This document discusses cluster development strategies in Botswana, Colombia, South Africa, and Ireland. It proposes a project for international knowledge sharing between these countries. The project would involve research teams analyzing clusters in each partner region and sharing results. Staff from each country would then visit Ireland for workshops comparing regional economic development and cluster analysis results. The goal is to benchmark best practices for supporting competitiveness through industry clusters.

1. This project has received funding from the European Union’s
Seventh Framework Programme for research, technological
development and demonstration under grant agreement no.
319907
http://www.cit.ie
Dr John Hobbs, Department of Management and Enterprise, Cork Institute of Technology
www.cit.ie/vlinc
International Knowledge Sharing: Clustering for Competitiveness
Dr John Hobbs Cork Institute of Technology 10/10/19

2. This project has received funding from the European Union’s
Seventh Framework Programme for research, technological
development and demonstration under grant agreement no.
319907
www.be-wiser.eu
Introduction
At the TCI conference in Eindhoven 2016 a number of TCI member organisations from Botswana;
Colombia; Ireland; and South Africa who are supporting the development of Agri-food and natural
product clusters at a regional level, sought an opportunity to collaborate internationally regarding
benchmarking and sharing of best practice.

3. This project has received funding from the European Union’s
Seventh Framework Programme for research, technological
development and demonstration under grant agreement no.
319907
www.be-wiser.eu
The ERASMUS+ programme which funds collaborative Higher education student and staff
mobility within programme and partner countries to connect and conduct joint research.
Collaboration to Build Knowledge

4. This project has received funding from the European Union’s
Seventh Framework Programme for research, technological
development and demonstration under grant agreement no.
319907
www.be-wiser.eu
1. Research and Analysis:
The research and analysis phase would involve 2 staff members from the Cork Institute of
Technology travelling to each of the partner regions to undertake a V-LINC analysis on a prioritised
cluster – jointly selected by the partner University and associated development agency.
The partners would connect the CIT research team with 10-12 firms from the specific industry sector
in the region to conduct face to face interviews.
2. Knowledge Sharing and Collaborative Learning:
The knowledge sharing and collaborative portion of the programme would see 2 staff members from
the University of Pretoria, South Africa; Botswana International University of Science & Technology
and the Universidad del Rosario Bogotá travel to Ireland to participate in a programme of events
which will culminate in an ERASMUS+ ICM conference in the Cork Institute of Technology.
Programme will include:
• Regional Background and Economic Development Process Workshop
• V-LINC Cluster Results & Analysis Sharing Workshop
Planned Programme (Phase 1 & Phase 2)

5. This project has received funding from the European Union’s
Seventh Framework Programme for research, technological
development and demonstration under grant agreement no.
319907
www.be-wiser.eu
Botswana – Cluster Development
• Vision 2036
• resource based to knowledge economy and society
• middle income country to high income country
• “prosperity for all” inclusivity is key
• How do we get there?
– raising competitiveness, innovation, entrepreneurship,
– building critical mass in STEM,
– attracting talent,
– quality infrastructure,
Difficulties: unreliable access to electricity, insufficient connectivity, still building
human capital, under funded research and innovation system, under developed
commodity value chains and weak private sector, poor implementation

6. This project has received funding from the European Union’s
Seventh Framework Programme for research, technological
development and demonstration under grant agreement no.
319907
www.be-wiser.eu
Botswana – Cluster Development
• National Strategy Office (NSO): working with the World Bank
Competitiveness Group and Competitiveness Reinforcement Initiative
• Triple Helix Methodology: Academia, Industry and Government
• Progress:
– Situational Analysis
– Gap analysis
– Private sector action plan
– Now at implementing stage ------ Ministries (MoTE, MITI)
– Several public meetings have been held
– Key areas targeted for cluster development: Minerals and mineral
processing (Northern part of Botswana), Tourism (Ngamiland) and
Financial & knowledge intensive industries (Gaborone), Beef
(Sandveldt to Molopo)

7. This project has received funding from the European Union’s
Seventh Framework Programme for research, technological
development and demonstration under grant agreement no.
319907
www.be-wiser.eu
Colombia – Cluster Development
bit.ly/2VX93qy
Colombia is betting strongly on the
cluster agenda, with close to 90
initiatives being developed
throughout the country.

