Conceptualizing the Kentucky Horse Industry as an Economic Cluster

Research suggests that Kentucky’s horse industry represents what Harvard Business School economist Michael Porter calls an economic cluster.
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“A critical challenge for all U.S. regions is to determine their competitive advantage in the global economy, and industry clusters are a key vehicle for describing, understanding, and enhancing sources of regional competitiveness. In turn, the pressure on a region to continually improve the competitive position of its firms is unrelenting.” Goetz, 2004:2


In late July 2009 an older gentleman saw the logo on my shirt and asked me about UK’s Equine Initiative. I briefly described the mission of the Initiative, and he said that he was in the Thoroughbred business, as were several other members of his family.

As I turned to leave, he stopped me cold with the following comment: “Are we going to lose it?”

I must have looked puzzled, because he said, “You know, all the Thoroughbreds. Many of my clients took their mares to Pennsylvania and other places. It’s not just me. Most everyone I know is having problems

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