Snohomish County: The Case for Clusters and Onshoring

October 1, 2010 at 11:36 am Leave a comment

Some have raised the question whether Concentrus Inc. should work on clusters. I say yes it does and gave my reasons in the plan we just delivered. For those who still doubt, read what the Chairman of Intel just wrote in a recent article, urging American companies to step-up onshoring activities wherever possible. He describes a role for “clusters.”

“Heeding that lesson, American CEOs should start applying a new analytical framework as they consider where in the world to invest. Whatever precise model of innovation prevails here, U.S. clusters are going to become increasingly important in a world in which the most innovative companies win and all the others lose.

It continues to make sense to expand in emerging markets and it continues to make sense to manufacture in many of those markets to serve those customers. Some R&D there may be necessary. But a company risks losing the soul of its innovative capability if it is too dispersed and unfocused. And to serve its leading- edge U.S. customers—where competitive advantage resides—it is best to manufacture the most advanced products in a place that allows it to maintain the feedback loops among internal and external constituencies.

That implies a rebalancing of strategy, a rethinking of the impulse to offshore and outsource at the drop of a hat and to rely on supply chains reaching around the world. When local, regional and state clusters function well in the U.S., they are very powerful. As competition from China and India intensifies today, it’s increasingly clear that companies not supported by a home national ecosystem are at a distinct disadvantage against competitors that are backed by friendly governments, banks, university systems and sovereign wealth funds. As Intel has found, being fully invested in America’s innovation machine can be in a company’s raw self-interest.”

Read the entire article here.


Entry filed under: Clusters, Onshoring. Tags: , , , , , .

Post-Industrial America PWC on Clusters by 2040: The Shift to Emerging/Developing Nations

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