ABSTRACT

In December 2003 Harvard Business School professor Michael Porter unveiled a new economic development strategy for the state of South Carolina, akin to dozens prepared for regions across the world. In the presentation and a related report, Porter (in conjunction with the Monitor Group, a consultancy) asserted that “South Carolina has pursued a low-cost economic strategy, emphasizing its abundant and flexible workforce, good physical infrastructure, and responsive government in order to attract manufacturing operations” (South Carolina Council on Competitiveness 2005). Porter’s central thesis was that the traditional approach to economic development was wrong. In turn, he challenged South Carolina to reassess and overhaul economic development policy, and to promote the role of clusters in raising regional productivity and innovative capacity. Passionately and persuasively, he championed his alternative approach to regional economic development. A new private-sector group, the Council on Competitiveness (renamed “New Carolina”), was launched to activate and oversee the strategy, similar to other groups formed around the world in the wake of cluster studies.