33
Copyright 2014 © Professor Michael E. Porter 1 20140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden) Philadelphia Competitiveness Profile For further material on regional competitiveness and clusters: www.isc.hbs.edu/econ-clusters.htm Michael E. Porter, Harvard Business School Mercedes Delgado, Fox School of Business Rich Bryden, Harvard Business School March 11, 2014 Innovation Leadership Speaker Series Fox School of Business, Temple University

Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

  • Upload
    others

  • View
    11

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter120140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Philadelphia Competitiveness Profile

For further material on regional competitiveness and clusters: www.isc.hbs.edu/econ-clusters.htm

Michael E. Porter, Harvard Business SchoolMercedes Delgado, Fox School of Business

Rich Bryden, Harvard Business School

March 11, 2014

Innovation Leadership Speaker Series Fox School of Business, Temple University

Page 2: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter220140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

• Competitiveness depends on the long-run productivity and efficiency of a location as a place to do business

- The productivity of existing firms and workers- The ability to achieve high participation of citizens in the workforce

• Competitiveness is not:- Low wages- A weak currency- Jobs per se

A nation or region is competitive to the extent that firms operating there are able to compete successfully in the regional and global economy while maintaining or improving wages and living standards for the average citizen

What is Competitiveness?

Page 3: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter320140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Nation

Regions

States

Metropolitan Areas

Geographic Influences on Competitiveness

Page 4: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter420140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Regions and Competitiveness

• Economic performance varies significantly across sub-national regions (e.g., provinces, states, metropolitan areas)

• Many essential levers of competitiveness reside at the regional level

• Regions specialize in different sets of clusters

• Regions are a crucial unit in competitiveness

• Each region needs its own distinctive strategy and action agenda • Business environment improvement

• Cluster upgrading

• Improving institutional effectiveness

Page 5: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter520140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Philadelphia Performance Scorecard

Distribution and Electronic Commerce (133,049, rank 6)Education and Knowledge Creation (118,814, rank 6)Financial Services (78,239, rank 6)Insurance Services (42,971, rank 5)Marketing, Design, and Publishing (28,093, rank 10)

ProsperityGDP per Capita, 2001-2012

InnovationPatents per Employee, 2001-2011

Cluster StrengthEmployment in Strong Clusters, 2001-2011

Leading Clustersby employment size, 2011(national rank versus all metro areas)

Start Position Trend

40

19

1-10

21-30

31-40

11-20 41-50

Current Position

17

11

15

21

13

31

16

1315

20

WagesAverage Private Wage, 2001-2011

+4

+2

-2

+10

New Business FormationTraded Cluster Establishment Growth, 1999-2001 and 2009-2011

42 4320 -23

Labor MobilizationProportion of Working Age Populationin the Workforce, 2008-2012

25 3633 -3

Job CreationPrivate Employment Growth,1999-2001and 2009-2011

21 2430 +6

Labor ProductivityGDP per Labor Force Participant, 2001-2011 10 1516 +1

Rank vs. Top 50 Metro Areas

Page 6: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter620140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Comparative Metro Prosperity Performance2001 - 2012

Notes: Source BEA. Data in 2005 constant dollars; compound annual growth rate on real values. 50 largest MSAs displayed.Real Growth in Gross Domestic Product per Capita, 2001 to 2012

Gro

ss D

omes

tic P

rodu

ct p

er C

apita

, 201

2

High but declining versus U.S.

Low and declining versus U.S.

Low but rising versus U.S.

Portland(3.8%, $62,028)

San Jose(2.8%, $90,528)

U.S. Metro GDP per Capita: $45,604

High and rising prosperity versus U.S.

U.S. Metro GDP per CapitaReal Growth Rate: +0.57%

New York

Los AngelesChicago

Washington

Houston

Dallas

Philadelphia

San Francisco

Boston

Atlanta

Miami

Seattle

Minneapolis

Detroit

Phoenix

San Diego

Denver

Baltimore

St. Louis

Charlotte

Pittsburgh

Tampa

Riverside(-1.1%, $22,411)

Kansas CityCleveland

Orlando

Indianapolis

Cincinnati

Columbus

Sacramento

Austin

Las Vegas

Hartford

Milwaukee

Bridgeport, CT

San Antonio

Nashville

Virginia Beach

New Orleans

Salt Lake City

Providence

Memphis

Richmond

Jacksonville

Oklahoma City

LouisvilleRaleighBirmingham

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

$60,000

$65,000

$70,000

$75,000

$80,000

$85,000

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

Page 7: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter720140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Source: BLS. 50 largest MSAs displayed.

Comparative Metro Labor Mobilization Performance2008-2012

Low but rising labor force participation versus U.S.

Prop

ortio

n of

Wor

king

Age

Pop

ulat

ion

in th

e W

orkf

orce

, 201

2

Change in Proportion of Working Age Population in the Workforce, 2008-2012

High but declining labor force participation versus U.S.

Low and declining labor force participation versus U.S.

High and rising labor force participation versus U.S.

