Revised 9/9/2012
Industrial Corridors: A Marketing Device, Dynamic Economic Regions, or Both??

Lay James Gibson, University of Arizona, Tucson USA ljgibson@ag.arizona.edu
Jaewon Lim, University of Nevada, Las Vegas, Las Vegas, USA, jaewon.lim@unlv.edu
Vera Pavlakovich-Kochi, University of Arizona, Tucson USA vkp@email.arizona.edu

ABSTRACT. The answer to the question raised in the title of this paper is, of course, both. In
this paper we explore the several values of an overused term "industrial corridor." We find thateven though this term is frequently and often carelessly used it has real value for understanding
marketing potentials and economic complexities in a specified area. As a marketing device it
contributes to "reputation" and "buzz" and when qualified by terms such as "technology" it canhelp brand an area. When used to describe a dynamic economic region the notion of a corridor
suggests a place where firms of a similar type will locate, where linked firms might locate,
where there is an emphasis on development of appropriate transport, energy, and otherinfrastructure and where intra-corridor networking is a fact of everyday life. In this paper weevaluate the place of corridors in the literature of regional science and in the applied science ofregional economic development. To bring focus to the discussion we will draw upon theexample of the Tucson Technology Corridor.

Key Words. Corridor, Technology Corridor, Industrial Corridor, Branding, Buzz, Reputation,
Networking, and Local Economic Development

1Overview
This paper is being prepared to inform both economic development practitioner andscientific audiences. Our focus is on industrial corridors and on their "close relatives,"
industrial and technology districts. Initially, we will look at the corridor concept ingeneral. Subsequent discussion will zero in on a detailed examination of the workings ofjust one corridor – the Tucson Technology Corridor. The use of the term "industrial
corridor" is certainly not novel. An internet search for this term produces close to four
millions records. Even when the search is narrowed to cover just industrial corridors in
the U.S. the number of references is enormous. A search for technology corridor
produces even larger number of records: more than sixteen millions.

Industrial and/or

technology corridors may be one of the most overused terms in regional science andeconomic development. Still, it is a term of substantial value when engaging in amarketing campaign or when describing an area for scientific analysis. In this paper wewill look at corridors and districts both from the perspective of someone interested inselling real estate or in promoting the location of new economic activity and as termswith an established history in the literature of regional growth and development.

Corridors and Economic Development
The term “industrial district” was used by Marshall (1891) to describe areas ofconcentrated industrial activity within urban areas. He observed that co-location of
establishments brings certain benefits to all through access to material inputs and labor,
and encourages specialization through interaction and competition. A hundred years
later, the Marshallian industrial district was reinvigorated by the experience ofspecialized industrial areas, such as in northern Italy and a concept of a “new industrial2

district” (NID) was born (Harrison, 1992; Markusen, 1996). At about the same time, a
related concept of “industry cluster” emerged both in theoretical and applied field as
evidenced by frequency of published articles in leading journals such as Economic
Geography, Entrepreneurship and Regional Development, Growth and Change,
International, Journal of Urban and Regional Research, Research Policy, and Economic
Development Quarterly. While related, the two concepts “district’ and “cluster” also differ.
Widely promoted by Porter’s writings (1998, 2000) and consulting work, industry clusteremphasizedthemultidirectional

relationships

between

firms(suppliers-buyers;competitors-collaborators; core activity-outsourced activity), which not necessarily had
to be in close proximity, although co-location has been one of the main characteristics.
Industry district, on the other side, is primarily associated with co-location of firms that
do not necessarily have to have strong firm-to-firm relationships, although their colocation allows them to take advantage of labor supply and other cost-reducing services
provided within the district. Whereas the debate of what exactly constitutes “district” andwhat constitutes “cluster” continues, it appears that in the economic development
practice industry cluster has been more favorable both as an analytical anddevelopment tool.

Economic development professionals seem to have a special affinity for the term
corridor, probably because it suggests a fairly cohesive area that is proximate to a rail orhighway transportation network. As a marketing device the term corridor suggests a
coherent area that is linked to markets and to sources of material inputs. It alsosuggests an area that can or will develop a reputation for industry in general or inindustry of a particular type, e.g., heavy industry, high tech industry, logistics, financial
services or other types of producer or consumer goods. The notion of reputation is an
old one and today is sometimes referred to as "buzz." Whereas there is some difference
between reputation and buzz, both play an important role as incentive mechanism inimage building and marketing (Tadelis 2002; Glucker, 2007). Reputation is moreassociated with trust and belief that a firm, business activity or district/cluster can dowhat is expected to be done (Cabral, 2005). Buzz, on the other hand, is moreassociated with perceived or real business opportunities (Storper, xxxx).
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In any case, the term corridor is useful for branding an area that is especially well suited
for a specific form of economic activity or perhaps even a collection of compatible
activities.

