Cooperation Between Large Firms and Start-Ups in Cluster Development (Transactional Cluster Theory)

Innovation is the name of the game in the Digital Era (Economic Platforms) because those who are ahead of the pack in creative and innovative development often also lead the market (...assuming they can also win on price and manufacturing). Companies want to compete and they need to find strategies to quickly ramp up capacity in order to provide next generation products that will support GDP growth. In my research I'm looking at economic clusters and creating sustainable rapid innovative systems that improve quality of life as well as economic prospects through interactive industry development.

(Remember this is theory play so it is possible and while research supports the idea, there are some earlier version clusters in existence. As of yet we have not yet fully developed a next gen sustainable cluster system that has the capacity to enhance existing industries as well as spark new industries. In theory it doesn't mean something will for sure work but that the likelihood of success has some research support. What is a Theory?)

Reviewing studies like the one below adds a piece to the knowledge based on how the relationship between start-up and larger corporations interact. Large and small businesses often connect/partner to share resources, information, ideas, and opportunities both in competition and collaboration. Knowledge transfer and the development of innovative resources being some of the bigger influencers in the process of creating something new that has wider stakeholder appeal. The right environment will often speed those innovative processes along.

Smaller firms connected to much larger supply chain creates an ideal method of taking good ideas and generating new inventions. New inventions/products help bolster a positive Return on Investment (ROI) to their respective industries. In environments were small firms, mixed with some anchor industries, create a level interactivity, it can lead to growth for participating industries (in theory). The anchor industries ensure the infrastructure is functional and the smaller firms can utilize such infrastructure for innovative product/service development. In other words, the anchor industries help solidify and maintain the cluster through capacity maintenance.

Picking the right anchor businesses within a cluster that has upward growth characteristics requires certain infrastructure inputs that can enhance each other as well as help spur innovation in start-ups that help to serve such anchor businesses. They can do this while being connected to a wider supply chain that provides opportunities to maximize resource allocation and scalability of new products. The same being said for shared R&D projects where one discovery can be applied to multiple industries and/or even to a new emerging industry (i.e. a new metal used in cars, rail, space, etc.)

In some ways, such startup firms would also carry less risk because they were launched within an existing network that would have a pre-existing need for their services/products. Seeding in fertile investment soil with existing customers is a good first step. If the ideas and new products/services solve the problem, then they can be adopted outside the cluster for greater industry innovation. If an entrepreneur comes up with a new solution that helps multiple local anchor businesses, then you have something of value. That value derived from having something to be sold on the market (in theory. Creative Destruction AI).

The innovative microcosm environment is where multiple stakeholders can help further the growth of a few industries at once while creating net positives for local residents through an interconnected system of interrelated transactional activities. As an example, the quality of life improves retention and skill recruitment which furthers industries through labor supply, which rely on trade education, and the higher wages that go with advanced skills, that provide a bigger tax base, which is spent on community improvement, that is used to quality of life, etc. (a type of cycle).  In theory a cluster can help with something like UP Employment %. because of new high skilled jobs and stronger community resources (In theory. Perpetual Sustainable Economy).

This is one study I'm looking at in including in my scientific paper and book I'm working on (They are not groundbreaking from what I understand but a discussion on innovation systems and how they may function to improve national innovation.). It states that start-ups and large companies facilitate exchange of resource and capabilities that enhance market power and access. In my theoretical lens I would take this to mean that small firms within a cluster may be able to feed larger networks with new ideas, inventions, and prototype products. The cluster firms chosen because they can interact with other firms and create new things that feed multiple industries (The difference whether one is creating a hedged cluster long term community development or a focused cluster for specific industry growth.). 
Large Firm and Start-up Innovation Review

*Remember that theory play isn't necessarily a fact but it does appear to be likely under certain factors.

Giglio, V., et. al. (2025). Cooperation between large companies and start-ups: An overview of the current state of research. European Management Journal, 43 (1). https://www.sciencedirect.com/science/article/pii/S0263237323000919

Ramazan U., Tuluce N. and Aykac, M. (2024) Creative destruction and artificial intelligence: The transformation of industries during the sixth wave. Journal of Economy and Technology, Volume 2, Pages 296-309, ISSN 2949-9488, https://doi.org/10.1016/j.ject.2024.09.004.

