Role of clusters in regional development

1. ROLE OF CLUSTERS IN REGIONAL
DEVELOPMENT
Facilitating global outreach of European
and Indian innovation clusters
1st of December 2010
Christian SAUBLENS

2. Basic facts about Europe
• Europe = multi governance system
• European Union = 27 Member States:
– 22 centralised states
– 3 federal states (AT/DE/BE) + Scotland (UK)
– 2 states with regions with legislative powers (ES/IT)
NB: 7 small micro states < 4 mio. (EE/SI/MT/LU/CY/LT/LV/UK)
• 271 regions (NUTS 2*): administrative regions having a population
between 800 000 and 3 million inhabitants
• 120 380 municipalities
ð Lots of clusters of different nature (public stakeholders,
size, specialisation, organisation, drivers, funding, …)
* Nomenclature of Territorial Units for Statistics

3. Eurada and clusters
1. Exchange of practices between members managing clusters or
interested in cluster development
2. Support to parnter searches for bilateral projects
3. Contribution to the debate around clusters
4. Support to the Europa InterCluster association
• Reflections: White Paper on the emerging of European World-Class Clusters
http://www.intercluster.eu/index.php?option=com_flexicontent&view=items&cid=1%3Afr
ontpage&id=159%3Arelease-of-the-white-paper-on-the-emerging-of-world-class-
clusters&Itemid=1&lang=en
• Events:
• InterCluster 2008
• InterCluster 2009
• Interclustering Labs: Smart Cities (Brussels, 26-27 January 2011)
• Interclustering Labs: Creative Industries (Brussels, 2-3 February 2011)

4. Why a Regional Cluster Approach?
• Analyse and understand the regional
economy ð reshaping public policy implementation
• Involve industry leaders in a regional
strategy ð social capital
• Deliver added value support services
ð competitiveness

5. Role of regional actors
• Regional policymakers should
– invest resources in cluster-led economic development
– recognise cluster challenges
– coordinate cluster actors
– build efficient infrastructure (technology centers, …)
• Regional intermediaries should
– identify and describe local clusters
– facilitate joint actions
– overcome barriers
for instance:
• build relationships between key actors
• support skills development and talent attraction/retention
• align innovation investments
• accelerate entrepreneurship
• open global opportunities

6. Regional economic benefits
• Creating competitive advantage based on endogenous
assets (knowledge + skills + creativity) [specialisation]
• Moving to a knowledge economy by embedding the higher
education players (triple helix and research triangle) in the
regional innovation system (industry, spinoff,
commercialisation of R&D results, …)
• Removing informational deficiencies by providing strategic
information (technology, market, foresight, …)
• Stimulating interactions and knowledge exchange within
the sectorial value chain
• Enhancing social capital
• Revitalising local competition, cooperation and demand
• Create a local brand

7. The impact of clusters
Companies: Better environment ð Improved performance/profits
Access to specialist knowledge, skills, resources
Lower transaction costs
Specialist infrastructures
Enhanced productivity and output
Economy: Success in an increasingly competitive world
Higher income, quality jobs
Investment in R&D, leading edge technology
Support potential winners
Government: Bigger impact, more cost effective
Inward investment Cluster development
Start ups Technology Global A focus
Gazelles ventures companies for training
Talent

8. Cluster typology: trends
• Spontaneous and bottom-up (Cambridge, UK)
• Top-down (France, Wallonia BE, Hungary)
• Political wishes (?)
• Transnational (Medicom Valley, DK/SE)
• Cross-sectorial vs mono-sectorial

9. Regional world class clusters
World class clusters can be situated in small areas
• Flasks in Bresle (F)
• Hosiery in Castel Gofficolo (I)
• Whale tourism in Husavik (IS)
• Horse breeding in Scone (AUS)
• Antique books in Hay-on-Wye (UK)
• Small aircraft manufacturing in Wichita (US)

10. Challenges for EU regional clusters
• World players = critical mass + internationalisation +
competitiveness
• Enhancing the transformation of ideas and research
results into products and services
• Strengthening the value chain
• Pushing cooperation in the field of cross-sector and
enabling technologies
e.g.:
• ICT – car industry
• bio plastics
• Wellness
• Optronics

11. Cooperation
Business functions International services
Research Joint research
Access to equipment and expertise
Establishment of research facilities (FDI)
Innovation Joint development
Proof of technological concept
Proof of economic concept
Licensing and transfer of intellectual property
Production Establishment of production facilities (FDI)
Subcontracting
Outsourcing/Offshoring
Marketing Market testing/Economic intelligence
Distribution International outreach
Funding Joint Venture
Source: Eurada

12. Search for Excellence
• Which are the drivers behind the clusters ?
• How were clusters initially organised and how did they
develop since their start to present days?
• Which are the objectives of the clusters ?
• What types of activities are undertaken by cluster
members?
• How are clusters funded ?
• Which are the barriers to clusters’ continued growth
and existence?
• Which are the benefits of enterprises ?
• What can be learnt from other regions ?
• How to be more internationalised ?

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