TCIOceania14 Clusters in Australia - a potted history

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TCIOceania14 Clusters in Australia - a potted history

  1. 1. Clusters in Australia - A potted history Rod Brown 30 May 2014
  2. 2. Clusters in Australia - A potted history Rod Brown Cockatoo Network
  3. 3. 10 Factors about Clusters in the Australian Landscape 1 Confusion between • - clusters as a physical phenomenon, and • - cluster programs as an engagement mechanism to address market failure. 2. Cluster programs’ are really about addressing coordination failure, managerial myopia, information failure, negative externalities, monopoly power, missing markets. Good message for Treasury officials.
  4. 4. /2 3. Accept that 50% of people are not inherently collaborative. So go around them – and look for triggers e.g. events, contracts, champions. 4. Most successful cluster programs? - Cairns (super yachts, tropical foods, fisheries) and Adelaide (water, Defence Teaming Centre)
  5. 5. /3 5. Strongest clusters? Barossa wine, Torquay surfwear, Northern Adelaide engineering, Gold Coast tourism, Yarragon antiques. • 6. Multi-level funding is best - led by states with federal and local support, with companies collaborating on specific projects.
  6. 6. /4 7. Cluster success factors – order of importance 1. Technology/knowledge formation. 2. Local champions. 3. Social capital. 4. Critical mass of suppliers. 5. Specialised infrastructure. 6. Growth prospects. 7. Governance structures. 8. Sophisticated home demand. 9. Local competition. 10. Existence of threat.
  7. 7. /5 8. Federal 2014 Budget - a kick in the guts 9. Suggestion 1 - Shift emphasis to state-local government and industry 10. Suggestion 2 - Focus on outcomes, and supply chains. And don’t give up on feds e.g. Medical Research Fund.

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