wyoming competitiveness: state and cluster economic performance

1 NGA 2011 – Wyoming – Rich Bryden Copyright © 2011 Professor Michael E. Porter

Wyoming Competitiveness:

State and Cluster Economic Performance

Prepared for Governor Matthew Mead

Professor Michael E. Porter National Governors Association Winter Meeting

February 26, 2011

http://upload.wikimedia.org/wikipedia/commons/e/e4/Seal_of_Wyoming.svg


Wyoming Performance Snapshot

• Oil and Gas Products and Services

• Chemical Products

Prosperity

Innovation

Productivity

Labor Mobilization

Cluster Strength

Leading Clusters

Position Trend

Top quintile

3rd quintile

4th quintile

2nd quintile

Lowest quintile


State Comparative Performance


Wyoming Competitiveness Overall Economic Performance Indicators

Note: Ranks are among the 50 US states plus the District of Columbia. Growth calculated as compound annual growth rate. *Real annual rate.

Prosperity

Cluster

Gross State Product per capita, 2009 Share of State Traded Employment in Strong Clusters, 2008

• In Wyoming: $68,981 Rank: 2 • In Wyoming: 32.5% Rank: 32

• In the US: $46,093 • In the US: 41.8%

• State difference to US: 49.7%

Change in Share of National Employment in Strong Clusters, 1998-2008

Growth in Gross State Product per capita, real annual rate, 1999-2009 • In Wyoming: 1.13% Rank: 3

• In Wyoming: 2.75% Rank: 2 • In the US: -0.06%

• In the US: 0.86%

Share of Employment in Traded Clusters, 1998-2008

• In Wyoming: 30.0% Rank: 11

Productivity • In the US: 27.4%

Gross State Product per labor force participant, 2009 Change in Share of Employment in Traded Clusters, 1998-2008

• In Wyoming: $128,349 Rank: 3 • In Wyoming: 5.0% Rank: 1

• In the US: $92,382 • In the US: -2.2%

• State difference to US: 38.9%

Labor Mobilization

Growth in Gross State Product per labor force participant*, 1999-2009

• In Wyoming: 2.83% Rank: 3 Population, 2009

• In the US: 1.09% • In Wyoming: 544,269 Rank: 51

• % of US: 0.18%

Average private wage, 2008

• In Wyoming: $39,957 Rank: 20 Population growth, annual rate, 1999-2009

• In the US: $42,435 • In Wyoming: 1.02% Rank: 18

• State difference to US: -5.8% • In the US: 0.96%

Private wage Growth, annual rate, 1998-2008 Labor Force Participation, 2009

• In Wyoming: 5.10% Rank: 1 • In Wyoming: 71.6 Rank: 7

• In the US: 3.32% • In the US: 65.4

Employment, 2010 (December)

Innovation Output • In Wyoming: 274,329 Rank: 52

• % of US: 0.20%

Patents Per 10,000 Employees, 2009

• In Wyoming: 2.66 Rank: 37 Employment growth, annual rate, 2000-2010 (December)

• In the US: 6.83 • In Wyoming: 0.65% Rank: 10

• In the US: 0.11%

Growth in total patents, annual rate, 1998-2009

• In Wyoming: 2.49% Rank: 4 Unemployment, 2010 (December)

• In the US: 0.23% • In Wyoming: 6.4% Rank: 7

• In the US: 9.4%

Traded establishment formation, annual growth rate, 1998-2008

• In Wyoming: 3.00% Rank: 8 Change in Unemployment, 2000-2010 (December)

• In the US: 1.79% • In Wyoming: 2.6% Rank: 5

• In the US: 5.5%


$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

$60,000

$65,000

$70,000

-1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%

U.S. GDP per

Capita: $46,093

High and rising

prosperity versus U.S.

Long Term State Prosperity Performance 1999 to 2009

Notes: Real GDP figures in 2005 chained US dollars from the Bureau of Economic Analysis. Growth rate is calculated as compound annual growth rate. D.C. excluded

U.S. GDP per Capita

Real Growth Rate: 0.86%

Gross Domestic Product per Capita Real Growth Rate, 1999 to 2009

Gro

ss

Do

mes

tic P

rod

uct

pe

r C

ap

ita,

20

09

High but declining

versus U.S.

Low and declining

versus U.S. Low but rising versus U.S.

Illinois

Wyoming

North Dakota

South Dakota

Delaware

Alaska Connecticut

Wisconsin

Nevada

Arizona

New York New Jersey

Massachusetts

California

West Virginia

Mississippi

Vermont Oklahoma

Iowa Nebraska

North Carolina

Georgia Florida

Michigan

Idaho South Carolina

Texas

Oregon

Rhode Island Louisiana

Pennsylvania Kansas

New Hampshire

Arkansas

Maine

Colorado

Washington

Virginia

Minnesota

Hawaii Maryland

Alabama Montana Kentucky

New Mexico

Missouri Ohio

Indiana Utah

Tennessee


$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

$60,000

$65,000

$70,000

-6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0%

Near Term State Prosperity Performance U.S. States, 2007 to 2009

Notes: Real GDP figures in 2005 chained US dollars from the Bureau of Economic Analysis. Growth rate is calculated as compound annual growth rate.

U.S. GDP per Capita

Real Growth Rate: -1.87%

U.S. GDP per

Capita: $46,093

Gross Domestic Product per Capita Real Growth Rate, 2007 to 2009

Gro

ss

Do

mes

tic P

rod

uct

pe

r C

ap

ita,

20

09

Illinois

Wyoming

North Dakota

South Dakota

Delaware

Alaska Connecticut

Wisconsin

Nevada

Arizona

New York New Jersey Massachusetts

California

West Virginia

Mississippi

Vermont Oklahoma

Iowa

Nebraska

North Carolina

Georgia Florida

Michigan


Texas

Oregon

Rhode Island

Louisiana

Pennsylvania Kansas

New Hampshire

Arkansas

Maine

Colorado

Washington Virginia

Minnesota

Hawaii Maryland

Alabama

Montana

Kentucky New Mexico

Missouri Ohio

Indiana Utah

Tennessee

High but declining versus U.S.

Low and declining versus U.S. Low but rising versus U.S.

High and rising

prosperity versus U.S.


State Private Sector Wage Performance 1998-2008

U.S. Average Wage

Growth: 3.32%

U.S. Average

Wage: $ 42,435

Wage Growth (CAGR), 1998-2008

Ave

rag

e W

ag

e,

20

08

High and rising wages

relative to U.S.

Source: Census CBP report; private, non-agricultural employment. Growth is calculated on nominal wage levels.

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

$60,000

2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5%

Illinois

Wisconsin

Wyoming

New York

North Dakota

Michigan

Massachusetts Connecticut

New Jersey

Alaska

California

Washington

Delaware Maryland Minnesota

Colorado Texas

Virginia

Indiana


West Virginia

Mississippi

Tennessee

Hawaii

Ohio

Georgia

New Hampshire

Rhode Island

Louisiana

Oklahoma

New Mexico

Arkansas

South Dakota

Montana

Pennsylvania

Iowa

Maine Kentucky

Alabama

Nebraska Utah

North Carolina

Vermont

Arizona

Nevada Kansas Florida

Missouri

Oregon




$60,000

$70,000

$80,000

$90,000

$100,000

$110,000

$120,000

$130,000

$140,000

$150,000

-0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5%

Long Term State Labor Productivity Performance 1999-2009

Source: Bureau of Economic Analysis. Notes: Growth rate calculated as compound annual growth rate (CAGR).

