• Don't focus exclusively on self but do focus on important strengths.
• Consider the value of the blogging community and keeping them in the loop for online content creation.
• Help people feel comfortable and confident in this changing world by rallying them to something important.
• Don't waste your time personally attacking your opponents (policy yes but the person no/a couple of exceptions to this) as it leads to intuitive feelings of distrust of the candidates but also the political system itself (doubt that? look at the polls).  Candidates have a greater responsibility than winning.
• Create messages that help people feel like they are part of the change.
• As a political product the candidates should be selling solutions that are easy for their customer to understand.
• Utilize those channels that reach your target voter customer effectively and with the highest ROI.
• Create multichannel reach where a person hears different advertisements but with the similar/same core message in multiple ways to create embedded memory.
• Develop marketing strategies, images, and messages that focus on memory recall of target markets.
• ...and much more!

Durmaz, E. & Yakup, A. (2016). A Theoretical Approach to Political Marketing. Global Journal of Management And Business Research, [S.l.], jan. 2016. ISSN 2249-4588. Available at: https://globaljournals.org/GJMBR_Volume15/3-A-Theoretical-Approach.pdf.

Hughes, A., & Dann, S. (2009). Political marketing and stakeholder engagement. Marketing Theory, 9(2), 243–256. https://doi.org/10.1177/1470593109103070

Mauger, C. (July 10th, 2020). James Raises more Cash than Peters in Michigan Senate Race for 4th Strait Time. The Detroit News. Retrieved https://www.detroitnews.com/story/news/politics/2020/07/10/james-raises-more-peters-senate-race-4th-straight-time/5412330002/

Our Nation Needs Leaders that Have the Strength to Do Whats Right

We often think of strength as something to do with standing strong, tall, powerful, and dominant. The problem is that much of that strength is really weakness masqueraded in power. Strength comes from something deeper when a person stands up for what is right even when the odds seem insurmountable. Those are the types of leaders our nation needs....not the one's who give lip service to problems only once everyone else seems to be "on board". Developing a more powerful nation requires a more powerful sense of purpose.

Let me give a scenario. A group of people engage in a previous theft and abusive type behavior and try and hide that behavior when discovered by further aggression. Damaging children, encouraging others to engage in violence, lying, pseudo-domestic religious and ethnic terrorism, political based bullying, defamation of character, false police complaints and seeking the counsel of a close friend in law enforcement that has their own trail of criminal intrigue.

There comes a time when you must simply say "no!", "not anymore", "your behavior is grotesque and is damaging a lot of people".  Sometimes telling people with maladaptive personalities that may have narcissism and sociopath tendencies "no" leads to all types of group aggression. It was easy to sew group aggression because of the racial and religious differences and deep seated psychological distortion that hasn't been dealt with since childhood.

Strength isn't about telling people what they want to hear because you want to be liked. Its easy to look like a "super stud" when you have a group of supports that lack critical thinking and are all too willing to prove to each other their self-worth. True toughness comes from inside one's soul and through their history of standing up against insurmountable odds to do what is right for Americans of every background. Our current political environment doesn't recognize true strength in the same way it recognizes "lip service".

Where would our nation if we didn't have people who stood up to the Natzis, ISIS, Segregation, and other mental plagues on the earth? We would be considered cowards and our experiment of freedom and equality would have long perished under our inability to see the bigger picture of foot dragging and cowardice. Thank God we have a history of people willing to stand up for whats right when its needed.

Standing up for what is right means one must first understand the different between right and wrong. That is not an easy task to step outside oneself and our social networks to see things from a higher order thinking level. They have the ability to ponder issues on a deeper level and make choices that lead to the best outcomes. That is not an easy task when few will raise a finger to do what is right until it becomes popular. Their value systems are embedded in their networks.

Our nation is on a better trajectory now and it will need new leaders who have the capacity to think about right and wrong long before large moral and market corrections.  They don't need to be a minority in a racial sense they only need to have a value system that seeks truth and justice and the moral backbone to do whats right in the face of adversity. Standing up for right is the right thing to do, shows strength and perseverance, and is a sign of maturity.....the type of leadership this country currently needs as our world goes through rapid transitions.

Here are a couple of abstracts on maladaptive personalities and how "bad apples" encourage other to lower their value systems based on lack of perspective. People who can see outside this are worth much more than people who are stuck into a rigid social structure that requires strict adherence. We should raise our value systems to break down these networks into something more functional and stand up when things are not right.

Aggression is CounterAdaptive

Unjustified aggression is rooted in our biological past based on testosterone and serotonin. What we find that is aggression is both emotional and physical in nature. Those that engage in such behaviors are seeking to obtain some goals.

Consider (Vetulani, 2013)....

Abstract: Aggression is the most frequent social reaction among animals and men, and plays an important role in survival of the fittest. The change of social conditions in the course of development of human civilization rendered some forms of aggression counteradaptive, but the neurobiological mechanism of expression of aggression have not fundamentally changed in the last stages of human evolution. The two different kinds of aggression: emotional, serving mainly as a threat, and rational, predatory, serving for the attainment of goal in the most effective way, have different anatomical and neurobiological background and reciprocally inhibit each other. Aggression is modulated by several neurotransmitter and hormonal systems, of which key role is seemingly played by testosterone, a hormone involved in domination behavior, and serotonin, whose deficit results in increased impulsiveness. 

