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Benefits Of Clustering To Promote Exports
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Benefits Of Clustering To Promote Exports


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This workshop is organized by the MNIB in collaboration with the Ministry of Finance and the Inter-American Council for Integral Development of the Organization of American States (OAS/CIDI). It is …

This workshop is organized by the MNIB in collaboration with the Ministry of Finance and the Inter-American Council for Integral Development of the Organization of American States (OAS/CIDI). It is the first phase of the ‘Cluster Formation Project’ which is carried out under the ‘Export Competency Development in Support of the Export Strategy of Grenada’.

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  • 1. Consultation on the Benefits of Clustering to Promote Exports Presented as a Component of the ‘Export Competency Development Project’. Facilitated by Mr. Fitzroy James November 10, 2008 at the Conference Room of the Grenada Bureau of Standards
  • 2. Perspective
    • “ The enduring competitive advantages in a global economy are often heavily local, arising from concentrations of highly specialized skills and knowledge, institutions, rivals, related businesses, and sophisticated customers.”
    • - Michael Porter
    • Harvard Business School
  • 3. Presentation Outline
    • Background Considerations
    • Definition of Clusters
    • Generic Clusters
    • Identification of opportunities for formation of clusters in Grenada
  • 4. Background Considerations
    • Changing context of Agriculture
      • Growing demand - Efficient Supply logistics
      • Consumers seek authenticity, uniqueness, “experiences”
      • Agricultural production:
        • Commodities increasingly unprofitable;
        • Emerging niche market opportunities;
        • … “… agrifood supply chains are evolving from transaction-based market to alliance based market networks;
      • Growing importance of information, knowledge
  • 5. Background Considerations
    • Changing context of Agriculture
      • concern about sustainability;
      • With global sourcing of food, concerns sourcing of food, concerns about…
        • food safety
        • transportation costs
      • Climate change – growing interest in ‘green’ products
  • 6. Background Considerations
    • Changing context of Agriculture
      • The question: how can local farmers/entrepreneurs respond to these opportunities?
      • Major changes needed …
        • New skills development, upgrading
        • Responsive entrepreneurship, innovation
        • Access to new research, information flows
        • Economies of scale essential (individuals cannot do it on their own)
        • From individual to collective, group action
  • 7. Background Considerations
    • Industry clusters Industry clusters are essential for profitable exports in Grenada
  • 8. Define Clusters
    • “ Clusters are geographic concentrations of interconnected companies and institutions in a particular field.” M.E. Porter 1998
    • Arise as a result of unique local historical or geographical factors
    • Lead to higher productivity, profitability
  • 9. Clusters Defined
    • consists of firms that consists of firms that…
      • are located in relatively close proximity
      • compete with each other in similar markets
      • cooperate to enhance technical skills and market access
      • support, through social networks, growth and development of individual businesses
      • share common inputs, such as labor with specific skills
      • recruit support industries based upon the local concentration of firms
      • benefit mutually from new, location-specific specific tacit knowledge generation and
      • work together to respond to new demands, work together to respond to new demands such as environmental goals
  • 10. Clusters Defined
    • Co-inform
    • Co-learn
    • Co-market
    • Co-purchase
    • Co-produce
    • Co-build economic foundations
  • 11. Identifying Clusters
    • Business Interdependence:
    • where businesses relate to each other through the buyer-supplier “food chain,” as competitors, or as partners.
    • Export Oriented:
    • companies in the cluster sell products or services to companies outside the region.
    • Concentration:
    • Employment in the cluster is more concentrated in a region, and the cluster is an existing or emerging area of specialization.
  • 12. Generic Cluster Structure
  • 13. Cluster Formation Requirements
    • Catalogue key components of the cluster
    • Articulate an achievable vision of what the cluster can become over the next 5 - 10 years
    • Identify opportunities for growing the cluster in the desired direction by expanding existing companies/members and attracting outside companies/members
    • Identify opportunities for more synergy within the cluster
    • Identify needs for specific economic foundations and proposed strategies
  • 14. Role of Government
    • I end with another quote from Porter
    • ‘ The importance of clusters suggests new roles for government at [all] levels … removing obstacles to the growth and upgrading of existing and emerging clusters takes on a priority.’ (M. Porter)
  • 15.
    • THANK YOU !!!