Gross Domestic Product per Labor Force Participant Real Growth Rate, 1999-2009

Gro

ss

Do

mes

tic P

rod

uct

pe

r L

ab

or

Fo

rce

Pa

rtic

ipa

nt,

20

09

Highly productive and

productivity rising versus U.S.



U.S. GDP per Labor Force

Participant Real Growth: 1.09%


Participant: $92,382

Illinois

Wyoming

North

Dakota South

Dakota

Delaware

Alaska

Connecticut

Wisconsin

Nevada

Arizona

New York

New Jersey Massachusetts

California

West Virginia

Mississippi

Vermont

Oklahoma

Iowa

Nebraska North Carolina

Georgia

Florida Michigan


Texas

Oregon Rhode Island

Louisiana

Pennsylvania

Kansas

New Hampshire

Arkansas

Maine

Colorado Washington Virginia

Minnesota

Hawaii

Maryland

Alabama

Montana

Kentucky

New Mexico Missouri

Ohio

Indiana Utah

Tennessee


$60,000

$70,000

$80,000

$90,000

$100,000

$110,000

$120,000

$130,000

$140,000

$150,000

-8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0%

Near Term State Labor Productivity Performance 2007-2009


Participant Real Growth: -0.97%


Participant: $92,382

Gross State Product per Labor Force Participant Real Growth Rate, 2007-2009

Gro

ss

Sta

te P

rod

uct

pe

r L

ab

or

Fo

rce

Pa

rtic

ipa

nt,

20

09

Highly productive and

productivity rising versus U.S.

Source: Bureau of Economic Analysis. Notes: Growth rate calculated as compound annual growth rate (CAGR).



Illinois

Wyoming

North Dakota South

Dakota

Delaware

Alaska

Connecticut

Wisconsin

Nevada

Arizona

New York

New Jersey Massachusetts

California

West Virginia

Mississippi

Vermont

Oklahoma

Iowa

Nebraska North Carolina

Georgia

Florida

Michigan


Texas

Oregon

Rhode Island

Louisiana

Pennsylvania

Kansas

New Hampshire

Arkansas

Maine

Colorado Washington

Virginia

Minnesota

Hawaii

Maryland

Alabama

Montana Kentucky

New Mexico Missouri Ohio

Indiana Utah

Tennessee


Losing Jobs Gaining Jobs

Long Term State Job Growth 2000 to 2010

Source: Bureau of Labor Statistics Job Growth Rate (CAGR), 2000-2010

Nu

mb

er

of

Jo

bs 2

01

0

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

-2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0%

California (15,945,558) Texas (11,202,388)

U.S. Average Growth Rate: 0.11%

New York

Florida

Pennsylvania Illinois

Ohio

Michigan

Virginia

Washington

Arizona

Georgia North Carolina New Jersey

Massachusetts

Indiana

Missouri

Wisconsin

Tennessee Maryland Minnesota

Colorado

Alabama

Mississippi

West Virginia

Delaware Rhode Island Hawaii Maine

Nebraska

Montana Vermont Alaska

Utah Nevada

New Mexico Idaho

New Hampshire

Wyoming South Dakota North

Dakota

Arkansas Kansas Iowa

Oregon Connecticut

Oklahoma

Kentucky Louisiana

South Carolina


Losing Jobs Gaining Jobs

Near Term State Job Growth 2007 to 2010

Source: Bureau of Labor Statistics

Job Growth Rate (CAGR), 2007-2010

Nu

mb

er

of

Jo

bs 2

01

0

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

-4.0% -3.5% -3.0% -2.5% -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0%

California (15,945,558) Texas (11,202,388)

U.S. Average Growth Rate: -1.52%

New York

Florida

Pennsylvania

Illinois

Ohio

Michigan

Virginia

Washington

Arizona

Georgia North Carolina

New Jersey

Massachusetts

Indiana Missouri

Wisconsin Tennessee

Maryland

Minnesota

Colorado

Alabama

Mississippi West Virginia

Delaware Rhode Island

Hawaii Maine Nebraska

Montana Vermont Alaska

Utah Nevada

New Mexico Idaho New

Hampshire

South Dakota

North Dakota

Arkansas Kansas

Iowa

Oregon Connecticut Oklahoma

Kentucky Louisiana South Carolina

Wyoming


Long Term State Unemployment Rate 2000 to 2010

Change in Employment Rate, 2000 to 2010

Un

em

plo

ym

en

t R

ate

, 2

01

0


Unemployment rising

3.0

5.0

7.0

9.0

11.0

13.0

15.0

0.01.02.03.04.05.06.07.08.09.010.0

Nevada

North Dakota

South Dakota

Nebraska

New Hampshire

Vermont

Wyoming Hawaii

Iowa

Kansas

Montana

Alaska Louisiana

Virginia Oklahoma

Minnesota Maine Maryland

Utah Wisconsin

Arkansas New York Texas

Pennsylvania New Mexico

Delaware

Massachusetts

Colorado

Connecticut

Indiana

Georgia

South Carolina

Rhode Island

Michigan Florida

California

Kentucky

Oregon

Mississippi

Washington

West Virginia Idaho

Illinois Alabama

New Jersey U.S. Average

Unemployment Rate: 9.4%

Change in US Average

Employment Rate: 5.5%

Ohio North Carolina

Missouri

Arizona

Tennessee

Below average

unemployment

Above average

unemployment

%

%

%

%

%

%

%

%

% % % % % % % % % %


3.0

5.0

7.0

9.0

11.0

13.0

15.0

0.01.02.03.04.05.06.07.08.09.010.0

Near Term State Unemployment Rate 2007 to 2010

Change in Employment Rate, 2007 to 2010

Un

em

plo

ym

en

t R

ate

, 2

01

0


Unemployment rising

U.S. Average

Unemployment Rate: 9.4%

Change in US Average

Employment Rate: 4.4%

Nevada

North

Dakota

South Dakota Nebraska

New Hampshire

Vermont Wyoming Hawaii Iowa

Kansas

Montana

Alaska Louisiana

Virginia Oklahoma Minnesota

Maine Maryland

Utah Wisconsin

Arkansas New York Texas

Pennsylvania New Mexico

Delaware Massachusetts

Colorado Connecticut

Indiana

Georgia

South

Carolina Rhode Island

Michigan Florida

California

Kentucky Oregon Mississippi

Washington

West Virginia

Idaho Illinois Alabama

New Jersey

Ohio North Carolina

Missouri Arizona Tennessee

Below average

unemployment

Above average

unemployment

%

%

%

%

%

%

%

%

% % % % % % % % % %


0

2

4

6

8

10

12

14

-5% -4% -3% -2% -1% 0% 1% 2% 3%

Long Term State Patenting Performance U.S. States, 1999 to 2009

Growth Rate of Patenting, 1999 to 2009

Pa

ten

ts p

er

10

,00

0 E

mp

loye

es

, 2

00

9

Source: USPTO, Bureau of Labor Statistics. Note: Growth rate calculated as compound annual growth rate (CAGR). 3,000 patents issued in 2009 =

