For example, one state includes firms in certain plastics and wood industries in its jewelry cluster since they were identified as important suppliers to the jewelry making industry. Other states group industries based on labor, energy, and transportation requirements as well as common technologies and workforce skills. One state has identified 45 specific industries, which are divided into three tiers based on likelihood of success. The 15 industries with the greatest likelihood of success are the targets of the economic development department's business attraction efforts. In addition to identifying industry clusters, researchers also employ a variety of criteria to identify key industries.
Every state looks at an industry's total employment and share of state employment.
Many states also look at wages and industry output. Some states focus on industries they believe have the greatest growth potential and have developed various techniques to measure and predict growth. Researchers in some states try to identify and promote or attract industries whose needs match the states' comparative advantage in areas such as energy availability and price, transportation and communication networks, and labor skills and costs. A couple of research directors said their states try to take stock of their specific labor skills and technologies and then focus attraction efforts on industries that require or complement these skills and technologies. Other states, however, simply want high-tech industries.