Smart Guide to Cluster Policy- How to Make Better Use of Clusters for Regional Development -

Dr. Gerd Meier zu KöckerHead of

European Cluster Observatory

Alta, 7 March 2016

Where are we today?

1990 – 2000

Understanding clusters

2000 – 2010

Identification of clusters

2010 – 2015

Creating better clusters

2015ff

Making better use of clusters

Cluster and Cluster Management Matters

© ClusterAgentur Ba-WÜ| 4

Cluster, Cluster Initiatives and Cluster Organisations

26.04.2015|

Clusters Matters

• Economic activities that agglomerate in clusters account for about 39% of European jobs and 55% of European wages

• Europe is home to some 2,500 strong clusters, i.e. statistically-defined regional concentrations of related traded industries, that achieve above average performance for employees, firms, and regions

• Almost all EU Member States and majority of regions have cluster programmes in place

• Majority of EU regions use cluster initiatives to implement regional smart specialisation strategies

Firms in Clusters Are Performing Better…..….. than the Sector-specific Average

Cluster Monitor Germany, July 2012, 50 Cluster representing about 5000 company

Much better

Better

Similar

Slightly worse

Much worse

Framework Conditions are Changing

Examples for Innovation in the Field of Emerging Industries (Advanced Packaging)

16Sources: gerber and Limmatdruck Zeiler

Food

SensorsPackaging

Potentials for Integrating New Actors in Emerging Value Chains

Source: European Cluster Observatory, 2015

Current and Future Challenges Drivenby Technologies, Markets and Society

• Wind energy goes offshore• Food & packaging go

smart packaging• Digitalisation

Industrial Transformation

Processes

• Biotech & Health• ICT & Medical devices• Communication technologies &

automotive

Increasing Convergence of

Technologies

• Creative industries• Digital industries• Bioeconomy industries

Emergence of New Industries

New policies

New support schemes

New approaches to support

regional competitiveness

Impact of Industrial Transformation Processes

Requirements for Future-oriented Cluster Policies

Framework Conditions for Cluster Initiatives

Cluster Presence

Cluster Inititives

EconomicImpact

Do‘s and Don‘t of Cluster Policy Making

Don’ts Do’s Support individual specialised firms Support new activities, in particular by groups or

networks of related industries

Create clusters from scratch (i.e. implementing “wishful thinking” of policy-makers)

Facilitate the growth of clusters by building upon existing strengths (i.e. implementing evidence-based policy by building upon a comparative analysis of regional strengths and 'entrepreneurial discovery')

Fund a myriad of clusters Fund strategic cluster initiatives that focus on promoting the strengths, linkages and emerging competences, which fit into the orientations of national/regional smart specialisation strategies

Follow growth trends without reflection Capitalise upon regional competences to diversify into new activity areas and to develop emerging industries

Follow a narrow sectoral cluster approach Follow a systemic cluster approach of related industries through capturing cross-sectoral linkages

Develop and implement cluster policy in isolation from other policy areas

Inclusive and participatory cluster approach (i.e. involving businesses, investors, academics and policy-makers, reaching out to related policy themes such as R&D, innovation, entrepreneurship, access to finance, SME internationalisation etc.)

Support cluster initiatives that are only inward looking

Support cluster initiatives that have an international perspective on the positioning of the cluster in international value chains

Focus exclusively on strengthening regional partnerships

Build regional partnerships as a foundation to engage in European Strategic Cluster Partnerships

Source: Smart Guide Cluster Policy, EC

Cluster Policy Circle

Why are some regions doing better than others?

The Key Determinants for Cluster Policies

Peer Review as New Approach to Improve Cluster Policy

Peer Review & Benchmarking

Comparing among

participants

Peer Review of Regional Cluster Policies

Analysing Comparing Learning Improving

Policy Learning & Improving

Cluster policy has clear and measurable objectives

Rhône-AlpesSkane

LombardiaMassachusettsBaden-Württemberg

Frequent changes of cluster policy

Cluster policy very generic; no measurable objectives

High continuity of cluster policy

Characteristics of Cluster Policy for Selected Advanced Region (I)

Broad spectrum of support instruments in place

Rhône-AlpesSkane

LombardiaMassachusettsBaden-Württemberg

Insufficient budget to meet policy objectives

Narrow spectrum of support instruments in place

Sufficient budget to meet policy objectives

Characteristics of Cluster Policy for Selected Advanced Region (II)

Rhône-AlpesSkane

LombardiaMassachusettsBaden-Württemberg

Implementation agency doesn’t exist oris not capable well coordinate clusterprogramme

Cluster policy is hampered by administrative burden

Implementation agency well coordinates cluster programme

Cluster policy is well implemented

Characteristics of Cluster Policy for Selected Advanced Region (III)

Setting Policies Around Clusters

Settings for Regional CollaborationPlatform to Improve Framework Conditions for Innovation

Support Schemes for Developing Cluster Initiatives

Thank you very much for your attention

Dr. Gerd Meier zu Köcker

ClusterAgentur Baden-Wuerttemberg

StuttgartGermanyPhone: +49 711 123 3034E-Mail: mzk@clusteragentur-bw.de