Session 3: Building Economic Growth Through Clusters - Policy

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

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Monday 28th and Tuesday 29th of September 2015

Proudly Sponsored by: Faculty of Business and Humanities & Cork County Council

As featured in:

Programme:• Session 1: Cluster Analysis - Academia. Monday 28th 2:30 to 4:30pm Venue: Seminar Room, CIT.• Session 2: Building International Collaborations - Industry. Monday 28th 6:00 to 7:30pm Venue: County Hall Council Chamber.• Session 3: Building Economic Growth Through Clusters - Policy. Tuesday 29th 10:00 to 12:00pm Venue: CIT Council Chambers.• Session 4: Cluster Organisation Development. Tuesday 29th 2:30 to 4:30pm Venue: Seminar Room, CIT.


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Effective clusters play a significant role in raising the competitiveness and innovative strength of European businesses. Clusters are key facilitators of smart, sustainable and inclusive economic growth within the EU Framework Programme for Research and Innovation, Horizon 2020, and National/Regional Research and Innovation Strategies for Smart Specialisation.

What is a Cluster?

What are the Key Ingredients of a Successful Cluster?

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All Clusters are different, they differ by sector, membership, size and scale.

The biggest difficulty is we cant recognise a cluster when we “see” one!

What is essential to all is that they function, collaborate and co-operate.

Clusters need to be Personalised to fit their members NEEDS.

Clusters don’t need to be the next Silicon Valley to innovate and grow, they just need to understand, how they function, their members and how to build on their strengths & develop their weaknesses.

Clusters – Best Practice vs Effective Policy

Exception to the Rule



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How to Understand Clusters

V-LINC is an expert methodology and software application which informs and develops policy recommendations through mapping, visualising and analysing the strength of key relationships within Cluster Ecosystems. V-LINC can be applied to any industry sector.

The V-LINC research team work in partnership with cluster organisations and regional/national authorities to develop strategic short, medium and long term policies based on Regional/National strengths and capabilities.

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Policy Makers Presenters

Joan Martí Estévez

Director of Cluster Development ACCIÓ (Catalan Agency for Competitiveness)

[email protected] @JMartiClusters

Tamara Högler

Head of Innovations and International Affairs CyberForum e.V., Karlsruhe, Germany.

[email protected] @CyberForum

Dr Ruslan Rakhmatullin

European CommissionSmart Specialisation Platform (RIS3)

[email protected]

mailto:[email protected]





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Running order for Session 3: Building Economic Growth

Thursday 10th of September 2015 13:00 – 14:00

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Tuesday 29th 10:00 to 12:00pm Venue: CIT Council ChambersOpening of Workshop series by Mrs Orla Flynn, Vice President for External Affairs, CIT.

• Introductory speech by Dr Ruslan Rakhmatullin, European Commission, RIS3 Platform.• Tamara Högler (CyberForum) & Joan Martí Estévez (ACCIÓ) discuss the Economic Benefits of

Regional Cluster Policies in Karlsruhe and Catalonia. Including: 1) Clusters contribution to economic growth and job creation, 2) Developing relationships with government, state agencies and local authorities and3) Collaboration with Policy makers for policy and strategy.

Q&A



Session 3Building Economic Growth Through Clusters

Tamara Högler, Head of Innovations and International Affairs, CyberForum e.V.Cork, 29.09.2015


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Technology Region Karlsruhe

• Established 1987 as regional action group, called „TechnologyRegion“

• Comprises one regional federation, ten cities, and four counties• Acting together in order to optimise cooperation between economy, science, culture, and

regional public administration• > 1.25m citizens• > 70,000 companies• > 450,000 employees

• Competence emphases of research and industry:• ICT, nanotechnology, microsystems technology, mechatronics• Chemical technologies and material engineering• Robotics, process and production technologies• Automotive engineering, energy technologies• Environmental and biotechnologies• Process engineering, medical technology• Specific strength in B2B-Business and IT operating industries