8. This project has received funding from the European Union’s
Seventh Framework Programme for research, technological
development and demonstration under grant agreement no.
319907
www.be-wiser.eu
Colombia – Cluster Development
17 cluster initiatives
Bogotá-Cundinamarca is undertaking the most important
productivity development agenda in Colombia and one of the most
prominent in Latin America.
Over 10,000 actors actively involved the 17 clusters
An agenda to identify and address the main
bottlenecks that hinder the competitiveness of
these agglomerations, through the articulation of
the private and public sectors and academia

9. This project has received funding from the European Union’s
Seventh Framework Programme for research, technological
development and demonstration under grant agreement no.
319907
www.be-wiser.eu
South Africa – Cluster Development
Cluster Development Programme is a critical mechanism in supporting the objective of industrial
decentralization and the diversification of the manufacturing industry in South Africa
Clusters
Job Creation and
Growth
New Business
Formation
• Black Industrialists
New or Revitalisation
of Industries
Survival Rates of
Business Formation
The stronger the cluster the ,
the more new industries form
in the cluster
The stronger
the cluster,
the higher the
job growth in
new business
The stronger the
cluster the more
dynamic is the
process of new
business formation
The stronger the
cluster the higher
the survival rate
of new business
Enhancement of
Research & Innovation
Promotion of Incubators
Export Networks

10. This project has received funding from the European Union’s
Seventh Framework Programme for research, technological
development and demonstration under grant agreement no.
319907
www.be-wiser.eu
South Africa – Cluster Development
Programme Financing
• This component is a non-taxable cash matching grant of up to 80% of the
investment to a maximum grant of R10 million ($750K) per Cluster;
• Cluster projects will be evaluated based on their contribution to the
following focus areas:
– Enterprise Development
– Location
– Skills Development
– Export promotion
• The CMO purpose is to manage core operation and delivery by the cluster;
• A sliding scale over a period of 5 years subject to the application being
supported by a Cluster and/or local or provincial government department or
agency;
• Cash matching grant of up to 80% of the costs payable at the
establishment of the CMO to a maximum grant of R5 million per Cluster.

11. This project has received funding from the European Union’s
Seventh Framework Programme for research, technological
development and demonstration under grant agreement no.
319907
www.be-wiser.eu
Ireland – Cluster Development
• No structured programmes
• No definition of a cluster / cluster organisation etc.
• Disjointed approach and this leads to bottom up development of
organisations see the value in a clusters and have tried to develop
independent of national policy
• Ideal situation is that national policy is supportive of national cluster
organisations – and provides financial support for same.
• However, a bottom up solution may be – where a local authority, national
agency, university – invested to support a cluster organisation designed on
the Catalan / Danish / Swedish model – perhaps hosted by a university / IOT.

12. This project has received funding from the European Union’s
Seventh Framework Programme for research, technological
development and demonstration under grant agreement no.
319907
www.be-wiser.eu
Ireland – Cluster Development
2017 – Cyber Security
Industry Forum @ CIT
November 2018 –
IDA seed
investment &
Launch of Cyber
Ireland Initiative
February 2019 –
Stakeholder
Engagement: 3
Cluster Workshops
May 2019 – Official
Launch of Cluster
Organisation,
Strategy &
Advisory Board
Sept 2019 –
>110 Cluster
Members
> 50 SMEs

13. This project has received funding from the European Union’s
Seventh Framework Programme for research, technological
development and demonstration under grant agreement no.
319907
www.be-wiser.eu
Project Impact
Policy Practical
Funding

14. This project has received funding from the European Union’s
Seventh Framework Programme for research, technological
development and demonstration under grant agreement no.
319907
http://www.cit.ie
Thanks for your attention!
www.cit.ie/vlinc
Dr John Hobbs,
Senior Lecturer, Department of Management and Enterprise,
Cork Institute of Technology. Rossa Avenue, Bishopstown, Cork.
Mobile: 00353 86 8091294 Office: 00353 21 4335149
Email: john.hobbs@cit.ie Skype: jhobbs.cit