The document compares the cluster policy models of Europe and Asia. The European model is typically bottom-up and supports existing clusters, while the Asian model is more top-down. In Japan, government plays a strong role through policy and attracting foreign funds, but lacks local business collaboration. China's model features strong growth, a dominant public sector, and government-invested craft villages and foreign firms. Vietnam also takes a top-down regional approach led by local governments and "anchor firms" with weaker innovation. The Asian model focuses on network governance, public goods provision by private companies, and organized cluster management including traditional, industrial park, and foreign firm agglomerations.

1. What We Could Learn from Asia?
The Comparison of European and Asian Model
of Cluster Policy
Martina Sopoligova,
Tomas Bata University in Zlin,
Czech republic
Parallel Session 1.5: Accelerating Cluster Growth in Asian Countries

2. Opposite models of cluster policy and their differences
European model
Asian model - cases of Japan, China and Vietnam
Comparison Asian model with European model

3. Opposite models of cluster policy

4. Which fundamental differences characterize these approaches?
political relevance
finance-related difference
structures of decision-making

5. - regional level (Belgium, Spain), national level (France, Norway),
regional and national level (Austria, Finland, Sweden)
- bottom-up approach
- main objectives
- supporting already existing clusters
THE EUROPEAN MODELThe European model

6. &J
• 2001 – the first cluster plan
• top-down approach
complemented
by bottom-up initiatives
• small businesses
Case of Japan

7. • strong government policy
• foreign funds
• absence of local dialog
between enterprises
• weakness of the single-core structure
Case of China

8. • strong economic growth
• dominant public sector
• craft villages with
national investment
• government attracts foreign-owned firms
• low labor costs
Case of Vietnam

9. • preference for a top-down approach by local governments
as regional policy
• basic support of government
• “anchor firms” play a key role in promoting goods and services
• weakness of innovation capability
The Asian model

10. Aspects of ASIAN MODEL according to
the World Bank:
1. network governance operations
2. the supplying of specific public goods by private companies
3. well-organized cluster management

11. Type of agglomerations:
1. agglomerations of traditional companies
2. industrial parks created and run by government
3. agglomerations of foreign companies
4. agglomerations of small businesses
5. craft villages

12. EUROPEAN MODEL ASIAN MODEL
The rule is bottom-up Always a top-down approach
Top-down is exceptional Combines the top-down approach
with the bottom-up approach
National policy, and/or regional
policy
Local governments, regional policy
Government often acts as
a catalyst and mediator
Government sets priorities,
formulates vision for the future,
invites „anchor companies“
Clusters are not created from
scratch (the very beginning)
Creating completely new clusters

13. References:
Yusuf, S., Nabeshima, K., Yamashita, S. (2008), Growing Industrial
Clusters in Asia. Serendipity and Science. World Bank.
Ganne B., Lecler, Y. (2009), From Industrial Districts to Poles of
Competitiveness.
Kuchiki, A., Tsuji, M. (2004), Industrial Clusters in Asia: Their Coordina-
tion and Competition, Institute of Development Economies/JETRO.
Chang, H.-J. (2006), Industrial Policy in East Asia – lessons for Europe,
EIB Papers.
Lall, S. (2006), Industrial policy in developing countries, International
Handbook on Industrial Policy.

14. THANK YOU!