ABSTRACT
Industry targeting is the process of focusing industrial development programmes and efforts on specific industries or clusters of related industries. The principal objectives of an industry targeting programme are to identify (1) industries that have a high potential for locating or developing in the area and (2) industries that provide attractive local economic development impacts in terms of future job growth, wages paid, and contributions to the local tax base. A targeting approach enables communities to focus their recruitment, retention and expansion, and small business development programmes rather than provide assistance for many different industry types. Thus, targeting permits a more efficient use of the community’s limited economic development resources. This chapter provides an overview of the industry targeting approach developed and used by the Regional Economic Development Research Laboratory (REDRL) of Clemson University. This approach focuses on identifying industry clusters with (1) a high potential for prospering in the study area and (2) significant positive economic impacts on the local economy. The discussion of the REDRL targeting methodology is organized as follows. First, we summarize the advantages and disadvantages of targeting industry clusters as an economic development strategy. Second, we present the screening method for identifying industry clusters and the clusters’ value chains. Third, we rank the clusters on the basis of potential impacts on the local economy. The REDRL cluster targeting method was used for the South Carolina secondary wood products (Lamie et al. 1997) and food and fibre industries (Wright et al. 1998), and for manufacturing industries in Anderson County (Barkley et al. 1998), Lancaster County (Barkley et al. 2002), and Florence County (Barkley et al. 2006).