Examples of corridors are found throughout the United States and elsewhere in theworld too. Route 128 in Boston is one of the original high tech corridors and is still oneof the best known (Rosegrat and Lampe, 1993). In the Western US the term has beenused to describe industrial growth along the Front Range of Colorado in the area from
Pueblo on the South to Colorado Springs, Denver, and then Fort Collins to the North,known as the Convergence Corridor (Office of the Governor, 2000). In New Mexico the
Rio Grande Corridor runs from Las Cruces North to Santa Fe and the Las Alamos
National Laboratory (Santa Fe Institute, 2008). In Arizona the Sun Corridor connects
Flagstaff, Phoenix, and Tucson and a university is located in each of these places(Morrison Institute, 2008). The extent to which corridors are defined in local terms andfor local economic development purposes is illustrated by the Technology Corridor
Economic Development Marketing Plan Presented to the I-10 Corridor Steering
Committee in 2008 by Angelou Economics (2008). The Angelou study covers a muchsmaller and perhaps less important stretch of I-10 than the Phoenix-Tucson piece of I10 corridor.
Corridors occur at a variety of geographic scales. Colorado's Convergence Corridor iscertainly a macro corridor as is Arizona's Sun Corridor. Tucson may be a critical nodein the Sun Corridor but within its metropolitan limits it has several competing micro
corridors. Corridors may be defined by "local option," and the term might even be4

contested by local interests but when the term is used it usually suggests that the area
being referenced is appropriate for economic development, that the area has usefultransportation infrastructure, that energy is available, and that other urbanization
amenities (water, sewer, solid waste disposal) are either in place or might easily be put
in place.

Competing Corridors
Tucson, Arizona is certainly one of the places where multiple corridors struggle to berecognized. Indeed, some local interests might even argue that their corridor is the onetrue corridor and as such is entitled to enjoy a monopoly on the term. In Tucson
arguments have been mounted to recognize at least six micro-corridors within themetropolitan area:

1. The Airport Corridor
This is an industrial corridor running from the urban core and the University of
Arizona South to the Tucson International Airport.
2. The Oro Valley Corridor
This is North of Tucson's urban core in the legally incorporated City of Oro Valley;
it includes two well-known biotech firms.
3. The CBD (central business district) Corridor.
This corridor is a linear commercial zone running from Tucson's original
downtown, through the University of Arizona to Tucson's far East Side.
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4. The University of Arizona Corridor.
This corridor runs from the University's main campus and the Medical School
South to the University's new Biopark and then Southwest to the University's
Science and Technology Park.
5. The Bio Corridor
This corridor would connect the University of Arizona Corridor to the Oro Valley
Corridor.
6. The Tucson Technology Corridor
This corridor is described by a fairly tight envelope running from the Southeast
portion of central Tucson to the far Southeast reaches of the Metro area andparallel to the Southern Pacific Railroad and the Interstate 10 Freeway; theTucson Technology Corridor is anchored by the University of Arizona's Scienceand Technology Park near its Southeast extremity.

Additionally Tucson is proximate to three other corridors. The I-19 Corridor which runs
at least from Nogales and Sonora Mexico on the South and to Tucson or even Phoenix
on the North;

the Sierra Vista Corridor which runs from Southeastern Arizona with its

focus on the military and borderlands security to Tucson; and finally the Sun Corridor
which is described in the discussion of Corridors and Economic Development.
The first six corridors might be thought of as micro or intra-metropolitan corridors
whereas the final three could be thought of as macro scale corridors inasmuch as theyreach well beyond the limits of the Tucson metro area. It would not be surprising to find6

that any of these nine corridors are, at some time or another, championed by real estateinterests or by local and regional economic development organizations.

Focusing on the Tucson Technology Corridor
Studies of industrial districts, zones, or corridors can be historical, contemporary, or
anticipatory. Studies of industrial areas such as garment districts, meat packing areas,or light or heavy industry zones reveal the roles of localization and urbanization
amenities which supported the establishment of the district. Similarly studies of a city's
central business district can point to the role played by anchor stores in thedevelopment of retail activity in the CBD. In all cases these sorts of understandings of
how landscapes function can provide useful clues about area potentials and can provide
suggestions on how areas can be modified or enhanced to increase their attractivenessto existing and new industries.

Site and Situation
With a current population of one million people the Tucson metro area has been among
the fastest growing communities in the US during the past several decades.

