Clustering Strategy Development for İzmir Region

Çetin Haşar(Chat in)

Clustering Strategy Development: Outline

• Introduction to the İzmir Region• İZKA: İzmir Development Agency

– Regional Development Plan• Clustering Strategy of İzmir

– Strategy Development Process– Potential Sectors and Mature Clusters:

• Industrial Ventilating, Air Conditioning and Cooling Appliances Cluster

• Fruit and Vegetable Processing Cluster

– Lessons Learned

• Located on the west of Anatolia by the Aegean Sea• Turkey’s 3rd most developed city• Second largest commercial center in Turkey• Covers an area of 12,012 km2

• Population of 3.7 million• A warm climate, 300 sunny days a year• Fertile agricultural hinterland fed by 3 main water

basins• A significant industrial base, realizing ~9 % of

Türkiye’s total industrial production• An investment attraction center with its 18 Organized

Industrial Zones, 2 Free Trade Zones, One Technology Development Zone and 4 Main Trade Ports

İzmir Development Agency

MAIN ACTIVITIES:• Producing Regional Development Plans and Strategies• Investment Promotion and Support• Implementing Grant Schemes and other financial support mechanisms

VISION:A forerunner and effective Agency in sustainable local development with an international reputation

Regional Development Plan• Competitiveness for

Enterprises• Employment and

Social Integration • Sustainable

Environment • Strengthened

Infrastructure and Superstructure

Regional Development PlanCompetitiveness for Enterprises:

1. Developing Regional R&D and Innovation Capacity

2. Increasing Institutionalization, Production and Marketing Capacity in Enterprises

3. Establishing Clusters and Realizing Planned Industrialization

4. Strengthening the Production and Service Infrastructure

5. Increasing Clean Production Applications in SMEs

6. Providing Productivity and Economic Diversity on Sectoral Basis

7. Promoting the Region

İzmir Development Agency and Clustering

– Determination of potential clustering sectors– Initiating clusters and supporting existing ones

– To create national and international networks for clusters

– Supporting clusters with various financial and technical tools for their development and success

Strategy Development Process

Clustering Committee

Statistical Analyses

Field Research Roadmaps

Clustering Committee

II. Phase: Statistical Analysis

1• Review and Verification of Sectoral Data

2• Integration of the data acquired from different sources

3• 3-Star Analysis to determine the clustering potential

4• Improvement of the analysis using other indicators

5• Statistical Research Report

Statistical Analysis

• Accepted clustering parameters:– Size, Dominance, Specialization

• Other Performance criteria:– Pareto Distribution in Employment– Chance in Exports– Chance in Total Sales, – Change in number of companies– Change in trademark registrations– Level of benefits from R&D and investment supports

Spatial Agglomerations at the District Level

Sectors Selected for Field Research

Main Activity Group NACE (Rev.1.1) Code Potential Clustering Group

15 Manufacturing of Food and Beverage Products 1533 - 1587 PROCESSED FRUIT AND VEGETABLES

18 Clothing and Fur Production 1810-1821-1822WEDDING DRESSES, AND OTHER SPECIAL APPAREL

24 Chemical Materials and Products 2412-2416-2451

CHEMISTRY: PAINT AND PLASTIC RAW MATERIALS

29 General Machine and Equipment Production 2923-2924

INDUSTRIAL VENTILATING, AIR CONDITIONING AND COOLING APPLIANCES SECTOR

34 Manufacture of Motor Vehicles 3420-3430 VEHICLE MOUNTED EQUIPMENT

60-Land Transportation/63 Supportive Transportation Services 6311-6021-6321-6024 LOGISTICS

Clustering Committee

Statistical Analyses

FieldResearch

Strategy Development

Field Research

Business and Needs Analysis:• Evaluation of companies on their 2 vital management functions

(Production and Marketing) and their needs for 5 main resources (Human Resources, Financial Resources, Fixed Assets, Knowledge and Experience Resources, Relations and Communication Network)

Cluster Dynamics Analysis:• Analysis for determining the main institutions that the Cluster is

connected, communication nodes, densities and key actors and key institutions.

