Tedx edges Francesco Berrettini

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Tecnological Cluster: Theory and example for Algarve.
My Opinion and hope

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  • It is certainly possible. And our small, but dedicated, global community should do what it take to make this vision a reality!! Great effort on bringing this subject to the minds of many Francesco! Dillon Dhanecha
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Tedx edges Francesco Berrettini

  1. 1. is a small Silicon Valley possible? Algarve: Is a small Silicon Valley possible? by Francesco Berrettini October.2010 | Francesco Berrettini | page 1
  2. 2. Index FRANCESCO CLUSTER DEFINITION BASIC CONDITIONS: 2 MODELS MAIN INNOVATION CLUSTERS IN THE WORLD THE ALGARVE: MY POINT OF VIEW CONTACTS Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 2
  3. 3. FRANCESCO Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 3
  4. 4. Francesco algarve Economist MBA Bocconi Consultant & Teacher C.E.O. Inesting Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 4
  5. 5. CLUSTER DEFINITION Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 5
  6. 6. Origin of the term Location of several producers of small dimensions in the same area or few producers of bigger dimensions. “Industrial Districts” by Alfred Marshall (1892) High concentration of firms within the same business area, on both vertical and horizontal ways of the value chain. Analysis of the Italian Regions by Beccatini (1979) Clusters are geographic concentrations of interconnected companies and institutions in a particular field. M. Porter’s Article in the Harward Business Review (1998) Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 6
  7. 7. Definition “Concentration of companies within the same business area on a defined geographical area: country, region or city.” Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 7
  8. 8. Technological Innovation Clusters Cluster is composed by companies that make a strong bet in technological innovation. Lead the production of wealth in the regions where they are. The role of information technologies is the main predominant in its products. Base Applied Development Investigation Investigation Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 8
  9. 9. BASIC CONDITIONS: 2 MODELS Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 9
  10. 10. Model #1: McKinsey Key elements which constitute the necessary conditions for the development of the innovation clusters: Intervention of the big innovative companies Availability of public funding Existence of New Talents Presence of Venture Capitalist Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 10
  11. 11. Model #2: Paul Graham To have a technology hub we need 2 kinds of people: rich people nerds Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 11
  12. 12. Model #2: Paul Graham A place where investors would like to live and students would like to stay after studying. sun & beach Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 12
  13. 13. Model #2: Paul Graham A Check-list… No bureaucracy Nerds No buildings Youth Universities Time Personalities Competition Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 13
  14. 14. MAIN INNOVATION CLUSTERS IN THE WORLD Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 14
  15. 15. Silicon Valley Stock market performance is 8 times better than other companies. Large companies were first used as an anchor, but later on as a start-up source. According to Wall Street Journal, 10 of the 20 most innovative cities of the USA, are in Silicon Valley. Silicon Valley in California, was born as a military technology development area. Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 15
  16. 16. Silicon Wadi Attraction of big international companies speeded up the development of the project. The great engine behind this cluster was the Defense Industry. Founders of several companies are ex-officials from the army. NASDAQ has more Israeli companies than European. Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 16
  17. 17. Other Innovation Clusters Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 17
  18. 18. THE ALGARVE: MY POINT OF VIEW Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 18
  19. 19. Conditions for Atractiveness To IMD, the competitiveness conditions of a country are individualized in 323 criteria that can be divided in 4 areas: Economical performance Quality of government/institutions Companies efficiency Infra-structure Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 19
  20. 20. Conditions for Atractiveness The 2010 Global Competitiveness Ranking: Portuguese economy dropped from number 34 to number 39. Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 20
  21. 21. Conditions for Atractiveness Singapore, city-state, attracts many talents for its life quality (green spaces, urban organization, public transportation and security). Mainly the PMET (Professional, Managers, Executive and Technicians). The quality of life offered has to be related to the cycle of life of the professionals you want to attract. Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 21
  22. 22. Conditions for Atractiveness Important elements to create a Cluster: Human capital Financing Venture capitalist Big anchor companies Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 22
  23. 23. Conditions for Atractiveness Universities have to be partners for companies. Companies have to cooperate with universities. Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 23
  24. 24. Mains Obstacles in Algarve Elements of competitiveness referenced by IMD: Economical performance +/- Quality of government/institutions +/- Companies’ efficiency +/- Infra-structures (connections) + Can the Algarve be competitive in innovation and knowledge? Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 24
  25. 25. Mains Obstacles in Algarve The Quality of Life demanded by the PMET: Green Spaces + Urban Organization - Public Transportation - Security + And relating it with the Cycle of Life? Beginning of professional life, no family With family set and other needs Can the Algarve attract talents? Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 25
  26. 26. Mains Obstacles in Algarve Difficulties in a short term period: Human Resources Offices Infra-structures/Public Transportation Difficulties in a medium term period: Absence of professional Venture Capital Partnership and active business networking Lack of anchor companies of medium dimension Offer of quality of life for senior professionals (PMET), in the different phases of the cycle of life Low social interest in Entrepreneurship Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 26
  27. 27. Conclusions In order to have innovative cities we need to have innovative people (nerds). The entrepreneurs are the ones that transform knowledge by Universities into the innovation incorporated in the products/services. They need Talents from Universities. The future of the territories is played in this ability to attract and retain talents and VC. Creativity + Innovation + VC Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 27
  28. 28. Conclusions The Algarve has: Universities Some life quality but still not enough to influence the choice of entrepreneurs of the innovation area. We should work in this to improve conditions and TED event is great opportunity! Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 28
  29. 29. Conclusions Is a small Silicon Valley possible in the Algarve ??? Yes! But it’s a long journey. Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 29
  30. 30. CONTACTS Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 30
  31. 31. Contacts http://pt.linkedin.com/in/francescoberrettini Algarve: Is a small Silicon Valley possible? October.2010 | Francesco Berrettini | page 31

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