FORMING CREATIVE TERRITORIAL (URBAN) CLUSTERS AS AN OPPORTUNITY FOR SMALL BUS...IAEME Publication
The article aims at studying the territorial (urban) clustering of creative activity in the European Union and its impact on the development of small business. An important aspect is highlighting features and differences of creative clusters in comparison with clusters in other sectors of economic activity. When considering this problem, special attention is paid to the study of the cluster policy features of the creative industries of the European Union, and formation of creative urban clusters in the EU countries
The Economic Benefits of Clusters and Regional Support Initiatives within the...Peter Louis
Identifies the economic benefits of clustering and discusses the regional support initiatives that encourage and nurture the development of high-tech and knowledge-based clusters within the East of England.
Clustering has long been recognized as a key tool for fostering regional growth and economic development. However, like ‘innovation’ clustering has become a somehow blurry concept that many talks about and use in various connections. In this presentation, Jakob will take you through an essential ‘clusters what and why session’ discussing some of the key questions, which are crucial for all being involved in with cluster development: What are clusters more exactly, how do they occur, what are the dynamics and key factors driving strong clusters, can we create clusters, and what are the differences between ‘clusters’ and ‘cluster initiatives’? Most importantly, Jakob will also discuss if clusters and clustering really matters: Do clusters actually forge economic and regional development and why should we aim for cluster development at all?
Prospects of Development of Activity of Modern Enterprises in the Conditions ...ijtsrd
The article is devoted to prospects of development of national economy on the basis of stimulation of innovative activity of modern enterprises. The basic directions of creation of small business, measures on support and formation of an innovative infrastructure are considered, mechanisms and the economic content of integration interaction of small and large business are defined. In article perspective directions of development of activity of the modern enterprises are proved. Siddikov Mumin | Berdiqulov Azzam "Prospects of Development of Activity of Modern Enterprises in the Conditions of Innovative Economy" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-4 , June 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31262.pdf Paper Url :https://www.ijtsrd.com/management/innovation-and-product-dev/31262/prospects-of-development-of-activity-of-modern-enterprises-in-the-conditions-of-innovative-economy/siddikov-mumin
FORMING CREATIVE TERRITORIAL (URBAN) CLUSTERS AS AN OPPORTUNITY FOR SMALL BUS...IAEME Publication
The article aims at studying the territorial (urban) clustering of creative activity in the European Union and its impact on the development of small business. An important aspect is highlighting features and differences of creative clusters in comparison with clusters in other sectors of economic activity. When considering this problem, special attention is paid to the study of the cluster policy features of the creative industries of the European Union, and formation of creative urban clusters in the EU countries
The Economic Benefits of Clusters and Regional Support Initiatives within the...Peter Louis
Identifies the economic benefits of clustering and discusses the regional support initiatives that encourage and nurture the development of high-tech and knowledge-based clusters within the East of England.
Clustering has long been recognized as a key tool for fostering regional growth and economic development. However, like ‘innovation’ clustering has become a somehow blurry concept that many talks about and use in various connections. In this presentation, Jakob will take you through an essential ‘clusters what and why session’ discussing some of the key questions, which are crucial for all being involved in with cluster development: What are clusters more exactly, how do they occur, what are the dynamics and key factors driving strong clusters, can we create clusters, and what are the differences between ‘clusters’ and ‘cluster initiatives’? Most importantly, Jakob will also discuss if clusters and clustering really matters: Do clusters actually forge economic and regional development and why should we aim for cluster development at all?