U.S. Change in Labor Force Participation

Rate: -2.3%

Atlanta

Austin

Baltimore

Birmingham

Boston

Bridgeport

Charlotte

Chicago

Cincinnati

Cleveland

Columbus

Dallas

Denver

Detroit

HartfordHouston

Indianapolis

Jacksonville

Kansas City, MO

Las VegasLos Angeles

Louisville

Memphis, TN

Miami

Milwaukee

Minneapolis

Nashville

New Orleans

New York

Oklahoma City

OrlandoPhiladelphia

Phoenix

Pittsburgh

Portland

Providence

Richmond

Riverside

Sacramento

St. Louis

Salt Lake City

San Antonio

San Diego

San FranciscoSan Jose

Seattle

Tampa

Virginia Beach

Washington

55%

60%

65%

70%

75%

-7% -6% -5% -4% -3% -2% -1% 0% 1% 2% 3%

U.S. Labor Force Participation Rate: 63.7%

Page 8: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter82014 Metro Competitiveness – Rich Bryden

Comparative Metro Wage Performance2001 - 2011

Notes: Average wage for private, non-agricultural employment. Growth calculated as compound annual growth rate. 50 largest MSAs displayed. Source Census CBP.

Aver

age

Wag

e, 2

011

High but declining versus U.S.

Low and declining versus U.S.

Low but rising versus U.S.

New York

Los Angeles

Chicago

Washington

Houston

Dallas

Philadelphia

San Francisco

Boston

Atlanta

Miami

Seattle

Minneapolis

Detroit(+1.95%, $48,621)

Phoenix

San Jose(+3.3%, $89,857)

San DiegoDenver

BaltimorePortland

St. Louis, MO

Charlotte

Pittsburgh

Tampa

Riverside

KansasCity, MO

Cleveland

Orlando

IndianapolisCincinnati

Columbus

Sacramento

Austin

Las Vegas

Hartford

Milwaukee

Bridgeport, CT(+3.0%, $77,922)

San Antonio

Nashville

Virginia Beach

New Orleans(+4.2%, $44,485)

Salt Lake CityProvidence

Memphis

Richmond

Jacksonville

Oklahoma City(+3.8%, $40,113)

Louisville

Raleigh

Birmingham

$35,000

$40,000

$45,000

$50,000

$55,000

$60,000

$65,000

$70,000

2.0% 2.5% 3.0% 3.5%

High and rising wages versus U.S.

U.S. Average Wage Growth Rate: +2.8%

U.S. Average Wage, 2011: $45,535

Growth in Average Wage, 2001 to 2011

Page 9: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter920140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Comparative Metro Labor Productivity Performance 2001 - 2011

Real Growth in Gross Domestic Product per Labor Force Participant, 2001-2011

Gro

ss D

omes

tic P

rodu

ct p

er L

abor

For

ce P

artic

ipan

t, 2

011

Sources: BEA, BLS. Notes: GDP in real 2005 dollars. Growth rate is calculated as compound annual growth rate. 50 largest MSAs displayed.

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

High but declining versus U.S.

U.S. GDP per Labor Force Participant: $85,331

U.S. GDP per Labor Force Participant Real Growth: +0.77%

Highly productive and productivity rising

versus U.S.

New York

Los AngelesChicago

WashingtonHouston

DallasPhiladelphia

San Francisco

Boston

Atlanta

Miami

Seattle

Minneapolis

Detroit

Phoenix

San Jose(+4.7%, $191,781)

San Diego

Denver

Baltimore

Portland(+4.7%, $118, 578)

St. Louis

Charlotte

Pittsburgh

Tampa

Riverside(-.74%, $53,858)

Kansas City

Cleveland

Orlando

Indianapolis

Cincinnati

Columbus

Sacramento

Austin

Las Vegas

Hartford

Milwaukee

Bridgeport, CT(-.071%, $155,918)

San Antonio

Nashville

Virginia Beach

New Orleans

Salt Lake City

Providence

Memphis

Richmond

Jacksonville

Oklahoma City

Louisville

RaleighBirmingham

$60,000

$70,000

$80,000

$90,000

$100,000

$110,000

$120,000

$130,000

$140,000

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

Page 10: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter1020140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Philadelphia Performance Scorecard

Distribution and Electronic Commerce (133,049, rank 6)Education and Knowledge Creation (118,814, rank 6)Financial Services (78,239, rank 6)Insurance Services (42,971, rank 5)Marketing, Design, and Publishing (28,093, rank 10)

ProsperityGDP per Capita, 2001-2012

InnovationPatents per Employee, 2001-2011

Cluster StrengthEmployment in Strong Clusters, 2001-2011

Leading Clustersby employment size, 2011(national rank versus all metro areas)

Start Position Trend

40

19

1-10

21-30

31-40

11-20 41-50

Current Position

17

11

15

21

13

31

16

1315

20

WagesAverage Private Wage, 2001-2011

+4

+2

-2

+10

New Business FormationTraded Cluster Establishment Growth, 1999-2001 and 2009-2011

42 4320 -23

Labor MobilizationProportion of Working Age Populationin the Workforce, 2008-2012

25 3633 -3

Job CreationPrivate Employment Growth,1999-2001and 2009-2011

21 2430 +6

Labor ProductivityGDP per Labor Force Participant, 2001-2011 10 1516 +1

Rank vs. Top 50 Metro Areas

Page 11: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter1120140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden) Sources: Growth rate is calculated as compound annual growth rate. 50 largest MSAs displayed.

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

High but declining versus U.S.

High and rising versus U.S.

