Globalization has led regions to focus more on developing distinctive resources like knowledge, skills, innovation and creativity to remain competitive. Cooperation between clusters within global value chains can positively influence regional competitiveness under smart specialization strategies by facilitating the creation and circulation of useful economic knowledge. The paper analyzes cluster global value chains in different regions in the context of smart specialization and argues that cluster cooperation positively impacts regional competitiveness through knowledge creation and absorption by businesses.

2. Clusters as territorial answer to
globalisation of market
Global Value Chain of Clusters
Rwanda (AFRICA)-Poland (EU) CASE STUDY

3. 3
 Globalisation is a fact, the more global world is the more attention is put to the regions
 In the course of development of modern countries and regions; knowledge, skill, innovation
and creativity were gradually gaining the position of the most distinctive and individual
resources.
 This transformation has caused the change of paradigm of thinking about competitiveness of
regions and forced it to move towards tight relations with knowledge and intellectual capital in
enterprises.
 The main focus of this presentation thesis is the analysis of clusters global value chain within
particular regions in the light of Smart Specialization strategies.

4. The aim of the paper:
On the basis of analyzed literature and in accordance with the objectives of this paper, partial empirical
analysis as well as my own reflections, the following thesis is advanced:
Cooperation of Clusters within the global value chain influence positively the growth of the
competitiveness of the region under conditions of Smart Specialization as a result of creation, in the public
and private sector, economy-useful knowledge which circulates in the innovative system of a particular
region and which is absorbed by enterprises.

5. Economic context – African
opportunities
 Private Sector provides 90 % of jobs in Developing Countries and thus it is an essential partner in the fight
against poverty.
 Global needs for developing countries are estimated at USD 1.5 trillion a year while last year's Official
Development Assistance (ODA) was USD 135 billion (OECD). Private capital flows are indispensable to bridge
the gap, in addition to domestic tax resources.
 The private sector is needed as investor in sustainable energy, infrastructure, green economy and especially in
sustainable agriculture and agribusiness to feed 9 billion people by 2050.
 Huge opportunities: 5%-6% of GDP growth on average in developing countries and emerging economies. On the
African continent, the latest figures show eight countries registering a growth rate of 7%, nine countries at 6% and
ten countries at 5%.
 But with challenges regarding…

6. Economic context - opportunities
 Business and investment environment
 Repatriation of profits
 Registration of companies
 Customs procedures
 Taxation…
 Access to finance mainly for SMEs
 Skills gap
 Lack of skilled labour
 Lack of experienced management capacity…
 Information gap
 Lack of information, knowledge and experience which retain from engagement or give excessively risk adverse attitude to
European enterprises.

7.  Operations and achievements of competing advantages of the region are gradually becoming more complex.
 This is because of the surrounding, in which a particular region is located as well as the global processes which
directly influence certain areas. In order to hold their position, regions need to continuously search for the new
sources of competitive advantages
 Competing advantage (French: avantage concurentiel) – having better competences than competitors, which
constitute a determinant success factor in a particular field - J.A.F. Stoner defines “competing advantage as
“abilities or circumstances, which enable to reach outstanding profits” (J.A.F. Stoner, R.E. Freeman, D.R.
Gilbert, jr,);
 The competitiveness of the region, under conditions of Smart Specialization, rises pursuant to the new
paradigm and that is why, it will be depended on the very nature of the objects and factors which are having
significant impact on creation, circulation and application of knowledge and innovation in a particular region.
These objects are defined by the source literature mainly as clusters which are characterized by huge efficiency
of absorption of knowledge in their own scope.
Economic context - opportunities

8. New paradigm of regional
development

9. Smart Specialisation
 Smart specialization, in light of the intensifying processes
of globalisation occurring in recent years and which,
paradoxically, are boosting the significance of regions, is a
strategy furthering the deep economic transformation of
regions.
 Through the functioning of clusters, these regions are
becoming platforms for creating knowledge and
innovation, developing innovative solutions, enhancing
cooperation between partners based on trust.
 Smart specializations are becoming the strategy for all
regions.

