cluster basics: introduction to the cluster concept

Clusters 101

Jyväskylä, 13 October 2009

Clusters 101: an introduction to cluster basics

Alberto Pezzi

Head of Analysis and Foresight Unit Observatory for Industrial Foresight Department of Innovation, Universities and Enterprise - Generalitat de Catalunya

Secretary and member of the Board of Directors – TCI-network

Index

An introduction to cluster concept

Clusters and cluster-based competitiveness reinforcement initiatives

Basics of cluster-based reinforcement initiatives

Index


Bologna, XV century

Jewelry street

Shoe-makers street

Silk-makers street

Main industrial districts in Emilia-Romagna (Italy)

> 1.000 mil.

500-1.000 mil.

< 500 mil

oltre 1000

100-1000

fino a 100

BOLOGNAMotocicletasCARPI

Genero de punto

FUSIGNANOcalzado

FORLÌMueble tapizado

SAN MAURO P.calzado

MIRANDOLABiomédica

REGGIO EMILIAMaquinaria agrícola

SASSUOLOAzulejos

PARMAAgroalimentario

PIACENZAMaquina herramienta

RIMINIMaquinaria parala madera

BOLOGNAMaquinaria packaging

FAENZA-IMOLACerámica

PARMACarnica

RIMINI-RICCIONETurismo playa

RAVENNAquímica

CESENAAgroalimentario

FAENZA-LUGOConservas de fruta

RAVENNAPlantas off-shore

Facturación deldistrito(‘000 €)

Numero de empresas

> 1.000

500-1.000

< 500

> 1000

100-1000

< 100

Fuentes: CENSIS, 1998, CLUB DEI DISTRETTI INDUSTRIALI, CLUSTER COMPETITIVENESS, análisis propia

Cluster-based competitiveness reinforcement initiatives

Leather tanning workshops in Igualada (Barcelona) begin XVIII century

Source: J. Nadal, Atlas de la Industrialización en España 1750-2000, Barcelona 2003


Leather tanning workshops in Igualada: XVIII century and today

Source: J. Nadal, Atlas de la Industrialización en España

1750-2000, Barcelona 2003Source: Googlemap.

T. Megia, Infforme situació sector cluster pell a Igualada

Informe intern del OPI-SIE

Internal report – not published

Geographic concentration / localized systems of enterprises

“concentration of many small factories specializing in the different phases of the same production process, which and operated at in one location or at in a cluster of locations” (A. Marshall, 1890)

“entità socio-territoriale caratterizzata dalla compresenza attiva, in un’area territoriale circoscritta, naturalisticamente e storicamente determinata, di una comunità di persone e di una popolazione di

imprese industriali” (G. Becattini, 2000)

“A cluster is a geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementarities” (M. E. Porter, On Competition,

1998)

Footwear industry

Raw materials

(recolectors)

Leather tanners

Fontanellas i Marti

Vidal Bosch

Curtidos Badia

Apparel industry

Goes SA

Torras SA

(...)

Chemical

products

Cleaning and

tanning

Adovinbe

Warehouse

Buyers

Associations

Unió d’adobadors

CEC-FECUR

Gremi de Blanquers

Technological

Centres

AIICA

S

L

A

U

G

H

T

E

R

H

O

U

S

E

S

Other end-users

• Proximity• Networking• Specialization

Index



Clusters

“Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, firms in related industries, and associated institutions in

particular fields that compete but also cooperate”

Michael E. Porter in On Competition (1998).

Cluster Initiatives

“Cluster initiatives are organised efforts to increase the growth and competitiveness of clusters within a region, involving cluster firms, government and/or the research

community”

Örjan Sölvell, Göran Lindqvist & Christian Ketels in The Cluster Initiative Greenbook (2003).

“Cluster Policy”

Policies directed at creating, mobilizing or strenghening a particular cluster Policies directed to use clusters to increase the efficiency of other specific instruments

Microeconomics policies directed to improve business environment

Adpated from Oxford Research, (2008) Cluster Policy in Europe, Brussels.

http://www.competitiveness.org/article/articleview/108/1/96/

Cluster reinforcement initiatives worldwide

2001199719921980

Selectedregions and countries withcluster-based development initiatives +

-

Emilia-RomagnaToscana(industrial-districts based policies) ....

EuskadiScotlandChihuahuaArizonaCatalunyaMassachussets New Zealand

Costa RicaCalifornia....

SwedenTurkeyLithuania

AustriaJordanMéxicoSouth Africa....

FranceEstoniaDenmarkSloveniaUKMinas Gerais (BR)...

1990 2003 2006

PakistanKazakhstanPoland….

ParaguayRio Negro (AR)….