Prospects of Development of Activity of Modern Enterprises in the Conditions ...ijtsrd
The article is devoted to prospects of development of national economy on the basis of stimulation of innovative activity of modern enterprises. The basic directions of creation of small business, measures on support and formation of an innovative infrastructure are considered, mechanisms and the economic content of integration interaction of small and large business are defined. In article perspective directions of development of activity of the modern enterprises are proved. Siddikov Mumin | Berdiqulov Azzam "Prospects of Development of Activity of Modern Enterprises in the Conditions of Innovative Economy" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-4 , June 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31262.pdf Paper Url :https://www.ijtsrd.com/management/innovation-and-product-dev/31262/prospects-of-development-of-activity-of-modern-enterprises-in-the-conditions-of-innovative-economy/siddikov-mumin
The Role of IT in Supporting Vietnam Youth Entrepreneurshipijtsrd
This paper aimed to analyse the role of IT in supporting entrepreneurs in Vietnam. Our findings show that youth entrepreneurship in Vietnam face a number of hurdles in accessing IT services. Although a number of them have shown an interest in integrating IT into their business operations, however, most of them do not have enough resources to fully exploit IT opportunities. Other problems mentioned to confront youth entrepreneurship in their endeavour to access and use IT in their businesses is the lack of knowledge and skills on how to use computer, language and lack of time. Dr. Le Nguyen Doan Khoi "The Role of IT in Supporting Vietnam Youth Entrepreneurship" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-4 , June 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31503.pdf Paper Url :https://www.ijtsrd.com/economics/commerce/31503/the-role-of-it-in-supporting-vietnam-youth-entrepreneurship/dr-le-nguyen-doan-khoi
In the essential criteria of economic dynamism, immaterial capital, or capital knowledge, has
become the true wealth of a country. known as the knowledge economy, it attempts to overcome the major
concern of economists for material
Discourse on the development, management and coordination of a combination of complex global and local factors work together to ensure a fast growing yet sustainable high technology sector, while moving the Malaysian industry up the outsourcing value chain.
Market makers, industry players and outsourcing professionals will obtain useful insights into long-term strategic technology and economic planning as well as tactical measures used for growth, competitiveness and innovation.
Key stakeholders can take advantage of this knowledge and create a win-win situation
Knowledge Innovation Policy (Federal KM - DC)Debra M. Amidon
This closing panel with Dr. Ramon Barquin provides the rationale and vision for a US Knowledge Innovation Policy within a global context. Session includes and inventory of innovation initiatives within the US and abroad. Knowledge Innovation is the strategy beyond KM or strategic planning; and ‘collaborative advantage’ is the name of the new game.
Can Australia find a business model to keep the good times going?
Prof. Thomas Clarke, Professor William Lazonick - 12 July 2012
Use the hashtag #utspeaks to further the discussion on twitter.
UTSpeaks is an annual free public lecture series presented by UTS experts discussing a range of important issues confronting contemporary Australia.
This discussion paper explores the role clusters, cluster initiatives and cluster organisations can play in the context of facilitating entrepreneurship within emerging industries. For the pupose of this paper clusters are understood as regional ecosystems of related industries represented through a group of firms, related economic actors and institutions that are located near each other and have reached a sufficient scale to develop specialised expertise etc. Cluster initiatives are organised efforts to support the competitiveness of a cluster and thus consist of practical actions related to the capacity of these clusters to self-organise and increasingly to pro-actively shape the future of the cluster. They usually follow a bottom-up approach, are implemented through a competitive process, and are often managed by specialised intermediaries, such as cluster organisations. Cluster organisations are the legal enti-ties that support the strengthening of collaboration, networking and learning in clusters, and act as innovation support providers by providing or channelling specialised and customised business support services to stimulate innovation activities, especially in SMEs. They are usually the actors that facilitate strategic partnering across clusters.1 Emerging industries can be understood as either new industrial sectors or existing industrial sectors that are evolving or merging into new industries. They are defined as “the establishment of an entirely new industrial value chain, or the radical reconfiguration of an existing one, driven by a disruptive idea (or convergence of ideas).
This discussion paper puts clusters and in particular cluster initiatives and cluster organisations into the spotlight as they constitute the players in the cluster ecosystem through which such an access can be provided.
The Role of IT in Supporting Vietnam Youth Entrepreneurshipijtsrd
This paper aimed to analyse the role of IT in supporting entrepreneurs in Vietnam. Our findings show that youth entrepreneurship in Vietnam face a number of hurdles in accessing IT services. Although a number of them have shown an interest in integrating IT into their business operations, however, most of them do not have enough resources to fully exploit IT opportunities. Other problems mentioned to confront youth entrepreneurship in their endeavour to access and use IT in their businesses is the lack of knowledge and skills on how to use computer, language and lack of time. Dr. Le Nguyen Doan Khoi "The Role of IT in Supporting Vietnam Youth Entrepreneurship" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-4 , June 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31503.pdf Paper Url :https://www.ijtsrd.com/economics/commerce/31503/the-role-of-it-in-supporting-vietnam-youth-entrepreneurship/dr-le-nguyen-doan-khoi
In the essential criteria of economic dynamism, immaterial capital, or capital knowledge, has
become the true wealth of a country. known as the knowledge economy, it attempts to overcome the major
concern of economists for material
Discourse on the development, management and coordination of a combination of complex global and local factors work together to ensure a fast growing yet sustainable high technology sector, while moving the Malaysian industry up the outsourcing value chain.
