Industry clusters and industry targeting

The US economy is undergoing a well-documented structural change as a result of market globalization, revolutionary technological changes, and advances in production practices. Innovation, adaptability, and entrepreneurship are recognized as keys to the sustainable development of companies and regions in the New Economy where product life cycles are short and competition is intense (Acs 2002). A popular public policy response to the new competitive environment is to create “regional production systems” within which existing businesses become more productive and new business start-ups are encouraged.