How to Increase the Network Density of an Economic Cluster? (Economic Cluster Theory Development)

Economic clusters are made of many millions of activities and transactions. Through that process they also create networks that ensure that resources, ideas, opportunities, social and lifestyle fulfill the needs of local and investor stakeholders. Through understanding methods of increasing network density, we can often speed the velocity of such cluster systems to innovate faster than would happen organically. 

Networks can have an important influence on growth because of these transactions. They are often mapped through anchor businesses and then through nodes. The density of a network determines its outcomes and efficiency. There are big networks that have their own internal structures and are complex systems (Bedru, et. al, 2020). The internal structure creates a type of order within the structure that allows it to adapt, function and find efficiencies. 

Sometimes these efficiencies are created organically by those who seek to create profit.  While slower they don't require an influx of capital. Other times it is possible to infuse network creation through the investment in infrastructure, social networks, and downtown development. Local clusters can include organic and focused elements or something in between.

Here are a few areas that might be worth investment to improve overall interaction and activity generation. It is possible to map these out if necessary.

-Infrastructure: Ports, Internet, Rail, Roads, etc. This can improve the speed of resources and information.

-Social and QOL: Events, recreation, activities, taverns, coffee shops, etc. It can encourage attraction of talent, retention of talent, higher quality of life, encourage creativity, and improve natural spread of ideas.

-Business/Industry Knowledge: Business networking/Chambers, creative spaces, entrepreneurship, skilled trades, higher education, etc. It can provide focused effort to speed activities within the business and investment world. Being thoughtful of who is involved can make a difference (i.e. bankers, investors, current business, and entrepreneurs).

So far, I have been using the example model of Escanaba which has been growing and is ripe for additional sustainable investment. Specifically in the 100-300 employee anchor businesses and downtown entrepreneurial development. Metal manufacturing and ship building are also possible. 

Key Points:

-Clusters can be organic, focused, or in-between.

-Clusters are networks that move information, resources, and ideas.

-Big networks can adapt, function and find efficiencies

-Networks are made of many millions of small transactions.

-Networks can be mapped.

-Transaction velocity can be increased by investing in Infrastructure, Social/QOL, and Business/Industry Knowledge.

Bedro, H. et. al. (2020. Big Networks: A Survey. Computer Science Review, 37 https://www.sciencedirect.com/science/article/abs/pii/S157401371930282