BIS Review 145/2008  3  only a modest fraction of small business – 5 percent in October – although this is up from 2 percent last March. However, this modest level of concern may, in part, reflect the dominance of other factors, such as weak demand conditions, a topic to which I will return shortly.
Some built on traditional strengths, while others created new business clusters from scratch. For example, Grand Rapids, Michigan, was once known for its furniture manufacturing. As those jobs disappeared, Grand Rapids worked to become a major medical center in the region, partnering with Michigan State University and Grand Valley State University to form the Medical Education and Research Center.