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Karlsruhe – A Medium-Sized City with Huge Opportunities • Karlsruhe is a European ICT Hub (4th place among > 1,000 regions, only Munich, London and Paris

ahead)• Karlsruhe is a German ICT stronghold and participant of the German Software-Cluster• 99% SMEs, but also large companies (SAP, Siemens, Bosch, United Internet, …)• Many Hidden Champions (e.g. security, logistics, traffic management)• Many companies and research facilities are involved in the top cluster „Electric Mobility South-

West“• Outstanding research facilities

• Karlsruhe Institute of Technology (largest German research facility)• FZI Research Centre for Information Technologies• 3 Fraunhofer institutes

• Many citizens are tech- and media-savvy• 13 of 100 citizens possess an own domain (2nd place in Germany after Munich)• 12 of 100 citizens use cloud applications (top position in Germany)

• Largest regional German ICT cluster => CyberForum


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Cyberforum… Who we are & what we do

1997Inception

1000IT Start Ups

4000NewEmployees

>1000Members

23.000Staff

600Trainees

33Employees

2015Today

MultipleCertifications* as oneof the best IT-clusters in Europe!

1


Our vision: Connect.Combine.Cooperate.

h


Vision

HighTech.Entrepreneur.Network. in the TechnologyRegion Karlsruhe:„We are engine and competence centre for a internationally attractive ICT location“

We support… … the whole company lifecycle

Idea Foundation EarlyGrowing

Growing Maturity

03/05/2023

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Our companies

• CyberForum is a network that connects more than 1.000 companies

• Core competencies are– IT (e.g. telecommunications, all kinds of IT services, CRM,

IT security, all kinds of (mobile) apps, gamification….)– HighTech (e.g. quadcopter, robotics


1. Information &Communication

2. Training & Qualification 3. Cooperations 4.Marketing & PR 5. Inter-

nationalisation

• Database of members

• CyberForum Website

• Newsletter Service

• Networking Services

• More than 140 events per year

• ….

• Workshops/ Seminars

• RoundTable• CyberCircle• Special

Interest Groups

• Regional Congresses

• Mentoring & Coaching

• Educational initiative

• Knowledge transfer

• ….

• Mobile Region

• KA-IT-SI• CyberCircle

„HR & Recruiting“

• Economic Development Department

• Business-Angels at CyberForum

• ….

• Lobbying for members

• PR • Representing

the region at national and European level

• ….

• Projects:• CLOE• NICE• IT2R• iRegions• ClusterIx• IT2R II• CentraLab• Be Wiser• UPSIDE

• Activities• B2B matching

events• Delegations• Mapping• Internationalisa

tion services

OUR 5 PILLARS FOR REGIONAL ECONOMIC GROWTHJUST A FEW EXAMPLES OF OUR SERVICES

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Example: Offerings by Department for Company Development

Pre-foundation

Foundation Start-Up

CyberLab

Exi compact & intensive councelling

Partner-Matching (TeamUp)

HighTech.Business.Network.

Growth

BoostCamp

Workshops & RoundTables

CyberChampions Award

Business Angel network

Mentoring & Coaching


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Being Connected!•National level:• One of the coordination sites for Europe´s largest software cluster „Emergent

software for the digital enterprise“ • BITMi: Association for IT in SMEs• Smart BusinessIT• CCIs in the region

•International level:• Business Roaming Agreement (BRA): 67 clusters and similar initiatives linked –

worldwide!• Cooperation Agreements with e.g. SCS (Secure Communication Solutions

cluster, Sophia Antipolis), EDIT (cluster in Lyon / Rhône-Alpes)• Tightly connected to European clusters, research institutions etc. via EU-

projects (iRegions, CentraLab, IT2Rhine, UPSIDE, Be Wiser…)

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Benefits for our members

• Services for the whole company lifecycle at first-hand

• Connected to many other clusters & institutions -> „network of networks“ -> additional services, interlinkage of experience

• 18 years of experience

• Networking events

• new business opportunities

• knowledge transfer

• Visibility! PR! Lobbying! National & international!


Our national Digital Transformation Eco-system

CyberForum

SoftwareCluster

TRK

ElectroMobility

SW

SIGKAITSi

SIGMCC

AEN

EDDSCKA

FZI

KIT

DICE

FHI

SmBIT

BWcon

BMWi

BITMiBWIHK

MFG

CyberLab

HoLL


Tamara HöglerHead of Innovations and International AffairsEmail: [email protected]

Thank you for your attention!