Escanaba City Council Regular Meeting Thursday (April 03, 2025): Cost and Benefit Analysis

A discussion that revolved around beautification and cost. As with all entities there are limited resources, and one would want to naturally avoid long term costs. So far, the city has run in the black so they will weigh and balance resources, grants and opportunities. There is benefit to beautification that can have dollar and cents outcomes but where and how much takes some time to ferret out. Of course, finding an additional grant to offset the longer-term maintenance costs as well as fixing up an existing walkway might have some benefits. Maybe one could explore doing the something similar with the walkway that needs work thereby reducing cost for the city while still getting some of the benefits of green learning (scan apps). 

Anways, I thought this was interesting for those who want to know how to do a cost and benefit analysis. Cost and Benefit Analysis

What Firefighters Can Teach Business Executives

What can firefighters teach executives? Well, they can teach about things many business executives wouldn't know unless they were in the service, a fist responder or someone who put themselves in difficult situations to help others. Because firefighters regularly their lives at risk, often without financial support (volunteer and underpaid) to help a greater purpose, they have a track record of developing high functioning teams to best fulfill their missions and reduce risk. They can also teach about essential concepts such as managing stress/EI, taking care of one's physicaal health for peak performance, resolute belief in something greater, and they know who they are serving (stakeholders).

A couple of thoughts came to mind after reading the report below on the skills needed by firefighters. There may be a few things executives can learn to round out their knowledge. There are those who build and those who protect and there is knowledge to be gained from both.

A Number of Things Firefighters can Teach Executives:

-Firefighters work in high stress situations and learn to manage stress while still functioning at their best. Managers who foster their emotional intelligence can better handle stress and work with others consistently.

-Firefighters must create teams and function as a single unit. Executive teams should have focus and work together around those goals. Practice makes perfect.

-Firefighters must stay in good health to work at an optimum. Executives know the body and brain work together so they exercise when it is needed. You can't neglect one if you hope it won't impact the other.

-Fiefighters believe in what they are doing, are internally motivated, stay on task until the fire is out. Hiring people who believe in their work, are committed to finishing the project, and show up everyday is important. Motivated internally driven employees are diamonds.

-Firefighters must be supported by a community and rely on that community for information and performance. Managers should understand their social resources and who they serve. They must learn to manage their organizational environment and serve their stakeholders well. 

Not everything can be learned in a book. Yes, a lot can but not everything. Sometimes having some real life exposure the chaos of challenging situations like firefighting, military, service, first responding, public safety, etc. can help fully develop people. If you haven't seen tough situations and found ways through them it is difficult to know where your essential strengths lay when you must rely on them. Boardroom battles and battling a blaze may be different but you will learn persistence and resilience (i.e. the grit entrepreneurs and students need). Despite challenging situations you can learn overcome.

According to this study, personality, behavior, physical condition, and psychological characteristics can affect firefighter resilience. Organizational and management style also impact performance.  Factors Impacting Firefighter Resilience

*If you want to donate to a great volunteer fire department that supports a large area then message me to the right and I will point you in the right direction. The department is tax deductible so companies with giving funds may consider. I'm always looking for grants and resources because the equiptment needs are expensive. Feel free to contribute!

Access to Justice as a Positive Impact on Economic Development (Theoretical Thought Experiment)

If you have been following along for a few years we are exploring the concept of justice and its impact on various aspects of our social and economic lives. I'm a big-time supporter of justice and believe that it is one of the root foundations of society. A type of sacred responsibility that reaches back to our precivilization histories (A universal truth. Plato had forms as ideal. . Plato Forms A universal truth is deeply embedded into our collective unconscious and is fundamental to all societies. Collective Unconscious. Some might say they are even hardwired into our collective existence. This is deep philosophy.)

