Green Clusters and the Entrepreneurial Local Government: Portland’s Economic Development Strategy

This chapter analyzes the role of the local government in green cluster formations and city development strategies for the transition to a Green Urban Economy. Firstly, it examines the fundamentals of the urban economy including agglomeration economies but more specifically cluster formations as key aspects of an urban economy’s competitiveness. It then applies these concepts to the development of green clusters as key growth sectors in the urban economy whereby cities can avail of the new business opportunities that become available as a result of increasing investments in green products and services, environmental technologies etc. Through this transition it is envisaged that a gradual shift from carbon intensive activities in favor of more environmentally sustainable economic activities will gradually come to characterize urban economies. This will ensure that cities remain competitive in the global economy by capturing market share in smart and green growth sectors. Furthermore, this chapter assesses the role of entrepreneurial local governments in creating the necessary conditions to foster green cluster development and attract green and smart growth sector investment, particularly through City Development Strategies. Finally, this chapter analyzes Portland’s Economic Development Strategy as an example of how local governments can lead urban development strategies, and pursue sustainability and green cluster development as a key economic growth strategy.