U.S. average Growth Rate

of Patenting: -0.30%

Arkansas (-6.9%, 0.76) Louisiana (-6.0%, 1.34)

Montana (-5.7%, 1.58)

South Dakota

West Virginia

Alaska

Idaho

Pennsylvania

Mississippi

Washington (+8.0%, 13.53)

Oregon (+4.9%, 10.31)

New Jersey

Ohio

Delaware

Vermont

California

Massachusetts

North Carolina

North Dakota Wyoming

Georgia

Nebraska Maine

Utah

Michigan

Minnesota

Colorado

New Hampshire

Connecticut

Wisconsin

Rhode Island

Kansas

Nevada Virginia

Iowa

Texas Arizona

New York

Illinois

Maryland

Indiana

New Mexico

Florida

Tennessee

Missouri

South Carolina Kentucky

Alabama

Hawaii

Oklahoma

U.S. average Patents per

10,000 Employees: 5.96

High and improving

innovation rate versus U.S.

High and declining

innovation

Low and declining innovation Low and improving innovation


Wyoming Patents by Organization

Rank Organization Patents

2005-2009

Rank Organization

Patents 2005-2009

1 University Of Wyoming 14 25 International Business Machines Corporation

1

2 General Electric Company 6 25 Marathon Oil Company 1

2 Alces Technology, Inc. 6 25 Proxim, Inc. 1

4 University Of Wyoming Research Corporation

5 25 Scripps Research Institute 1

5 Conair, Inc. 4 25 Teledyne Industries, Inc., Teledyne Water Pik

1

5 In-Situ; Inc. 4 25 Unicover Corporation 1

5 Woodworker'S Supply, Inc. 4 25 University Of Texas 1

5 Biolase Technology, Inc. 4 25 Stanford University 1

9 Stratagene 3 25 En Novative Technologies, Inc. 1

9 Halliburton Energy Services, Inc. 3 25 Harsco Technologies Corporation 1

9 Medicinelodge, Inc. 3 25 Collaboration Properties, Inc. 1

9 Abet Technologies, Llc 3 25 Bettina Corporation 1

9 Tgi, Inc. 3 25 Bpb Plc 1

14 Coe Manufacturing Company 2 25 Automated Merchandising Systems, Inc. 1

14 Weatherford/Lamb, Inc. 2 25 Cardinal Glass Industries, Inc. 1

14 Defense Technology Corporation Of America

2 25 Shoot The Moon Products Ii, Llc 1

14 Dow Agrosciences Llc 2 25 Mountain Engineering Ii. Inc. 1

14 B & B Homes Corp. 2 25 Bonfire Snowboarding, Inc. 1

14 Aerocast.Com, Inc. 2 25 Taser International, Inc. 1

14 Acueity, Inc. 2 25 The Brunton Company, Inc. 1

14 Ec Ranch 2 25 Signature Control Systems 1

14 Yates Petroleum Corporation 2 25 Electronic Classroom Furniture System, Lc 1

14 Particle Drilling Technologies, Inc. 2 25 Depuy Mitek, Inc. 1

14 Mine Rite Technologies, Llc 2 25 Chap Up, Llc 1

25 General Instrument Corporation 1 25 Valentx, Inc. 1

Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director.

Universities and Research Institutions

Government Organizations


The Impact of Cluster Mix and Cluster Strength on Wages U.S. States, 2008

State

State Traded Wage versus

National Average

Cluster Mix Effect

Relative Cluster

Wage Effect State

State Traded Wage versus

National Average

Cluster Mix Effect

Relative Cluster

Wage Effect

New York 34,578 5,188 29,390 North Carolina -10,673 -5,131 -5,543

Connecticut 20,008 6,898 13,109 Missouri -10,953 -1,634 -9,319

Massachusetts 17,308 5,191 12,117 Rhode Island -11,089 -1,370 -9,719

New Jersey 12,157 4,638 7,519 Florida -11,780 -1,473 -10,307

California 9,597 121 9,476 Oklahoma -12,225 1,533 -13,758

Maryland 6,435 2,778 3,657 Alabama -12,301 -4,713 -7,588

Washington 4,827 3,058 1,769 Tennessee -13,063 -3,987 -9,076

Virginia 2,550 945 1,605 Vermont -13,095 -2,936 -10,159

Illinois 2,501 -61 2,562 Indiana -13,309 -5,495 -7,814

Alaska 2,386 -3,044 5,431 Nebraska -14,659 41 -14,699

Texas 1,400 2,796 -1,396 Utah -14,947 327 -15,274

Colorado 753 2,292 -1,539 South Carolina -15,256 -5,694 -9,562

Delaware 612 13,346 -12,733 Nevada -15,429 -2,829 -12,600

Louisiana -4,172 573 -4,745 Maine -15,826 -726 -15,100

Minnesota -4,404 43 -4,448 North Dakota -16,437 2,940 -19,378

Wyoming -4,423 1,408 -5,831 Iowa -16,963 -2,602 -14,361

Michigan -4,981 -2,534 -2,447 New Mexico -16,991 -125 -16,866

Pennsylvania -5,182 -1,064 -4,118 Kentucky -17,303 -5,013 -12,291

New Hampshire -6,359 1,224 -7,584 West Virginia -17,357 -4,290 -13,067

Georgia -7,262 -1,923 -5,338 Arkansas -17,616 -5,171 -12,445

Arizona -8,662 1,557 -10,219 Hawaii -18,103 -14,124 -3,980

Kansas -8,828 1,820 -10,648 Idaho -18,636 -1,567 -17,069

Ohio -9,766 -1,436 -8,330 Mississippi -20,859 -6,165 -14,694

Oregon -9,774 -2,355 -7,420 South Dakota -21,211 955 -22,166

Wisconsin -10,479 -3,341 -7,138 Montana -22,488 -3,494 -18,994

Cluster mix: a region’s particular mix of lower and higher average wage clusters

Relative cluster wage: a region’s cluster wage relative to the average national wage in that cluster

The cluster mix and the cluster wage level effects add up to the total difference between a region’s average wage and the

national average wage. On average, the wage level effect is responsible for 76.3% of the total difference in state wages to the

national average.

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Effect of Urban and Rural Areas on Average State Wages U.S. States, 2008

State

Average Overall Wage

Difference to U.S.

Metro-Rural Mix

Relative Metro Wage

Relative Rural Wage State

Average Overall Wage

Difference to U.S.

