Economic Strategy KPIs
How can regions achieve economic growth by identifying and strengthening industries where they hold a competitive advantage? By understanding the interconnections between sectors, innovation ecosystems, and export performance, cities can develop strategies that enhance wages, expand job opportunities, and support long-term prosperity. This module of key performance indicators (KPIs) addresses how to diversify economic activity while targeting high-value industries that align with a region’s unique strengths.
Economic Strategy KPI
Definition
The Industry Connections Network illustrates how sub-industries are interrelated through shared capabilities, co-location, and sectoral overlap. It captures the territorial story of an economic system by revealing how local industries interact, cluster, and integrate. This network visualizes aggregated sub-industries, each mapped to a 6-digit NAICS code. This level of aggregation allows for a strategic view of how economic activity is structured across cities in the metro region. Industries with many connections tend to anchor supply chains or enable cross-sector innovation, while more isolated industries may offer specialized or emerging capabilities with limited integration.
The Industry Landscape Overview maps where industries are located and how many businesses and professionals operate in each sector. Explore major industry categories to see their regional presence, or click on a business for details like its specialization, innovation level, and assets. This tool helps identify economic hotspots and emerging opportunities.
Advanced Industry Specialization measures how advanced a product or service is based on the knowledge, skills, and technology required by the business to produce it. Businesses with high product complexity are often industry leaders, driving technological advancement and capturing competitive market advantages. By producing complex products, regions can attract research and development investment, enhance innovation ecosystems, and strengthen global competitiveness.
Industry Growth Readiness measures how close a region is to developing a new product or service, based on its existing portfolio of knowledge and capabilities. High density suggests that regions are well-positioned to expand into adjacent industries, leveraging existing expertise to unlock new opportunities. By increasing product density, regions can accelerate economic diversification, foster innovation, and strengthen resilience against market changes.
The Industry Competitiveness Score measures the relative strength of a municipality or region in a specific industry. It compares the share of exports in a region’s economy to the global share of exports in the same industry. RCA is essential for identifying competitive strengths, targeting value chain improvements, and prioritizing investments to enhance economic performance. By improving PCI, critical mass, and value chain integration, regions can achieve higher RCA scores, positioning themselves for greater global influence and economic growth.
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