10. Technology and Smart Specialisation
concept
 The study finds that technology plays a
siginficant role in economic development.
 International factors play a strong role in
technology adoption.
 This is due to the current position of Africa as a
continent that depends largely on adoption of
new technology develop outside of the
continent and adapted to the African context.

11. Policy based on clusters
 Analysis has confirmed that, in light of Smart Specializations (SS), well-defined and
well-managed clusters contribute extensively to the development of regional
competitiveness and high rates of growth.
 Clusters and cooperation networks in the SS environment as a tool for regional
development facilitate the growth of the role played by the SME sector, while
reducing imbalances in development, both spatial and social.
 What is more, clusters, as determinants of growth associated with the
specialization of regions and knowledge-based economy, influence a region’s
ability to sustain a high competitive edge in conditions of smart
specializations, and SS gives the opportunity to achieve economic growth by
particular states owing to the innovations of regions while ensuring the steadiness of
that growth by preventing the marginalization of problem areas.

12. Global Value Chain

13. Genealogical map of analytical frameworks for global value chains
Analytical frameworks for global value chains: An overview , SATOSHI INOMATA

14. Three cascading constraints of
globalization

15. How to map a VC?
Roles Actors Partners
Final product
 What are the phases of
value creation within the
VC?
 Which phase of the VC
generates the highest
value addition? And the
lowest?
 Which phase gives room
for innovation?
 Are the following phases
related? How?
 What are the main actors involved in the
value creation?
 Which actors have the most influence on
value creation?
 Are the actors centralized or
decentralized?
 Do they cooperate, eg. within clusters?
 What are the relations between the
actors? Are they structurized?
 Are entry barries high or low?
 What groups of partners
support actors in value
creation?
 What kind of products/
services do they offer?
 To what extent are actors
dependent of partners?
 To what extent does the
quality of final product
depend on partners?
 What kind of final product is
generated within the VC?
 What is its competitive position
(on national/ international scale)?
 What phase of product lifecycle
does it present?
Target markets
 What are the target clients (B2B/
B2C/ B2G; local, regional, national,
international)?
 What is the market size?
 What is the market potential
(emerging, mature, declining)?

16. What kind of relations do we have in VC?
Roles Actors Partners
Final product
Target markets
Relations
actor-actor (the same roles) / actor-actor (different roles) / actor-partner
 What kind of relations dominate on different phases of VC
(formal/ informal, standarized/ individual)?
 Who initiates the relationship?
 Are the relations long- or short-term?
 Clusters?

17. Clusters made by actors (or actors and partners) within VC
Roles Actors Partners
Production of raw products
(eg. apples)
Apple
producer A
Apple
producer B
Apple
producer C
Cluster
Option 1: Clusters within the horizontal integration between actors (of the same role) + partners
Roles Actors Partners
Production of raw materials
(eg. polymers)
Supplier A Supplier B Supplier C
Option 2: Clusters within the vertical integration between actors (of different roles) + partners
Preparation of tools and
machines for processing
Polymers processing
Supplier A Supplier B Supplier C
Processor A Processor B Processor C
Cluster
Universities
Technology suppliers
(eg. specialist software, UAV)
+
+ Advanced polymers research
institutes

18. Clusters cooperation within VC – horizontal
Roles Actors
Production of raw materials
(eg. polymers)
Preparation of tools and
machines for processing
Polymers processing
Logistics of raw materials to
processors
Logistics of final product to
the client
R&D on advanced polymers
Producer
A
Producer
B
Cluster 1
Recycling of polymer
products
Relations
(cluster-cluster)
+
Research
institute
from
Cluster 2
Option 1: Horizontal integration between clusters (of the same role) + partners
Producer
A
Producer
B Producer
C
Cluster 2
Partners