Metro-Rural Mix

Relative Metro Wage

Relative Rural Wage

New York 15,412 982 14,078 353 Nevada -4,560 815 -5,752 377

Connecticut 10,919 1,013 9,592 315 Louisiana -4,739 -630 -4,764 655

Massachusetts 10,197 1,674 8,333 190 Kansas -5,371 -2,175 -2,535 -661

New Jersey 8,488 1,631 6,765 92 North Carolina -5,505 -1,262 -3,796 -446

Alaska 6,538 -1,438 5,158 2,818 Tennessee -5,992 -538 -4,973 -481

California 5,584 1,476 3,844 265 Florida -6,132 -128 -6,074 70

Illinois 3,427 411 3,277 -261 Indiana -6,225 -630 -5,665 70

Washington 3,013 832 2,122 58 Oklahoma -6,501 -2,030 -4,496 25

Delaware 2,664 -191 2,895 -40 Hawaii -6,583 -1,892 -4,871 179

Maryland 2,201 1,159 775 267 Utah -7,054 169 -7,273 50

Virginia 1,182 509 709 -36 Vermont -7,280 -6,080 -968 -232

Minnesota 1,024 -903 2,130 -202 Nebraska -7,419 -2,652 -3,621 -1,146

Colorado 539 -110 -66 714 Alabama -7,544 -1,206 -5,701 -636

Texas 325 350 -234 209 Maine -7,697 -2,479 -5,243 24

New Hampshire -504 -2,856 924 1,428 Kentucky -7,978 -2,179 -5,285 -515

Pennsylvania -1,184 262 -1,480 34 Iowa -8,096 -3,123 -4,509 -464

Michigan -1,785 -165 -1,576 -44 New Mexico -8,531 -1,843 -6,548 -140

Rhode Island -2,143 1,720 -3,846 -17 South Carolina -9,137 -609 -8,203 -325

Wyoming -2,478 -6,929 -2,304 6,755 Arkansas -9,482 -2,207 -6,283 -992

Georgia -3,136 -120 -2,542 -475 Idaho -9,766 -1,928 -6,872 -966

Ohio -3,925 -224 -3,799 98 North Dakota -9,973 -2,963 -6,607 -403

Arizona -3,962 937 -4,897 -2 West Virginia -10,074 -3,104 -7,013 43

Oregon -4,116 -359 -3,505 -251 South Dakota -10,976 -3,811 -5,475 -1,690

Wisconsin -4,336 -910 -3,419 -7 Mississippi -11,446 -4,569 -5,493 -1,383

Missouri -4,540 -573 -3,103 -865 Montana -11,792 -5,468 -5,495 -829

Note: Data are based on private, non-agricultural employment.


Metro-rural mix: average wage impact from a state’s relative proportion of metro and rural regions

Relative metro wage: average wage impact from state relative performance in metro regions

Relative rural wage: average wage impact from state relative performance in rural regions

On average 66.3% of the average wage gap in a state is due to the metro wage effect.

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Composition of the Wyoming Economy

and Cluster Performance


Composition of Regional Economies, United States

Local Clusters

• Serve almost

exclusively the

local market

• Not exposed to

cross-regional

competition for

employment

71.7% of

employment

61.8% of income

3.5% of patents

27.4% of

employment

37.3% of income

96.4% of patents

Traded Clusters

• Serve markets in other

regions and countries

• Free to choose location

• Exposed to competition

from other regions

Source: Michael E. Porter, Economic Performance of Regions, Regional Studies (2003); Updated via

Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School (2008)

Resource-based Clusters

• Location determined by

resource availability

• <1% of income,

employment, and patents in

the U.S.


Overall Composition of the Wyoming Economy, 2008

WY 29.5%

WY 66.7%

WY 3.9%

US 27.4%

US 71.7%

US 0.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Traded Clusters Local Clusters Natural EndowmentDependent

Perc

en

t o

f To

tal

Pri

va

te E

mp

loym

en

t

Note: Data throughout this section of the report are based on private, non-agricultural employment.



Composition of the Wyoming Economy Employment by Traded Cluster, 2008 Rank in US

Note: Ranks are among the 50 US states plus the District of Columbia. Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director.

Employment, 2008

10101010202050606390110130140160170185200235331395431445485500623628650651707

1,3491,3631,578

2,3272,564

3,3475,484

10,63511,017

19,312

0 5,000 10,000 15,000 20,000 25,000

Aerospace Engines 45Fishing and Fishing Products 49

Medical Devices 51Tobacco 29

Jew elry and Precious Metals 50Lighting and Electrical Equipment 49

Textiles 49Forest Products 50

Aerospace Vehicles and Defense 45Apparel 44

Analytical Instruments 48Biopharmaceuticals 47

Leather and Related Products 45Furniture 48

Automotive 48Sporting, Recreational and Children's Goods 42

Construction Materials 49Motor Driven Products 44

Processed Food 50Plastics 47

Agricultural Products 47Prefabricated Enclosures 39

Production Technology 48Heavy Machinery 45

Metal Manufacturing 48Information Technology 51

Building Fixtures, Equipment and Services 48Publishing and Printing 50

Pow er Generation and Transmission 45Financial Services 51

Education and Know ledge Creation 51Distribution Services 50

Chemical Products 35Transportation and Logistics 47

Entertainment 47Business Services 51

Hospitality and Tourism 46Heavy Construction Services 38

Oil and Gas Products and Services 6

Wyoming overall employment rank = 51


0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

0.6%

0.7%

-0.20% -0.10% 0.00% 0.10% 0.20% 0.30% 0.40%

Change in Wyoming share of National Employment, 1998 to 2008

Wyo

min

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re, 2

00

8

Employees 3,500 =

Composition of the Wyoming Economy Specialization by Traded Cluster, 1998 to 2008

Wyoming Overall Share of US

Traded Employment: 0.20%

Overall change in the

Wyoming Share of US Traded

Employment: +0.07%


Added Jobs

Lost Jobs

Employment

1998-2008

Oil and Gas

Products

and Services

(+1.19%, 3.37%)

Heavy

Construction

Services

Chemical

Products

Power

Generation and

Transmission

Hospitality and

Tourism

Entertainment Sporting,

Recreational and

Children’s Goods

Prefabricated

Enclosures

Construction

Materials

Motor Driven Products

Heavy

Machinery


0.00%

0.02%

0.04%

0.06%

0.08%

0.10%

0.12%

0.14%

-0.05% -0.03% -0.01% 0.01% 0.03% 0.05% 0.07%

Change in Wyoming share of National Employment, 1998 to 2008

Wyo

min

g’s

na

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l e

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loym

en

t s

ha

re, 2

00

8

Employees 3,500 =

Composition of the Wyoming Economy Specialization by Traded Cluster, 1998 to 2008


Added Jobs

Lost Jobs

Employment

1998-2008

Construction

Materials

Motor Driven Products

Agricultural

Products Heavy

Machinery

Leather and Related

Products

Transportation and

Logistics

Business Services

Production

Technology Publishing

and Printing

Furniture Information Technology

Metal

Manufacturing

Plastics

Education and

Knowledge

Creation

Apparel

Biopharmaceuticals

Distribution Services

Financial Services

Processed

Food

Building

Fixtures,

Equipment

and Services

Textiles

Automotive

Analytical Instruments

Forest Products


Wyoming Job Creation by Traded Cluster 1998 to 2008

Jo

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Net traded job creation,

1998 to 2008:

+25,552

Indicates expected job creation

given national cluster growth.*

Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director. * Percent change in national benchmark times starting regional employment. Overall traded job creation in Wyoming, if it matched national benchmarks, would be +5,930


$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000

ApparelFootwearFurnitureTextiles

Construction MaterialsPrefabricated Enclosures

Fishing and Fishing ProductsLeather and Related Products

Sporting, Recreational and Children's GoodsPlastics

Motor Driven ProductsJewelry and Precious Metals

Lighting and Electrical EquipmentAutomotive

Forest ProductsProduction Technology

TobaccoAerospace Engines

Communications EquipmentMedical Devices

Analytical InstrumentsHospitality and Tourism

Agricultural ProductsEntertainment

Building Fixtures, Equipment and ServicesAerospace Vehicles and Defense

Education and Knowledge CreationProcessed Food

Publishing and PrintingTransportation and Logistics

Heavy MachineryBiopharmaceuticals

Information TechnologyDistribution Services

Heavy Construction ServicesBusiness Services

Metal ManufacturingFinancial Services

Chemical ProductsOil and Gas Products and Services

Power Generation and Transmission

Wyoming Wages by Traded Cluster vs. National Benchmarks

Wages, 2008

Wyoming average

traded wage: $55,297

l Indicates average

national wage in

the traded cluster.