Comparative Metro Business Formation2001 - 2011

Trad

ed E

stab

lishm

ents

per

10,

000

Empl

oyee

s, 2

011 New York

Los Angeles

Chicago

WashingtonHouston

Dallas

Philadelphia

San Francisco

Boston

Atlanta

Miami(+7.0%, 876)

Seattle

Minneapolis

Detroit

Phoenix

San Jose

San Diego

Denver

Baltimore

Portland

St. Louis

Charlotte

Pittsburgh

Tampa

Riverside

Kansas City

Cleveland

Orlando

Indianapolis

CincinnatiColumbus

Sacramento

Austin

Las Vegas

Hartford

Milwaukee

Bridgeport, CT

San Antonio

NashvilleVirginia Beach

New Orleans

Salt Lake City

Providence

Memphis

Richmond

Jacksonville

Oklahoma City

Louisville

Raleigh

Birmingham

300

350

400

450

500

550

600

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

U.S. Traded Establishments Growth: +0.41%

U.S. Traded Establishments per 10,000 Employees: 456

Growth in Traded Establishments, 2001-2011

Page 12: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter1220140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Comparative Metro Innovation Performance 2001 - 2011

Change in Patents per 10,000 Workers, 2001 to 2011

Pate

nts

per 1

0,00

0 W

orke

rs, 2

011

= 700 patents in 2011

High and improving innovation rate versus U.S.

High and declininginnovation

Low and declining innovation

Low and improvinginnovation

San Jose(+44.9, 104)

San Francisco

Los Angeles

Boston

Seattle

San Diego

Minneapolis

Austin

Detroit

Portland

Atlanta

Raleigh

Cincinnati

Bridgeport

Kansas City, MO

Tampa

Milwaukee

Memphis, TNOklahoma City

0

5

10

15

20

25

30

35

40

45

50

-5 0 5 10 15 20

Philadelphia(-.49, 8.1)Rank: 17

Notes: Median number of patents per 10,000 workers among top 50 Metro Areas in 2011 is 6.99.Source: USPTO utility patents granted, Bureau of Labor Statistics.

U.S. Patents per 10,000 Employees: 9.6

U.S. Change in Patents per 10,000 Workers: +2.0

Page 13: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter1320140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Comparative Metro Innovation Performance 2001 - 2011

Pate

nts

per 1

0,00

0 W

orke

rs, 2

011

High and improving innovation rate versus U.S.

High and declininginnovation

Low and declining innovation

Low and improvinginnovation

= 700 patents in 2011

New York

Los Angeles

Chicago

Minneapolis

Houston

Dallas

Detroit

Atlanta

Washington

Phoenix

Miami

Pittsburgh

Denver

Cincinnati

Cleveland

Baltimore

Bridgeport

Hartford

St. Louis, MO

SacramentoIndianapolis

Kansas City, MO

Providence

Tampa

Salt Lake City

Milwaukee Columbus

OrlandoRiverside

Charlotte

San Antonio

Memphis, TN

Las Vegas

Nashville Richmond

Louisville Jacksonville

BirminghamOklahoma City

Virginia Beach

New Orleans

0

2

4

6

8

10

12

14

16

18

-3 -2 -1 0 1 2 3 4

Philadelphia(-.49, 8.1)Rank: 17

Notes: Median number of patents per 10,000 workers among top 50 Metro Areas in 2011 is 6.99.Source: USPTO utility patents granted, Bureau of Labor Statistics.

U.S. Patents per 10,000 Employees: 9.6

U.S. Change in Patents per 10,000 Workers: +2.0

Change in Patents per 10,000 Workers, 2001 to 2011

Page 14: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter1420140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Comparative Innovation Performance2001 - 2011

Pate

nts

per 1

0,00

0 W

orke

rs

.Source: USPTO utility patents granted, Bureau of Labor Statistics.

4

5

6

7

8

9

10

11

12

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

U.S.Philadelphia MetroTop 50 Metro Areas

Page 15: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter1520140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Patents by Organization Philadelphia Metro

Organization Cluster Patents Issued* 2007 - 2011

1 E. I. Du Pont De Nemours And Company Chemical Products 985

2 Metrologic Instruments Inc. Information Technology and Analytical Instruments 151

3 University Of Pennsylvania Education and Knowledge Creation 149 4 Merck + Co., Inc. Biopharmaceuticals 147 5 Rohm And Haas Company Chemical Products 137 6 Wyeth LLC Biopharmaceuticals 125 7 Lutron Electronics Company, Inc. Lighting and Electrical Equipment 116

8 Interdigital Technology Corporation Information Technology and Analytical Instruments 107

9 Siemens Medical Solutions USA, Inc. Medical Devices 94 10 Bristol-Myers Squibb Company Biopharmaceuticals 91 11 Lockheed Martin Corporation Aerospace Vehicles and Defense 84 12 Janssen Pharmaceuticals, Inc. Biopharmaceuticals 80 13 General Instrument Corporation Communications Equipment and Services 66 14 JP Morgan Chase Bank, N.A. Financial Services 65 14 Smithkline Beecham Corporation Biopharmaceuticals 65 16 Lyondell Chemical Technology, L.P. Chemical Products 62 17 Rohm And Haas Electronic Materials Cmp Holdings Chemical Products 59 18 Synthes (U.S.A.) Medical Devices 55 19 Unisys Corporation Business Services 54 20 Gore Enterprise Holdings, Inc. - 53 21 Alcatel-Lucent USA Inc. Communications Equipment and Services 51 21 Zenith Products Corporation Furniture 51 23 Medical Components, Inc. Medical Devices 45 24 Lucent Technologies Inc. Communications Equipment and Services 43 25 AT&T Corporation Communications Equipment and Services 42

* Patents with inventors addresses in Philadelphia Metro Area.Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Project Director.

