- The study examined the internationalization of 117 clusters from 11 European countries across different industries. It found that clusters with dedicated internationalization mandates and strategies in place saw more success in forming international cooperation that benefited member businesses. Key factors included competitive products/services, access to foreign networks, and involvement in EU funding projects. While cluster management internationalization activities benefited from such projects, cluster businesses saw lower impacts unless management had internationalization mandates. The report recommends future funding prioritize clusters with clear internationalization mandates and tailored strategies developed with member business input.

2. European Clusters Go International
- Current Status and Key Success Factors -- Current Status and Key Success Factors -
Gerd Meier zu Köcker1, Lysann Müller1, Zita Zombori2
1Agency Competence Networks Germany
2 Gedeon Richter, Hungary
Delhi, November / December 2010

3. Why This Study (I)?
 Internationalisation of clusters is considered to be of high
relevance for the competitiveness of cluster firms
 Key success factors for internationalisation still not really
understood
page 3
understood
 Still a challenge for the cluster managements to provide tailor-
made support
 More than organising delegation missions and trade fairs !
 Appropriate funding schemes often missing
The European-wide study should contribute to a
better understanding of the key success factors

4. Why This Study (II) ?
 117 clusters participated in the Pan-European survey
 From 11 different countries
 From different technological domains
Most of them labelled within their national cluster support
page 4
 Most of them labelled within their national cluster support
scheme
 All have international ambitions

5. General Observations (I)
The cluster management has a dedicated mandate for Internationalisation
2007 2010
page 5
10%
38%
38%
14%
Strongly agree
Mostly agree
Mostly disagree
Strongly disagree
22%
58%
16%
4%
Strongly agree
Mostly agree
Mostly disagree
Strongly disagree

6. The cluster has developed and implemented an internationalisation strategy
Networks and clusters in which
the management is responsable
for internationalisation
General Observations (II)
page 6
-3 -2,5 -2 -1,5 -1 -0,5 0 0,5 1 1,5 2 2,5 3
All networks and clusters - 2007
All networks and clusters - 2010
Networks and clusters in which
the actors feel responsable for
internalisation
Index value
Strongly disagree Strongly agree
Zustimmung
Score: +3 - Strongly agree
Score: +1 - Mostly agree
Score: -1 - Mostly disagree
Score: -3 - Mostly disagree

7. Key Success Factors for International Co-operations
 High competitiveness of products and services provided by
the cluster firms
Key Success Factors I + II
page 7
 Access to clusters and networks in targeted countries

8. The Korean Experience – Key Success Factors by German
SME Perspectives
page 8
Own investigations, 2009

9. Key Success Factors for International Co-operations
 Clusters having developed and implemented an
internationalisation strategy tend to be more successful in
initiating international co-operations with positive impact on
Key Success Factors III
page 9
initiating international co-operations with positive impact on
firms business

10. New Co-operations Initiated within the Last Three Years
page 10

11. Key Success Factors for International Co-operations
 Cluster managements having a dedicated mandate and strong
backing from the cluster firms tend to be more successful
Key Success Factors IV
page 11

12. Networks and clusters in which
the management is responsable
for internationalisation
Clusters Having a Clear Mandate for Internationalisation Tend to
be more Successful
Compared to 2007 clusters made considerable progress in terms of
internationalisation with positive impact on cluster firms business
page 12
-3 -2,5 -2 -1,5 -1 -0,5 0 0,5 1 1,5 2 2,5 3
All networks and clusters
Networks and clusters in which
the actors are responsable for
internalisation
for internationalisation
Index value
Score: +3 - Strongly agree
Score: +1 - Mostly agree
Score: -1 - Mostly disagree
Score: -3 - Strongly disagree
Strongly disagree Strongly agree

13. Key Success Factors for International Co-operations
 Cluster managements having a dedicated mandate and strong
backing from the cluster firms to create international co-
operations benefit much more from EU-funding projects
Key Success Factors V
page 13
operations benefit much more from EU-funding projects

14. Being Involved in European Programmes was of Significant
Benefit for the Cluster Managements…….
Being involved in European programmes/projects supporting international cooperation among
clusters, had a positive impact on the internationalisation activities of the cluster managements
Networks and clusters in which
the management is
responsable for
internationalisation
page 14
-3 -2,5 -2 -1,5 -1 -0,5 0 0,5 1 1,5 2 2,5 3
All networks and clusters
Networks and clusters in which
the actors are responsable for
internalisation
Index value
Score: +3 - Strongly agree
Score: +1 - Mostly agree
Score: -1 - Mostly disagree
Score: -3 - Strongly disagree
Strongly disagree Strongly agree

15. …. but with a Comparable Low Impact on Cluster Firms Business’,
except if the Cluster Management have had a Mandate
Being involved in European programmes/projects supporting international cooperation among
clusters, had a positive impact on the internationalisation activities of the cluster firms
Networks and clusters in which
the management is
responsable for
internationalisation
page 15
-3 -2,5 -2 -1,5 -1 -0,5 0 0,5 1 1,5 2 2,5 3
All networks and clusters
Networks and clusters in which
the actors are responsable for
internalisation
internationalisation
Index value
Score: +3 - Strongly agree
Score: +1 - Mostly agree
Score: -1 - Mostly disagree
Score: -3 - Strongly disagree
Strongly disagree Stongly agree

16. Case Example – Gedeon Richter - A Global Player,
but Still Interested in Increasing International Co-operations
page 16

17. 25000
30000
8,8%
Continuously Increasing R&D Expenditures as
Driver for Internationalisation
page 17
-5000
0
5000
10000
15000
20000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
MHUF
R&D expenditure as % of sales
6,9%

18. Drivers for Gedeon Richter’s Increased Internationalisation Efforts
Gedeon Richter is well positioned in many important markets world-wide,
butbut
Increased pressure comes for Asian competitors
page 18
 Increased pressure comes for Asian competitors
 Innovation capability becomes decisive success factor
 R&D efforts increases continuously
main objective of themain objective of the internationalisation strategyinternationalisation strategy
 Identification of SMEs world-wide, whose inventions / R&D pipeline fit to
Gedeon Richter’s product portfolio
 Joint R&D and commercialisation of SMEs’ inventions / products

19. Recommendations (I)
 Policy Recommendation
 Future funding activities should focus on cluster managements having a clear
mandate to internationalise
 Support developing and implementing of tailor-made internationalisation
page 19
 Support developing and implementing of tailor-made internationalisation
strategies
 Encourage cluster managements to take over responsibility for
internationalisation on behalf of the cluster firms
 Support new support measures and tools provided by cluster management
than funding those already offered by other bodies
 Delegations missions
 Trade fairs
 ….
 Do not make to much pressures on clusters if they are not yet ready for
internationalisation

20. Recommendations (II)
 Recommendation for cluster managements and firms
 Cluster managements should take over responsibility for internationalisation on
behalf of the cluster firms
 Develop and implement a tailor-made internationalisation strategy together
page 20
 Develop and implement a tailor-made internationalisation strategy together
with the cluster firms (at the very beginning)
 Focus support measures on those firms that have competitive products and
technologies available
 Apply for funding only if there is a clear mandate given by the cluster firms.
 Otherwise a low impact on firms is very likely
 Create demand-oriented services and support for the cluster firms
 Do not stick on conventional tools

21. Thank you very much for your attention !
 Dr. Gerd Meier zu Köcker
 Managing Director
 Agency Competence Networks Germany
page 21
 Agency Competence Networks Germany
 E-mail: mzk@kompetenznetze.de
 Phone +49 30 310078118