Michael E. Porter
Institute for Strategy and Competitiveness
Harvard Business School
Soldiers Field Road
Boston, MA 02163
NBER Working Papers and Publications
|August 2014||Defining Clusters of Related Industries|
with Mercedes Delgado, Scott Stern: w20375
Clusters are geographic concentrations of industries related by knowledge, skills, inputs, demand, and/or other linkages. A growing body of empirical literature has shown the positive impact of clusters on regional and industry performance, including job creation, patenting, and new business formation. There is an increasing need for cluster-based data to support research, facilitate comparisons of clusters across regions, and support policymakers and practitioners in defining regional strategies. This paper develops a novel clustering algorithm that systematically generates and assesses sets of cluster definitions (i.e., groups of closely related industries). We implement the algorithm using 2009 data for U.S. industries (6-digit NAICS), and propose a new set of benchmark cluster definiti...
Published: Mercedes Delgado & Michael E. Porter & Scott Stern, 2016. "Defining clusters of related industries," Journal of Economic Geography, vol 16(1), pages 1-38. citation courtesy of
|July 2012||Clusters, Convergence, and Economic Performance|
with Mercedes Delgado, Scott Stern: w18250
This paper evaluates the role of regional cluster composition in the economic performance of industries, clusters and regions. On the one hand, diminishing returns to specialization in a location can result in a convergence effect: the growth rate of an industry within a region may be declining in the level of activity of that industry. At the same time, positive spillovers across complementary economic activities provide an impetus for agglomeration: the growth rate of an industry within a region may be increasing in the size and "strength" (i.e., relative presence) of related economic sectors. Building on Porter (1998, 2003), we develop a systematic empirical framework to identify the role of regional clusters - groups of closely related and complementary industries operating within ...
Published: “Clusters, Convergence, and Economic Performance,” with Michael E. Porter and Scott Stern, 2014, Research Policy, 43 (10), pp. 1785–1799 (also available as NBER WP 18250). citation courtesy of
|The Determinants of National Competitiveness|
with Mercedes Delgado, Christian Ketels, Scott Stern: w18249
We define foundational competitiveness as the expected level of output per working-age individual that is supported by the overall quality of a country as a place to do business. The focus on output per potential worker, a broader measure of national productivity than output per current worker, reflects the dual role of workforce participation and output per worker in determining a nation's standard of living. Our framework highlights three broad and interrelated drivers of foundational competitiveness: social infrastructure and political institutions, monetary and fiscal policy, and the microeconomic environment. We estimate this framework using multiple data sets covering more than 130 countries over the 2001-2008 period. We find a positive and separate influence of each driver on o...