Cluster policy. The case of Catalonia: a pioneer country

Cork, Ireland, 29th September 2015

Population: 7,539,618

16% of the Spanish population, similar to the population of Switzerland

Area: 32,106 km2

GDP: € 208 bn

18.7% of Spanish GDP, similar to countries like Israel or Finland

GDP per capita (ppp 2012): € 27,442

Catalonia: 117.2

Spain: 99.4

EU-27: 1001% of world’s science production, bigger than Austria

Sources: INE , Eurostat , Idescat

IntroductionA Snapshot on Catalonia

CLUSTERS IN THE WORLD

2001199719921980

Regions and countries with initiatives based on cluster development

•+

•-

Emilia-RomagnaToscana....

Basque CountryScotlandArizonaCataloniaMassachusetts New Zealand

Costa RicaCalifornia....

SwedenTurkeyLithuania

AustriaJordanianMéxicoSouth Africa....

FranceEstoniaDenmarkSloveniaUKMinas Gerais...

1990 2003

Aprox. More than 3.000 initiatives in different countries

and regions (*)

2005

PakistanKazakhstanPoland….

2015

(*) Estimation from TCI,European Cluster Observatory 2011

Clusters: a global phenomena

Catalonia: pioneer country

Cluster (“wild cluster”)

“Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, firms in related industries, and associated institutions in particular fields that compete but also cooperate”Michael E. Porter

Footwear industry

Raw materials(recolectors)

Leather tannersFontanellas i Marti

Vidal BoschCurtidos Badia

Apparel industryGoes SATorras SA

(...)

Chemical products

Cleaning and tanningAdovinbe

WarehouseBuyers

AssociationsUnió d’adobadors

CEC-FECURGremi de Blanquers

TechnologicalCentres

AIICA

SLAUGHTER

HOUSES

Other end-users

Cluster initiative

“Cluster initiatives are organised efforts to increase the growth andcompetitiveness of clusters within a region, involving cluster firms,government and/or the research community”

Örjan Sölvell, Göran Lindqvist & Christian Ketels in The Cluster Initiative Greenbook (2003).

Mapping Analysis ImplementationInstitutionalization

MentoringMonitoringEvaluation

Cluster association

Cluster organizations are entities that are managing and representing a cluster initiative.

A cluster organization does not necessarily have members, but it provides services to the cluster initiative participants.

A cluster association is a not for profit legally formed entity gathering businesses and other stakeholders involved in cluster initiatives

Cluster policy approach

http://www.competitiveness.org/article/articleview/108/1/96/

http://www.tci-network.org/organizations/card/259



http://www.railgrup.net/index.php






Catalan productive fabric is very concentrated in clusters (40% of total industrial turnover).

Economy mainly composed by SMEs (99% of total firms).

Cluster policy allow to intervene on endogenous assets with limited budget.

Working at cluster level represent a good way of structuring strategic dialogue between Government and other stakeholders.

Economies of scale at analysis and action level.

Why introducing a cluster policy in Catalonia?

Cluster policy: main characteristics

• Proactive

• Positive

• Adaptive

• Flexible

• Accountable

• Realistic

Leather tanners Igualada: s. XVIII and nowadays

Source: J. Nadal, Atlas de la Industrialización en España 1750-2000, Barcelona 2003

Source: Googlemap. T. Megia, Infforme situació sector cluster pell a IgualadaInforme intern del OPI-SIE Internal report – not published

By definition, there are no bad clusters nor good clusters.

All clusters can be successful if they have the right strategy

Don’t copy other countries. Be proud of what you are.

The creator’s syndrome

Policymakers: the good and the bad

Clusters as a tool for intersection with other policies

“The first 10 km are the most difficult part of the internationalization process”.

Furniture cluster meeting with Minister of Industry (in charge of cluster policy)

Strategic change

Strategic change

Strategic change

Time

Evol

utio

nStrategic Change

New challenges

Cluster challenge: to break the conventional wisdom from within

Our vision. World-Class Clusters

Critical Mass

Cross-sectorial

Internationally connected

Professionalized management

Catalonia:Innovating in cluster policy.