U.S. average traded

wage: $57,706


Wyoming Employment in Highest Wage Clusters, 2008

Total private, non-agricultural employment in Wyoming: 221,971.


= 25.1% of

total private

employment


Furniture Building

Fixtures,

Equipment &

Services

Fishing &

Fishing

Products

Hospitality

& Tourism Agricultural

Products

Transportation

& Logistics

Wyoming Cluster Portfolio, 2008

Plastics

Oil &

Gas

Chemical

Products

Biopharma-

ceuticals

Power

Generation &

Transmission

Aerospace

Vehicles &

Defense

Lightning &

Electrical

Equipment

Financial

Services

Publishing

& Printing

Entertainment

Information

Tech.

Communi

cations

Equipment

Aerospace

Engines

Business

Services

Distribution

Services

Forest

Products

Heavy

Construction

Services

Construction

Materials

Prefabricated

Enclosures

Heavy

Machinery

Sporting

& Recreation

Goods

Automotive

Production

Technology Motor Driven

Products

Metal

Manufacturing

Apparel

Leather &

Related

Products

Jewelry &

Precious

Metals

Textiles

Footwear

Processed

Food

Tobacco

Medical

Devices

Analytical

Instruments Education &

Knowledge

Creation

LQ > 4

LQ > 2

LQ > 1.

LQ, or Location Quotient, measures the state’s share in cluster employment relative to its overall share of U.S. employment.

An LQ > 1 indicates an above average employment share in a cluster.


0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

-0.1% 0.1% 0.3% 0.5% 0.7% 0.9% 1.1% 1.3%

Change in Share of National Employment, 1998 to 2008

Nati

on

al

em

plo

ym

en

t s

hare

, 2

00

8

Employees 2,500 =

Wyoming Share of US Oil and Gas Products

and Services Employment: +3.37%

Change in Wyoming Share of

US Oil and Gas Products and

Services Employment: +1.19%


Added Jobs

Lost Jobs

Employment

1998-2008

Wyoming Oil and Gas Products and Services Cluster, 1998-2008 Specialization by Subcluster

Oil and Gas

Exploration and

Drilling

Hydrocarbons

Pipeline

Transportation

Oil and Gas

Machinery

Petroleum

Processing


0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

-0.3% -0.1% 0.1% 0.3% 0.5% 0.7%

Change in Share of National Employment, 1998 to 2008

Nati

on

al

em

plo

ym

en

t s

hare

, 2

00

8

Employees 300 =

Wyoming Share of US Chemical

Products Employment: 0.61%

Change in Wyoming Share of

US Chemical Products

Employment: +0.40%


Added Jobs

Lost Jobs

Employment

1998-2008

Wyoming Chemical Products Cluster, 1998-2008 Specialization by Subcluster

Intermediate

Chemicals and

Gases

Other Processed

Chemicals

Packaged

Chemical Products Leather

Tanning and

Finishing

Ammunition


Wyoming Top 50 Subclusters by National Employment Share, 2008

Rising national employment share

Declining national employment share

Subcluster Cluster Employment

Employment

Rank in U.S.

Employment

Share in U.S.

Change in

Employment

Share in U.S.

1998-2008

1 Oil and Gas Exploration and Drilling Oil and Gas Products and Services 13,661 5 4.4% 1.3%

2 Hydrocarbons Oil and Gas Products and Services 3,648 6 3.4% 1.0%

3 Fertilizers Agricultural Products 175 8 2.9% 0.8%

4 Explosives Heavy Construction Services 175 18 2.6% 1.9%

5 Pipeline Transportation Oil and Gas Products and Services 751 16 1.9% 0.8%

6 Equipment Distribution and Wholesaling Heavy Construction Services 2,186 30 1.3% 0.6%

7 Oil and Gas Machinery Oil and Gas Products and Services 492 7 1.1% 0.6%

8 Petroleum Processing Oil and Gas Products and Services 760 19 1.1% -0.1%

9 Intermediate Chemicals and Gases Chemical Products 1,815 25 1.1% 0.8%

10 Final Construction Heavy Construction Services 7,398 33 0.8% 0.5%

11 Entertainment Venues Entertainment 2,870 36 0.7% 0.3%

12 Accommodations and Related Services Hospitality and Tourism 9,829 40 0.6% 0.1%

13 Transportation Support and Operations Transportation and Logistics 316 34 0.6% 0.1%

14 Leather products Leather and Related Products 80 34 0.6% 0.4%

15 Mining Machinery Heavy Machinery 60 31 0.5% 0.5%

16

Concrete, Gypsum and Other Building

Products Building Fixtures, Equipment and Services 235 40 0.5% 0.0%

17 Electric Services Power Generation and Transmission 647 42 0.5% -0.3%

18 Recreational Vehicles and Parts Prefabricated Enclosures 375 29 0.5% 0.2%

19

Porcelain, Carbon and Graphite

Components Power Generation and Transmission 60 33 0.4% 0.4%

20 Primary Construction Materials Heavy Construction Services 779 45 0.4% -0.1%

21 Sporting and Athletic Goods Sporting, Recreational and Children's Goods 175 37 0.4% 0.4%

22 Pumps Metal Manufacturing 122 37 0.4% 0.3%

23 Packaged Chemical Products Chemical Products 255 38 0.3% 0.1%

24 Other Processed Chemicals Chemical Products 233 38 0.3% 0.3%

25 Leather Tanning and Finishing Chemical Products 14 27 0.3% -0.2%


Wyoming Top 50 Subclusters by National Employment Share, 2008 (continued)

Rising national employment share

Declining national employment share

Subcluster Cluster Employment

Employment

Rank in U.S.

Employment

Share in U.S.

Change in

Employment

Share in U.S.

