Louisiana Has Second Thoughts About Clusters

This is an interesting one. A recent consulting report to the Louisiana Dept. of Economic Development says that its 'cluster effort' may be over-rated, and that development staff should go back to traditional business retention, expansion, and attraction activities.

Not being on the inside on this one, I don't know how well the cluster effort was or was not working in Louisiana. One thing I do know is that cluster development requires several years to show results, and that these efforts must be business-driven to succeed. Yes, the public sector can help create the right environment for clusters to grow, but businesses must lead these developmental clusters.

The other issue I see is that economic developers must change how they do their jobs if clusters are going to work. I look around the country and find too many states, regions, and communities trying to develop clusters like they have approached older business retention and attraction activities in the past. That doesn't work, and a new set of professional skills is needed to develop clusters.

Just a few observations from the North. More here.