Huntsman picks 6 'clusters'

He says state will nurture economic growth in focus areas

Published: Friday, June 24, 2005 8:10 p.m. MDT
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Gov. Jon Huntsman Jr. this week officially unveiled his plan to nurture six economic "clusters," around which he said the state will develop an integrated, focused approach to fuel economic growth.

As part of his larger economic strategy, Huntsman on Friday said the clusters will align businesses, workers, capital, education and government around targeted industries.

"I think we need to focus more on getting out the best indigenous advantages of our state, such that we can weather the vicissitudes of the national and international economy," Huntsman said at a technology industry meeting.

"It's the economy, and it pays for everything else that we do. We either do it right, or we do it wrong, in which case we've failed the next generation."

The six clusters are life sciences, software development and information technology, defense and homeland security, financial services, energy and natural resources, and "competitive accelerators."

As defined by the new administration, clusters are "groups of related businesses and organizations within industry sectors whose collective excellence and collaboration provides sustainable and competitive advantages."

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"We, as a state, can't do everything well," said Martin Frey, director of the Utah Department of Community and Economic Development. "We have to choose some areas to focus on."

Around these clusters, Frey said, the state's strategy is to synergize research universities, technology commercialization catalysts like the Centers of Excellence program, capital (via the "fund of funds") and industry with the state's efforts to foster and recruit top talent and implement smart government reforms — tax simplification among them.

"There's a saying that I hear a lot, that we do a lot with a little," said Dinesh Patel, managing director of vSpring Capital, a Salt Lake-based venture capital firm. "I don't like that. In reality, we do a little with too little. It doesn't work, and it's time to focus."

That will mean changes, both in the way the government approaches economic growth and for businesses, said Frey. Businesses within clusters will be encouraged to think and act vertically — from the company to customers to supply chains — and horizontally, by building an "ecosystem of partnership." This process, by which business competitors work together to build the industry locally, the administration has taken to calling "co-opetition."

Each cluster will have a group leader and business development team which will help define priorities and chart the best strategy forward, Frey said. He did not elaborate on who will serve or lead these teams, how many team members each cluster will have, or whether they will be state employees, private-sector hires or volunteers.

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