Links Between Industry Clusters and Workforce Development

1
Links Between Industry Clusters and Workforce
Development

• National Governors Association Workforce
  Development Policy Forum
• December 6, 2001
• Cynthia D. Liston

2
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.

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Advantages of Clustering

• Localization economies (lower transaction costs
  supply chains specialized services)
• Opportunities for joint actions (networks)
• Knowledge spillovers (no secrets)
• Labor market pooling

4
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)

5
Dynamics of Clusters

• Flow of Results
• Information 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

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Building Social Capital
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State Cluster Economic Development Initiatives

• Oregon
• New York
• Mississippi
• North Carolina
• Minnesota
• Arizona
• Louisiana
• Connecticut
• Massachusetts
• and others

8
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)

9
Advantages of Cluster- Targeted Education
Training for Students

• Improves content and quality of ET (codified
  knowledge)
• Increased rates of and means for informal
  learning (tacit knowledge)
• Increases access to employment information and
  opportunities (labor markets)

10
Community College/Cluster Hubs

• Teach specialized skills
• Employ faculty experienced in cluster
• Engage and work with business leaders
• Equipped with advanced technologies
• Keep up to date with changes and trends
• Provide or broker other specialized services
• Keep students informed of opportunities
• Contribute to social infrastructure

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Centers and Hubs
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Advantages of Community College-Based Cluster Hubs

• Regional responsibility and focus
• Pipeline for new, credentialed workers
• Offers adults a second chance
• Serves less advantaged populations
• Source of skill upgrading and incumbent worker
  training
• Intermediary for networks, benchmarking

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Hosiery Technology Center Catawba Valley CC

• Trains entry level workers and technicians
• Trains management and customers (w/ NCSU)
• Brokers networks (production, training)
• Provides testing facility, develops industry
  quality standards
• Demonstrates new equipment
• Maintains web site for jobs, market opportunities
• Develop new markets exporting

14
Central Virginia Metalworking

• Began by small group of SMEs in need of
  machinistsapproached college but no interest
• Decided industry initiative would be faster, more
  effectiveincorporated and hired director
• Acquired equipment from vendors, offered short
  term training
• Named by state as Regional Technology Center
• Approached new college president and merged
  Center with college
• Now offers credit and non-credit courses

15
The Northeast Oklahoma Manufacturers Council,
Inc.

• Formed in 1993 as a 501-C3.
• Began with a few core members locally
• Grew to around 40 members and held steadily for
  several years
• With growth in economy has grown to over 80
  active members today
• The NEOMC, Inc. was the first organized
  collaborative in Oklahoma, now there are over 25

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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

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Workforce Development

• Increase incumbent employee training
• Provide internship sponsors
• Provide job shadowing programs for teachers and
  students
• Develop Summer Academy programs for High Schools
  and youth

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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)

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Silicon Valley Computers and IT

• Seven colleges support computer/IT cluster
• Mission pays attention to semiconductors, DeAnza
  to computer systems, Evergreen to e-commerce,
  etc.
• Business industry programs provide non-credit
  education
• Partner with state technology diffusion centers

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Bio-Link NSF-funded ATE Center at City College
of SF

• 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

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Silicon Alley NYs 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
  colleges
• New, New Media business incubator at BMCC, Arts
  tech at LaGuardia CC
• Close ties between colleges at NM/IT associations

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Other Examples of Cluster Hubs

• Itawamba Community College, MS - Upholstered
  Furniture Technology Center
• Alabama Southern Community College - Chemical
  Processing Technology Center

23
International Examples

• Sligo Institute of Technology - Toolmaking
  industry research and advisory centre
• Cork IT - Clean technology centre
• Limerick Inst. of Tech. - Irish knitwear, CAD/CAM
  training design centre
• Galway-Mayo Inst. Tech.- Furniture College
• Manakua Polytechnic - Plastics technologies
• Nelson Polytechnic - NZ School of Fisheries

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Good programs are

• Demand driven Industry led
• Transparent Known content and outcomes
• Contextual Uses cluster applications all
  aspects of business
• Collaborative Partners to increase value

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And are

• Connected Aware of best practices for industry-
  internl
• Experienced Faculty/trainers from industry
• Specialized Finds niche and builds reputation
• Entrepreneurial Tries new ideas

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And also are

• Accessible and flexible To fit needs and
  schedules of working adults and companies
• Reliable Will produce on schedule and as
  promised

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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.)

  
  
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Challenges

• Reaching small firms
• Spawning entrepreneurs
• Workforce inclusion

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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...

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Contact Info

• Cynthia D. Liston
• Director, Workforce Development Programs
• Regional Technology Strategies, Inc.
• Carrboro, NC
• www.rtsinc.org
• liston_at_rtsinc.org
• 919-933-6699