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Fabio Russo and his presentation for the 20th TCI Global Conference
1. 1
The Future of Competitiveness
Agenda through Collaboration
20th TCI Global Conference
Fabio Russo
2. The Future of Competitiveness Agenda through
Collaboration
20th TCI Global Conference
Fabio RUSSO
Trade, Investment and Innovation Department
f.russo@unido.org
3. 3
Trends affecting competitiveness and challenges
for Developing Countries
o New Development Paradigm
o Globalization and Regional Integration
o Industry 4.0
o Industrialization as a key driver of development
4. 4
UNIDO’s mandate:
Inclusive and Sustainable Industrial Development
Shared Prosperity
Economic Competitiveness
Safeguarding the Environment
5. 5
Promoting Cross Country and Regional
Cooperation
o Urban – Industrial Nexus
o Need for policy coordination and cross-country collaboration
o The UNIDO Bridge For Cities initiative:
oPromote the creation of cooperative dialogue and knowledge
exchange for sustainable urban-industrial development
oExplore opportunities for trade promotion and technological
upgrading via South-South and triangular industrial cooperation
6. 6
Cross Country and Regional Cooperation
Linking clusters for joint promotion of regional products in world markets
- E.g. Vranac wine (Balkan region)
searching for regional comparative advantages is sometimes more
promising than looking for a national comparative advantage
- Creative Industries in the South Mediterranean: 14 clusters in 7
Countries
7. 7
Integrated Cluster Approach: linking tourism Food and
Creative Industries
o Agro-food, tourism, and creative industries have strong
potential for complementing each other
oSynergies creates additional opportunities for enhancing
competitiveness of industries and regions
oAdopting an integrated cluster approach
8. 8
• UNIDO Cluster approach focuses on existing clusters
• Cluster development builds a platform for other type of interventions focused
on quality, upgrading, energy efficiency to be applied in a more efficient
manner –leverage of resources
• Cluster development is a long-term process which requires strong ownership
by local/national stake holders
• The approach is flexible and can be applied to all sectors from handicraft to
high tech industries and also services.
WWW.UNIDO.ORG/CLUSTERS
UNIDO Cluster Programme
9. 9
Projects’ coverage
Cluster Development Ongoing
Cluster Development Completed
Export /Origin Consortia
Nicaragua
Mexico
Honduras
Jamaica
Tunisia
India
Colombia
Senegal
El Salvador
Zimbabwe
Morocco
Nigeria
Ecuador
Thailand
Pakistan
Uruguay
Morocco
Egypt
Peru
China
Indonesia
Serbia & Montenegro
Hungary
Jordan
Iran
Ecuador
Colombia Bolivia
Ethiopia
Russia
South Africa
IVC
Vietnam
Vietnam
Turkey
Economic growth as measured by GDP is not an end in itself but remains a preconditions for enhancing human welfare and should be pursued jointly with social and environmental targets to be inclusive and sustainable
The extension of regional and global value chains provide new opportunities as well as new threats for countries. The questions remains how local industries and SMEs can be integrated in GVCs. One of the key challenges is to foster the capacities of these SMEs to be compliant with the market requirements and various standards. Another challenge is how to attract quality FDI in other words those type of investments that can promote development and how to ensure that SMEs can benefit from these FDI
With Industry 4.0 a new landscape of competition is emerging. the decentralization of production that might follow will define the way how the international division of labour will be organized with both opportunities and threats for developing countries
In any case for policy makers in developing countries industrialization remain a key development tool. The key is to capture the window of opportunity for industrialization arising from the relocation of light manufacturing from higher income countries. That was true in the past (post war Japan, Korea) and it remains true today (eg of Ethiopia)
Concentration of industrial activities and clusters in urban areas would require coordination between industrial and urban policy with respect to economic development, employment and social welfare and environment.
As industries become more and more integrated across borders, cities will also become more and more interdependent
There is a need for collaboration among cities for coordination of policy and promoting joint initiatives
A major infrastructure initiative such as one belt one road, that connects a number of countries and cities will further intensify integration of industries all along
Global Forum activities such as Bridge for Cities address such coordination and communication needs
Products of origin are often linked to certain geographic conditions that stretch across more than one countries. Nevertheless you find single clusters in each country trying to promote the product separately in slightly different ways. Joining forces in this regard would increase their recognition on world markets and enhance their collective efficiency (that means agreeing on joint quality standards, common identity and joint / aligned promotional efforts.
The ‘integrated cluster’ is therefore not exclusively touristic or exclusively specialized in one production covered by agro-food sector., On the contrary, these features, all present, are interdependent, together with the exploitation of cultural and creative resources.
A key success factor of this approach is the ability to foster collaboration and innovation (new integrated products – goods and services)
Montenegro
The UNIDO experience in preserving and promoting origin-linked products is a valuable example of an integrated approach. “Delicious Montenegro” is a collective brand and web platform developed by UNIDO to promote market access of Montenegro’s typical products and improve the visibility of Montenegro as an attractive tourism destination.
Working in collaboration with Montenegro’s Business University, over 150 producers from the agri-food, tourism and creative industries sectors have been mapped and
listings created on the Delicious Montenegro Platform.
CCI
In the Southern Mediterranean countries there is a strong interest to create new opportunities for inclusive economic development through culture and creative
industries such as information technology, craft, tourism, textile, fashion and cosmetics. UNIDO project “Development of Cultural and Creative Industries and Clusters in the
South Mediterranean Region” http://www.medcreative.org/ supports 14 clusters in 7 countries to foster the development of cultural and creative industries.
The project accompanies the craftsmen who participate in the clusters from scratch to the sales of the product. This initiative has enabled them to transform their cultural
heritage into unique, trendy collections. Craftsmen owe their success to creativity and know-how. Valuing these skills is a way to continually improve the clusters activity,
their market access and the product sales, which is the best trigger to improving living conditions and earnings. Creativity as a key to resilience, is at the core of this project.