What are business clusters? Oregon defines clusters as groups of companies that interact based on systemic relationships among firms and organizations in a region. These relationships are based on common or complementary products, production processes, core technologies, natural resource requirements, skill requirements and/or distribution channels. Clusters are geographically bound and defined by transportation systems, and are linked to the social and cultural values of their communities. Sectors are generally known as those businesses whose operations can be categorized functionally, such as manufacturing. Industries such as metals, food processing, plastics, wood products can all share a sector, such as manufacturing, between them. Where are clusters located? Business clusters are located all around the state and can be small or large. The size of the business is irrelevant—clusters can be composed of all sizes of companies. Why are clusters important? Cluster and sector strategies build on existing economic development efforts and strengthen Oregon's economy by clearly defining needs. These strategies enable the state to provide a more comprehensive and coordinated package of services to businesses. State agencies can provide better service by: Linking workforce and economic development policy Providing important coordination mechanisms for training Regulatory and product development efforts Resources: Cluster questions for practitioners in the field Cluster Roundtable Process guide (PDF) Building a Successful Workforce Consortia, A Guide for Practitioners; 34 pg PDF Identified clusters Business Services (creative and design services, architecture, etc) Wood/Other Forest Products Bio-tech/Medical Products (medical equipment, pharmaceuticals mfg.) Electronic and Advanced Materials (semiconductor, electronic mfg., etc) Logistics and Distribution (transportation service providers, warehousing, storage services, etc) Processed Food and Beverage Products Agricultural Products (crop production, livestock) Metals and Machinery Transportation Equipment and Parts Information Technology (software publishers, telecommunications companies, internet service providers) Apparel, Sporting Goods Design and Manufacturing Communication Equipment (computer equipment mfg., audio/video mfg., magnetic/optic mfg.) Major Industries & Trends (PDF)