TCI2013 Cluster initiatives to promote competitiveness now

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By Emiliano Duch, The World Bank, presented at the 16th TCI Global Conference, Kolding 2013.

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TCI2013 Cluster initiatives to promote competitiveness now

  1. 1. 1 Cluster initiatives to promote competitiveness now Emiliano Duch Cluster Development in Times of Change 5 September 2013
  2. 2. 2 Cluster Initiatives to Promote Competitiveness Now TCI Conference – Kolding, DK Emiliano Duch Competitive Industries Global Practice September 5, 2013
  3. 3. 3 • The World Bank new goals • Shared value, clusters and cluster initiatives • Managing cluster initiatives professionally • The role of the World Bank
  4. 4. 4 • The World Bank new goals • Shared value, clusters and cluster initiatives • Managing cluster initiatives professionally • The role of the World Bank
  5. 5. 5 • The World Bank Group has two ambitious goals: end extreme poverty within a generation and boost shared prosperity. – Reduce extreme poverty at 3% in 2030 – Foster income growth of the bottom 40% • Focusing on enriching livelihoods through economic growth, inclusion, and sustainability The World Bank new goals
  6. 6. 6 • The World Bank new goals • Shared value, clusters and cluster initiatives • Managing cluster initiatives professionally • The role of multilaterals
  7. 7. 7 • Companies can create shared value by: –Re-conceiving products and markets –Redefining productivity in the value chain –Building supportive industry clusters at the company's locations M.E.Porter, HBR, January 2011 Shared value, clusters and cluster initiatives
  8. 8. 8 • Clusters: What were they supposed to be –Geographic concentrations of interconnected companies and institutions in a particular field. Clusters encompass and array of linked industries and other entities important for competition. M.E. Porter, HBR,1998 Shared value, clusters and cluster initiatives
  9. 9. 9 • Clusters: What they have ended up being – « Le regroupement sur un même territoire d'entreprises, d'établissements d'enseignement supérieur et d'organismes de recherche publics ou privés qui ont vocation à travailler en synergie pour mettre en œuvre des projets de développement économique pour l'innovation. » DGCIS-DATAR, 2011 Shared value, clusters and cluster initiatives
  10. 10. 10 • Clusters: What they have ended up being – « The grouping in a territory of companies, universities and research institutions, public or private, that have a vocation to work in sinergy to perform economic development projects on innovation». DGCIS-DATAR, 2011 Shared value, clusters and cluster initiatives
  11. 11. 11 • “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices…” Adam Smith, The Wealth Of Nations, 1776 Shared value, clusters and cluster initiatives
  12. 12. 12 • After almost twenty years of experience …, the results are mixed, ... While there have been many examples of value creation in clusters that have brought productivity increases and prosperity to their regions, there are also many instances of publicly funded structures that have not created any value. Public-Private Dialogue for Sector Competitiveness and Local Economic Development, World Bank, 2011 Shared value, clusters and cluster initiatives
  13. 13. 13 “Cluster initiatives are organized efforts to increase the growth and competitiveness of clusters within a region, involving cluster firms, governments and/or the research community.” The Cluster Initiative Greenbook, 2003 Shared value, clusters and cluster initiatives
  14. 14. 14 • Companies can create shared value by: –Re-conceiving products and markets –Redefining productivity in the value chain –Building supportive industry clusters at the company's locations M.E.Porter, HBR, January 2011 Shared value, clusters and cluster initiatives
  15. 15. 15 “As more and more resources are devoted to efforts to foster cluster development, the need to understand best practice has become urgent”. M.E. Porter foreword to Greenbook, 2003 Shared value, clusters and cluster initiatives
  16. 16. 16 • The World Bank new goals • Shared value, clusters and cluster initiatives • Managing cluster initiatives professionally • The role of the World Bank
  17. 17. 17 Collective efforts to improve cluster initiatives: • 2003 TCI conference Greenbook and “learning sessions”. • 2003 Cluster Competitiveness Report • 2004 USAID Evaluation report • 2007 EU Cluster Mapping Case Studies • 2007 Barcelona/Washington Clusters Summer School • 2009 USAID Case studies • 2009-12 European Cluster Excellence Initiative Managing cluster initiatives professionally
  18. 18. 18 Managing cluster initiatives professionally
  19. 19. 19 Managing cluster initiatives professionally
  20. 20. 20 Managing cluster initiatives professionally
  21. 21. 21 Managing cluster initiatives professionally
  22. 22. 22 • The World Bank new goals • Shared value, clusters and cluster initiatives • Managing cluster initiatives professionally • The role of the World Bank
  23. 23. 23 • Dialogue and action on ongoing and emerging development challenges, bringing the perspective of developing countries to global issues. • Support clients in delivering customized development solutions by packaging finance, knowledge, and convening services. • Help advance knowledge about what works. The role of the World Bank
  24. 24. 24 One example of “what does not work” Link to Groupe de Travail Sur la Competitivite in Haiti http://www.nytimes.com/slideshow/2012/07/05/world/americas/20120706-HAITI.html
  25. 25. 25 Thank you for your attention! For slides contact: Emiliano Duc educh@worldbank.org

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