The document summarizes two cluster development projects in Turkey's less developed regions. [1] The UNIDO project applied their cluster development approach to the textile sector, focusing on trust building, joint actions, and poverty reduction. [2] The Ministry of Economy's project empowered SMEs through networking and cooperation across five pilot cities and regions, establishing cluster information centers. The presenter emphasizes that identifying upgrading opportunities, developing leadership and creativity, and enabling innovation are key lessons learned from both projects.

1. CLUSTER DEVELOPMENT IN TURKEY:
INTERNATIONALIZATION, INNOVATION AND
REGIONAL DEVELOPMENT
VEDAT KUNT
VEGO CONSULTING
Vienna, 20th April 2012

2. Two project cases from the less developed
regions of Turkey are examined;
1. Harnessing Sustainable Linkages in the
Textile Sector of Turkey- UNIDO (funded
by the MDGF)
2. Empowering SMEs for Networking and
Inter-Regional Cooperation- Ministry of
Economy (funded by the EU)
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Enterprise and Industry 26.04.2012 2

3. 1. Harnessing Sustainable Linkages in
the Textile Sector of Turkey- UNIDO
European Commission
Enterprise and Industry 26.04.2012 3

4. 1. Harnessing Sustainable Linkages in
the Textile Sector of Turkey- UNIDO
• UNIDO’s unique approach to Cluster
Development is followed;
1. Social Capital /Trust Building
2. Establishment of Joint Actions
3. Performing Cluster
4. Poverty Reduction
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Enterprise and Industry 26.04.2012 4

5. 1. Harnessing Sustainable Linkages in
the Textile Sector of Turkey- UNIDO
“Growth ... is an important means to enlarge human choices
but it is not an end in itself. Growth at all costs can result
in:
*Jobless growth (that does not expand employment
opportunities);
*Ruthless growth (the fruits of growth mostly benefit the
rich);
*Rootless growth (stifles cultural diversity and identity);
*Futureless growth (depletes natural resources);
*Voiceless growth (growth without expansion of democracy,
empowerment)”
• UNDP – Human Development Report (1999)
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Enterprise and Industry 26.04.2012 5

6. 1. Harnessing Sustainable Linkages in
the Textile Sector of Turkey- UNIDO
WHO ARE THE POOR???
The poor addressed in a cluster initiative are…
1. Poor cluster entrepreneurs
2. Poor farmers and/or suppliers supplying cluster firms
3. Poor workers in cluster firms and job-seekers
4. Poor consumers of clusters goods/services
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Enterprise and Industry 26.04.2012 6

7. 1. Harnessing Sustainable Linkages in
the Textile Sector of Turkey- UNIDO
Pro-poor economic opportunities:
• For poor entrepreneurs: increased productivity, investments,
sales, returns and income from business activities
• For poor suppliers and farmers: increased sales (volume and
frequency), better prices, higher returns
• For poor employees and job-seekers: new / more stable
employment, higher wages, better working conditions
• For poor consumers: increased affordability of goods/services
produced by the cluster, improved quality of the products
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Enterprise and Industry 26.04.2012 7

8. Lessons learned 1
• Finding, training and developing CDAs (Cluster
Development Agents/Cluster Managers) is the most
important first step.
• Trust building between CDA and the cluster members is
critical
• Mobilizing state incentives in the direction is the ultimate
support tool to establish joint actions
• Local and national stakeholders’ governance plays a key
role for sustainability
• Being a part of an “Environment” which enables
innovation is the ultimate target for Companies,
Academia and Institutions…
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Enterprise and Industry 26.04.2012 8

9. 2. Empowering SMEs for Networking
and Inter-Regional Cooperation-
Ministry of Economy
MoE’s SME Development and Networking project
• 5 Pilot cities + 5 Co-op regions in the west + 5 Target
international markets
• 5 priority sectors
• 5 Cluster Info Spots established as one stop shops for cluster
development
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Enterprise and Industry 26.04.2012 9

10. Lessons learned 2
• Value Chain and Supply Chains Analysis play an
important role in identifying upgrading opportunities
both horizontal and vertical for the companies at
implementation level and to mobilize right support
mechanisms at policy level.
• Concentrating on leadership and creativity,
understanding “project psychology” is critical.
Unleashing creativity, developing human resources
accordingly, who will ultimately manage the cluster
activities will determine success or failure…
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Enterprise and Industry 26.04.2012 10

11. Lessons learned 2
• Not only B2B,C2C, B2C and C2B; but also B2I,
C2I, B2A, C2A and vice versa, There is
extensive flow of information, knowledge,
technology, finance, products, processes
between each peer.
• Being a part of an “Environment” which
enables innovation is the ultimate target for
Companies, Academia and Institutions…
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Enterprise and Industry 26.04.2012 11

12. Thank you very much for your attention…
Vedat Kunt
Partner, VEGO Consulting
• UNIDO Consultant for Cluster Development
• Key Expert for SME Development and Networking
Project of MoE
v.kunt@vego.com.tr
European Commission
Enterprise and Industry 26.04.2012 12