Market makers, industry players and outsourcing professionals will obtain useful insights into long-term strategic technology and economic planning as well as tactical measures used for growth, competitiveness and innovation.
Key stakeholders can take advantage of this knowledge and create a win-win situation
Knowledge Innovation Policy (Federal KM - DC)Debra M. Amidon
This closing panel with Dr. Ramon Barquin provides the rationale and vision for a US Knowledge Innovation Policy within a global context. Session includes and inventory of innovation initiatives within the US and abroad. Knowledge Innovation is the strategy beyond KM or strategic planning; and ‘collaborative advantage’ is the name of the new game.
Can Australia find a business model to keep the good times going?
Prof. Thomas Clarke, Professor William Lazonick - 12 July 2012
Use the hashtag #utspeaks to further the discussion on twitter.
UTSpeaks is an annual free public lecture series presented by UTS experts discussing a range of important issues confronting contemporary Australia.
This discussion paper explores the role clusters, cluster initiatives and cluster organisations can play in the context of facilitating entrepreneurship within emerging industries. For the pupose of this paper clusters are understood as regional ecosystems of related industries represented through a group of firms, related economic actors and institutions that are located near each other and have reached a sufficient scale to develop specialised expertise etc. Cluster initiatives are organised efforts to support the competitiveness of a cluster and thus consist of practical actions related to the capacity of these clusters to self-organise and increasingly to pro-actively shape the future of the cluster. They usually follow a bottom-up approach, are implemented through a competitive process, and are often managed by specialised intermediaries, such as cluster organisations. Cluster organisations are the legal enti-ties that support the strengthening of collaboration, networking and learning in clusters, and act as innovation support providers by providing or channelling specialised and customised business support services to stimulate innovation activities, especially in SMEs. They are usually the actors that facilitate strategic partnering across clusters.1 Emerging industries can be understood as either new industrial sectors or existing industrial sectors that are evolving or merging into new industries. They are defined as “the establishment of an entirely new industrial value chain, or the radical reconfiguration of an existing one, driven by a disruptive idea (or convergence of ideas).
This discussion paper puts clusters and in particular cluster initiatives and cluster organisations into the spotlight as they constitute the players in the cluster ecosystem through which such an access can be provided.
The solutions against unemployment resulting from technological advancementFernando Alcoforado
The Income Transfer Program through which the State would provide income to the unemployed would be put into practice together with the adoption of the Creative Economy and the Social and Solidarity Economy as a solution to mass unemployment resulting from technological advancement.
Chapter 3 Micro Foundations of Firm’s Advantage – Dynamic Capabil.docxchristinemaritza
Chapter 3: Micro Foundations of Firm’s Advantage – Dynamic Capabilities View
In a previous chapter, we learnt about resource-based view (RBV), knowledge-based view (KBV) and core competence view (CCV) hypotheses. A major limitation of these hypotheses is that they are not designed for the VUCA world – the world that is volatile, uncertain, complex and ambiguous. Therefore, they do not consider the entropy factors – the factors that act as disruptive forces in highly dynamic markets. In this chapter, we will examine three of the most important entry factors:
· mainstreaming of non-consumers, i.e. the rise of new groups of customers served using alternative sets of resources, knowledge and/or core competencies.
· political power play, i.e. the role of non-market – often government-supported - factors in enabling competing firms to develop alternative sets of resources, knowledge and/or core competencies.
· globalization games, i.e. the shifts in the advantages of different national markets, and as a consequence of the firms having investments in those markets.
Micro foundations of firm’s advantage refer to the structures, processes and behaviors that help firms navigate the VUCA world. Development of appropriate structures, processes and behaviors that are in tune with the VUCA world allows firms to be dynamic in their capability. Dynamic capability is the capability for recognizing and responding or adapting to significant market change. Dynamic capability view (DCV) hypothesis of strategic action is intended to help firms stay relevant and is of strategic advantage for larger corporates and their stakeholders.
In this chapter, we will also learn about different types of marketplaces, and how to classify these marketplaces using the niche density (number of firms in a marketplace) and carrying capacity (size of the market) approaches. It is important to recognize the link between the concept of dynamic capability and the type of marketplaces. By operating in different types of marketplaces across different business divisions or regional geographies, the firms may be able to gain experience and develop structures, processes, and behaviors to not only survive but also thrive in a VUCA world.