Page 16: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter1620140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Top Patenting Universities and Research Institutes

Rank Organization Patents Issued 2007 - 2011

1 University of California, The Regents of 1,469 2 Massachusetts Institute of Technology 735 3 Harvard College, President And Fellows 659 4 Stanford University 590 5 Wisconsin Alumni Research Foundation 571 6 California Institute of Technology 539 7 University of Texas 503 8 University of Illinois 329 9 Johns Hopkins University 323

10 University of Michigan 318 11 Columbia University 307 12 Cornell Research Foundation Inc. 281 13 Georgia Tech Research Corp. 268 14 University of South Florida 267 15 Battelle Memorial Institute 257 16 University of Central Florida 256 17 University of Pennsylvania 255 18 University of Washington 250 19 University of Florida Research Foundation, Incorporated 244 20 Research Foundation of State University of New York 233 77 Drexel University 58

126 Temple University 24

143 The Children's Hospital of Philadelphia 21

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

Page 17: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter1720140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

What is a Cluster?

A geographically concentrated group of interconnected companies and associated institutions in a particular field

Traded Clusters

• Compete to serve nationaland international markets

• 36% of employment

Local Clusters

• Serve almost exclusively the local market

• 64% of employment

Page 18: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter1820140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Strong Clusters Drive Regional PerformanceResearch Findings

Source: Delgado/Porter/Stern (2010, 2012), Porter (2003)

• Presence of strong clusters (based on employment and innvation)

• Breadth of industries within each cluster

• Strength in related clusters

• Presence of a region’s clusters in neighboring regions

• Job growth

• Higher wages

• Higher patenting rates

• Greater new businessformation, growth and survival

• New regional industries

• The initial employment and patenting strength of a cluster each has a positiveeffect on the employment and patenting growth of the constituent industries

• Multiple types of externalities arise among firms participating in clusters(knowledge, skills, input-output linkages, and others)

• Economic diversification usually occurs within clusters and across related clusters

Page 19: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter1920140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Philadelphia Performance Scorecard

Distribution and Electronic Commerce (133,049, rank 6)Education and Knowledge Creation (118,814, rank 6)Financial Services (78,239, rank 6)Insurance Services (42,971, rank 5)Marketing, Design, and Publishing (28,093, rank 10)

ProsperityGDP per Capita, 2001-2012

InnovationPatents per Employee, 2001-2011

Cluster StrengthEmployment in Strong Clusters, 2001-2011

Leading Clustersby employment size, 2011(national rank versus all metro areas)

Start Position Trend

40

19

1-10

21-30

31-40

11-20 41-50

Current Position

17

11

15

21

13

31

16

1315

20

WagesAverage Private Wage, 2001-2011

+4

+2

-2

+10

New Business FormationTraded Cluster Establishment Growth, 1999-2001 and 2009-2011

42 4320 -23

Labor MobilizationProportion of Working Age Populationin the Workforce, 2008-2012

25 3633 -3

Job CreationPrivate Employment Growth,1999-2001and 2009-2011

21 2430 +6

Labor ProductivityGDP per Labor Force Participant, 2001-2011 10 1516 +1

Rank vs. Top 50 Metro Areas

Page 20: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter2020140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000 130,000

Food Processing and ManufacturingApparel

Water TransportationAgricultural Inputs and Services

Textile ManufacturingWood Products

Leather and Related ProductsFurniture

Livestock ProcessingEnvironmental Services

Performing ArtsRecreational and Small Electric Goods

Medical DevicesHospitality and Tourism

Nonmetal MiningAutomotive

Printing ServicesDownstream Metal Products

PlasticsEducation and Knowledge Creation

Vulcanized and Fired MaterialsMetalworking Technology

Jewelry and Precious MetalsTransportation and Logistics

Paper and PackagingVideo Production and Distribution

Production Technology and Heavy MachineryConstruction Products and Services

Downstream Chemical ProductsMarketing, Design, and Publishing

Distribution and Electronic CommerceBiopharmaceuticals

Lighting and Electrical EquipmentUpstream Chemical Products

Aerospace Vehicles and DefenseUpstream Metal Manufacturing

Insurance ServicesCommunications Equipment and Services

Oil and Gas Production and TransportationBusiness Services

Information Technology and Analytical InstrumentsFinancial Services

Electric Power Generation and Transmission

Philadelphia Metro Wages in Traded Clustersvs. National Benchmarks

Wages, 2011

Philadelphia average traded wage: $73,350

U.S. averagetraded wage: $64,096

l Indicates average national wage in the traded cluster

Note: Wages are not available in all clusters due to data suppression to protect confidentiality.Source: Prof. Michael E. Porter, Harvard Business School; U.S. Cluster Mapping 2014 Benchmark Definitions (Delgado-Porter-Stern 2013), Richard Bryden, Project Director.

