Technology Clusters in the US Success Factors and Marketing Strategy: Technology Clusters in the US Success Factors and Marketing Strategy Dominique HANSSENS Executive Director, Marketing Science Institute Bud Knapp Professor of Marketing, UCLA


Why do clusters exist ? : Why do clusters exist ? Not a new phenomenon Wine clusters in France Entertainment cluster in Hollywood Leather and textile fashion cluster in Italy (Po Valley) New meaning in modern information economy Enhance productivity Coopetition: competition and cooperation Fostering innovation: new business formation


What creates successful technology clusters?: What creates successful technology clusters? Nearby research universities Advances in technology Scientists and students Labor mobility Entrepreneurial spirit Venture capital Region amenities Government support


Two case studies: Two case studies Silicon Valley, Northern California 45 km by 15 km strip of land between San Francisco and San Jose Anchored by Stanford University in Palo Alto Route 128, Massachusetts Grew along a 100 km highway (Route 128) near metropolitan Boston and Cambridge


Silicon Valley vs. Route 128Differences: Silicon Valley vs. Route 128 Differences


Silicon Valley vs. Route 128Similarities: Silicon Valley vs. Route 128 Similarities


Important Lessons : Important Lessons Origins can differ A good technology cluster is a social network product: a self-reinforcing cycle of intense local competition, with supportive local institutions and a local character


Major US Technology Clusters: Major US Technology Clusters


Worldwide Technology Clusters: Worldwide Technology Clusters


This has become a crowded space Are there strong brands among these clusters ? : This has become a crowded space Are there strong brands among these clusters ? Who has reached a meaningful level of customer Awareness ? Association ? Attitude ? Attachment ? Advocacy ?


What can marketing do ?: What can marketing do ? Create the right value proposition Reward a market sensing capability Innovation implies high failure rates (80%), but this need not weaken a strong cluster Leverage local research institutions Communicate the value proposition What and to whom ?


Principle #1 Understand your customers: Principle #1 Understand your customers What business are you in, seen from a customer perspective? Recognizing multiple customer groups Existing firms Startups Venture capital firms Understanding customer behavior Customer and prospect database Reasons for site selection The importance of opinion leaders and attraction poles Market sensing capability defeats traditional industrial policy


Principle #2Build a brand: Principle #2 Build a brand Late entrants need differentiation ! The importance of brand name “Paris” is a very strong international brand Defining Points of parity - match them Points of difference - leverage them If possible, attract a few stars


Principle #3Monitor and adjust: Principle #3 Monitor and adjust Define metrics of cluster performance Implement communication strategy around Opinion leaders Social network development Message clarity Execute, measure response, re-evaluate


Resources: Resources Keller, Kevin L. (2003). Strategic Brand Management, 2nd Edition. Prentice-Hall. Kotler, Philip L. and Keller, Kevin L. (2005). Marketing Management, 12th Edition. Prentice-Hall Marketing Science Institute, Cambridge, MA, USA. Various Publications. See www.msi.org. Porter, Michael (1998), “Clusters and the New Economics of Competition,” Harvard Business Review, November-December 1998. Rogers, E.M. and J.K. Larsen (1984), Silicon Valley Fever. NY: Basic Books. Rosegrant S. and D. Lampe (1992), Route 128. NY: Basic Books. Saxenian, A.L. (1994), Regional Advantage: Culture and Competition in Silicon Valley and Route 128. Cambridge, MA: Harvard University Press. Wolfe, T. (1983) "The Tinkerings of Robert Noyce: How the Sun Rose on the Silicon Valley," Esquire. 100: 346-374.


Débat avec la salle: Débat avec la salle


François GOULARDMinistre délégué à l’Enseignement Supérieur et à la Recherche: François GOULARD Ministre délégué à l’Enseignement Supérieur et à la Recherche


Conclusion: Conclusion Thierry JACQUILLAT Président de Paris-Ile de France Capitale Economique


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