Massachusetts Regional Competitiveness Councils

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1 Regional Competitiveness Councils Survey Data for,, and Cape & Island Regions Institute for Strategy and Competitiveness Harvard Business School Prepared for the RCC Meetings September 30, 2003 This presentation draws on ideas from Professor Porter s articles and books, in particular, The Competitive Advantage of Nations (The Free Press, 1990), The Microeconomic Foundations of Economic Development, in The Global Competitiveness Report 2001, (World Economic Forum, 2001), Clusters and the New Competitive Agenda for Companies and Governments in On Competition (Harvard Business School Press, 1998), and the Clusters of Innovation Initiative, a joint effort of the Council on Competitiveness, Monitor Group, and Professor Porter. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical, photocopying, recording, or otherwise - without the permission of Michael E. Porter. Additional information may be found at the website of the Institute for Strategy and Competitiveness,

2 RCC Profiles RB6 2 Region

3 Availability of Inputs Mean Agreement Disagree Agree Specialized facilities for research are readily available The communications infrastructure in your local region fully satisfies your business needs Advanced educational programs provide your business with high quality employees Qualified scientists and engineers in your local region are in ample supply The overall quality of life in your region makes recruitment and retention of employees easy The available pool of skilled workers in your region is sufficient to meet your growth needs The overall quality of the K-12 education system is high The overall quality of transportation is very good relative to other regions The institutions in your local region that perform basic research frequently transfer knowledge to your industry Basic education and English language instruction for immigrant workers meet the needs of my organization Access to risk capital (e.g. venture capital, angel capital) is easy The cost of living in your region makes recruitment and retention of employees easy The cost of doing business is low relative to other regions RCC Profiles RB6 3

4 Rules and Incentives Governing Investment and Competition Disagree Mean Agreement Agree Local environmental standards and safety regulations are strict State environmental standards and safety regulations are strict The number of local competitors for your business in your local region is high Local competition in your industry is intense Local regulations affecting your business are appropriate and assist with your firm's ability to succeed State regulations affecting your business are appropriate and assist with your firm's ability to succeed Local government's overall responsiveness and ability to work with the needs of business is high Investment in R&D is encouraged by state and local taxes and incentives State and local government support for investment in R&D (e.g. funding business incubators, creating consortia) is ample State government's overall responsiveness and ability to work with the needs of business is high RCC Profiles RB6 4

5 Local Demand Conditions & Related and Supporting Industries Local Demand Conditions Disagree Mean Agreement Agree Local customers for your business's products/services are sophisticated and demanding Local customers for your business's products/services have special needs that often impact your product offering Feedback from local customers to improve your business's products/services is frequent and reveals the need for new features or enhanced performance Consumer protection, product safety, environmental, and other regulations in you region are strict and more problematic than in other regions Related and Supporting Industries The quality of local specialized suppliers of your businesses' materials, machinery, and services is comparable with the best quality elsewhere Specialized suppliers of your business's materials, machinery, and services are mostly available inside your local region Local specialized suppliers assist your firm with new product and process development frequently Specialized training and research institutions for my industry are available in my region Businesses in your industry, located in your region, share information openly with other businesses RCC Profiles RB6 5

6 Regional Strategy & Summary of the Regional Business Environment Does your local region have a well articulated economic strategy and are you an active participant in it? Disagree Mean Agreement Agree My organization can contribute significant value to an economic development strategy My organization is an active participant in the execution of this strategy Local business and government leaders have articulated a clear strategy for promoting the economic development of the local region The state has articulated a clear strategy for the region Summary of the Regional Business Environment Overall, this region in is a good place for my company to do business Overall, my region has strengths in my industry compared to other regions in RCC Profiles RB6 6