Clustering Level Analysis:• Under 4 main titles (Marketing Efficiency, Management Efficiency, Production

Efficiency, Clustering Capacity),• 10 different indicators (Level of Efficiency in domestic market, Level of Efficiency in

International Markets, Quality Management Systems and Level of Certification, Level of Departmentalization, Level of R&D and Design, Employment Level, Level of Firm Size, Level of Relations with Universities and Research Institutions, Sectoral Organization Level, Level of Motivation for Cooperation) have been used for Clustering Level Analysis

Analysis for Business Cluster Dynamics

Field Research

Business and Needs Analysis

Clustering LevelAnalysis

Human Resources

Financial Resources

Fixed AssetsKnowledge and

Experience

4 4 5 4

4 4 5 4

3 4 3 3

4 4 4 4

1 3 5

Undeveloped Normal Developed

Marketing

Production

Production

Relations and Communication

Network

5

4

4

4

EVALUATION SCALE

Industrial Ventilating, Air Conditioning and Cooling Appliances

Domestic

Foreign

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Industrial Ventilating, Air Conditioning and Cooling Appliances

High Level Medium Level Low LevelColor Labels

Marketing Efficiency

Management Efficiency Production Efficiecny Clustering Capacity

CLUSTERING LEVEL ANALYSIS

Cluster Dynamics

Cluster Maps

Field Research

Results of Field ResearchMature Cluster Emerging Clusters Agglomerations with Clustering

Potential

Index Range 100 - 85 84 - 51 50 - 1

Index Value 97 83 73 60 50 47

Cluster Sector

Industrial Ventilating, Air Conditioning and Cooling Appliances

Processed Fruit and Vegetables

ChemistryVehicle Mounted Equipment

LogisticsWedding Dresses, and Special Apparel

Policies

- Programmes should be developed for needs assessment, planning and support

- Programmes should be developed for improving cooperation- Clustering approach should be disseminated- Sectoral organization should be encouraged- Programmes should be developed for improving human resources quality

- Institutional capacity should be improved- Clustering approach should be disseminated- Internationalization programmes should be developed

University – Industry cooperation should be improved and related programmes should be implemented

Industrial Ventilating, Air Conditioning and Cooling Appliances

• Industrial and Commercial Central Air Conditioners

• Refrigerated Cabinets • Quick Freezers • Cold Rooms and Appliances • Eutectic Frigorific Vehicle Bodies• Commercial Air Conditioners for Vehicles

Industrial Ventilating, Air Conditioning and Cooling Appliances

232 companies with 8188 employment (%17 of Turkey)

30% of annual turnover of the sector (in Turkey)

30% of annual machinery export of İzmir

Expanded 7 times in last 5 years

Fruit and Vegetable Processing

• Frozen fruit and vegetables• Spices • Canned fruit and vegetables • Dried fruit and vegetables• Tomato and Pepper Paste

Fruit and Vegetable Processing

52% of annual food and beverage export of Turkey

20% of total employment in food and beverage sector

120 registered companies with 5800 employment

Roadmaps

Clustering Committee

Statistical Analyses

FieldResearch

Roadmaps

• Research on international experiences

• Preliminary interviews• Awareness raising and

capacity building conference and meetings

• Workshops• Finalization of the

strategy

www.izmirkumelenme.org

www.izmirkumelenme.org

www.clusteringizmir.org

www.investinizmir.comwww.izka.org.tr

Thank You…Thank you for listening…Any questions?…

Çetin Haşarcetin.hasar@izka.org.tr

İzmir Development Agency:Tel :+90 232 489 81 81Fax :+90 232 489 85 05

E-mail : info@izka.org.tr Web : www.izka.org.tr