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Locally concentrated

Defined by product

Territorial scope is Catalonia

Cross-sectorial

to

From microclusters Clusters 2.0

Home products Lighting

Taps

Furniture

Furniture

Cuiners de renom: Adrià, Ruscalleda, Cruz...

Escoles de cuina: Hofmann, CETT...

Revistes i programes especialitzats

Fires especialitzades: Alimentària,

Hostelco, Forum gastronòmic...

Associacions: Club Greco, AECOC

Centres de recerca: IRTA, Fundació Alícia...

Foodservice cluster

http://www.angrup.cat/

http://www.sosa.cat/

http://www.barry-callebaut.com/

Strategic Change Process

Month 0 Month 4

Competitive analysis

Strategic AnalysisDefinition main characteristics of the sectorStrategic analysis (competitive strengths)Environment analysisBusiness tendencies at global levelSuggested actions for companiesSuggested actions for Government

Cluster monitoring

Publ

ic p

rese

ntat

ion

Action planCompanies’ Strategic change

Technological change

Executive training

Internationalization

Benchmarking

Strategic Dive

Tailored actions

Cluster Methodology

Month 16

1Understanding the business

2Changing the strategy in

the right direction

Set up cluster

association

3Stablishing governance

Hiring Cluster manager

4 Guarantying sustainability

Governance

Month 20

Analysis Udate after 4 years

Packaging cluster

Beauty cluster

Gourmet Cluster

Energy efficiency Cluster

Advanced materials Cluster

Water cluster

Diverse critical mass

30 clusters, 1.200 companies

Seniors

Assistance

dependence

eCare

Healthcare

Mental Health

eHealth MedTech

Food

Farma

Welfare

Beauty

Wellness

Leisure

Volunteer

Training

Education

entrepreneurship

Sport

Fashion

Comfort and

Safety

Home Automation

furniture

LightingHabitat

Smart Rural

Smart City

Residential Care

Not a new cluster initiative for every new challenge

High impact

Long termShort term

Low impact

Transformational projects

Facilitation activities

Strategic change process

Israel 2013Boston 2012

Silicon Valley 2014

Team building

Inspiration from an advanced ecosystem

International connections

Training in an international contextQuébec 2015

International Mission of Catalan Cluster Managers

Denmark 2014Norway 2013

International Intercluster Meeting

Cross sectorial opportunities at the international level

Knowledge transfer between cluster managers

International visibility

Sharing failures, some on intercluster.

150 intercluster project ideas in a 2 hour speed meeting

Public entrepreneur

“They sentenced me to 20 years of boredom for trying to change the system from within. I’m coming now, I’m coming to reward them. First we take Manhattan, then we take Berlin.”

Leonard Cohen

Smart incentives

• Support Program to cluster organizations• Support Program for cluster companies to foster strategic

change

Cluster business cases with Business schools

Obligation vs Conviction

Catalonia: A Holistic Cluster Ecosystem

1.200 active companiesin 30 clusters

Pro-clusters Government since 1993

Business Schools (IESE,ESADE)

trainingCluster Professionals

TCI Headquarters

Some world-leadingCluster Consultants

Main takeaways

• Cluster policy main focus is to increase companies’ competitiveness. Therefore clusters are an instrument not a goal.

• A robust cluster policy needs vision, leadership, a strategy, a specialized team in the public sector, budget and a formal evaluation.

• No improvisation, an cluster methodology is a must

• Be “uncool”, don’t follow the current

• Structure follows strategy

Go raibh maith agat!

Joan Martí EstévezDirector Cluster Development Division

[email protected]:@JMartiClusters

LinkedIN: http://es.linkedin.com/pub/joan-martí-estévez/10/433/34b


https://twitter.com/JMartiClusters

https://twitter.com/JMartiClusters

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Session 3: Building Economic Growth Through Clusters - Policy

Government & Nonprofit

Transcript of Session 3: Building Economic Growth Through Clusters - Policy