Links Between Industry Clusters and Workforce Development National Governors’ Association...

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Links Between Industry Clusters and Workforce Development National Governors’ Association Workforce Development Policy Forum December 6, 2001 Cynthia D. Liston

Transcript of Links Between Industry Clusters and Workforce Development National Governors’ Association...

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

Building Social Capital

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.)

Challenges

Reaching small firms

Spawning entrepreneurs

Workforce inclusion

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...

Contact Info

Cynthia D. Liston

Director, Workforce Development Programs

Regional Technology Strategies, Inc.

Carrboro, NC

www.rtsinc.org

[email protected]

919-933-6699