Cluster experiences and issues in the UK

Paul MillerGavurin Ltd

10 MESSAGES of which THREE are crucial

A. Clusters DO existB. Understanding them and the

role of public policy to support them is EXPENSIVE

C. BUT, economic development is not just about companies

MESSAGE 1: Clusters do exist

Possible to create imbalance in the economy.Are these clusters?

Software Research and development

Imbalance in the UK economy.Which leads to…..

Manufacture of medical precision and optical instruments

MESSAGE 2: development is not ONLY about clusters: the NUMBER of firms is crucial

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Expanding firms per 10,000 adult population

Fir

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op

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tio

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London

South East

EasternUK

South West

East Midlands

West Midlands

Yorkshire & Humberside

Northern IrelandNorth West

WalesScotland

North East

The relationship of firm growth to firm numbers

MESSAGE 3: Think only about MARKETS People don’t buy ‘technologies’

• Clean air management• Effluent control• Energy management• Environmental services and

consultancy• Land reclamation• Noise control• Pollution control• Radiation control• Recycling activity• Spillage control• Toxic substance control• Vibration control• Waste management• Water services

• Much talk in Europe about ‘ENVIRONMENTAL TECHNOLOGIES’

MESSAGE 4: Understanding clusters is DIFFICULT and EXPENSIVE

• Cluster ‘theory’ not well understood– Linkage / innovation in particular– Confusion between concentrations and

clusters

• Research resources spread too thinly– Understanding supply chains– Role of R&D– Engaging business

MESSAGES: 5 - 8

5. Better to be short on ambition & long on delivery

6. Structure follows strategy– Implications for governance

7. Leadership is (almost) all– An issue of levels

– Consider the private sector

8. Remember Monday

– An action orientation is vital

MESSAGES: 9 - 10

9. Cluster depth – Enhance and protect

10.Protect manufacturing

PAUL.MILLER@GAVURIN.COMTHANK YOU