A Synthesis of the Mature Industry Cluster Cases

Peter Warrian & Celine Mulhern

University of Toronto

The ISRN “Mature” Industries

Aerospace

Automotive parts

Mining

Steel

Four Points of Analysis:

A. Adaptation PressuresB. Knowledge Flows: Formal

R&D and Tacit Know-howC. Clusters or innovation systems

– or a bit of both?D. Policy Options

A. Unbundling the corporation and “externalizing” innovation

New constellations of points along the supply chain:

Highly advanced SMEs SMEs as de facto

“managers” of the supply chain

B. Talent and Skills

Formal R&D - major, industry-wide innovations imported into Canada

Canada’s competitive strength: on-the-ground KNOW-HOW

Common problem: serious shortage of skilled workers

C. The Geography of Mature Industries

QUESTION: Clusters? Innovation systems? All of the above?

ANSWER: It depends on the level of knowledge in question R&D: Global innovation systems Tacit Know-How: Very significant

clustering patterns in Windsor, Golden Horseshoe/GTA, Sudbury, Montreal

Lessons for policy makers

Summary of Common Challenges Facing

“Innovative” Mature Industries Labour shortages Sporadic know-how transfers within

clusters The outsourcing of supply chain

management by anchor companies

Policy Options

Use public education system to improve labour supply: Greater emphasis on traditional industrial

studies in universities, community colleges Emphasize traditional industrial trades in

secondary school career counselling programs

Policy Options

Develop networking forums to facilitate smoother and more consistent know-how transfers Ie. Materials and Manufacturing Ontario,

one of four provincial Centres of Excellence.

Ie. McMaster Steel Research Centre – creates collaboration between technical staff and scientists

Policy Options

Facilitate opportunities for inter-industry learning

Ie. Expose companies to mature industry success story strategies, such as The Dofasco Way

Conclusions

Where there is a will, governments at all levels can make a difference in the adaptation and sustenance of mature industries in the new economy.