Page 21: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter2120140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Metro Area

Metro Traded Wage

versus National Average

Cluster Mix Effect

Relative Cluster

Wage Effect Metro Area

Metro Traded Wage

versus National Average

Cluster Mix Effect

Relative Cluster

Wage Effect Bridgeport +68,598 10,066 58,532 Milwaukee -626 303 -929 San Jose +66,434 5,693 60,741 Pittsburgh -810 1,436 -2,246 New York +38,651 5,079 33,572 Kansas City -961 917 -1,879 San Francisco +36,126 3,870 32,256 Indianapolis -1,664 -463 -1,201 Boston +26,924 5,327 21,597 Nashville -1,981 -694 -1,287 Houston +24,602 4,548 20,054 Portland -1,988 984 -2,972 Washington +24,449 4,475 19,974 St. Louis -2,880 128 -3,007 Hartford +14,949 3,292 11,658 Cincinnati -3,999 -372 -3,627 Austin +11,678 5,412 6,266 Birmingham -4,731 208 -4,939 Denver +10,917 3,548 7,369 Oklahoma City -6,527 3,011 -9,538 Chicago +10,636 942 9,694 Cleveland -6,710 503 -7,213 Minneapolis +10,490 2,024 8,466 Columbus -6,808 1,275 -8,083 Seattle +8,377 4,350 4,026 Miami -7,253 -1,031 -6,223 Philadelphia +7,671 3,991 3,681 Sacramento -8,101 -555 -7,546 San Diego +5,500 150 5,350 Jacksonville -8,604 5,193 -13,797 Atlanta +5,350 1,471 3,879 Salt Lake City -10,298 749 -11,046 Dallas +4,702 4,517 185 Phoenix -10,388 1,187 -11,575 Los Angeles +3,847 112 3,735 San Antonio -10,789 2,978 -13,766 Detroit +3,005 -406 3,411 Providence -11,578 -2,945 -8,633 Baltimore +2,332 2,321 11 Tampa -12,226 3,491 -15,718 Charlotte +1,404 228 1,176 Louisville -12,286 -3,607 -8,679 Raleigh +1,308 3,340 -2,032 Virginia Beach -13,307 -2,700 -10,607 Richmond +626 4,132 -3,507 Orlando -18,052 -6,178 -11,874 New Orleans -262 -1,410 1,148 Riverside -20,720 -5,679 -15,041 Memphis -351 -2,437 2,086 Las Vegas -21,758 -16,500 -5,258

Productivity Depends on How a Metro Competes,Not What Industries It Competes In

On average, cluster strength is much more important (77.8%) than cluster mix (22.2%) in driving performance in the 50 largest metro areas

Note: All data are Census CBP 2011; author’s analysis.Source: Prof. Michael E. Porter, Harvard Business School; U.S. Cluster Mapping 2014 Benchmark Definitions (Delgado-Porter-Stern 2013), Richard Bryden, Project Director.

Page 22: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter2220140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

101040801201902832903807807931,8301,9172,1732,2682,3392,4752,5822,8723,5444,0884,1914,5454,7734,7915,3485,4925,5145,6886,3526,8206,9977,4187,7757,834

11,75711,87312,63713,104

14,41014,497

23,18723,455

28,09337,039

42,97178,239

118,814133,049 219,120

13,352

0 50,000 100,000 150,000 200,000 250,000

Coal Mining 26Metal Mining 36

Fishing and Fishing Products 22Forestry 20

Footw ear 12Trailers, Motor Homes, and Appliances 29

Leather and Related Products 18Jew elry and Precious Metals 13Music and Sound Recording 9

Tobacco 3Nonmetal Mining 13

Environmental Services 6Agricultural Inputs and Services 2

Apparel 7Textile Manufacturing 8

Wood Products 12Vulcanized and Fired Materials 10

Video Production and Distribution 7Upstream Chemical Products 5

Recreational and Small Electric Goods 9Oil and Gas Production and Transportation 10

Upstream Metal Manufacturing 14Water Transportation 11

Furniture 7Dow nstream Metal Products 12

Communications Equipment and Services 19Electric Pow er Generation and Transmission 1

Medical Devices 8Lighting and Electrical Equipment 8

Livestock Processing 3Automotive 13

Performing Arts 9Paper and Packaging 4

Dow nstream Chemical Products 4Metalw orking Technology 9

Plastics 8Production Technology and Heavy Machinery 11

Biopharmaceuticals 5Food Processing and Manufacturing 6

Printing Services 5Construction Products and Services 9

Aerospace Vehicles and Defense 8Transportation and Logistics 13IT and Analytical Instruments 10

Marketing, Design, and Publishing 10Hospitality and Tourism 15

Insurance Services 5Financial Services 6

Education and Know ledge Creation 6Distribution and Electronic Commerce 6

Business Services 8

Philadelphia Metro Employment by Traded Cluster, 2011

Employment, 2011

Rank in U.S.

Note: Ranks are across top 50 Metro Areas.

Philadelphia overall employment rank = 5

Source: Prof. Michael E. Porter, Harvard Business School; U.S. Cluster Mapping 2014 Benchmark Definitions (Delgado-Porter-Stern 2013), Richard Bryden, Project Director.

Page 23: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter2320140311 – Fox School of Business, Temple University Competitiveness Presentation (Porter, Delgado, Bryden)

Change in Philadelphia Share of National Employment, 2001 to 2011

Phila

delp

hia

Nat

iona

l Em

ploy

men

t Sha

re, 2

011

Employees 7,000 =

Traded Cluster Composition of the Philadelphia Metro, 2001-2011

Added Jobs

Lost Jobs

Employment 2001-2011

Overall change in the Philadelphia Share of US Traded Employment: -.104%

Philadelphia Overall Share of US Traded Employment: 2.25%

Source: Prof. Michael E. Porter, Harvard Business School; U.S. Cluster Mapping 2014 Benchmark Definitions (Delgado-Porter-Stern 2013), Richard Bryden, Project Director.

