Introducing the Regional Clusters Website: A Resource for Data Driven Regional Competitiveness Assessment

Written by: Indraneel Kumar and Jessica Wandless

The economic landscape is evolving at a remarkable pace. As the global economy continues shifting from industrial production to specialized services and onward into the knowledge economy, regions must understand not only what industries they have, but also what skills and knowledge their workforce brings to the table. The newly launched Regional Clusters website, funded and supported by U.S. Economic Development Administration (EDA) and developed by Purdue Center for Regional Development (PCRD), offers a way for U.S. regions to explore these dynamics, equipping decision makers, community leaders, planners, researchers, and economic developers with actionable, data driven insights.

Explore the Regional Clusters Website

Today’s economy is shaped by specialized and value-added production of goods and services and skilled workforce and knowledge workers accelerating innovation, productivity, and competitive advantage across communities and regions. To understand the structure and potential of a region’s competitive industries and labor force specialized in specific skills and knowledge areas, data and metrics are essential. Visitors to the site can explore:

• Data Dashboards
• Interactive Maps
• Definitions
• Help Tools
• Other resources

The platform offers insights into industry, skills, and knowledge-based clusters that help regions strategically align industrial and workforce strengths and identify areas of opportunities in economic and workforce development.

Industry-Based Clusters

Industry clusters include select sets of geographically co-located industry sectors that have interdependencies in terms of buying and selling from each other, using similar technologies, sharing supply chains, using similar supporting services and specialized infrastructure, sharing labor pools with common occupational and skill requirements, and talent pools. The website presents 21 industry clusters comprised of 68 industry subclusters. The industry clusters are defined based on North American Industry Classification System (NAICS) 6-digit industry sectors for 2022. Industry cluster definitions overlap and they are not mutually exclusive, which means a particular NAICS industry sector can appear in more than one industry cluster definition.

Skills-Based Occupation Clusters

Skills-based occupation clusters classified more than 800 occupations using the latest O*NET skills typology. Occupations within a skills cluster share similar skill-level requirements and hence belong to similar career paths and roles. There are 38 skills-based clusters, which provide a skills-first perspective of the workforce, using Standard Occupation Classification (SOC) 6 digit occupation codes to deliver granularity, clarity and precision. Skills-based occupation clusters are mutually exclusive, which means a specific occupation is present only in one cluster. This approach helps communities evaluate their labor market through a competency lens, supporting strategic workforce development and talent alignment. The data can reveal how regions are specialized and competitive in terms of skills.

Knowledge-Based Occupation Clusters

Knowledge-based occupation clusters classify occupations by similar knowledge levels and educational preparation. These clusters cover nearly 64% of the occupations in the labor force which require medium, high or extensive preparations. This translates into occupations that require a minimum of associate level through doctoral level degrees. There are 21 knowledge-based occupation clusters that can reveal competitive advantages in specific knowledge area for a region. Occupations within a knowledge cluster are part of the similar career ladder revealing career pathways for an aspirant. Like skills-based clusters, knowledge clusters are also mutually exclusive, or an occupation appears only in one knowledge cluster.

Together, the three different types of cluster definitions and their data reveal competitive advantages for regions in terms of production of goods and delivery of specialized services as well as unique strengths and competitiveness in the labor force and human capital. The data can help U.S. Economic Development Districts (EDDs) prepare their Comprehensive Economic Development Strategies (CEDS) and planning for economic and workforce development.

EDA had made an announcement about this project on February, 2024 with this blog. PCRD in partnership with the EDA is pleased to announce the Regional Cluster website to foster regional development through data-driven strategies, innovative resources, and informed planning efforts. The new Regional Clusters website can be found at https://pcrd.purdue.edu/regionalclusters/ or https://regionalclusters.com. Questions about the website should be directed to: regionalclusters@purdue.edu.

This project was prepared by Purdue Center for Regional Development using Federal funds under award #ED23RNA0G0174 from the Economic Development Administration, U.S. Department of Commerce. The statements, findings, conclusions, and recommendations are those of the author(s) and do not necessarily reflect the views of Economic Development Administration or the U.S. Department of Commerce.