Consultation on the Benefits of Clustering to Promote Exports Presented as a Component of the ‘Export Competency Developme...
Perspective <ul><li>“ The enduring competitive advantages in a global economy are often heavily local, arising from concen...
Presentation Outline <ul><li>Background Considerations </li></ul><ul><li>Definition of Clusters </li></ul><ul><li>Generic ...
Background Considerations <ul><li>Changing context of Agriculture </li></ul><ul><ul><li>Growing demand - Efficient Supply ...
Background Considerations <ul><li>Changing context of Agriculture </li></ul><ul><ul><li>concern about sustainability; </li...
Background Considerations <ul><li>Changing context of Agriculture </li></ul><ul><ul><li>The question: how can local farmer...
Background Considerations <ul><li>Industry clusters Industry clusters are essential for profitable exports in Grenada </li...
Define Clusters <ul><li>“ Clusters are geographic concentrations of interconnected companies and institutions in a particu...
Clusters Defined <ul><li>consists of firms that consists of firms that… </li></ul><ul><ul><li>are located in relatively cl...
Clusters Defined <ul><li>Co-inform </li></ul><ul><li>Co-learn </li></ul><ul><li>Co-market </li></ul><ul><li>Co-purchase </...
Identifying Clusters <ul><li>Business Interdependence:   </li></ul><ul><li>where businesses relate to each other through t...
Generic Cluster Structure
Cluster Formation Requirements <ul><li>Catalogue key components  of the cluster </li></ul><ul><li>Articulate an   achievab...
Role of Government <ul><li>I end with another quote from Porter </li></ul><ul><li>‘ The importance of clusters suggests ne...
<ul><li>THANK YOU !!! </li></ul>
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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 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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Benefits Of Clustering To Promote Exports

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