7 Simplify compliance procedures for government regulations (e.g. one-stop filing, websites, etc) Regional Comparisons Priorities for Government Not at All Critically Important Mean Importance Important Promote world-class primary and secondary education Implement tax reform to encourage investment in innovation (e.g. R&D tax credits) Improve state government support for transportation and other physical infrastructure Improve local government support for transportation and other physical infrastructure Promote specialized education and training programs to upgrade worker skills Support the particular needs of start-up companies (access to capital, incubators, management training) Improve information and communications infrastructure Speed-up regulatory approval process in line with product life-cycles Promote universal computer literacy Catalyze partnerships among government agencies, industry and universities Provide services to assist and promote local exports Assist in attracting suppliers and service providers from other locations Increase government support for funding of specialized research institutes, labs, etc. Increase funding for university-based research RCC Profiles RB6 7

8 Institutions & Education How satisfied are you with the impact of the following institutions, in your region, on your company? Disagree Mean Agreement Agree Universities Community Colleges Public or Private Research Organizations Industry or Cluster Trade Associations Business Assistance Centers Business Incubators How would you best describe the quality of new workers from these sources? 3 Inadequate Mean Rating 2 Superior 1 Private universities Public universities Community colleges Vocational schools Other private or non-profit training providers RCC Profiles RB6 8

9 Institutions & Education (Cont.) Over the next five years, I expect the needs of my organization, with respect to the following levels of education and/or training, to: Decrease 3 Mean Expectation 2 Increase 1 Specialized skill training or industry-specific certification Master's Degree or higher Bachelor's Degree Associate's Degree If your organization met or worked with any of these entities on workforce issues, to what extent did your contact meet your expectations? Did not Meet my Expectations 3 Mean Rating 2 Exceeded my Expectations 1 Private universities Public universities Comm unity colleges Other private or non-profit training providers Vocational schools RCC Profiles RB6 9

10 Employee Skills Overall, are employees with the necessary skills for your business available in the region? 0% Percent of Respondents 100% The necessary skills for your business are available Problem solving/teamwork skills are not available IT and other technical skills are not available Language and other communication skills are not available Management skills are not available RCC Profiles RB6 10

11 Positive Impact on the Local Business Environment Percent of Respondents which Ranked Characteristic Among the Top Five Most Positive 0% 100% Overall quality of life for employees Available pool of skilled workforce Specialized needs of local customers Quality of transportation (e.g. ease of access, traffic) Demanding local customers that provide feedback Cost of doing business (e.g. real estate, wages, utilities, etc) Level of locally based competition in your industry Quality of local K-12 schools Relationships between firms and organizations in your cluster Availability of advanced educational program s Quality and in-region location of your suppliers Qualified scientists and engineers Local government's overall responsiveness to the needs of business RCC Profiles RB6 11

12 Positive Impact on the Local Business Environment (Cont.) Percent of Respondents which Ranked Characteristic Among the Top Five Most Positive 0% 40% Access to capital Predictability of local government policies Predictability of state government policies State government's overall responsiveness to the needs of business Transfer of knowledge from research institutions State regulations for production processes and products/services Specialized facilities for research Assistance from local suppliers for new product and process development Local environmental/safety regulations State environmental/safety regulations Local regulations for production processes and products/services Participation with local institutions in R&D efforts State and local tax and incentives for investm ent in R&D RCC Profiles RB6 12

13 Future Threats in the Local Business Environment Percent of Respondents which Ranked Characteristic Among the Top Five Greatest Threats 0% 100% Cost of doing business (e.g. real estate, wages, utilities, etc) State government's responsiveness to the needs of business Available pool of skilled workforce Access to capital State regulations for production processes and products/services Predictability of state government policies Quality of transportation (e.g. ease of access, traffic) Quality of local K-12 schools Local government's responsiveness to the needs of business Level of locally-based competition in your industry State environmental/safety regulations State and local tax and incentives for investm ent in R&D Overall quality of life for em ployees RCC Profiles RB6 13

14 Future Threats in the Local Business Environment (Cont.) Percent of Respondents which Ranked Characteristic Among the Top Five Greatest Threats 0% 20% Predictability of local government policies Local environmental/safety regulations Specialized needs of local customers Local regulations for production processes and products/services Relationships between firms and organizations in your cluster Demanding local customers that provide feedback Quality and in-region location of your suppliers Availability of advanced educational programs Qualified scientists and engineers Participation with local institutions in R&D efforts Transfer of knowledge from research institutions Assistance from local suppliers for new product and process development Specialized facilities for research RCC Profiles RB6 14