1998-2008

26 Plumbing Products Building Fixtures, Equipment and Services 175 44 0.3% 0.3%

27 Subcontractors Heavy Construction Services 294 45 0.3% 0.0%

28 Farm Management and Related Services Agricultural Products 228 42 0.3% 0.1%

29 Nonferrous Mills and Foundries Metal Manufacturing 175 38 0.3% 0.1%

30 Media Representatives Publishing and Printing 70 37 0.2% 0.1%

31 Trucks and Trailers Prefabricated Enclosures 60 39 0.2% 0.2%

32 Catalog and Mail-order Distribution Services 755 44 0.2% 0.0%

33 Educational Facilities Education and Knowledge Creation 358 48 0.2% 0.0%

34

Transportation Vehicle and Equipment

Distribution Distribution Services 109 46 0.2% 0.0%

35 Construction Machinery Heavy Machinery 175 43 0.2% 0.0%

36 Fabricated Plate Work Production Technology 180 46 0.2% 0.1%

37 Industrial Patterns Production Technology 10 40 0.2% 0.2%

38 Air Transportation Transportation and Logistics 881 38 0.2% 0.1%

39 Cut and Crushed Stone Construction Materials 70 46 0.2% 0.2%

40 Computers Information Technology 60 35 0.2% 0.2%

41 Other Tobacco Products Tobacco 10 20 0.2% 0.2%

42 Wood Products Construction Materials 120 43 0.2% 0.1%

43 Engineering Services Business Services 1,686 48 0.2% 0.1%

44 Tourism Related Services Hospitality and Tourism 455 48 0.2% 0.0%

45 Farm Machinery Heavy Machinery 245 44 0.2% -0.1%

46 Refrigeration and Heating Equipment Motor Driven Products 175 39 0.1% 0.1%

47 Textile Machinery Textiles 10 38 0.1% 0.1%

48 Motors and Generators Motor Driven Products 60 40 0.1% 0.1%

49 Communications Services Information Technology 449 46 0.1% -0.1%

50 Fishing and Hunting Fishing and Fishing Products 10 48 0.1% 0.0%


1,623

3,486

4,108

4,116

4,268

4,506

6,486

6,875

7,007

7,149

7,985

11,291

11,964

20,717

22,534

26,329

0 5,000 10,000 15,000 20,000 25,000 30,000

Local Education and Training 51

Local Household Goods and Services 49

Local Industrial Products and Services 44

Local Utilities 50

Local Entertainment and Media 51

Local Personal Services (Non-Medical) 51

Local Community and Civic Organizations 51

Local Logistical Services 49

Local Financial Services 50

Local Food and Beverage Processing and Dist 51

Local Retail Clothing and Accessories 49

Local Commercial Services 51

Local Motor Vehicle Products and Services 48

Local Hospitality Establishments 51

Local Real Estate, Construction, and Develo 49

Local Health Services 51

Wyoming Employment by Local Cluster 2008

Employment, 2008

Rank in US

Note: Ranks are among the 50 US states plus the District of Columbia. Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director.

Wyoming overall employment rank = 51


Wyoming Job Creation by Local Cluster 1998 to 2008

Jo

b C

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n, 1

99

8 t

o 2

00

8

-2,000

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000L

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om

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s

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an

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Lo

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inin

g

Net local job creation,

1998 to 2008:

+ 29,752

Indicates expected job creation

given national cluster growth.*

Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director. * Percent change in national benchmark times starting regional employment. Overall local job creation in Wyoming, if it matched national benchmarks, would be +20,205


$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000

Local Hospitality Establishments

Local Retail Clothing and Accessories

Local Personal Services (Non-Medical)

Local Education and Training

Local Entertainment and Media

Local Community and Civic Organizations

Local Food and Beverage Processing and Dist

Local Household Goods and Services

Local Motor Vehicle Products and Services

Local Financial Services

Local Commercial Services

Local Logistical Services

Local Real Estate, Construction, and Develo

Local Health Services

Local Industrial Products and Services

Local Utilities

Wyoming Wages by Local Cluster vs. National Benchmarks

Wages, 2008

Wyoming average

local wage: $33,055

l Indicates average

national wage in

the local cluster.


U.S. average local

wage: $36,911


Appendix:

Chart Descriptions, Interpretation, and Sources


State Snapshot The snapshot chart summarizes the relative performance of a state on levels and trends in five key

measures. The circles in the chart indicate quintile of performance as shown in chart legend.

1. Prosperity: State GDP per capita and 10-year trend

2. Productivity: Average private wage and 10-year trend

3. Labor Mobilization: Total labor force as a share of civilian population and 10-year trend

4. Innovation: Utility patents per 10,000 workers and 10-year trend

5. Cluster Strength:

• A “strong cluster” is identified by relative employment rank in the top 20% across all states. A

state’s “cluster strength” is in turn the state’s total share of traded employment in these strong

clusters.

• A positive trend in cluster strength is indicated by a state’s increasing national cluster share

across these strong clusters.

Leading Clusters: A listing of the state’s strong clusters is included. A state may have more than five strong

clusters; the top five by employment size in the state are shown in this section.


Components of Regional Economies

Source: Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School

A state’s or region’s economy can be divided into traded clusters, local clusters, and natural endowment

industries:

Traded clusters include those industries that compete across regions, and which tend to concentrate in

particular locations. Traded clusters are the engines of regional economic competitiveness. While they

account for only about a third of employment, they achieve the highest wages and productivity levels and

drive demand for localized businesses.

Local clusters involve activities serving almost exclusively the local market. Local clusters are present in

every region in roughly the same proportions. They employ the majority of people in any regional economy,

so their efficiency is critical for competitiveness in traded clusters. However, they cannot prosper over the

long run without success in the traded clusters.

Natural Endowment-dependent industries concentrate at natural resource sites. They account for a small

and declining share of national employment but can be relatively high wage.

The Cluster Mapping Project data presented in this report focuses primarily on traded clusters, though it

contains some information about other categories of industries. The performance of traded clusters holds

the key to present and future competitiveness.


Employment by Traded Cluster


Within the broad category of traded clusters, a state’s economy can be divided into individual clusters.

Clusters are geographically proximate groups of interconnected companies and associated institutions in a

particular field, linked by commonalities and complementarities. Examples include automotive producers in

Michigan and Ohio, information technology in Silicon Valley, and money management in Boston.

The 41 traded clusters (and their 264 component subclusters) utilized in the Cluster Mapping Project were

developed using statistical analysis of the actual patterns of business location in the U.S. economy.

Clusters and subclusters are listed at the end of this appendix.

Interpretation:

This chart gives total employment in the state economy by each traded cluster.

Employment by cluster gives a more detailed profile of the activities in the state economy that make up the

job base. It can be used to understand the importance of the health of various groups or industries on the

overall prosperity of the region. z

Also shown on the chart are employment ranks for

each cluster versus those in the 50 U.S. states plus

D.C. Ranks above the region’s overall share of

national employment are an indication of cluster

specialization in the state and are highlighted on the

chart.


Specialization by Traded Cluster


While other charts in this report focus on absolute employment and changes in employment, the

Specialization chart shows the region’s competitive position by traded cluster.

The size of each cluster “bubble” is proportional to the number of jobs in the region.

The location of each cluster bubble on the chart identifies a cluster’s relative performance in the US

economy:

• Clusters on the top half of the chart have local employment levels that are more than

proportionate to the region’s overall employment. These are clusters in which the region is

relatively specialized.

• Clusters on the right half of the chart are growing employment at a faster rate than the national

average for those clusters. These are clusters in which the region is gaining position in terms of

relative employment.

When present, a gray shaded area on the chart indicates that further detail is available on a second version

of the chart immediately following the current page.

Strong and growing position

Cluster is growing faster

The region’ share

of cluster employment Strong and growing

position

than the US average

relative to its size


Specialization by Subcluster

Strong and growing position

Subcluster is growing faster than average for the cluster

High share of national employment relative to average for the cluster

Strongest and fastest growing positions

The specialization by subcluster chart is interpreted similarly to the specialization chart for all traded clusters.