Exhibit 3.x illustrates the evolution of DCV, based on the refinements of RBV, KBV and CCV. KBV distinguishes capabilities (and knowledge-base of the capabilities) from resources. CCV distinguishes core competencies (creative integration and innovative combination of knowledge) from ordinary capabilities (articulation and replication of knowledge). DCV distinguishes transforming capabilities, from core competencies.
Exhibit 3.x: Refinements in RBV, KBV and CCV Bring DCV in Perspective
Entropy Mechanisms under Dynamic Environments
We need a significant revision in the original elitist assumptions of the RBV, KBV and CCV, to account for the success of firms in face of the environmental crisis and dynamism in the 21st century. R ...
Changing Paradigms of Cluster Development - FMC.pdfTheBambooLink
An overview of the practice of competitiveness through cluster development approach. We begin by looking at some of the roots of the practice and how it has evolved to become a significant force in the way many organizations and many countries now pursue economic development. We then provide an overview of the practice of competitiveness, looking specifically at how cluster-based initiatives have been developed in the context of multilateral and regional organizations.
The book presents a series of articles on hidden innovation in different sectors and with different implications both for public policy and for social and organizational dynamics.
Chapter 9
Industrial Recruitment
*
In previous classes, we have introduced some US government facts as well as some historical and theoretical background of business-government relations. Starting from this week, we are going to focus on business-government relations in economic development, especially in local context.
Today we will cover chapter 9 = industrial recruitment. We will look a various economic theories, cluster theory, political context of local economic development, and industrial recrtuiment.
Economic growth contributes to an increase in consumption which benefits all sectors of the economic community.
Despite the dynamic in the growth loop, economic growth can not be indefinite (e.g., land is limited).
*
An economy will reach a natural equilibrium if capital can flow without restrictionCapital mobility: capital will flow from high cost areas to low cost areasEquilibrium: overall market and all areas will reach a state of equal statusNo government intervention:
opposing government regulations on the movement of firms
attracting capital with community’s resources (e.g., land, labor, infrastructure, financial incentives, etc.)
*
Location theoryFactors affecting a firm’s location choiceGovernment should enhance the location with government performance, policies, and resourcesEconomic base theoryLocal demands vs. external demands Government should recruit businesses that have a market beyond the local area and encourage export-oriented industries.
Location theory, on the other hand, seeks to explain an area’s competitiveness in terms of firms’ locational orientation—what factors of an area contribute to a firm’s location choice. Location theorists assume that firms, in order to maximize their profits, choose locations that minimize the cost of transporting goods to the market place. Unlike the neoclassical school, location theorists generally assert that government should play a critical role in enhancing the location. A capable, cooperative, and responsive government can potentially better meet business’ needs for land, infrastructure such as transportation and roads, education, and other public services.
Economic base theory analyzes growth from the demand side rather than the supply side. It differentiates the economic activities of an area into two components—those which meet the local demands and those which satisfy the demands outside the community. The former is non-basic, which does not lead to growth, while the latter is basic, which will generate local wealth and jobs.
*
Growth pole theoryA dynamic industry with a competitiveness edge in capital, technology and political influence is a pole of growth.Government should help expand the core industry.Central place theoryCritical role of urban centersGovernment should direct resources to the development of a central place
Growth pole theory rejects neoclassical theorists’ claim that growth “should” flow to less costly regions and argues that in.
Chapter 9
Industrial Recruitment
*
In previous classes, we have introduced some US government facts as well as some historical and theoretical background of business-government relations. Starting from this week, we are going to focus on business-government relations in economic development, especially in local context.
Today we will cover chapter 9 = industrial recruitment. We will look a various economic theories, cluster theory, political context of local economic development, and industrial recrtuiment.
Economic growth contributes to an increase in consumption which benefits all sectors of the economic community.
Despite the dynamic in the growth loop, economic growth can not be indefinite (e.g., land is limited).
*
An economy will reach a natural equilibrium if capital can flow without restrictionCapital mobility: capital will flow from high cost areas to low cost areasEquilibrium: overall market and all areas will reach a state of equal statusNo government intervention:
opposing government regulations on the movement of firms
attracting capital with community’s resources (e.g., land, labor, infrastructure, financial incentives, etc.)
*
Location theoryFactors affecting a firm’s location choiceGovernment should enhance the location with government performance, policies, and resourcesEconomic base theoryLocal demands vs. external demands Government should recruit businesses that have a market beyond the local area and encourage export-oriented industries.
