This document discusses the role of international cluster cooperation in increasing regional prosperity. It begins with the speaker providing their background managing IT and location-based service clusters. It then shows data on the low percentage of European SMEs that export, compared to US and Chinese SMEs. Additional data and studies demonstrate the relationship between regional cluster strength and increased patenting and innovation. The document argues that the nature of innovation is changing and becoming more complex, fast-paced, and connected across global markets and value chains. Therefore, clusters need to change and consider international cooperation and a global perspective in order to truly increase prosperity through innovation.

2. CLOE –
members
Rene Tõnnisson
Baltic Innovation
Agency
1. December 2010,
Gurgaon, Delhi
The Role of International Cluster
Cooperation in Increasing the
Prosperity of Regions

3. .
My Cluster Background
Practical hands on
experiences gained from
management of IT cluster
initiative in Mobile and
Tartu
. Location Based Service
Cluster policy experience
gained from European
Cluster Policy Group
(ECPG)

4. Johannes Pääsuke,
Estonian National Museum

5. 30% of US
SMEs export
70% of Chinese
SMEs export
How International are we today?
13% of European
SMEs export
SMEs export
Source: Enterprise Europe Network

7. Clusters = Innovation
5
6
7
8
Region's
patenting
level
7
R2
= 0.357
3
4
5
0 1 2 3 4
Region's cluster strength
level
Each region’s number of cluster stars (log) vs its number of patents (log), adjusting for country-level differences other than cluster strength.
Source: The European Cluster Observatory www.clusterobservatory.eu
Source: Sõlvell, Ketels

8. Clusters look similar from
high altitude
8
Steel VV
Cars XX
Labor YY
Capital ZZ
Steel VV
Cars XX
Labor YY
Capital ZZ
Source: Sõlvell

9. …but not when you magnify the picture
9
Source: Sõlvell

10. The nature of innovation is
changing...
– Increasing complexity of the
innovation process
– Increasing speed of
innovation
– Local versus global markets– Local versus global markets
and value chains
– New understanding of
„glocal“ competition and
collaboration required

11. ... and clusters need to change as well

12. because understanding the link between clusters,
innovation and proposerity based on local perspective is
not good enough any more

13. ... we need to see the big picture to make it
really happen!

14. THANK YOU!
Contact Information:Contact Information:
Rene Tõnnisson
Email: rene@bia.ee
Tel: +372-5029873