Here is an idea that could take Clustering to new heights. In the mid-90's I broke the Clustering rules at the time and started other Optics Clusters around the world and I linked these Clusters. We cooperated and we competed at the international level as we did at the regional level. It has worked out very well.
Up until the 11th TCI Annual Global Conference in Cape Town, the economic developers focused on regional growth; selling, marketing, regional support, and even linking to other Clusters of a similar kind as mentioned above. The TCI meeting in Cape Town and my trip to Malaysia for two weeks right after the Cape Town conference spurred me into the following possibility between Malaysia, Africa, and Arizona.
When I was in Malaysia, I was exposed to an up and coming want to be PV (photovoltaic) Solar Valley industry group. Meanwhile Arizona is contending for the PV Solar Energy Generation Valley and it is being subsidized by the US federal government to develop PV solar energy generation. Malaysia wants to sell, Arizona wants to buy. Both governments are supporting their respective sides. Both governments are trying to set up global role models of successful programs and are investing tens of millions of dollars to do it.
Insert that Arizona via the local Global Advantage had inspired the Canadians to open their first Embassy Trade Office in North America in Tucson. In three years that led to an increase in trade of $1 B US from Canada to Arizona. First thoughts are great for Canada but not for Arizona. We should want it the other way around. Not so! Most of the trade from Canada was in lumber. It created 40,000 new construction jobs in Arizona. We will take that.
So when I was in Malaysia I suggested that they should consider bonding Arizona and Malaysia (already Az's 3rd highest trading partner) as a solar panel buying region (think a new kind of Cluster definition) and PV Solar seller Cluster respectively. We are at the very first level of discussions with the Malaysian Industrial Development Agency (MIDA) to visit Phoenix and discuss with my Governor how they, MIDA, would subsidize their PV manufacturing industry so that Arizona would benefit. The past Governor sent her Solar Energy Committee Director and Her Science Advisor committed to meeting to flesh out my proposed deal structure. The one that does not exist yet. It has to do with committing Malaysia's solar panel manufacturers, with MIDA's support in some way I can't imagine, to deliver high quality, low cost deals to Arizona buyers to open the US market, via the want-to-be #1 Solar Panel State, Arizona. As Az goes so will Calif, NY, New England, and Pennsylvania. It is a market opening to the US market in its hottest (pun intended) development region.
Malaysia gets the money into Malaysia, the new manufacturing jobs it wants, and a healthy kick-start of their infant industry. Dream. The goal is for AZ to buy multiple millions of dollars in solar panels out of Malaysia in the next three years. My argument to MIDA (who's charter is for inward investment) is does MIDA really care that the money is in buying Malaysian products instead of starting a "new" company. It could become the first Solar Energy State in the US. More importantly, it will create thousands of construction jobs in Arizona as these panels are installed on individual homes. Arizona, as a CONSUMER CLUSTER is tied at the hip to a traditional regional selling Cluster.
I am aware that we have had Clusters that work at buying medical insurance, legal services, etc. as a group at a discount but this is different. In this concept, regions are co-investing millions of dollars in far away Clusters for their own advantage. It does new wonders for Clustering.
Africa is short of power so PV Solar is a help in the deep jungle. A new Malaysian friend put up for free a Solar PV section to generate power in the jungles of Borneo and lit the longhouse with energy efficient LEDs - he did it for free. Africa it also a contender for such a relationship.
Bob Breault is member of the Board of Advisors of TCI Network. Co-Chairman of the Arizona Optics Industry Association, a statewide organization dedicated to the development of the optics industry, an important economic resource to the state of Arizona.
22 September 2009
