European clusters go international

1. European Clusters Go International
- 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

2. page 2
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
 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

3. page 3
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
scheme
 All have international ambitions

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

5. page 5
The cluster has developed and implemented an internationalisation strategy
-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
Networks and clusters in which
the management is responsable
for internationalisation
Index value
Strongly disagree Strongly agree
Score: +3 - Strongly agree
Score: +1 - Mostly agree
Score: -1 - Mostly disagree
Score: -3 - Mostly disagree
General Observations (II)

6. page 6
Key Success Factors for International Co-operations
 High competitiveness of products and services provided by
the cluster firms
 Access to clusters and networks in targeted countries
Key Success Factors I + II

7. page 7
The Korean Experience – Key Success Factors by German
SME Perspectives
Own investigations, 2009

8. page 8
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
firms business
Key Success Factors III

9. page 9
New Co-operations Initiated within the Last Three Years

10. page 10
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

11. page 11
-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
Networks and clusters in which
the management is responsable
for internationalisation
Index value
Score: +3 - Strongly agree
Score: +1 - Mostly agree
Score: -1 - Mostly disagree
Score: -3 - Strongly disagree
Strongly disagree Strongly agree
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

12. page 12
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

13. page 13
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
-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
Networks and clusters in which
the management is
responsable for
internationalisation
Index value
Score: +3 - Strongly agree
Score: +1 - Mostly agree
Score: -1 - Mostly disagree
Score: -3 - Strongly disagree
Strongly disagree Strongly agree

14. page 14
…. 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
-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
Networks and clusters in which
the management is
responsable for
internationalisation
Index value
Score: +3 - Strongly agree
Score: +1 - Mostly agree
Score: -1 - Mostly disagree
Score: -3 - Strongly disagree
Strongly disagree Stongly agree

15. page 15
Case Example – Gedeon Richter - A Global Player,
but Still Interested in Increasing International Co-operations

16. page 16
-5000
0
5000
10000
15000
20000
25000
30000
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%
8,8%
Continuously Increasing R&D Expenditures as
Driver for Internationalisation

17. page 17
Drivers for Gedeon Richter’s Increased Internationalisation Efforts
Gedeon Richter is well positioned in many important markets world-wide,
but
 Increased pressure comes for Asian competitors
 Innovation capability becomes decisive success factor
 R&D efforts increases continuously
main objective of the internationalisation 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

18. page 18
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
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

19. page 19
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
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

20. page 20
Thank you very much for your attention !
 Dr. Gerd Meier zu Köcker
 Managing Director
 Agency Competence Networks Germany
 E-mail: mzk@kompetenznetze.de
 Phone +49 30 310078118