Building a Successful Cluster System in Regional Australia
Mark Bell
30 May 2014
Building a Successful Cluster System
in Regional Australia
Mark Bell
Business Development Manager
Regional Development Aus...
Why am I here?
As recipient of the
Australian Institute of Management
Churchill Fellowship for 2013
To study business clus...
Overseas Experience
• After the TCI 4 Day Conference I interviewed
27 people from Cluster Managers/Facilitators,
to Govern...
Why collaborate through Clusters?
• Only consider partnering or collaborating in
those areas in which you CANNOT be the mo...
Building blocks for a successful cluster
system in Regional Australia
Collaboration of the current factions to be linked a...
Building blocks for a successful cluster
system in Regional Australia
• Creation of an hourglass approach –
• Top down Gov...
Building blocks for a successful cluster
system in Regional Australia
• Creation of a cluster structure –
• Cluster identi...
Building blocks for a successful cluster system
in Regional Australia
• Creation of a Regional Cluster Commons Vehicle
(wi...
Building blocks for a successful cluster system
in Regional Australia
• Activities to be undertaken/facilitated by the
clu...
Building blocks for a successful cluster system
in Regional Australia
• Activities to be undertaken/facilitated by the clu...
Riverland Network Examples
• HR Network – surveyed 16 businesses recently
regarding “hidden jobs” – 33 FTE roles discovere...
Benefits of Clusters and Collaboration
1. Understanding an industry or market.
2. Vehicle to implement productivity progra...
Why use clusters for regional
development?
• Clusters focus on building their own ecosystem
for the region
• Clusters focu...
Why a cluster commons model?
• Functional clusters, that are supported by an organizing
paradigm (or “commons”), for linki...
Why a cluster commons model?
• The role of a “commons builder organisation” (or
perhaps a Future Innovation/Sustainability...
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TCIOceania14 Building a successful cluster system in regional Australia

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TCIOceania14 Building a successful cluster system in regional Australia

  1. 1. Building a Successful Cluster System in Regional Australia Mark Bell 30 May 2014
  2. 2. Building a Successful Cluster System in Regional Australia Mark Bell Business Development Manager Regional Development Australia Riverland 0439 825 400 mbell@rdariverland.org.au 30/05/2014
  3. 3. Why am I here? As recipient of the Australian Institute of Management Churchill Fellowship for 2013 To study business cluster development and facilitation from European leaders in Denmark, Sweden, Norway, Netherlands, Spain and Italy.
  4. 4. Overseas Experience • After the TCI 4 Day Conference I interviewed 27 people from Cluster Managers/Facilitators, to Government Policy Makers & Government Employees rolling out these policies and projects through to University Academics that studied the issues and value of clusters or helped with the research and innovation components of clusters.
  5. 5. Why collaborate through Clusters? • Only consider partnering or collaborating in those areas in which you CANNOT be the most effective on your own. • Collaboration is a process through which people who see different aspects of a problem, can constructively explore their differences and search for solutions that go beyond their own limited vision of what is possible. • Collaboration breeds success – interaction fosters development and opportunity.
  6. 6. Building blocks for a successful cluster system in Regional Australia Collaboration of the current factions to be linked at State, National & Asia Pacific levels to promote, drive, advise, think and link potential, new and existing clusters are; 1. Government - Leaders, Department Managers and Policy Makers. 2. Universities, Knowledge and Innovation Institutions. 3. Regional Organizations - Regional Development, Local Government, Business and Industry Groups or Associations. 4. Business - Cluster Managers, Industry Leaders and CEO’s of cluster participation companies.
  7. 7. Building blocks for a successful cluster system in Regional Australia • Creation of an hourglass approach – • Top down Government driven smart and integrated competitiveness and innovation policy along with reform that enables at least 80% of research to be applied rather than pure • Supported by • Bottom up Regional Business competitiveness and innovation initiatives and projects.
  8. 8. Building blocks for a successful cluster system in Regional Australia • Creation of a cluster structure – • Cluster identification (industry or market focused) • Cluster initiative (cluster activation independently driven with either formal or informal structure) • Formation of “themed” networks based on evolving cluster initiative strategy • Identification of innovation initiatives, activities and projects where members of multiple networks may be involved.
  9. 9. Building blocks for a successful cluster system in Regional Australia • Creation of a Regional Cluster Commons Vehicle (with up to 150km radius) conducting the following roles; 1. Provision of cluster initiative and initial facilitation (1 year +) for 3 to 5 clusters staggered over 5 years in the region (1 FTE) 2. Provision of HR services (.5FTE) to the clusters as they are set up and evolve 3. Provision of PR services (.5FTE) to the clusters as they set up and evolve
  10. 10. Building blocks for a successful cluster system in Regional Australia • Activities to be undertaken/facilitated by the cluster commons organisation; 1. Cluster potential mapping exercise to identify and analyse the potential for clusters by type 2. Analyse and prioritise potential clusters – focus on high turnover potential clusters first – more likely to be self sustainable long term 3. Establish a list of potential innovation technologies for review by potential clusters focused on smart specialisation
  11. 11. Building blocks for a successful cluster system in Regional Australia • Activities to be undertaken/facilitated by the cluster commons organisation; 4. Collect all the organizations in the value chain and the consumer in the early stages of cluster initiative. Things will go much faster and plenty of issues will be available to work on by focusing on value rather than supply issues. 5. Establish a network around each area/issue worth collaborating on, ensuring cross-disciplinary participation and thought leadership 6. Making connections between organisations to find the right partners for project development
  12. 12. Riverland Network Examples • HR Network – surveyed 16 businesses recently regarding “hidden jobs” – 33 FTE roles discovered not currently advertised worth $1.68m in wages @ an average of $50.8k per role plus the multiplier on sales. • This local job market like most markets is not taking care of itself! • The HR Network is evaluating concepts focused around Future Leaders, CEO forum, and Thought Leader/Disruptive Thinking/Innovative Thinking • Energy Network – formed own association to apply for funding – 13 organisations $20m expenditure – goal 3- 5% reduction in costs + lobbying vehicle
  13. 13. Benefits of Clusters and Collaboration 1. Understanding an industry or market. 2. Vehicle to implement productivity programs efficiently. 3. Vehicle to implement skills and training. 4. Debottlenecking tool. 5. Vehicle for collaboration with support institutions. 6. Transformation support vehicle via strategy change. 7. Networking and making connections. 8. Business development. 9. Innovation support vehicle. 10. Marketing and promotion including regional. 11. Provides proof of potential of a region for investors. 12. Tool for implementation of smart specialization in regions.
  14. 14. Why use clusters for regional development? • Clusters focus on building their own ecosystem for the region • Clusters focus on the development of the human potential of the region • Clusters are used to sell regions to prospective investors and help remove barriers through their lobbying • Clusters focus on developing different business models, thought leadership, smart specialisation, innovation and collaboration
  15. 15. Why a cluster commons model? • Functional clusters, that are supported by an organizing paradigm (or “commons”), for linking, leveraging, and aligning all existing, as well as potentially new programs across a region have proven to be successful overseas. • Within the Australian framework, a “cluster commons” organisation managed by an independent regional development agency rather than an explicit individual cluster organisation, is more likely to be successful through its ability to coordinate cross cluster activities and create other synergies within a region.
  16. 16. Why a cluster commons model? • The role of a “commons builder organisation” (or perhaps a Future Innovation/Sustainability Authority) would be the “glue” that holds together all the initiatives and activities proposed to improve business and employment levels in a region. • The cluster commons organisation can make the appropriate connections to build clusters, hubs and the associated networks and collaboration activities.
  17. 17. Thank you for listening
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