Location theory, on the other hand, seeks to explain an area’s competitiveness in terms of firms’ locational orientation—what factors of an area contribute to a firm’s location choice. Location theorists assume that firms, in order to maximize their profits, choose locations that minimize the cost of transporting goods to the market place. Unlike the neoclassical school, location theorists generally assert that government should play a critical role in enhancing the location. A capable, cooperative, and responsive government can potentially better meet business’ needs for land, infrastructure such as transportation and roads, education, and other public services.
Economic base theory analyzes growth from the demand side rather than the supply side. It differentiates the economic activities of an area into two components—those which meet the local demands and those which satisfy the demands outside the community. The former is non-basic, which does not lead to growth, while the latter is basic, which will generate local wealth and jobs.
*
Growth pole theoryA dynamic industry with a competitiveness edge in capital, technology and political influence is a pole of growth.Government should help expand the core industry.Central place theoryCritical role of urban centersGovernment should direct resources to the development of a central place
Growth pole theory rejects neoclassical theorists’ claim that growth “should” flow to less costly regions and argues that in.
Towards the Circular Economy: Accelerating the scale-up across global supply ...Sustainable Brands
In this report, the World Economic Forum, the Ellen MacArthur Foundation, and McKinsey & Company, joined forces to reconcile the concept of scaling a circular economy within the reality of a global economy and complex multi-tier supply chains. The key objective is to propose a very specific joint plan of action for industry leaders.
This report sets out to emphasize that the circular economy must hold its promise not merely to the village economy, but also to a globalized economy of nine billion. It presents the concept of circularity as a tangible driver of industrial innovations and value creation for the 21st century global economy.
Chapter 9
Industrial Recruitment
*
In previous classes, we have introduced some US government facts as well as some historical and theoretical background of business-government relations. Starting from this week, we are going to focus on business-government relations in economic development, especially in local context.
Today we will cover chapter 9 = industrial recruitment. We will look a various economic theories, cluster theory, political context of local economic development, and industrial recrtuiment.
Economic growth contributes to an increase in consumption which benefits all sectors of the economic community.
Despite the dynamic in the growth loop, economic growth can not be indefinite (e.g., land is limited).
*
An economy will reach a natural equilibrium if capital can flow without restrictionCapital mobility: capital will flow from high cost areas to low cost areasEquilibrium: overall market and all areas will reach a state of equal statusNo government intervention:
opposing government regulations on the movement of firms
attracting capital with community’s resources (e.g., land, labor, infrastructure, financial incentives, etc.)
*
Location theoryFactors affecting a firm’s location choiceGovernment should enhance the location with government performance, policies, and resourcesEconomic base theoryLocal demands vs. external demands Government should recruit businesses that have a market beyond the local area and encourage export-oriented industries.
Location theory, on the other hand, seeks to explain an area’s competitiveness in terms of firms’ locational orientation—what factors of an area contribute to a firm’s location choice. Location theorists assume that firms, in order to maximize their profits, choose locations that minimize the cost of transporting goods to the market place. Unlike the neoclassical school, location theorists generally assert that government should play a critical role in enhancing the location. A capable, cooperative, and responsive government can potentially better meet business’ needs for land, infrastructure such as transportation and roads, education, and other public services.
Economic base theory analyzes growth from the demand side rather than the supply side. It differentiates the economic activities of an area into two components—those which meet the local demands and those which satisfy the demands outside the community. The former is non-basic, which does not lead to growth, while the latter is basic, which will generate local wealth and jobs.
*
Growth pole theoryA dynamic industry with a competitiveness edge in capital, technology and political influence is a pole of growth.Government should help expand the core industry.Central place theoryCritical role of urban centersGovernment should direct resources to the development of a central place
Growth pole theory rejects neoclassical theorists’ claim that growth “should” flow to less costly regions and argues that in ...