19. Supplier A
Clusters cooperation within VC – vertical
Roles Actors Partners
Production of raw materials
(eg. polymers)
Preparation of tools and
machines for processing
Polymers processing
Logistics of raw materials to
processors
Logistics of final product to
the client
R&D on advanced polymers
vProducer A Producer B Producer C
Cluster 1
Supplier A
Processor A Processor A Processor A
Recycler A
Recycling of polymer
products
Recycler B Recycler C
Cluster 2
Relations (cluster-cluster)
Supplier A
+ Advanced polymers research
institutes
Option 2: Vertical integration between partners (of different role) + partners

20. Cluster (Cooperatives) in Rwanda

21. Strategy.
Change.
Development.
Why Africa?
• Population growth - expected population of 2 billion by
2050
• Most youthful continent
• Political stability in most regions + stronger institutions
• Continuous average GDP growth of 5-8% since 2002
• Expected economic growth of 6-7% annually for the
next 20 years
• Agricultural potential - Africa to be the next
breadbasket of the world?
• Growing logistical infrastructure investments

22. Quick access to billions of people

24. Strategy.
Change.
Development.
Rwanda• Capital: Kigali (1,13 million)
• Population: 12 million (20% urban)
• Land area: 26 338 sq km
• GDP growth: 7.7% annual average between
2010-2014
• Language: Kinyarwanda, English, French
• Economic cooperation: East African
Community (EAC) and Common Market for
Eastern and Southern Africa (COMESA)
• Second most competitive economy in Sub-
Saharan Africa (according to World Bank Ease
of Doing Business Index)

25. Strategy.
Change.
Development.
Rwanda - Energy
• Today (2014): 126 MW installed generation capacity, with connectivity rate 23%
• Target (2017): 563 MW (>4x current capacity) with 70% access to electricity
• Clusters Opportunities Investments:
1. Methane gas
2. Geothermal
3. Peat
4. Micro hydropower
5. Solar
6. Off-grid solutions

26. Strategy.
Change.
Development.
Rwanda - Agriculture
• 33% of Rwanda’s GDP (with 80% of total population involved)
• Rich soils, high rainfall! Mainly traditional and organic agriculture.
• Clusters Opportunities Investments:
1. Horticulture processing
2. Maize, wheat, potato and rice production
3. Irrigation and mechanisation projects
4. Fertiliser distribution
5. Green fields for tea production
6. Meat and dairy processing
7. Coffee: production, roasting and packaging
8. Silk development
9. Stevia, Honey, Sugarcane, Soy bean, Avocado, etc.
10. Fishery, aquaculture and animal feed production

27. Strategy.
Change.
Development.
Rwanda - ICT
• Rwanda is investing heavily in ICT projects countrywide
• 4G LTE network up to 95% by end of 2016
• ICT Park investment ($150 million) for clusters:
1. Energy
2. Internet & multimedia
3. Mobile Telecommunication
4. Knowledge-based economy
5. E-Government
6. Financial
7. ICT Service and export

28. Strategy.
Change.
Development.
Rwanda - Manufacturing
• Contributing 20% of GDP
• Development of Rwanda Special Economic Zone
• Clusters Opportunities Investments:
1. Construction materials
2. Pharmaceutical drugs
3. Packaging products
4. Textiles
5. Leather processing and products
6. Soaps and detergents
7. Fertilisers

29. Strategy.
Change.
Development.
Rwanda - Real Estate
• Kigali’s housing needs: 458 265 units (2013-2022)
• Kigali is planning construction of Central Business District and Kigali Technopole (ICT Park)
• Clusters Opportunities Investments:
1. Low & middle income residential houses
2. Sports & entertainment centres
3. Office buildings + commercial centres
4. Shopping malls
5. Training: Architecture, Engineering, etc.
6. Factory construction
7. Real estate agency operations

30. Thank you for your attention and critical feedback
Thank you
dr Anna Masłoń-Oracz (PhD) – Assistant Professor
Email: amaslon@sgh.waw.pl
annamaslonoracz@gmail.com
Mobile: +48 600 599 903