2009

ILLUSTRATIVENOT EXHAUSTIVE

Approx. more than 1.400

initiatives from countries

and regions all over the

world (*)

Over 1.100

cluster

organizations

only in Europe

(**)

Index



Basics of cluster-based reinforcement initiatives

Innovation policies, clusters and regional competitiveness

COMPETITIVENESS

CLUSTER

BUSINESS STRATEGY

• Focus on business segments and not on statistical sectors

Strategy of the future for the cluster

BUSINESS SEGMENT

Some key-concepts

• Final goal

• Tool: place on which thinking and talking about strategy, strategic challenges and implementing related

actionsSource: L. Ramis, 2008


Some key-concepts

Final goal

Competitiveness(Productivity)

Innovative Capacity

Prosperity

Source; Michael E. Porter

COMPETITIVENESS

Source: The Economist, Dec. 23rd, 1999 from A. Maddison, IMF,

17


Focus on business segments and not on

statistical sectors

BUSINESS SEGMENT

Some key-concepts

Source: OPI - Hernández et al., 2005


CLUSTER

Some key-concepts

Tool: place on which thinking and talking about strategy, strategic challenges and implementing related actions

Footwear industry

Raw materials(recolectors)

Leather tannersFontanellas i Marti

Vidal BoschCurtidos Badia

Apparel industryGoes SA

Torras SA(...)

Chemical products

Cleaning and tanning

Adovinbe

WarehouseBuyers

AssociationsUnió d’adobadors

CEC-FECURGremi de Blanquers

TechnologicalCentres

AIICA

Other end-usersLeathertanning

SLAUGHTER

HOUSES

Source: L. Ramis, 2008

Benefit of clusters for enterprises

Economic prosperity is linked to the degree of cluster strength (European

Cluster Observatory)

Cluster firms benefit from knowledge sharing and skilled labour

85% of cluster firms state that a cluster initiative has improved their

competitiveness. (Cluster Initiative Greenbook, 2003)

Cluster firms are more innovative than non-cluster firms. (2006

Innobarometer)

Cluster firms register more trademarks (29% vs. 14%) and

apply for more patents (29% vs. 12%). (2006 Innobarometer)

Cluster firms contract out more research (41% vs. 20%) and carry out less

research in-house (44% vs. 53%). (Source: 2006 Innobarometer)

Cluster firms expect improved support services. (2006 Innobarometer)

Source: DG Industry and Enterprise, 2008


BUSINESS STRATEGY

Strategy of the future for the cluster

Some key-concepts

HideCollectio

n and traetmen

t

ManufacturingInitial

phases

Cost leaderbusiness

Manufacturingand finishing

Flexibility

RepositionInitialorders

Non-manufacturing

business

Luxuryproduction

Production

managers

Source: adapted from Libro Blanco de la Piel en España, 2005

REASONS FOR CHOOSING CLUSTERS TO WORK AT A REGIONAL POLICY LEVELS IN CATALONIA

They already presents in the territory and they allow economies of scale to:

understand business and its strategy

to act within a homogeneous group of firms to promote change

MONTSIÀ

Home furniture

Olive oil

BARCELONA

Farmacia

Taps

Cosmética

Urban tourism

Business schools

Medical devices

PIRINEU

Milky products

ANOIA

Leather tanning

KnitwearMARESME

KnitwearVALLÈS

Consumer electronics

Automotive

Motorcycle

Packaging

LLEIDA

Farm machinery

Building materiials

Fresh fruit

GIRONA

Meat processing

Mineral water

PENEDES

Wine

PALLARS

Tourism

LA GARRIGA

Home furniture

COSTA DAURADA

Seaside tourism

Cluster policy in Catalonia

LA BISBAL

Pottery

COSTA BRAVANORDSeaside tourism

A CLUSTER IS THE REFERENCE UNIT TO DESIGN AND IMPLEMENT

COMPETITIVENESS REINFORCEMENT INITIATIVES

Source: adapted from Competitiveness

Business environment

Business strategyat company level

+

Different strategic options at company level

Iniciatives according to strategy

Horizontal cooperation activities among companies

Strategic change at company level

Ad hoc training

Workshops on Innovation, internationalization

Change in rules

Competitiveness horizontal policy reinforcement: innovation, internationalization, etc.



• To define the cluster and its business• To understand the industry, its insignt, trends and key competitiveness elements• To analysis profitability of the industry• To analyze competitors• Business Environment analysis (Diamond)• To define strategic options for the cluster ...

Strategic analysis Change process

• To involve companies and other actors

in strategic change• To break conventional wisdom• To motivate companies to participate in the project• To create leadership ...



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cluster basics: introduction to the cluster concept

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