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Clusters and the Development of Competitive Advantage

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Specialization <strong>of</strong> Regional Economies<br />

Commonwealth <strong>of</strong> Massachusetts<br />

12%<br />

Analytical Instruments<br />

Percentage<br />

<strong>of</strong> Share<br />

National<br />

Cluster<br />

Employment<br />

in 1999<br />

10%<br />

8%<br />

6%<br />

4%<br />

Education <strong>and</strong><br />

Knowledge Creation<br />

Information Technology<br />

Business Services<br />

Communications Equipment<br />

Jewelry <strong>and</strong> Precious Metals<br />

Medical Devices<br />

Financial Services<br />

Distribution Services<br />

Aerospace Engines<br />

(7.4, 89.9)<br />

Massachusetts’ Average<br />

Share = 2.68%<br />

2%<br />

Pharmaceuticals <strong>and</strong> Biotechnology<br />

(2.4, 103.6)<br />

Aerospace Vehicles <strong>and</strong><br />

Tobacco (0.9, 82.7)<br />

Defense (0.0, -97.7)<br />

0%<br />

-75 -25 25 75<br />

Percentage <strong>of</strong> Change, 1990–1999<br />

= 0–24,999 = 25,000–49,999 = 50,000–99,999 = 100,000-<br />

Note: Data points that fall outside <strong>the</strong> graph are placed on <strong>the</strong> borders with <strong>the</strong>ir values given in paren<strong>the</strong>ses (share, change)<br />

Source: Cluster Mapping Project, Institute for Strategy <strong>and</strong> <strong>Competitive</strong>ness, Harvard Business School<br />

StartUp Jerusalem Cluster Theory 10-18-04 CK<br />

6<br />

Copyright © 2004 Pr<strong>of</strong>essor Michael E. Porter

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