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Benefits Of Clustering To Promote Exports
 

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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    Benefits Of Clustering To Promote Exports Benefits Of Clustering To Promote Exports Presentation Transcript

    • 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
    • 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
    • Presentation Outline
      • Background Considerations
      • Definition of Clusters
      • Generic Clusters
      • Identification of opportunities for formation of clusters in Grenada
    • 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
    • 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
    • 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
    • Background Considerations
      • Industry clusters Industry clusters are essential for profitable exports in Grenada
    • 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
    • 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
    • Clusters Defined
      • Co-inform
      • Co-learn
      • Co-market
      • Co-purchase
      • Co-produce
      • Co-build economic foundations
    • 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.
    • Generic Cluster Structure
    • 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
    • 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)
      • THANK YOU !!!