Poor Friend Networks Encourage Criminality

When friends are too close and don't have outside references they create "clannish" mentality that leads to increased dysfunction and criminality of the entire group. So lets say that someone's identity is tied to sports playing in high school and they developed a friend network around that group. As people share experiences together and create ties objective viewpoints go out the window. If a member intentionally spreads false rumors and there are people in the group that may doubt such comments they will be muted because the entire group takes on a dysfunctional viewpoint.

This is one of the reasons why it is so important for people to have a different kinds of friends with a divers background. In this case, all of the friends were part of the same group, same race, relatively the same background, and do not have a lot of education. Their identities are tied to their high school and are not welcoming to outsiders. Worse...some members of the group have a history of hostility and inappropriate behaviors to outsiders so anytime a disagreement occurs those that have a different race, religion, background or even where a different brand of clothing (i.e. HH vs Armani) or like a different sports team (i.e. Lions vs. Packers) are quickly targeted.

Consider Gino vs. Galisnsky (2012)....

In four studies employing multiple manipulations of psychological closeness, we found that feeling connected to another individual who engages in selfish or dishonest behavior leads people to behave more selfishly and less ethically themselves. In addition, psychologically connecting with a scoundrel led to greater moral disengagement. We also establish that vicarious justification is the mechanism explaining this effect: When participants felt psychologically close to someone who had behaved selfishly, they were more likely to consider the behavior to be less shame-worthy and less unethical; it was these lenient judgments that then led them to act more unethically themselves. These vicarious effects were moderated by whether the miscreant was identified with a photograph and by the type of behavior. Importantly, we establish a general process of vicariousness: psychological closeness produced both vicarious generosity and selfishness depending on the behavior of the person one feels psychologically connected to. These findings suggest an irony of psychological closeness: it can create distance from one’s own moral compass.

Strength isn't about blindly following others but trying to do what you think is right no matter what happens. Our Justice system and the people in our country have a responsibility to think about the long-term value of developing a system of fairness and equity that leads to national buy in and economic development based on the truer Capitalism. They do not have a responsibility to protect a certain class, people, or background. Holding people accountable isn't always about putting people in prison but it could be about getting people the help they need and requiring amends for their behavior.

Vetulani, J.  (2013). Neurochemistry of impulsiveness and aggression. Psychiatria Polska 2013, tom XLVII, numer 1 strony 103–113 https://www.psychiatriapolska.pl/uploads/images/PP_1_2013/ENGverVetulani_PP1_2013.pdf

Gino, F. & Galisnsky, A. (2012). Vicarious dishonesty: When psychological closeness creates distance from one’s moral compass. Organizational Behavior and Human Decision Processes, 119 (1). https://www.sciencedirect.com/science/article/abs/pii/S0749597812000477

Reps. Bergman, Lee Introduce Bipartisan Bill to End Veteran Suicide

Veteran suicide is the aftermath of war and conflict. The battle often doesn't end when the war is over. We need much more research and understanding of why these things are happening and do our best to help our veterans. Going back and finding ways to deal with these issues and get help will make a difference in success and meaningful lives.

The press release below....

Washington - Today, Rep. Jack Bergman and Rep. Susie Lee (D-NV-3) introduced the VA Zero Suicide Demonstration Project Act of 2020. This new legislation would establish a pilot program at the Department of Veterans Affairs (VA) called the “Zero Suicide Initiative.”

The Zero Suicide Initiative, a concept and program founded by the Henry Ford Health Care System, is a program built on the belief that all suicides are preventable through proper care, patient safety, and systems-focused efforts. This legislation would build on the VA’s strong suicide prevention efforts by implementing more comprehensive, systems-focused Zero Suicide efforts in pilot programs at five VA medical centers across the country. 

“For over a decade, around 20 Veterans have taken their own lives each day. We cannot tolerate this lack of progress because we know that even one suicide is too many. The VA has recently made great strides in committing to Veteran Suicide efforts, including through new plans outlined by the President's Roadmap to Empower Veterans and End a National Tragedy of Suicide (PREVENTS) Task Force," said Rep. Bergman. "Until we’ve fully addressed this crisis, however, we must innovate and explore all avenues – starting with what has demonstrated positive results. This new legislation will implement the "zero suicides” method, changing the way VA approaches suicide risk.”

“One veteran death by suicide a day is too much,” said Rep. Lee. “Our goal must be to bring veteran deaths by suicide to zero. We know that of the 20 veteran deaths by suicide per day, on average, six occur with active VA patients. While much can be done to reach the 14 veterans who are not accessing VA resources, the Zero Suicide Initiative focuses on providing the culture and resources to eliminate deaths by suicide within the VA. If we can show that these Zero Suicide pilot programs are effective at reducing suicide within the VA system, then we can expand the program to reach every veteran in America. Our nation’s veterans deserve our full support, and this bill with support from both parties shows our veterans they’re not in this alone.”

The legislation would:

• Establish a 4-year pilot program to implement a “Zero Suicides Initiative” model at five VA Health Systems, including one which serves primarily rural and remote Veterans.
• Require VA to report on the ongoing pilot and whether it should continue the program after its expiration.

Read the full legislation HERE

The VA Zero Suicide Demonstration Project Act of 2020 builds on Rep. Bergman’s efforts to end Veteran Suicide, such as through the IMPROVE Act.