Moral Conscious: Sometimes the moral conscious of decision makers could be low and moral arguments hold little weight in encouraging higher standards of justice. This may also be why in our learning example so many victims were created because of clannish based social networks with their own rules, values and beliefs. Those unwritten rules impacted decisions because all information was sorted through a distorted lens. They saw what they wanted to see and revealed their intent and perception.

(The above lens comment means that if we start with a bias based on our own perceptions of life, and lack of ability to see other's perceptions as having merit, we will be like fish in the fish bowl. We can't see out of the fishbowl and may not even know that our lives are consumed by what is in the tiny fish bowl. Information is distorted by that lack of insight and exposure. Sometimes it is innocent based reflecting on the personality and sometimes it is milicious reflecting on the personality. A Theory of Mirrors.)

Social Learning: We could probably bring in arguments of social learning and why it’s important to not reward highly manipulative behaviors that took advantage of the sick, harmed vets, put kids in harm's way and many other outcomes of normalized bullying. If such behaviors are seen as ok in society and/or acceptable against out-group members (dehumanization) then they become normalized (Why there must be checks and balances.). Social Learning Theory

Economic: However, there may also be an economic dollar and cents reasons why institutions must act with integrity and serve a higher purpose. According to this study, access to justice has economic benefits. The formula that calculates access to justice is an interesting one. There is a sizable noticeable impact of when access to justice is restricted and/or allowed. One of the reasons why victims should not be stuck with the bill of perpetrators or decisions made to placate social groups, clans, tribes, politics, etc. Access to Justice and Economic Growth

In our philosophical learning example bullying, aggression, corruption, and retaliation were tools to keep numerous victims quit. Through the power of mass reporting the community (officials and average citizens) used their eyes and ears to expose the network and begin to reap the positive economic upswing (Confounding variables are present but it would appear that justice is an underlining unconscious assumption/truth of the wider society. Maybe/maybe not?) However, justice for all victims was not at first realized and that is a good point to keep looking at in future discussions. 

*This is a hypothetical philosophical thought experiment for learning purposes to explore the nature of society and good governance. Take with a grain of salt and it is ok to disagree.

Unemployment 4.2% adding 228,000 Jobs

A larger than expected hiring upswing and a slight uptick in unemployment. There is a lot of debate because the market is providing different indicators that are somewhat contradictory to each other. Most economists would struggle to understand uncharted territory.

March 2025 Employment

Delta County Board MI of Commissioners Meeting 4/1/2025: Mostly about Airport Managers and Strategic Choice

Delta County is in need of a new skilled airport manager. Executive search firms are often used if one wants to actively reach out to a specialized group that has the credentials needed (In this case licensing with experience.). The committee was presented with a challenge and created two pathways to resolve. Seems as though they rose to the challenge and hopefully their efforts will be fruitful as a high functioning airport encourages tourism, attracts digital nomads, encourages future economic development and creates ease of access to the area for business development. Not to mention locals who would like more options to fly directly to/from Esky.

When faced with strategic challenge one should think of the path with the most likely desired outcomes as well as feasible alternatives in case unknowns occur. Typically, when we try and solve a problem we can explore numerous options and prune back to the best ideas. In this example, you can see they are using the option to hire those they already interviewed as well as providing support for an executive search option. 10 Tips for Overcoming Strategic Challenges

(As a side thought, having the airport display some of the local vacation, work and play fun display and artwork might give a great first impression while helping to brand the town. First impressions count in the resort industry and in the business fieds. Likewise, providing a positive impression as they fly out is also important. Adding to that a little brochure display of natural wonders, interesting places, hotels, history, events, activities would be nice. I have seen places put up a poster with a scan code to the community calendar, interactive map, and important numbers (i.e. roadside assistance, car rental, hospital, public safety, etc.).  Brainstorming....I suspect one could add a tab with available business properties for sale and/or area tourist spots. i. e. park, waterfall, trailhead, etc. Heck have the Historical Society provide a history link to each of these places. Seems silly but it increases the satisfaction of the visit as well as raises per visit spending. Setting up a scan code to a couple of documents like a map is generic easy. Interactive maps might take a little more effort but it isn't that hard from my understanding. I have some friends who could probably do that in a few hours so I'm sure it wouldn't be too difficult to find someone around Esky or online.)