Marketing, Design,and Publishing

Distribution and Electronic Commerce

Education andKnowledge Creation

Transportation and Logistics

Aerospace Vehicles and Defense

Biopharmaceuticals(+.65%, 5.5%)

Performing Arts

Agricultural Inputsand Services

Footwear

Business Services

Financial Services

Insurance Services

Information Technology and Analytical Instruments

Printing Services

Downstream Chemical Products

Automotive

Electric Power Generation and Transmission

Communications Equipment and Services

FurnitureWater Transportation

Upstream Metal Manufacturing

Oil and Gas Production and Transportation

Upstream Chemical Products

Vulcanized and Fired Materials

Wood Products

Textile Manufacturing

Nonmetal Mining

Jewelry and Precious MetalsLeather and Related Products

Trailers, Motor Homes,and Appliances

ForestryFishing and Fishing Products0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

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

Page 24: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter2420140311 – Fox School of Business, Temple University Competitiveness Presentation (Porter, Delgado, Bryden)

Change in Philadelphia Share of National Employment, 2001 to 2011

Phila

delp

hia

Nat

iona

l Em

ploy

men

t Sha

re, 2

011

Traded Cluster Composition of the Philadelphia Metro, 2001-2011

Added Jobs

Lost Jobs

Employment 2001-2011

Philadelphia Overall Share of US Traded Employment: 2.25%

Overall change in the Philadelphia Share of US Traded Employment: -.104%

Employees 7,000 = Source: Prof. Michael E. Porter, Harvard Business School; U.S. Cluster Mapping 2014 Benchmark Definitions (Delgado-Porter-Stern 2013), Richard Bryden, Project Director.

Transportation and Logistics

Performing ArtsEnvironmental Services

Business Services

Distribution and Electronic Commerce

Hospitality and Tourism

Marketing, Design,and Publishing

Construction Productsand Services

Printing Services

Food Processing and Manufacturing

Production Technology and Heavy Machinery

Plastics

Metalworking Technology

Paper and Packaging

Livestock Processing

Lighting and Electrical Equipment

Medical Devices

Downstream Metal Products

Furniture

Recreational and Small Electric Goods

Video Productionand Distribution

Vulcanized and Fired Materials

Textile Manufacturing

ApparelMusic and Sound Recording

Jewelry and Precious Metals

1.0%

1.5%

2.0%

2.5%

3.0%

-0.5% -0.4% -0.3% -0.2% -0.1% 0.0% 0.1% 0.2% 0.3% 0.4% 0.5%

Page 25: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter2520140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Change in Philadelphia Share of National Employment, 2006 to 2011

Phila

delp

hia

Nat

iona

l Em

ploy

men

t Sha

re, 2

011

Employees 13,000 =

Traded Cluster Composition of Philadelphia Metro, 2006-2011

Philadelphia Overall Share of US Traded Employment: 2.25%

Source: Prof. Michael E. Porter, Harvard Business School; U.S. Cluster Mapping 2014 Benchmark Definitions (Delgado-Porter-Stern 2013), Richard Bryden, Project Director.

Overall change in the Philadelphia Share of US Traded Employment: .0021%

Added Jobs

Lost Jobs

Employment 2006-2011

BusinessServices

Education andKnowledge Creation

Hospitality and Tourism

Information Technology and Analytical Instruments

Transportation and Logistics

Aerospace Vehicles and Defense

Performing Arts

Livestock Processing

Agricultural Inputsand Services

Distribution and Electronic Commerce

Financial Services

Insurance Services

Marketing, Design, and Publishing

Construction Productsand Services

Printing Services

Food Processingand Manufacturing

Biopharmaceuticals(-4.4%,5.5%)

Production Technology and Heavy Machinery

Plastics

Metalworking Technology

Downstream Chemical Products

Paper and Packaging

Automotive

Lighting and Electrical Equipment

Medical Devices

Electric Power Generationand Transmission (-1.5%)

Communications Equipment and Services Downstream Metal Products

FurnitureWater Transportation

Upstream MetalManufacturing

Oil and Gas Production and Transportation

Recreational and Small Electric Goods

Upstream Chemical Products

Video Production and DistributionVulcanized &

Fired Materials

Wood Products

Textile Manufacturing

Apparel

Environmental Services

Nonmetal Mining

Tobacco(+1.4%, 5.2%)

Music and Sound Recording

Jewelry and Precious MetalsLeather and Related Products

Trailers, Motor Homes, and Appliances

Footwear

Forestry Fishing and Fishing Products0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

-1.0% -0.5% 0.0% 0.5% 1.0%

Page 26: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter2620140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Philadelphia Metro Job Creation in Traded Clusters2006 - 2011