1. Innovation: the main driver of ICT Cluster Development
and Renewal
___________________________________________________________________________
Page 1
Innovation: the main driver of ICT Cluster
Development and Renewal
Innovation on Cluster Economy Seminar
30 June 2010 Brasilia
Emilio Bugli Innocenti
2. Innovation: the main driver of ICT Cluster Development
and Renewal
___________________________________________________________________________
Page 2
Table of contents
Introduction............................................................................................................................... 3
What is a cluster........................................................................................................................ 3
One step back - Industrial districts............................................................................................ 4
Success Factors in Developing ICT Clusters............................................................................ 5
Public Policies supporting Cluster Development ..................................................................... 6
The importance of Innovation in ICT Cluster Development.................................................... 6
IT Services and Software Clusters in Europe ........................................................................... 8
Cambridge Cluster ................................................................................................................ 8
IT Services and Software Clusters in Italy ........................................................................... 8
Arno Valley ICT Cluster (on going process).................................................................... 8
Torino wireless ICT Cluster (on going process)............................................................... 9
Summarising ........................................................................................................................... 10
3. Innovation: the main driver of ICT Cluster Development
and Renewal
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Page 3
Introduction
Almost in any country around the globe there are initiatives, just considering or initiating or
consolidating successful ICT clusters. A lot has been written on this subject (my google
search on “ICT cluster” gave some impressive 2 million entries) and initiatives are taken as
well in the developing world (profiting of job shifting) funded by global development actors
such as WB, UNDP and as in the EU North America.
As a consequence, there is plenty of literature (interestingly enough, literature also includes
booklet on how to develop a cluster in your region or “cluster a la carte”).
However, most of effort has been spent so far on mapping clusters (e.g., as far as the
European Union is concerned http://www.clusterobservatory.eu/), less effort has been spent
in identifying the success factors and highlight the crucial role of innovation inside a cluster.
The purpose of this document is to elicit discussion on the relationship between ICT clusters
and Innovation, comparing experience done in different countries and continents.
As such, it has no ambition to provide definitive answers but at least to help focus the
discussion on the right questions.
What is a cluster
According to Harvard Professor Michael Porter (1998) clusters are “geographic
concentrations of interconnected companies, specialised suppliers, service providers, firms in
related industries, and associated institutions (for example universities, standards agencies,
and trade associations) in particular fields that compete but also co-operate.”
Again, according to Porter, "a cluster consists of industries linked through vertical
(buyer/supplier) or horizontal (common customers, technology, channels) relationships."
Typically, clusters provide better access to human capital and providers, access to specialised
information and research.
The typical example of ICT clusters is Silicon Valley and its regional network based system
which provides proximity of all skills needed for hi-tech based business, encouragement for
risk-taking, innovation, and tolerance for failure, presence of re-known educational
institutions, technology parks and incubators and availability of venture capital
4. Innovation: the main driver of ICT Cluster Development
and Renewal
___________________________________________________________________________
Page 4
This “system” is also helped by government at federal, state and local level facilitating the
speed for Investment and quick problem-solving.
One step back - Industrial districts
Why and how these geographic concentrations of interconnected companies and institutions
dominate their industries has long been a topic of interest to economists and geographers.
The phenomenon was first observed by the Cambridge Professor Alfred Marshall. He noted a
tendency for specialised companies to cluster together in a way that produces geographic
concentrations of expertise and economic activity, which he called “industrial districts.” In
his 1890 book, Principles of Economics, Marshall observes how “…great are the advantages
which people following the same skilled trade get from near neighboring to one another…”.
However, well in advance of being discovered by Economists, industrial districts happened
naturally in Italy since middle-ages (and they are still there!).
Typical example of “old” industrial district is Prato, which is still the biggest concentration
of textile firms all over Europe.
The district can be dated around XII century most of the its current features (production
decomposed on small productive phases among small companies, being export-led, the
crucial role played by the commercial entrepreneurs still known with their medieval name
“impannatori” and the support of public policies) were present from the beginning.
Production is very flexible, being based on a breakdown of operations among 6000 SMEs
and at any stage of the entire textile cycle (spinning, dyeing, twisting, reeling, weaving,
finishing, knitting..) there are hundreds of small-medium companies resulting in a large
concentration of know how, human skills, market and fashion experience within a
competition and cooperation environment.
The district went through a number of cycles, made of expansion phases (typically the one on
1950-60, based on the production of poor quality woollen fabric), crisis (the awful one in the
‘80s) suffering competition from Asia, etc., but the important fact to consider is that it is still
there after a number of centuries, to the extent its overall production is now estimated on
Beuro 5.5 (60% exported) it gives job to 38000 people working on 6000 SMEs.
Production has moved from cheap woollen fabrics (made from reprocessed fibres) to high
quality wool, cashmere, linen and silk and includes woven and knitted fabrics for apparel
5. Innovation: the main driver of ICT Cluster Development
and Renewal
___________________________________________________________________________
Page 5
industry, special fabrics (fur, bonded, technical, pile….) for apparel, upholstery and footwear
industries, carpets and nonwoven fabrics, etc.