15 Barriers to Expansion in the Next Five Years Percent of Respondents which Ranked Characteristic Among the Top Three Greatest Barriers to Expansion 0% 100% Business-friendly political environment Housing affordability Tax incentives Low cost of labor Access to skilled labor Proximity to competing firms in your industry Quality of life for employees Proximity to local client base Air / water quality Proximity of local suppliers to your industry Access to raw materials Proximity to local research and development centers RCC Profiles RB6 15

16 RCC Profiles RB6 16 Region

17 Availability of Inputs Mean Agreement Disagree Agree The overall quality of life in your region makes recruitment and retention of employees easy Advanced educational programs provide your business with high quality employees The communications infrastructure in your local region fully satisfies your business needs Basic education and English language instruction for immigrant workers meet the needs of my organization Specialized facilities for research are readily available The available pool of skilled workers in your region is sufficient to meet your growth needs The cost of living in your region makes recruitment and retention of employees easy The overall quality of the K-12 education system is high The overall quality of transportation is very good relative to other regions Qualified scientists and engineers in your local region are in ample supply The cost of doing business is low relative to other regions The institutions in your local region that perform basic research frequently transfer knowledge to your industry Access to risk capital (e.g. venture capital, angel capital) is easy RCC Profiles RB6 17

18 Rules and Incentives Governing Investment and Competition Disagree Mean Agreement Agree State environmental standards and safety regulations are strict Local environmental standards and safety regulations are strict Local competition in your industry is intense The number of local competitors for your business in your local region is high Local regulations affecting your business are appropriate and assist with your firm's ability to succeed Local government's overall responsiveness and ability to work with the needs of business is high State regulations affecting your business are appropriate and assist with your firm's ability to succeed Investment in R&D is encouraged by state and local taxes and incentives State government's overall responsiveness and ability to work with the needs of business is high State and local government support for investment in R&D (e.g. funding business incubators, creating consortia) is ample RCC Profiles RB6 18

19 Local Demand Conditions & Related and Supporting Industries Local Demand Conditions Disagree Mean Agreement Agree Local customers for your business's products/services have special needs that often impact your product offering Feedback from local customers to improve your business's products/services is frequent and reveals the need for new features or enhanced performance Local customers for your business's products/services are sophisticated and demanding Consumer protection, product safety, environmental, and other regulations in you region are strict and more problematic than in other regions Related and Supporting Industries The quality of local specialized suppliers of your businesses' materials, machinery, and services is comparable with the best quality elsewhere Specialized suppliers of your business's materials, machinery, and services are mostly available inside your local region Businesses in your industry, located in your region, share information openly with other businesses Local specialized suppliers assist your firm with new product and process development frequently Specialized training and research institutions for my industry are available in my region RCC Profiles RB6 19

20 Regional Strategy & Summary of the Regional Business Environment Does your local region have a well articulated economic strategy and are you an active participant in it? Disagree Mean Agreement Agree My organization can contribute significant value to an economic development strategy My organization is an active participant in the execution of this strategy Local business and government leaders have articulated a clear strategy for promoting the economic development of the local region The state has articulated a clear strategy for the region Summary of the Regional Business Environment Overall, this region in is a good place for my company to do business Overall, my region has strengths in my industry compared to other regions in RCC Profiles RB6 20

21 Priorities for Government Not at All Critically Important Mean Importance Important Improve state government support for transportation and other physical infrastructure Promote world-class primary and secondary education Simplify compliance procedures for government regulations (e.g. one-stop filing, websites, etc) Promote specialized education and training programs to upgrade worker skills Improve local government support for transportation and other physical infrastructure Improve information and communications infrastructure Support the particular needs of start-up companies (access to capital, incubators, management training) Implement tax reform to encourage investment in innovation (e.g. R&D tax credits) Promote universal computer literacy Catalyze partnerships among government agencies, industry and universities Speed-up regulatory approval process in line with product life-cycles Assist in attracting suppliers and service providers from other locations Provide services to assist and promote local exports Increase government support for funding of specialized research institutes, labs, etc. Increase funding for university-based research RCC Profiles RB6 21