Job

Cre

atio

n, 2

006-

2011

-30,000

-25,000

-20,000

-15,000

-10,000

-5,000

0

5,000

10,000

15,000

20,000

25,000Bu

sine

ss S

ervi

ces

Educ

atio

n an

d Kn

owle

dge

Cre

atio

nAe

rosp

ace

Vehi

cles

and

Def

ense

Info

rmat

ion

Tech

nolo

gy a

nd A

naly

tical

Perfo

rmin

g Ar

tsAg

ricul

tura

l Inp

uts

and

Serv

ices

Tran

spor

tatio

n an

d Lo

gist

ics

Hos

pita

lity

and

Tour

ism

Live

stoc

k Pr

oces

sing

Vide

o Pr

oduc

tion

and

Dis

tribu

tion

Fish

ing

and

Fish

ing

Prod

ucts

Foot

wea

rTo

bacc

oM

usic

and

Sou

nd R

ecor

ding

Trai

lers

, Mot

or H

omes

, and

App

lianc

esC

oal M

inin

gFo

rest

ryJe

wel

ry a

nd P

reci

ous

Met

als

Prod

uctio

n Te

chno

logy

and

Hea

vy M

achi

nery

Leat

her a

nd R

elat

ed P

rodu

cts

Envi

ronm

enta

l Ser

vice

sM

etal

wor

king

Tec

hnol

ogy

Rec

reat

iona

l and

Sm

all E

lect

ric G

oods

Ups

tream

Che

mic

al P

rodu

cts

Med

ical

Dev

ices

Non

met

al M

inin

gLi

ghtin

g an

d El

ectri

cal E

quip

men

tD

owns

tream

Met

al P

rodu

cts

Elec

tric

Pow

er G

ener

atio

n an

d Tr

ansm

issi

onW

ood

Prod

ucts

Food

Pro

cess

ing

and

Man

ufac

turin

gVu

lcan

ized

and

Fire

d M

ater

ials

Text

ile M

anuf

actu

ring

Oil

and

Gas

Pro

duct

ion

and

Tran

spor

tatio

nU

pstre

am M

etal

Man

ufac

turin

gFu

rnitu

rePa

per a

nd P

acka

ging

Com

mun

icat

ions

Equ

ipm

ent a

nd S

ervi

ces

Dow

nstre

am C

hem

ical

Pro

duct

sPl

astic

sC

onst

ruct

ion

Prod

ucts

and

Ser

vice

sW

ater

Tra

nspo

rtatio

nAp

pare

lM

arke

ting,

Des

ign,

and

Pub

lishi

ngAu

tom

otiv

ePr

intin

g Se

rvic

esIn

sura

nce

Serv

ices

Dis

tribu

tion

and

Elec

troni

c C

omm

erce

Biop

harm

aceu

tical

sFi

nanc

ial S

ervi

ces

Net traded job creation, 2006-2011:

-66,764

Indicates expected job creation given growth in subclusters nationally.*

* Percent change in national benchmark times starting regional employment. Overall traded job creation in this region, if it matched national benchmarks, would be -51,158.Source: Prof. Michael E. Porter, Harvard Business School; U.S. Cluster Mapping 2014 Benchmark Definitions (Delgado-Porter-Stern 2013), Richard Bryden, Project Director.

Page 27: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter2720140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

0.0

0.5

1.0

1.5

2.0

Agric

ultu

ral I

nput

s an

d Se

rvic

esAe

rosp

ace

Vehi

cles

and

Def

ense

Perfo

rmin

g Ar

tsBu

sine

ss S

ervi

ces

Info

rmat

ion

Tech

nolo

gy a

nd A

naly

tical

Inst

rum

ents

Educ

atio

n an

d Kn

owle

dge

Cre

atio

nLi

vest

ock

Proc

essi

ngTr

ansp

orta

tion

and

Logi

stic

sH

ospi

talit

y an

d To

uris

mVi

deo

Prod

uctio

n an

d D

istri

butio

nTo

bacc

oPr

oduc

tion

Tech

nolo

gy a

nd H

eavy

Mac

hine

ryM

etal

wor

king

Tec

hnol

ogy

Mus

ic a

nd S

ound

Rec

ordi

ngD

istri

butio

n an

d El

ectro

nic

Com

mer

ceFo

otw

ear

Food

Pro

cess

ing

and

Man

ufac

turin

gM

edic

al D

evic

esLi

ghtin

g an

d El

ectri

cal E

quip

men

tR

ecre

atio

nal a

nd S

mal

l Ele

ctric

Goo

dsIn

sura

nce

Serv

ices

Mar

ketin

g, D

esig

n, a

nd P

ublis

hing

Ups

tream

Che

mic

al P

rodu

cts

Dow

nstre

am M

etal

Pro

duct

sEl

ectri

c Po

wer

Gen

erat

ion

and

Tran

smis

sion

Con

stru

ctio

n Pr

oduc

ts a

nd S

ervi

ces

Envi

ronm

enta

l Ser

vice

sTr

aile

rs, M

otor

Hom

es, a

nd A

pplia

nces

Plas

tics

Pape

r and

Pac

kagi

ngFi

nanc

ial S

ervi

ces

Dow

nstre

am C

hem

ical

Pro

duct

sPr

intin

g Se

rvic

esFu

rnitu

reC

omm

unic

atio

ns E

quip

men

t and

Ser

vice

sJe

wel

ry a

nd P

reci

ous

Met

als

Woo

d Pr

oduc

tsU

pstre

am M

etal

Man

ufac

turin

gO

il an

d G

as P

rodu

ctio

n an

d Tr

ansp

orta

tion

Vulc

aniz

ed a

nd F

ired

Mat

eria

lsTe

xtile

Man

ufac

turin

gW

ater

Tra

nspo

rtatio

nN

onm

etal

Min

ing

Leat

her a

nd R

elat

ed P

rodu

cts

Auto

mot

ive

Fore

stry

Biop

harm

aceu

tical

sAp

pare

l

Philadelphia Recovery in Traded Cluster EmploymentPost-Recession vs. Pre-Recession (2011 vs. 2006)

Rat

io o

f Pos

t-to

Pre

-Rec

essi

on E

mpl

oym

ent

(201

1/20

06)

Note: Includes clusters with more than 100 employeesSource: Prof. Michael E. Porter, Harvard Business School; U.S. Cluster Mapping 2014 Benchmark Definitions (Delgado-Porter-Stern 2013), Richard Bryden, Project Director.

