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Business clusters Opening Up

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Presentation on business clusters at the North sea region conference 12 june 2013. Opening Up

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Business clusters Opening Up

  1. 1. Clusters & how to make it work: Toolkit for cluster strategy Anu Manickam Halmstad, 12 June 2013
  2. 2. Presentation • Clusters – why? • Cluster Gearbox • Toolkits from the Gearbox: • • • • Wicked problems – complex (eco) systems Drivers of change Relevance of history, geography, culture Emerging developments • EU cluster policy & the challenges ahead
  3. 3. Clusters… • are innovation hubs (Silicon Valley), they • attract talent, businesses and finance • focus on collaborations, interactions and offer of integrated products and services (across sectors) • create „mass‟ and economies of scales when needed • offer cross-boundary, cross-disciplinary, cross-level, holistic concept • are smart specializations • are relevant as they reflect • interconnected and interdependent nature of globalization, business and social realities • need for complex and combined value chain solutions • need for accelerated knowledge development and diffusion put people and networks central
  4. 4. Integrated cluster approach Clusters as people-based interactions (microlevel) creating innovative, adaptive cluster developments (emergent systems) responding to changes in context… Dynamics)of)Complex)Adap3ve)Systems) Emergent)paBerns) agent) Context) agent) Organiza3on) agent) Group) Sensemaking)and) transforma3ve) interac3ons) agent) Significant) differences)of) agents)and) strategy) Individual) agent) Whole systems approach
  5. 5. Cluster Gearbox •Complex problems & drivers of change Cluster Context •Past, current and future factors influencing stakeholder interactions and capabilities Cluster Conditions Cluster Dynamics •Emergent patterns of interaction and developments •Transforming interactions (where differences are leveraged) & organizing processes (topdown/bottom-up) Cluster Performance 12
  6. 6. Integrated cluster approach • • • • Puts enterprise, innovation and policy into context Gains deeper insights on cluster dynamics and drivers of change Helps policy adopt a frame of reference that Guides, coerces and influences cluster developments collectively
  7. 7. Tool kit 1: Identifying wicked problems “Wicked problems” are… • Complex • Unpredictable • Many versions of the problem • Many solutions • No right or wrong answer • No end point • Solutions create… new problems
  8. 8. Wicked problems … otherwise defined “Every problems interacts with other problems and is therefore part of a set of interrelated problems, a system of problems… I choose to call such a system a mess.” Ackhoff, 1974
  9. 9. Wicked Problem Dominance of Paper & Pulp industry – affecting expectations, self-sufficiency drives, etc. Lock-in patterns of interactions Cluster members demand more for money Local government want more efficiency from clusters Karlstad between giants – Stockholm, Gothenburg, Oslo – urban pull depleting talent, money Government focus on Capital city; funding to academic universities generous ‘Equality’ as principle – don‟t discriminate in policy Academic university = fundamental research & publication Industry needs applied research & other skills School curricula not serving industry needs Confidence of industry of future and slow reaction to global competition „Innovation value of paper mills not recognized‟ Citizens complaining of „ugly‟ mills and property degradation Case: Karlstad & Vårmland Region: Paper & Pulp EU policy – build on strong, excellent clusters Technology centre to solve need for industry related skills
  10. 10. Wicked problems • What is the problem? • Are we talking about the same elephant? • Is there a common goal? vision? • Where are we looking for solutions?
  11. 11. Drivers of change - local - Need to collaborate to vie for complex tenders & projects - Demands of local government of Karlstad to increase efficiency - Consumer demands for sustainability – ‘green products’ - New opportunities due to technology innovation and spin-offs from paper mills - Growth opportunities sought in adjacent areas of business - Shortage of technical personnel in future Technology and knowledge abundance (bio-medicines) Resource protection (sustainable forest practice) Case: Karlstad & Vårmland Region: Paper & Pulp Industry
  12. 12. Drivers of change - global OECD Region Report 2007 Double loop sustainability of forest and business Strategic forum resulted in MOU 10 Professors Programme 2010-2014 - Environmental regulation - Competition from Brazil & emerging markets – need for more efficiency - Sustainability agenda – sustainable fiber flow concept; bio-economy as an opportunity - Trend towards demand driven – PP industry needs to be more ‘open’ - EU policy stimulating ‘bigger, multisectoral, high-tech, excellent clusters’ - Expansion and focus of metropolis in region Case: Karlstad & Vårmland Region: Paper & Pulp Industry Key Actor Program Vinnova (2008-2015)
  13. 13. Relevance of history, geography & culture Limits to networking Paper mills: dominance and traditional caretaker’s role in region for more than 3 centuries: “still in the „genes‟ of people”; “male dominated industry” – care taker role strengthened; Dependence on mills suppressing entrepreneurial drive to new industries? Complacency? Big industry with high investment base – slow to change Industry was ‘closed, inward-looking and selfsufficient – tendency to not to „open-up‟ and learn from others Presence of river and lake linked forests to mills – essential factor in past growth, Rural communities – history of trust and collaborations – limited to opportunistic collaborations (instead of strategic collaborations) Latent potential for deeper collaborations Case: Karlstad & Vårmland Region: Paper & Pulp Equality principle suppressing excellence? Success of cluster history a hindrance?
  14. 14. Cluster performance: emerging developments The Paper Province acknowledged as excellent cluster Strategic relationship established through MOU between university, local/regional government and clusters - Connected through 10 professorships working jointly on research strength, industry needs and expertise (establishment of „cluster room‟) - Linked to national research fund distribution model - Working towards collective Värmlandmodel 2.0 lead by Region Värmland - University expanding its scope to include contribution to regional development as a key strategy - Increased co-operation by cluster firms with university (83%, was 78% and increased willingness to co-operate (97%, was 94%) - New PhDs that are rewarded for knowledge valorisation (utilization) - Service innovation and social innovation focus as new drivers of growth OECD review follow-up PURE 2010 Recognition of Region Värmland’s progress Case: Karlstad & Vårmland Region: Paper & Pulp Change in funding of cluster organizations
  15. 15. EU Cluster Policy • cross-sectoral innovation (ICT and health, energy and health) • smart specializations • cluster to cluster collaboration (internationalization) • knowledge transfer and diversity accelerator • linking industry competence needs with education • user-driven innovation • pushing ICT and high-technology to SMEs
  16. 16. EU Cluster Policy  Innovation policy – is broad, often national (not local) capacity building  Cluster policy – is strengthening regional economics  Horizon 2020 & Smart Specialization Strategy  clusters are specializations  strengthen existing clusters  excellent clusters
  17. 17. Challenges in cluster development • How do you push for deeper level collaborations? • How do you create higher level „trust‟ activities and environments? • How do you break traditional boundaries of institutions, policy, political and government levels, disciplines, sectors, business models, policy directions, etc. ? • Who will lead the transformation? Where are the seeds of change?
  18. 18. Understanding cluster dynamics & drivers of change •Complex problems & drivers of change Cluster Context •Past, current and future factors influencing stakeholder interactions and capabilities Cluster Conditions Cluster Dynamics •Emergent patterns of interaction and developments •Transforming interactions (where differences are leveraged) & organizing processes (topdown/bottom-up) Cluster Performance Input for strategy development
  19. 19. Based on research on cluster dynamics and drivers of change Anu Manickam, with contributions from Karel van Berkel Hanze University of Applied Sciences, Groningen a.r.s.manickam@pl.hanze.nl

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