22 How satisfied are you with the impact of the following institutions, in your region, on your company? Regional Comparisons Institutions & Education Disagree Mean Agreement Agree Universities Community Colleges Industry or Cluster Trade Associations Public or Private Research Organizations Business Assistance Centers Business Incubators How would you best describe the quality of new workers from these sources? 3 Inadequate Mean Rating 2 Superior 1 Public universities Private universities Community colleges Other private or non-profit training providers Vocational schools RCC Profiles RB6 22

23 Institutions & Education (Cont.) Over the next five years, I expect the needs of my organization, with respect to the following levels of education and/or training, to: Decrease 3 Mean Expectation 2 Increase 1 Specialized skill training or industry-specific certification Bachelor's Degree Associate's Degree Master's Degree or higher If your organization met or worked with any of these entities on workforce issues, to what extent did your contact meet your expectations? Did not Meet my Expectations 3 Mean Rating 2 Exceeded my Expectations 1 Community colleges Public universities Private universities Other private or non-profit training providers Vocational schools RCC Profiles RB6 23

24 Employee Skills Overall, are employees with the necessary skills for your business available in the region? 0% Percent of Respondents 100% The necessary skills for your business are available Problem solving/teamwork skills are not available Management skills are not available IT and other technical skills are not available Language and other communication skills are not available RCC Profiles RB6 24

25 Positive Impact on the Local Business Environment Percent of Respondents which Ranked Characteristic Among the Top Five Most Positive 0% 100% Overall quality of life for employees Available pool of skilled workforce Cost of doing business (e.g. real estate, wages, utilities, etc) Specialized needs of local customers Quality of transportation (e.g. ease of access, traffic) Relationships between firms and organizations in your cluster Level of locally based competition in your industry Demanding local customers that provide feedback Availability of advanced educational programs Quality of local K-12 schools Quality and in-region location of your suppliers Access to capital Qualified scientists and engineers RCC Profiles RB6 25

26 Positive Impact on the Local Business Environment (Cont.) Percent of Respondents which Ranked Characteristic Among the Top Five Most Positive 0% 20% Local government's overall responsiveness to the needs of business Predictability of state governm ent policies State government's overall responsiveness to the needs of business Predictability of local governm ent policies State regulations for production processes and products/services Specialized facilities for research Transfer of knowledge from research institutions Assistance from local suppliers for new product and process development Local environmental/safety regulations State environmental/safety regulations State and local tax and incentives for investm ent in R&D Participation with local institutions in R&D efforts Local regulations for production processes and products/services RCC Profiles RB6 26

27 Future Threats in the Local Business Environment Percent of Respondents which Ranked Characteristic Among the Top Five Greatest Threats 0% 100% Cost of doing business (e.g. real estate, wages, utilities, etc) State government's responsiveness to the needs of business Predictability of state government policies Available pool of skilled workforce Quality of local K-12 schools Access to capital State regulations for production processes and products/services Quality of transportation (e.g. ease of access, traffic) Level of locally-based competition in your industry Overall quality of life for employees State environmental/safety regulations Local government's responsiveness to the needs of business State and local tax and incentives for investment in R&D RCC Profiles RB6 27

28 Future Threats in the Local Business Environment (Cont.) Percent of Respondents which Ranked Characteristic Among the Top Five Greatest Threats 0% 20% Availability of advanced educational programs Predictability of local government policies Demanding local customers that provide feedback Qualified scientists and engineers Local regulations for production processes and products/services Participation with local institutions in R&D efforts Quality and in-region location of your suppliers Transfer of knowledge from research institutions Assistance from local suppliers for new product and process development Local environmental/safety regulations Relationships between firms and organizations in your cluster Specialized needs of local customers Specialized facilities for research RCC Profiles RB6 28

