GSPED Recognizes E-Learning as New Arizona Industry Cluster
Phoenix- May 9, 2002 The Governor's Strategic Partnership for Economic Development (GSPED) formally recognized the State of Arizona's twelve industry cluster, E-Learning, on May 9, 2002. The implementing organization for the cluster is the Globalized E-Learning Association, Inc. (GAZEL), headed by Ted Kraver, Ph.D., which grew from earlier efforts by the Arizona Telecommunications and Information Council (ATIC), the telecommunications infrastructure foundation under GSPED.

Formed a decade ago, the mission of GSPED is to increase the competitiveness of the State of Arizona's economy through the identification and development of industry clusters, geographic concentrations of interdependent firms that do business with each other. Each industry cluster includes primary companies that sell products and services inside and outside the state and the support firms that supply the raw materials, components and business services that enable them to do so.

Clusters are powerful magnets for interdependent businesses to locate in an area and potent spawning grounds for start-up companies. They create large, diverse pools of experienced workers; attract suppliers who tend to congregate in their vicinity for increased efficiency; and foster a competitive spirit that stimulates growth and innovative strategic alliances. California's Silicon Valley, Massachusetts Route 28, and the North Carolina Research Triangle are well known examples of highly developed cluster-based economies.

To qualify as an Arizona cluster, an industry must meet four criteria:

1. The companies comprising the cluster are export oriented, i.e., they bring in new money to the State and region(s) in which they have operations.
   
   
2. A value supply chain is in place to support the cluster.
   
   
3. An above-national-average (i.e., critical mass) concentration of companies or an above-national-average rate of growth (both in terms of numbers and size) exists in the region(s) identified for recognition.
   
   
4. A not-for-profit organization is in place (including a board, articles of incorporation, by-laws, etc.) that properly represents the cluster area of activity and can effectively administer it.
   
   

The most compelling data for recognizing E-Learning as an Arizona industry cluster is the documented evidence for criterion C. GSPED Chair Diane Bishop said, "With University of Phoenix Online as the Arizona revenue flagship, Arizona [E-learning] enterprises deliver from a minimum of $500 million to a maximum of $1 billion of annual revenues. With approximately 6% of the national revenues, our state, with 1.7% of the US population, has over 3 times the national average of E-learning enterprise revenues per capita." Clearly, E-Learning is a major factor in the economic future of Arizona.

Other companies in the E-Learning cluster include KnowledgeNet, Cisco Learning Academy, SmartForce, Corpedia, Pearson Education Technologies, EDT Learning, and the Air Force Research Laboratory at Gateway Airpark.

Arizona is nationally recognized as a pioneer in cluster-based economic development. E-Learning is the 12th Arizona cluster recognized by GSPED since its inception in 1992. The other Clusters are: Bioindustry; Environmental Technology; Food, Fiber & Natural Products; High Technology; Minerals & Mining; Optics; Plastics & Advanced Composite Materials; Senior Industries Development; Software & Information Technology; Tourism; and Transportation & Distribution.

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Contact: Mark Goldstein, Secretary, Governor's Strategic Partnership for Economic Development (GSPED), Voice & Fax: 602-470-0389, markg@researchedge.com