Using Proprietary Databases to Overcome Data Suppression in Industry Cluster Analysis

Extension agents are frequently tasked with determining industry clusters that exist in a region to support economic development. However, data suppression issues recurrently prohibit a comprehensive understanding of heavily concentrated firms in a region, particularly in rural areas. This article discusses the use of North American Industry Classification System codes within the LexisNexis Academic database as a technique for locating data about specific firms and analyzing regional industry clusters. This approach provides a practical and cost-efficient method for Extension agents and other researchers and practitioners to identify clusters and gather firm information in small geographies throughout the United States.