Additional insight on particular cluster strengths and trends in cluster composition can be observed.

Please note that only one or a few subcluster charts were included in this report. Specialization charts and

other data for all subclusters are available online at the Cluster Mapping Project reached from

www.isc.hbs.edu.

http://www.isc.hbs.edu/


Job Creation by Traded Cluster


This chart shows the overall net change in traded jobs in the state over the period from 1998 to 2008 and the

net gain or loss by traded cluster. The clusters are arranged in order of net jobs created. The blue bars

provide benchmarks for job creation based upon rates of growth in the cluster throughout the U.S.

Interpretation:

This chart allows a state to identify its biggest job generators and job losers among traded clusters over the

last decade. A few clusters often account for a large majority of the overall employment gain. Clusters with

job losses are a cause for concern. It is helpful to compare job performance with the policy priorities a region

has set.

Comparison of job growth relative to the U.S. benchmarks provides insights into the strengths and

weaknesses in the region’s economy and shifts in the region’s competitive position. A region might not be

participating in a cluster which is surging nation-wide; or a region might be gaining market position in an

important cluster.


Wages by Traded Cluster


The state’s clusters are listed in order by average wage. The yellow bars show the benchmark average

wage for the cluster nationally. The average wage across all traded clusters in the region is indicated by the

green dashed line.

Wages are a direct measure of a cluster’s productivity and competitiveness. Clusters that are exceptionally

productive (the value of output produced per unit of labor) can sustain higher wages.

Note: The wages for some clusters may not be reported due to data suppression in the underlying

government reports. When few employers in an industry are present in a given region, wage and precise

employment figures are omitted to protect the confidentiality of the data.

Benchmark lines provide a comparison to wages in the cluster across the U.S.


Employment in Highest Wage Clusters

The ten highest wage traded clusters in the state are shown in decreasing order, with the width of the

columns proportional to the number of workers in each cluster. The area of each cluster is thus equivalent to

the overall wage sum the cluster generated in the state.

The chart displays how the average wage in the state’s traded clusters is built up by highest

wage clusters. Some high wage clusters may have a small impact on overall wage levels because of their

small size, the case in some high wage clusters. Some large, high wage clusters are often those in services.

The comparison to the U.S. average wages by cluster (on the previous chart) gives an initial benchmark to

evaluate the composition of average wages in the state economy. States can increase wages in two different

ways: (1) increase the employment in high wage clusters relative to low wage clusters and/or (2) increase

the state’s relative wages in given clusters. In practice, the second effect dominates as the explanation for

why state wages differ.


Cluster Portfolio


Cluster Linkages

Our research on clusters, in addition to deriving a model of 41 distinct traded clusters, provides a measure

for the the strength of the links between these traded clusters. The strength of these links is summarized

visually in the portfolio diagram below by the relative positioning and overlapping of cluster circles.

Location Quotient (LQ)

The Location Quotient is a ratio measure of the concentration of a cluster in a state relative to that state’s

average share of employment in the U.S. traded economy. So, LQ is a measure of a cluster's level of

concentration within a state, with an LQ > 1 indicating higher than average concentration in that state.

Interpretation

Using Location Quotient as the measure of cluster concentration in the state, we overlay the state’s cluster

portfolio on the model of cluster linkages with three color levels as below. The pattern of a state’s portfolio

relative to the cluster linkages will often indicate paths of opportunity for development in clusters.


Top Subclusters by National Employment Share


This chart selects the sub-clusters in the region with the highest National Employment Shares. The

subclusters are grouped by cluster and ordered by subcluster National Employment Share.

Sub-clusters with a high share of national employment may form the basis for developing a competitive

position in a cluster. Strengths in a breadth of related sub-clusters are an indication of an established

position in a cluster.


Patents by Organization


This table lists by organization the top patent recipients in the region for the most recent five-year

period. Patents are assigned to regions according to the inventor’s address of residence. In the case of

multiple inventors from different locations, the patent is assigned fractionally to each region. Universities and

research institutes are highlighted in blue and government agencies in green.

Interpretation:

Patenting is the best single measure of innovation output. States and regions with a healthy level of

innovation tend to have patents originating from a variety of corporations across a number of fields as well as

significant patenting from universities and research institutes. Concerns about innovative capacity arise

when the patenting rate is low, patents originate principally from a government agency, or patenting is

dominated by only a few large firms.

Defining the Appropriate Region Massachusetts in BEA Economic Areas


A Note on Regions

The political boundaries of a state often encompass many distinct regional economies or portions of

larger regional economies. A comprehensive approach to economic development should reflect both the

distinct economies within a state as well as the often strong linkages to economies in neighboring states.

The map on the following page shows the intersection of the state with the Economic Areas defined by

the U.S. Bureau of Economic Analysis (BEA.) We find that the Economic Areas are a very meaningful unit of

geography for exploring the specialization and linkages in the U.S. economy. BEA's 179 economic areas

cover the entire U.S. and define the relevant regional markets surrounding metropolitan or micropolitan

statistical areas. They consist of one or more economic nodes - metropolitan or micropolitan statistical areas

that serve as regional centers of economic activity - and the surrounding counties that are economically

related to the nodes.

Please note that while this report has focused exclusively on the state, the website of the Cluster

Mapping Project reached from www.isc.hbs.edu provides similar data and analyses for all Economic Areas

(and Metropolitan Areas) in the U.S.

Note: There are 177 Economic Areas in the continental U.S. and one each for Alaska and Hawaii.



Defining the Appropriate Region Wyoming in BEA Economic Areas


Data from Bureau of Economic Analysis 2010.

Casper, WY

Billings, MT

Denver-Aurora-Boulder, CO

Scotts Bluff, NE


Traded Clusters and Subclusters in the US Economy

See http://www.isc.hbs.edu/cmp/help.html for Excel listing.


Aerospace Engines Chemical Products Furniture M etal M anufacturing Processed FoodAircraf t Engines Int ermediat e Chemicals and Gases Furnit ure Fabricat ed Met al Product s Milk and Frozen Dessert s

Precision Met al Product s Packaged Chemical Product s Wood Mat erials and Product s Met al Alloys Baked Packaged Foods

Ot her Processed Chemicals Furnishings Primary Met al Product s Cof f ee

Aerospace Vehicles and Defense Ref ract or ies Tableware and Kit chenware Precision Met al Product s Processed Dairy and Relat ed Product s

Aircraf t Leat her Tanning and Finishing Fast eners Meat and Relat ed Product s and Services

Missiles and Space Vehicles Ammunit ion Heavy Construction Services Wire and Springs Flour

Def ense Equipment Special Packaging Final Const ruct ion Met al Processing Specialt y Foods and Ingredient s

Treat ed Garment s Subcont ract ors Iron and St eel Mills and Foundries Milling

Agricultural Products Primary Const ruct ion Mat erials Nonf errous Mills and Foundries Candy and Chocolat e

Farm Management and Relat ed Services Communications Equipment CeramicTile Met al Furnit ure Malt Beverages