Indicates national recovery level>1 Recovered to 2006 level US traded employment: 0.93 recovery

PHL traded employment: 0.93 recovery

Page 28: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter2820140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

High Employment Specialization and Share

High Employment Specialization

High Employment Share

Cluster Specialization by Economic Area, 2011Education and Knowledge Creation

Philadelphia-Camden-Vineland

Employment:121,836; Share: 4%

Note: Economic Areas with High Employment Specialization must have a Location Quotient of Cluster Employment greater than the 75th percentile; High Employment Share must have a Share of National Cluster Employment greater than the 90th percentile; High Employment Specialization and Share meet both criteriaSource: “Defining Clusters of Related Industries,” Delgado, Porter, Stern, 2013

Page 29: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter2920140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

High Employment Specialization and Share

High Employment Specialization

High Employment Share

Dover, DE

Increased Employment 2006-2011

Decreased Employment 2006-2011

Harrisburg-Carlisle-Lebanon, PA

New York-Newark-Bridgeport

Philadelphia-Camden-Vineland

Scranton, PA

Washington-Baltimore-Northern Virginia

Potential Inter-Regional Spillovers: Education and Knowledge Creation

Note: Economic Areas with High Employment Specialization must have a Location Quotient of Cluster Employment greater than the 75th percentile; High Employment Share must have a Share of National Cluster Employment greater than the 90th percentile; High Employment Specialization and Share meet both criteriaSource: “Defining Clusters of Related Industries,” Delgado, Porter, Stern, 2013

Page 30: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter3020140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

High Employment Specialization and Share

High Employment Specialization

High Employment Share

Cluster Specialization by Economic Area, 2011Biopharmaceuticals

Note: Economic Areas with High Employment Specialization must have a Location Quotient of Cluster Employment greater than the 75th percentile; High Employment Share must have a Share of National Cluster Employment greater than the 90th percentile; High Employment Specialization and Share meet both criteriaSource: “Defining Clusters of Related Industries,” Delgado, Porter, Stern, 2013

Philadelphia-Camden-Vineland

Employment:12,747; Share: 5.6%

Page 31: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter3120140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Note: Economic Areas with High Employment Specialization must have a Location Quotient of Cluster Employment greater than the 75th percentile; High Employment Share must have a Share of National Cluster Employment greater than the 90th percentile; High Employment Specialization and Share meet both criteriaSource: “Defining Clusters of Related Industries,” Delgado, Porter, Stern, 2013

High Employment Specialization and Share

High Employment Specialization

High Employment Share

Dover, DE

Harrisburg-Carlisle-Lebanon, PA

New York-Newark-Bridgeport

Philadelphia-Camden-Vineland

Scranton, PA

Washington-Baltimore-Northern Virginia

Potential Inter-Regional SpilloversBiopharmaceuticals

Increased Employment 2006-2011

Decreased Employment 2006-2011

Page 32: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter3220140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

Summary: Philadelphia Cluster Employment Performance

• Following a pattern seen in many regions of the U.S., Philadelphia’s traded employment in 2011 has declined to 93% of the level in 2006

• Strong clusters that have lost jobs and underperformed the U.S. over the period 2006-2011: – Biopharmaceuticals, Financial Services, Insurance Services, and

Distribution and Electronic Commerce

• Clusters that have created many jobs over the period 2006-2011: – Business Services, Education and Knowledge Creation, Aerospace Vehicles

and Defense, and IT and Analytical Instruments

Page 33: Philadelphia Competitiveness Profile Files/Philadelphia Metro Competitiveness...Philadelphia Competitiveness Profile ... Distribution and Electronic Commerce (133,049, rank 6) Education

Copyright 2014 © Professor Michael E. Porter3320140311 – Fox School of Business, Philadelphia Competitiveness (Porter, Delgado, Bryden)

U.S. Cluster Mapping ProjectData and Tools

• The U.S. Cluster Mapping Project is a joint initiative between the U.S.Department of Commerce, Economic Development Administration and Harvard’sInstitute for Strategy and Competitiveness

• The goal of the project is to improve U.S. competitiveness based on a bottom-up,regional perspective on economic development, and to support evidence-baseddecision making and thought leadership on cluster-driven economic policies

• US Cluster Mapping Project website will launch in late May/early June 2014. Thishighly optimized, modern website will provide access to:– Actionable cluster and regional data reflecting the state of today’s economy– User contributed repository of cluster initiatives, studies, and news– Community platform and registry for organizations

• The research is driven primarily by Harvard, MIT and Temple. Key researchupdates include improved cluster definitions:– Cluster categories are groups of related industries based on co-location patterns

across regions, input-output links and skill links– Clustering methodology: Delgado, Porter and Stern (2013), Porter (2003)