01 vedat kunt day 3_s3_ecc2012

CLUSTER DEVELOPMENT IN TURKEY:INTERNATIONALIZATION, INNOVATION AND REGIONAL DEVELOPMENT VEDAT KUNT VEGO CONSULTING Vienna, 20th April 2012

Two project cases from the less developedregions of Turkey are examined; 1. Harnessing Sustainable Linkages in the Textile Sector of Turkey- UNIDO (funded by the MDGF) 2. Empowering SMEs for Networking and Inter-Regional Cooperation- Ministry of Economy (funded by the EU) European Commission Enterprise and Industry 26.04.2012 2

1. Harnessing Sustainable Linkages inthe Textile Sector of Turkey- UNIDO European Commission Enterprise and Industry 26.04.2012 3

1. Harnessing Sustainable Linkages inthe Textile Sector of Turkey- UNIDO• UNIDO’s unique approach to Cluster Development is followed; 1. Social Capital /Trust Building 2. Establishment of Joint Actions 3. Performing Cluster 4. Poverty Reduction European Commission Enterprise and Industry 26.04.2012 4

1. Harnessing Sustainable Linkages inthe Textile Sector of Turkey- UNIDO“Growth ... is an important means to enlarge human choices but it is not an end in itself. Growth at all costs can result in:*Jobless growth (that does not expand employment opportunities);*Ruthless growth (the fruits of growth mostly benefit the rich);*Rootless growth (stifles cultural diversity and identity);*Futureless growth (depletes natural resources);*Voiceless growth (growth without expansion of democracy, empowerment)”• UNDP – Human Development Report (1999) European Commission Enterprise and Industry 26.04.2012 5

1. Harnessing Sustainable Linkages inthe Textile Sector of Turkey- UNIDOWHO ARE THE POOR???The poor addressed in a cluster initiative are…1. Poor cluster entrepreneurs2. Poor farmers and/or suppliers supplying cluster firms3. Poor workers in cluster firms and job-seekers4. Poor consumers of clusters goods/services European Commission Enterprise and Industry 26.04.2012 6

1. Harnessing Sustainable Linkages inthe Textile Sector of Turkey- UNIDOPro-poor economic opportunities:• For poor entrepreneurs: increased productivity, investments, sales, returns and income from business activities• For poor suppliers and farmers: increased sales (volume and frequency), better prices, higher returns• For poor employees and job-seekers: new / more stable employment, higher wages, better working conditions• For poor consumers: increased affordability of goods/services produced by the cluster, improved quality of the products European Commission Enterprise and Industry 26.04.2012 7

Lessons learned 1• Finding, training and developing CDAs (Cluster Development Agents/Cluster Managers) is the most important first step.• Trust building between CDA and the cluster members is critical• Mobilizing state incentives in the direction is the ultimate support tool to establish joint actions• Local and national stakeholders’ governance plays a key role for sustainability• Being a part of an “Environment” which enables innovation is the ultimate target for Companies, Academia and Institutions… European Commission Enterprise and Industry 26.04.2012 8

2. Empowering SMEs for Networkingand Inter-Regional Cooperation-Ministry of EconomyMoE’s SME Development and Networking project• 5 Pilot cities + 5 Co-op regions in the west + 5 Target international markets• 5 priority sectors• 5 Cluster Info Spots established as one stop shops for cluster development European Commission Enterprise and Industry 26.04.2012 9

Lessons learned 2• Value Chain and Supply Chains Analysis play an important role in identifying upgrading opportunities both horizontal and vertical for the companies at implementation level and to mobilize right support mechanisms at policy level.• Concentrating on leadership and creativity, understanding “project psychology” is critical. Unleashing creativity, developing human resources accordingly, who will ultimately manage the cluster activities will determine success or failure… European Commission Enterprise and Industry 26.04.2012 10

Lessons learned 2• Not only B2B,C2C, B2C and C2B; but also B2I, C2I, B2A, C2A and vice versa, There is extensive flow of information, knowledge, technology, finance, products, processes between each peer.• Being a part of an “Environment” which enables innovation is the ultimate target for Companies, Academia and Institutions… European Commission Enterprise and Industry 26.04.2012 11

Thank you very much for your attention… Vedat Kunt Partner, VEGO Consulting • UNIDO Consultant for Cluster Development• Key Expert for SME Development and Networking Project of MoE v.kunt@vego.com.tr European Commission Enterprise and Industry 26.04.2012 12

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01 vedat kunt day 3_s3_ecc2012

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