Soil Preparat ion Services Communicat ions Equipment Equipment Dist r ibut ion and Wholesaling Environment al Cont rols Paper Cont ainers and Boxes

Irr igat ion Syst ems Elect r ical and Elect ronic Component s Fabricat ed Met al St ruct ures and Piping Pumps Met al and Glass Cont ainers

Packaging Specialt y Of f ice Machines Explosives Saw Blades and Handsaws Food Product s Machinery

Fert ilizers General Indust r ial Machinery

Agricult ural Product s Construction M aterials Heavy M achinery Laundry and Cleaning Equipment Production TechnologyWine and Brandy Tile, Brick and Glass Const ruct ion Machinery Met al Armament s Machine Tools and Accessories

Cigars Plumbing Fixt ures Farm Machinery Process Equipment Sub-syst ems and Component s

Milling and Ref ining Wood Product s Railroad Equipment and Rent al M otor Driven Products Hoist s and Cranes

Cut and Crushed St one Mining Machinery Mot ors and Generat ors Process Machinery

Analytical Instruments Gum and Wood Chemicals Machinery Component s Bat t er ies Indust r ial Pat t erns

Laborat ory Inst rument s Rubber Product s Valves and Pipe Fit t ings Mot orized Equipment Fabricat ed Plat e Work

Opt ical Inst rument s Ref r igerat ion and Heat ing Equipment Indust r ial Trucks and Tract ors

Process Inst rument s Distribution Services Hospitality and Tourism Appliances Ball and Roller Bearings

Search and Navigat ion Equipment Merchandise Wholesaling Tourism At t ract ions Specialized Pumps

Elect ronic Component s Apparel and Accessories Wholesaling Tourism Relat ed Services Specialized Machinery Publishing and PrintingCat alog and Mail-order Wat er Passenger Transport at ion Tires and Inner Tubes Publishing

Apparel Food Product s Wholesaling Accommodat ions and Relat ed Services News Syndicat es

Men's Clot hing Farm Mat erial and Supplies Wholesaling Boat Relat ed Services Oil and Gas Products and Services Signs and Advert ising Specialt ies

Women's and Children's Clot hing Transport at ion Vehicle and Equipment Dist r ibut ion Ground Transport at ion Oil and Gas Machinery Phot ographic Services

Hosiery and Ot her Garment s Hydrocarbons Phot ographic Equipment and Supplies

Accessories Education and Knowledge Creation Information Technology Oil and Gas Explorat ion and Drilling Radio, TV, Publisher Represent at ives

Knit t ing and Finishing Mills Educat ional Inst it ut ions Comput ers Oil Pipelines Print ing Services

Research Organizat ions Elect ronic Component s and Assemblies Pet roleum Processing Print ing Input s

Automotive Educat ional Facilit ies Peripherals Oil and Gas Trading Paper Product s

Mot or Vehicles Pat ent Owners and Lessors Sof t ware Wat er Freight Transport at ion Services Specialt y Paper Product s

Aut omot ive Part s Supplies Communicat ions Services Inked Paper and Ribbons

Aut omot ive Component s Plastics Of f ice Equipment and Supplies

Forgings and St ampings Entertainment Jewelry and Precious M etals Plast ic Mat erials and Resins

Flat Glass Video Product ion and Dist r ibut ion Jewelry and Precious Met al Product s Plast ic Product s Sporting, Recreational and Children's GoodsProduct ion Equipment Recorded Product s Cost ume jewelry Paint s and Allied Product s Sport ing and At hlet ic Goods

Small Vehicles and Trailers Ent ert ainment Equipment Cut lery Synt het ic Rubber Games, Toys, and Children's Vehicles

Ent ert ainment Relat ed Services Collect ibles Mot orcycles and Bicycles

Biopharmaceuticals Ent ert ainment Venues Power Generation and TransmissionBiopharmaceut ical Product s Leather and Related Products Elect r ic Services TextilesHealt h and Beaut y Product s Financial Services Leat her product s Turbines and Turbine Generat ors Fabric Mills

Cont ainers Deposit ory Inst it ut ions Fur Goods Transf ormers Specialt y Fabric Mills

Securit ies Brokers, Dealers and Exchanges Coat ed Fabrics Porcelain, Carbon and Graphit e Component s Specialt y Fabric Processing

Building Fixtures, Equipment and Services Insurance Product s Relat ed Product s Elect ronic Capacit ors Text ile Machinery

Plumbing Product s Healt h Plans Accessories Yarn and Thread Mills

Drapery Hardware Risk Capit al Providers Prefabricated Enclosures Carpet s and Rugs

Fabricat ed Mat erials Invest ment Funds Lighting and Electrical Equipment Recreat ional Vehicles and Part s Wool Mills

Heat ing and Light ing Real Est at e Invest ment Trust s Light ing Fixt ures Mobile Homes Fibers

Furnit ure and Fit t ings Passenger Car Leasing Elect r ic Lamps Trucks and Trailers Finishing Plant s

Clay and Vit reous Product s Bat t er ies Casket s Specialt y Apparel Component s

Floor Coverings Fishing and Fishing Products Swit chgear Elevat ors and Moving St airways Women's and Children's Underwear

St eam and Air-condit ioning Fish Product s Elect r ical Part s Of f ice Furnit ure Tire Cord and Fabrics

St one and Tile Work Fishing and Hunt ing Met al Part s Household Ref r igerat ors and Freezers

Wood Cabinet s, Fixt ures and Ot her Product s Processed Seaf oods Aluminum Processing TobaccoConcret e, Gypsum and Ot her Building Product s M edical Devices Cigaret t es

Footwear Surgical Inst rument s and Supplies Ot her Tobacco Product s

Business Services Foot wear Dent al Inst rument s and Supplies Tobacco Processing

Management Consult ing Specialt y Foot wear Opht halmic Goods Specialt y Packaging

Online Inf ormat ion Services Foot wear Part s Medical Equipment

Comput er Services Diagnost ic Subst ances Transportation and LogisticsComput er Programming Forest Products Biological Product s Air Transport at ion

Phot ocopying Paper Product s Bus Transport at ion

Market ing Relat ed Services Paper Mills Marine Transport at ion

Prof essional Organizat ions and Services Paper Indust r ies Machinery Ship Building

Engineering Services Pref abricat ed Wood Buildings Transport at ion Arrangement and Warehousing

Laundry Services Wood Part it ions and Fixt ures Trucking Terminal

Facilit ies Support Services Airport s

Bus Terminals

http://www.isc.hbs.edu/cmp/help.html

http://www.isc.hbs.edu/cmp/help.html


About This Report

This report was prepared in conjunction with Prof. Michael E. Porter’s presentation before the National

Governors Association Winter Meeting on February 26, 2011. It draws on data and analysis from the Cluster

Mapping Project and other sources at the Institute for Strategy and Competitiveness, Harvard Business

School; Richard Bryden, Project Director. Additional information may be found at the website of the Institute

for Strategy and Competitiveness, www.isc.hbs.edu. None of this information may be duplicated,

disseminated or copied without express written consent from the Institute for Strategy and Competitiveness.

This report is available electronically at http://www.isc.hbs.edu/stateprofiles.htm.


http://www.isc.hbs.edu/stateprofiles.htm

wyoming competitiveness: state and cluster economic performance

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