A

subregion which has the potential to both drive new growth and benefit from theurbanization amenities that are supported by a moderately large population center is the
Tucson Technology Corridor. The Tech Corridor enjoys close proximity to Downtown
Tucson, to the University of Arizona and its new Biopark, the Tucson International
Airport and several of the Metro Area's major employers. It also has ready access to7

the area’s employment base and to the urbanization amenities associated with a major
metro area. (Figure 1)

Figure 1. Regional Areal Map

Source: Tucson Technology Corridor Webpage (http://tucsontechnologycorridor.com/index.html)

The Tech Corridor is centered on the 10 Interstate Freeway (I 10) and the parallel
Southern Pacific railroad (SP).

Both the I-10 and the SP are part of the Nation'stranscontinental highway and railroad systems. More locally the I-10 ties Tucson to
Phoenix some 100 miles to the Northwest and to Mexico approximately 60 miles to theSouth via I-19. The Corridor has abundant vacant industrial land and a number ofavailable industrial buildings. The Corridor's primary technology anchor is the University8

of Arizona's Science and Technology Park; Tech Park is a large and prestigious
installation which substantially enhances the Technology Corridors reputation andcertainly promotes "buzz." (Figure 2)

Figure 2. Regional Map

Source: Tucson Technology Corridor Webpage (http://tucsontechnologycorridor.com/index.html)

Corridor Content. The Tucson Technology Corridor covers an estimated 16,100 acres
much of which is vacant. Approximately two-thirds of the total area is within the Tucson
City Limits; the remainder is in Pima County. (Table 1)9Table 1. Jurisdictional Share of Total Area in Tucson Technology Corridor

Source: Analysis using ArcGIS by Authors

One-third of the total area is permitted for business or industry (5,800 acres) and a bit
more than one-half on the acreage (8,700 acres) is permitted for various types ofresidential use. An estimated 10.0% of the area has no permitted use, is used fortransport right-of-ways, or is designated for various mixed uses. (Table 2)

Table 2. Jurisdictional Share of Total Area in Tucson Technology Corridor

Row Labels
Industrial
Single Family Residence
Rural Homestead
PAD
Suburban Homestead
Rural Residence
Commercial & Business
Mobile Home
Multi Faimly Residence
Specific Plan
Mixed Dwelling
Transitional
Unclassified
Suburban Ranch
High Density Residence
Recreational Vehicle Zone
Grand Total

Area (sq ft)
228930207.6
214904938.7
52713350.0
47787800.0
46440204.0
23995049.6
23166430.5
18057060.5
10387221.2
10007560.0
9695930.08539585.0
2834991.7
1499418.0
916215.042023.9699917985.7

Source: Analysis using ArcGIS by Authors

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Share of Total Area (%)
32.71%
30.70%
7.53%
6.83%
6.64%
3.43%
3.31%
2.58%
1.48%
1.43%
1.39%
1.22%
0.41%
0.21%
0.13%
0.01%
100.00%

The largest single entity within the Corridor is the University of Arizona's Science andTechnology Park. The Park occupies approximately 1,345 acres; this acreage is carved
out of the 5,400 areas of Pima County within the Corridor. Inasmuch as the Park isState (of Arizona) land it is not subject to County permitting regulations.

Field Survey. A field survey of the Tucson Technology Corridor by the authors in April,2012 identified 153 establishments at the NAICS (North American Industrial
Classification System) two digit level including 37 establishments in the University of
Arizona's Science and Technology Park.

Of the 19 different industry types in the

Corridor the most commonly occurring are wholesale trade (promoted by the Interstate
Highway and the Southern Pacific Railroad), retail trade (especially concentrated
around Freeway exists), and manufacturing (encouraged by the Corridor's permitted
land uses). The Industrial Composition of Establishments is described in Table 3 wheredata are arrayed by number of establishments at the two digit NAICS level.
Whereas the corridor has the feel of an area committed to light and even heavy industry
over one-half of it is permitted for residential uses. Existing residential uses are variedin terms of housing type and in terms of price-point. Mobile homes, conventional single
family homes, and multifamily units are all in the Corridor.

The quality of housing

ranges from substandard to high quality "middle class" production housing.