Point Loma Summer Concerts: Concerts Can Enhance Community Value

If you love a warm summer breeze, hourglass sand beaches, cool cocktails over the ocean, then you will probably like living in Point Loma. One of the events the community hosts is the  Point Loma Summer Concerts. . I have attended one in the past with some friends, and we had such a good time spreading our blankets out and listening to the entertainment. Delightfully we had the opportunity to meet some of the neighbors. That is what summers are supposed to be like. Point Loma is a coastal community within San Diego and has its own special family-oriented flavor.  (History of Point Loma)

Sunset Cliffs Photo and Art Product
Sunset Cliffs is in Point Loma
Most profits from this hobby go to charity

You can obtain a copy of the show dates off their website and learn more about the schools and music programs that benefit from the proceeds of the concerts. About Point Loma Summer Concerts

A Few Thoughts on the Value of Concerts/Events in Two Cousin Environments:

A few thoughts on how revenue and quality of life can be enhanced by things like concerts, festivals, community activities and much more. The general idea is if you can improve quality of life, it will then impact a lot of other things like community, labor retention/draw, investment, etc. Exploring the idea of the value that concert, and other venues provide is par for the course in understanding the positive impact fun events can generate for communities. I have been using Point Loma and Escanaba in some of my examples because frankly that is where I hang my hat so its good material.

You can read one study on how they calculated financial value. BOA2025. 

The publishing calculates some of the benefits to having concerts within your community. It provides a methodology and conclusion. Places pay big bucks for consultants when all they need to do is read research studies and see if they can get the data themselves. While it may not be "scientific" it still would have some validity for decision making based on straight forward interpretations. As long as it provides useful information that has been draw in a similar way as other studies you can learn something. Reviewing and conducting studies improves learning and strategic choice because you know where your return on investments is (Why I think businesses should fund research. If you build a road, what type events, what infrastructure, etc.)

In these examples the goals of say Point Loma and Escanaba both may include elements that increase tourism, raise funds for some cause, or improve the quality of life within their localities. Each community may have a strategic informal or formal plan they use to align their collective behaviors. Further, if the goal was to attract tourists you will display the event and advertise in one medium while if the goal is to attract entrepreneur-tourist interests you may do it another way. Further, if a goal is simple community building, then you may also include kid activities, fun games for prizes or other "get to know your neighbor" add ons.

How much effort and where one is willing to place the expenditures is going to determine if you are going to do more community building, more tourism, or something in between (I think this is very possible to hit a few markets at once.). As a mature and upscale area Point Loma may be more community oriented with a eye on tourism for local businesses. Escanaba with a different need might be attracting tourists (i.e. revenue) and entrepreneurs (business community growth that leads to greater long-term revenue). I'm just sort of sticking my finger in the wind guessing to highlight the point.

(For example, a small budding hot spot like Escanaba that seeks to build up its downtown may consider attracting a conference focused on bringing entrepreneurs and then coordinating activities to keep them engaged with the community through something like a music venue. Ensuring potential business owner leaves with a pretty good idea of the price, costs, financing, zoning, grants, etc. might tip the scales to keeping some. The point being is that music can be focused on the community but also have other purposes as an experience enhancer. This is why some of my research thinks about the social and business side of economic health.)

To determine how much benefit such music events offer to places like Point Loma or another cousin community in the UP like Escanaba we would need to determine economic impact on things like businesses, branding, restaurant, hotels, and community sentiment. For those focused on economic growth, it might be more income/expense down a chain of financial transactions that determine net gain. For community building such events they might use a survey of resident pride, community engagement, etc. You can read this little article on Calculating the Benefits of Festivals. 

This is a slightly older video but looks like so much fun! Their website indicates they are open to sponsorships. I heard that you could sponsor a porta potty (not kidding). Individual sponsorship is as low as $150 and moves up from there. Each level has its own benefits. i.e. like I would like a sweatshirt and a good evening out with friends. Sponsor Point Loma Concerts 

(BTW Escanaba will be having a log jam music festival if your looking for a place to vacation.)