It must be enlightened that innovation plays an essential role in Industrial Districts
development as well as in overcoming their decline. In turn, the mix of cooperation and
competition among SMEs make innovation to be adopted faster.
Innovation is typically made by entrepreneurs and /or worker/specialised SMEs and can
consist of new production (eg, Prato is nowadays the European leader in nowollen), new
sectors and/or market.
Many economists consider this a sort of incremental innovation not suitable to high-tech
districts were there is a need of breakthrough innovation carried out by a community of
entrepreneurs, universities, research centres, large firms, technology parks, incubators, etc.
who are fast incorporating new knowledge into new products.
Developing a Cluster – Society Benefits
Apart from the generation of wealth and jobs, the development of a cluster results in the
formation of a better human capital so that companies can have better access to needed skills.
Moreover they can benefit of complementary skills (including, financial, legal and
professional) so as to better compete.
Furthermore, scale economies can be carried out and the cooperation with other can better
lead to the creation of new ideas and new businesses.
Success Factors in Developing ICT Clusters
Many economists consider hard and soft success factors.
The hard ones include:
strong innovation base, including R&D
presence of large firms
physical infrastructure
access to markets and venture capital
6. Innovation: the main driver of ICT Cluster Development
and Renewal
___________________________________________________________________________
Page 6
More intangible, softer success factors include:
entrepreneurial culture
networking & partnerships
human Capital
presence of leadership
As a matter of fact, given the current competition on developing ICT company clusters
around the globe, I would not suggest considering softer or intangible success factors as
second class elements.
Public Policies supporting Cluster Development
They usually consist of:
set up of technology parks, software centres, traffic infrastructure technologies, data
highways, etc..
set up of technology transfer centres (in partnership with universities, etc.).
set up of incubators to support of business start-ups.
establish new business associations’ aimed at young entrepreneurs.
funding mechanisms to support SMEs technology developments or joint research
projects.
The importance of Innovation in ICT Cluster Development
Evidence shows that product development and well-developed research structures, together
with other forms of innovation, are vital for a dynamic cluster.
Innovation maintains the cluster at the forefront of the market whilst a strong R&D base can
provide the ideas and products for future development. The promotion of innovation and
R&D are two separate activities, although inter-related. Innovation generally refers to
product or process development whilst R&D refers to the development of new knowledge. In
the best cases successful innovation is the outcome of the R&D process.
7. Innovation: the main driver of ICT Cluster Development
and Renewal
___________________________________________________________________________
Page 7
Innovation can be incremental, as existing products and processes are gradually built upon,
or may be more radical, with the introduction of a wholly new product or approach.
Successful clusters are inherently innovative and the innovation process can be supported
through encouraging networking and the sharing of ideas. Where networks extend outside of
the cluster this can also be beneficial as often innovative ideas are ones that work well in one
setting and are being applied for the first time to another area. The benefits of information
and (technical, marketing, financial, production, sales) intelligence services are crucial for
the Software and IT Services.
Catalysts for research and innovation research institutes including universities, non-profit
foundations and for-profit R&D can play an important role as catalysts for research and
innovation. They can be the base for developing new ideas and applications but can also play
a critical role in eliciting high technology entrepreneurialism. In this respect public and
private research facilities can be key drivers within the cluster.
Support for R&D can take many forms, including the use of R&D tax credits (rarely cluster
specific), funding for basic or applied research, technology transfer schemes, the
development of specialised research facilities or simply supporting the development of
research networks, linking firms, research institutes and other interested parties together. It is
important that the role of R&D activity is viewed in the context of the cluster as a whole and
that an integrated strategy that includes this element is developed around the cluster.
Of course sometimes it is not sufficient to simply establish a science or technology park. To
promote research and innovation there must exist strong linkages between researchers and
local firms. Many organisations now provide an integrated support service for firms that wish
to make use of it and many networks and intervention systems are designed to encourage
technology transfer.
New ideas need to permeate throughout the lifecycle. For instance reinvention and innovation
policy is a critical part of many declining clusters. Support for product and process
improvements would appear to be important for established and mature clusters as well as
supporting SMEs to prepare for new markets.
8. Innovation: the main driver of ICT Cluster Development
and Renewal
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IT Services and Software Clusters in Europe
Cambridge Cluster
The first 40 years of the Cambridge Cluster has seen the city and wider sub-region become
recognised as a world class knowledge based economy, characterised by particular strengths
in healthcare and life sciences, IT services and communications.