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Table 3. Industrial Composition of Businesses within Tucson Technology Corridor (2-digit NAICS)
Rank

NAICS (2digit)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

Companies

Employee

Share(companies)

56

8

2559

5.2%

33
51

14
8

2437
1601

9.2%
5.2%

49
42

5
25

518
337

3.3%
16.3%

48
31
44

7
2
16

327
255
236

4.6%
1.3%
10.5%

54
32
81
23
61

10
7
12
9
4

184
180
165
150
83

6.5%
4.6%
7.8%
5.9%
2.6%

71

3

75

2.0%

72

9

65

5.9%

53
22
92

5
6
2

25
17
8

3.3%
3.9%
1.3%

62
Grand
Total

1

2

0.7%

153

9224

100.0%

Share(employees)

Description

Administrative and Support
27.7% and Waste Management
and Remediation Services
26.4% Manufacturing
17.4% Information
Transportation &5.6% Warehousing
3.7% Wholesale Trade
Transportation &3.5% Warehousing
2.8% Manufacturing
2.6% Retail Trade
Professional, Scientific &2.0% Technical Services
2.0% Manufacturing
1.8% Other Services
1.6% Construction
0.9% Educational Services
Arts, Entertainment &0.8% Recreation
Accommodation & Food
0.7% Services
Real Estate Rental and
0.3% Leasing
0.2% Utilities
0.1% Public Administration
Health Care and Social
0.0% Assistance
100.0%

Source: Field Survey 2012 by Authors

Employment. There are an estimated 9,224 employees in the Technology Corridor; amajority of these employees are in the University of Arizona Science and Technology
Park. Over two-thirds of all employees are in a handful of establishments and in justthree NAICS categories: Manufacturing, Information (processing), and Administrative(and Support and Waste Management and Remediation Services).
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Data onemployment are arrayed at the two digit NAICS level in Table 3 (Industrial Compositionof Establishments).

Agglomeration Benefits
The notion of social agglomeration dates at least back to Alfred Weber. Subsequentdiscussions have differentiated between localization benefits and urbanization benefits.
This distinction is certainly useful when exploring the advantages of locating in anindustrial corridor and of locating in a large metropolitan center. The benefits of suchlocations are often implicit but even when they are not they can be created andrecognized by local economic development managers.

Localization Benefits
Rail Access and Freight Forwarding. The Southern Pacific Railroad has rail-oriented
warehousing and freight handling facilities that could be accessed by Tech Corridor
Tenants.

Interstate Access. The Interstate 10 Freeway has four access points within the corridor;
sufficient warehouse and industrial space has dock-high access for trucks.

Existing Industrial Buildings. There is an inventory of existing industrial space.

Shared Concerns Lobbying Potential. The Tech Corridor defines a space where there
is a common concern with preserving industrial uses. Tenants, land owners, and real13

estate interests have a shared interest in preserving permitted uses whichaccommodate industry of a variety of types and of assuring the availability of energy,
water, waste, and sewage services and other public goods which support industrial
activity.

Inter-firm Linkages. The industrial Corridor has good potential for accommodating thelocations of firms which provide material inputs or producer goods for tenant firms.

Buzz, Reputation, and Branding. Reputation is a well-established term in the industrial
real estate community; it refers to the enhanced marketability of a well know and highly
regarded industrial area. More recently, Storper (??) and others have introduced theterm buzz which seems to be used in essentially the same way as reputation. Anotherterm is branding which implies that a certain term, e.g., Tucson Industrial Corridor iseasily and quickly recognizable. All three of these terms suggest that value is added toan area which generates buzz, which had a good reputation, and which is a recognizedbrand.

High Cache Anchor.

The reputation of a corridor will certainly be enhanced if thecorridor has a high cache anchor. The anchor might be a highly respected firm. In thecase of the Tucson Technology Cluster, it is the University of Arizona's Science andTechnology Park. The Tech Park is a large, attractive and professionally developed
facility with three blue-chip tenants. The park's owner in the University of Arizona which
is a world-class research university and one of the Nation's top 20 research universities.

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Infrastructure. Well-developed corridors offer existing and future tenants developed
infrastructure.

This is certainly the case with the Tucson Industrial Corridor which

offers rail and Interstate Highway access as noted above but also energy infrastructure(electric and natural gas), sewer, water, and solid waste disposal. The corridor alsooffers limited access to consumer goods such as food and beverage which are available
to day-time populations including Tech Corridor employees and travelers on theInterstate Highway.

Urbanization Benefits
The Tucson Technology Corridor certainly benefits from being located in a metropolitan
area which provides the variety of benefits that one typically associates with a large
urban center; Tucson population is in excess of one million people.

Air Service. Tucson International Airport is a large facility with more than 60 daily
departures. It is served by the largest US carriers. It serves both passengers and air
cargo.

Producer Goods and Services. Tucson offers the range if producer services which one
might expect in a city of its size.

Further, it enjoys good access to Phoenix, Los

Angeles and other centers which offer a competitive variety of goods not offered in
Tucson.

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Consumer Goods and Services. As is the case with producer goods and services
Tucson offers a variety of consumer goods in terms of brand selection and price point.

Education and Training. Tucson offers the expected opportunities for public and private
education and training.

Especially noteworthy are Pima Community college which

offers a host of training programs and an important "national research university"--theUniversity of Arizona.

Summary

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