A methodology for identifying the drivers of industrial clusters: The foundation of regional competitive advantage

This article presents a theoretically based method for identifying the clus ters of industries in which a region has a competitive advantage. The metho d combines cluster analysis with discriminant analysis, using variables der ived from economic base theory and measures of productivity, to identify th e industries in which a region has its greatest competitive advantage. Thes e industries are called driver industries because they drive the region's e conomy. The driver industries are linked to supplier and customer industrie s with information from a region-specific input-output model to form indust ry clusters. After introductory comments about cluster-based approaches to understanding regional economies, the authors present an overview of their method and the variables used. They then apply this method to the Cleveland -Akron Consolidated Metropolitan Statistical Area.