29 Barriers to Expansion in the Next Five Years Percent of Respondents which Ranked Characteristic Among the Top Three Greatest Barriers to Expansion 0% 100% Business-friendly political environment Access to skilled labor Housing affordability Tax incentives Low cost of labor Proximity to competing firms in your industry Quality of life for employees Proximity to local client base Proximity of local suppliers to your industry Proximity to local research and development centers Air / water quality Access to raw materials RCC Profiles RB6 29

30 RCC Profiles RB6 30 Cape & Islands Region

31 Availability of Inputs Mean Agreement Disagree Agree The overall quality of life in your region makes recruitment and retention of employees easy The overall quality of the K-12 education system is high Basic education and language instruction for immigrant workers meet the needs of my organization Advanced educational programs provide your business with high quality employees The communications infrastructure in your local region fully satisfies your business needs Qualified scientists and engineers in your local region are in ample supply The available pool of skilled workers in your region is sufficient to meet your growth needs The institutions in your local region that perform basic research frequently transfer knowledge to your industry Specialized facilities for research are readily available Access to risk capital (e.g. venture capital, angel capital) is easy The overall quality of transportation is very good relative to other regions The cost of living in your region makes recruitment and retention of employees easy The cost of doing business is low relative to other regions RCC Profiles RB6 31

32 Rules and Incentives Governing Investment and Competition Disagree Mean Agreement Agree Local environmental standards and safety regulations are strict State environmental standards and safety regulations are strict Local competition in your industry is intense The number of local competitors for your business in your local region is high Local regulations affecting your business are appropriate and assist with your firm's ability to succeed State regulations affecting your business are appropriate and assist with your firm's ability to succeed Local government's overall responsiveness and ability to work with the needs of business is high Investment in R&D is encouraged by state and local taxes and incentives State government's overall responsiveness and ability to work with the needs of business is high State and local government support for investment in R&D (e.g. funding business incubators, creating consortia) is ample RCC Profiles RB6 32

33 Local Demand Conditions & Related and Supporting Industries Local Demand Conditions Disagree Mean Agreement Agree Local customers for your business's products/services have special needs that often impact your product offering Feedback from local customers to improve your business's products/services is frequent and reveals the need for new features or enhanced performance Local customers for your business's products/services are sophisticated and demanding Consumer protection, product safety, environmental, and other regulations in you region are strict and more problematic than in other regions Related and Supporting Industries The quality of local specialized suppliers of your businesses' materials, machinery, and services is comparable with the best quality elsewhere Specialized suppliers of your business's materials, machinery, and services are mostly available inside your local region Businesses in your industry, located in your region, share information openly with other businesses Local specialized suppliers assist your firm with new product and process development frequently Specialized training and research institutions for my industry are available in my region RCC Profiles RB6 33

34 Regional Strategy & Summary of the Regional Business Environment Does your local region have a well articulated economic strategy and are you an active participant in it? Disagree Mean Agreement Agree My organization can contribute significant value to an economic development strategy My organization is an active participant in the execution of this strategy Local business and government leaders have articulated a clear strategy for promoting the economic development of the local region The state has articulated a clear strategy for the region Summary of the Regional Business Environment Overall, this region in is a good place for my company to do business Overall, my region has strengths in my industry compared to other regions in RCC Profiles RB6 34

35 Improve state government support for transportation and other physical infrastructure Improve local government support for transportation and other physical infrastructure Promote world-class primary and secondary education Simplify compliance procedures for government regulations (e.g. one-stop filing, websites, etc) Improve information and communications infrastructure Promote specialized education and training programs to upgrade worker skills Promote universal computer literacy Implement tax reform to encourage investment in innovation (e.g. R&D tax credits) Support the particular needs of start-up companies (access to capital, incubators, management training) Speed-up regulatory approval process in line with product life-cycles Catalyze partnerships among government agencies, industry and universities Provide services to assist and promote local exports Assist in attracting suppliers and service providers from other locations Increase government support for funding of specialized research institutes, labs, etc. Increase funding for university-based research Regional Comparisons Priorities for Government Not at All Important Mean Importance Critically Important5 RCC Profiles RB6 35

