By Reza Zadeh, presented at the 18th TCI Global Conference, Daegu, 2015.

1. Excellence in Cluster Policy Making
for Fragmented and Globalised
Value Chains
Reza ZADEH
European Foundation for Cluster
Excellence
Spain
[2.2] New role of Clusters in Broader Economic Context

2. Cluster Policy Excellence for
Globalised Value Chains
! Global Value Chains
! New Challenges in Cluster Policy and Practice
! Competencies for Policy Making
! Concluding Observations
2

3. Cluster Policy Excellence for
Globalised Value Chains
! Global Value Chains
! New Challenges in Cluster Policy and Practice
! Competencies for Policy Making
! Concluding Observations
3

4. Cluster Support in the Past
Company A
Company B
Company C
Company D
Source: E Duch, World Bank
4

5. Companies reacted to increased global compe22on with
collabora2ve ini2a2ves:
– sharing parts of value chains (research, logis2cs,…)
– developing common services (training,…)
Cluster Support in the Past
Joint service
Company A
Company B
Company C
Company D
Source: E Duch, World Bank
5
Company A
Company B
Company C
Company D

6. Cluster Policy Excellence for
Globalised Value Chains
! Global Value Chains
! New Challenges in Cluster Policy and Practice
! Competencies for Policy Making
! Concluding Observations
6

7. But now globalisa2on is op2masing the value chains
at global level, leaving less room for collabora2ve
ini2a2ves at regional and na2onal levels
Cluster support now
Source: E Duch, World Bank
7

8. X X
And we are star2ng to see the disappearance of all kinds of
ac2vi2es (incl. R+D) of the value chain in developed world
that are being moved to lower cost countries
Cluster Support Now
Source: E Duch, World Bank
8

9. Redefining business strategies
Leading
technology
Advanced
services
Developed economies have to respond strategically
redefining businesses models:
– Incorpora2ng leading technology
– Adding advanced services
Cluster Support Now
9

10. Challenges for the future
Are the incumbent clusters the best to:
! Transform their products into advanced
services?
! Incorporate new breakthrough technologies? To
break the paradigm?
10

11. Collaboration –
the only game in town?
11
“To the man with only a hammer, every problem
looks like a nail.” – Charlie Munger

12. Collaboration –
the only game in town?
! Most cluster polices focus solely on collaboration
! Can enhance competitiveness of a cluster
! Counter- productive when entrenched in unattractive
business areas
! Policy must help identify and build synergies where
appropriate
! Encourage business strategy transformation and help
firms redefine their business models
12
“To the man with only a hammer, every problem
looks like a nail.” – Charlie Munger

13. Cluster Policy Excellence for
Globalised Value Chains
! Global Value Chains
! New Challenges in Cluster Policy and Practice
! European Foundation for Clusters Excellence
! Competencies for Policy Making
! Concluding Observations
13

14. Competencies for Policy Making
Training needs - Self diagnosis
• Marketing & branding of
clusters
• Internationalisation
• Emerging Industries and
KETs
• IPR and its management
• Collaborative research
• Knowledge of financial
instruments & access to
finance
• Innovation management &
commercialisation of R&D
14

15. 15

16. 16
It’s a
Wall!
It’s a
Fan!
It’s a
Spear!
It’s a Tree!
It’s a
Rope!
It’s a
Snake!

17. Training needs - Assessment
• Clarity in the language used
• Using strategic analysis
tools
• Local and global Value
chain analysis
• Industry and value chain of
companies in cluster
• Cluster organisations’
governance & management
• Change management
Training needs - Self diagnosis
• Marketing & branding of
clusters
• Internationalisation
• Emerging Industries and
KETs
• IPR and its management
• Collaborative research
• Knowledge of financial
instruments & access to
finance
• Innovation management &
commercialisation of R&D
17
Competencies for Policy Making

18. ! Over 90 public officials from across Europe and MENA
! Many, many more on introductory courses and Summer Schools
Our Alumni
18

19. Cluster Policy Excellence for
Globalised Value Chains
! Global Value Chains
! New Challenges in Cluster Policy and Practice
! European Foundation for Clusters Excellence
! Competencies for Policy Making
! Concluding Observations
19

20. Concluding Observations
20
Source: Porter 2005
Cluster-Based Policy
• Leverage existing assets, history and
geographic location
• All clusters are good
• Enable competition to be more
sophisticated
• Neutral on ownership
• Requires sustained participation by all
actors
• Encourage initiatives at all geographic
levels
• Has increasing impact over time;
some quick returns are possible
Enhance and upgrade Competition

21. 21
Source: Porter 2005
Industrial Policy
• Target areas of perceived market
demand or attractive technology
• Intervene in competition (subsidies,
protection, etc.)
• Favor domestic companies
• Requires sustained financial
commitment by public sector
• Centralized decisions at the national
level
• Has high failure rate; short term
impact but low sustainability
Distorts and impedes competition
Cluster-Based Policy
• Leverage existing assets, history and
geographic location
• All clusters are good
• Enable competition to be more
sophisticated
• Neutral on ownership
• Requires sustained participation by all
actors
• Encourage initiatives at all geographic
levels
• Has increasing impact over time;
some quick returns are possible
Enhance and upgrade Competition
Concluding Observations

22. 22
Thank you
More information available at :
www.clusterexcellence.org
" Contact: reza.zadeh@clusterexcellence.org
22
More information on Competitiveness Summer School 2016 :
http://www.iese.edu/competitivenessschool