Key success factors has been:
very strong research and innovation
greatest percentage of higher level skills of any UK city
it is a growing city
Cambridge phenomenon continued to grow, despite a recession in the early 1990s and the
dot.com bubble in 2000s. As from 2003-4 the cluster is facing a net employment loss of 8
percent, increase of firm exits decrease in start-up creations, etc.
IT Services and Software Clusters in Italy
Arno Valley ICT Cluster (on going process)
Positive Factors
about 3000 companies active in the ICT sector, some of them listed in the Stock
exchange
strong presence of first class universities and research centres
skilled human resources
number of incubators, tech parks, and technology transfer centres
nice environment able to attract and retaining the best resources
embryonic regional policies to provide support
Drawbacks
lacks specialisation (company dealing with different ICT not reaching a cluster critical
mass)
cluster of SMEs on open source software not adequately supported by public policies
9. Innovation: the main driver of ICT Cluster Development
and Renewal
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Torino wireless ICT Cluster (on going process)
Positive Factors
world class universities and research centres;
highly skilled human resources;
over 2,000 researchers in ICT (almost 20% of the Italian total), 700 of whom are in
the wireless area;
large leading firms (Fiat, Telecom Italia) and their research centres;
more than 8,000 small and medium enterprises (SMEs) active in the same field;
clear focus on wireless and infomobility;
the availability of public and private funding to support both research activities and
the creation of new entrepreneurial initiatives (Piemonte invests 2.5% of its GDP in
innovation and attracts a quarter of all Italian private investments in research and
development);
support by the local government
Drawbacks
Inadequate level of cooperation with Large Firms
Not invented here syndrome
In Europe, despite quite a number of success stories we can tell, there is shared opinion that
EU clusters do not perform like US ones (even dimensionally) and are not exploiting fully
their potential.
Historically, Europe has difficulties in converting much of its research into commercial
applications. In Europe, there has been nothing to compare with the entrepreneurial fortress
of Silicon Valley, where technological innovations are rapidly converted into business
applications. For example, some ideas were originated in Europe (Semantic Web, Linux) but
the main actors are US based.
Clusters are considered main drivers of Europe’s competitiveness and innovation and quite a
number of EC communications have been issued on this topic.
10. Innovation: the main driver of ICT Cluster Development
and Renewal
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Summarising
1) Cluster Specialisation
Everyone wants to have its Silicon Valley. If everyone goes into the same direction, we’d
better have some clear differentiators. One of the main cluster features is specialisation. It is
a feature of all successful industrial districts and it is an important feature of ICT clusters
especially in consideration of the fact that anybody in the world is building ICT clusters!!
2) Cluster Coopetition
The mix of cooperation and competition is essential to produce more innovative ideas.
Knowledge sharing can be also promoted by specific initiatives.
3) Need of a broader definition of Innovation
Innovation is absolutely crucial but we must move from just the romantic breakthrough
research idea. Innovation can be incremental, can involve changing sector/market, achieved
through system integration or by changing business models. How many innovations in the IT
Services & Software arena are really breakthrough?
4) Shift in innovation paradigm
Open innovation appears to be an interesting paradigm for a cluster, especially for those not
willing to heavily invest in lawyers/patents like in the US.
5) Everyone in the cluster can innovate
Creativity belongs to all humanity (it is indeed an essential feature of Homo sapiens sapiens
with respect to other homo species such as Neanderthal or Homo sapiens). Therefore
everyone must be enabled to perform innovation within the cluster (entrepreneurs, workers,
researchers, professors, etc).
11. Innovation: the main driver of ICT Cluster Development
and Renewal
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6) Role of Long-Term Public Policy
There is plenty of short tem or long-term policies.
They can help a lot the cluster growing and develop through the creation of a number of
services, joint research projects, etc. However we must be aware that the same policies are
available in any corner of the globe.
Therefore, the most important policies seem to be the ones which will play a role in building
a cluster culture about innovation, entrepreneurship, etc.
In particular, creating a culture of initiative taking, entrepreneurship and others’ idea respect
at any level (large firms, SMEs, universities) is crucial. Everyone has to be encouraged to
have their saying. Positive consideration of entrepreneurship including those who failed or
went bankrupt
Indeed, such policies will produce results only on a long term but they will be valuable and
possibly helping cluster resiliency (EU founder Mr. De Gasperi once said “Politicians look at
the next elections. Statesmen look at the next generation).