36 Institutions & Education How satisfied are you with the impact of the following institutions, in your region, on your company? Disagree Mean Agreement Agree Community Colleges Industry or Cluster Trade Associations Business Assistance Centers Universities Public or Private Research Organizations Business Incubators How would you best describe the quality of new workers from these sources? 3 Inadequate Mean Rating 2 Superior 1 Private universities Vocational schools Community colleges Public universities Other private or non-profit training providers RCC Profiles RB6 36

37 Institutions & Education (Cont.) Over the next five years, I expect the needs of my organization, with respect to the following levels of education and/or training, to: Decrease 3 Mean Expectation 2 Increase 1 Specialized skill training or industry-specific certification Associate's Degree Bachelor's Degree Master's Degree or higher If your organization met or worked with any of these entities on workforce issues, to what extent did your contact meet your expectations? Did not Meet my Expectations 3 Mean Rating 2 Exceeded my Expectations 1 Com m unity colleges Vocational schools Other private or non-profit training providers Public universities Private universities RCC Profiles RB6 37

38 Employee Skills Overall, are employees with the necessary skills for your business available in the region? 0% Percent of Respondents 100% The necessary skills for your business are available Problem solving/teamwork skills are not available Management skills are not available IT and other technical skills are not available Language and other communication skills are not available RCC Profiles RB6 38

39 Positive Impact on the Local Business Environment Percent of Respondents which Ranked 0% Characteristic Among the Top Five Most Positive 100% Overall quality of life for employees Specialized needs of local customers Demanding local customers that provide feedback Relationships between firms and organizations in your cluster Level of locally based competition in your industry Quality of local K-12 schools Available pool of skilled workforce Access to capital Local government's overall responsiveness to the needs of business Cost of doing business (e.g. real estate, wages, utilities, etc) Quality and in-region location of your suppliers Local environmental/safety regulations Availability of advanced educational programs RCC Profiles RB6 39

40 Positive Impact on the Local Business Environment (Cont.) Percent of Respondents which Ranked Characteristic Among the Top Five Most Positive 0% 40% Quality of transportation (e.g. ease of access, traffic) Transfer of knowledge from research institutions Predictability of state governm ent policies Assistance from local suppliers for new product and process development State environmental/safety regulations Specialized facilities for research Predictability of local governm ent policies State government's overall responsiveness to the needs of business Participation with local institutions in R&D efforts State regulations for production processes and products/services Qualified scientists and engineers State and local tax and incentives for investm ent in R&D Local regulations for production processes and products/services RCC Profiles RB6 40

41 Future Threats in the Local Business Environment Percent of Respondents which Ranked Characteristic Among the Top Five Greatest Threats 0% 100% Cost of doing business (e.g. real estate, wages, utilities, etc) Available pool of skilled workforce Quality of transportation (e.g. ease of access, traffic) State regulations for production processes and products/services State government's responsiveness to the needs of business Local regulations for production processes and products/services Predictability of state governm ent policies Access to capital Overall quality of life for employees Quality of local K-12 schools Local environmental/safety regulations Level of locally-based competition in your industry State environmental/safety regulations RCC Profiles RB6 41

42 Future Threats in the Local Business Environment (Cont.) Percent of Respondents which Ranked Characteristic Among the Top Five Greatest Threats 0% 25% Local government's overall responsiveness to the needs of business Predictability of local government policies Availability of advanced educational programs State and local tax and incentives for investment in R&D Relationships between firms and organizations in your cluster Transfer of knowledge from research institutions Specialized needs of local customers Quality and in-region location of your suppliers Demanding local customers that provide feedback Qualified scientists and engineers Specialized facilities for research Participation with local institutions in R&D efforts Assistance from local suppliers for new product and process development RCC Profiles RB6 42

43 Barriers to Expansion in the Next Five Years Percent of Respondents which Ranked Characteristic Among the Top Three Greatest Barriers to Expansion 0% 100% Housing affordability Business-friendly political environment Access to skilled labor Quality of life for employees Proximity to competing firms in your industry Low cost of labor Air / water quality Tax incentives Proximity to local client base Proximity of local suppliers to your industry Proximity to local research and development centers Access to raw materials RCC Profiles RB6 43

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