Creating a Plug-In Electric Vehicle Industry Cluster in Michigan: Prospects and Policy Options

Introduction 304 I. The History of Cluster Research and Theory 305 A. Cluster Analysis: Synthesis and Application Literature ......... 306 B. Cluster Mapping Projects 308 II. Will the Electric Vehicle Industry Cluster? 309 A. Why Do Industries Cluster? 309 B. Why Did the U.S. Auto Industry Cluster in Detroit? 311 C. Will the Electric Vehicle Industry Cluster? 316 III. What Are the Drivers of Successful Clusters? 319 A. Presence of Functioning Networks and Partnerships 320 B. Strong Innovation Base, Supporting R&D Activities when Appropriate 323 C. Strong Skills Base 324 D. Presence of Large Firms 327 E. Entrepreneurship: New Firm Formation and Firm-Building 328 F. Financing 329 G. Sophisticated Local Demand 330 H. Timing of Value Chain Development 331 IV. Policy Actions that Effectively Support Clusters 332 A. Factor Creation Policies 333 B. Demand-Side Policies 336 C. Policies to Improve the Context for Firm Strategy and Rivalry 338 D. Policies to Foster Related and Supporting Industries 339 V. Recommendations 341