Cluster-based Regional Development Programs in Latin America and Europe: failures, successes and lessons learned for the future Inés Sagrario Parallel 3.1 Cluster implementation in different parts of the world

12 November 2014

Your partner in economic development

Cluster-based Regional Development Programs in Latin America and Europe: failures, successes

and lessons learned for the future

Nov. 12th, TCI 2014 Monterrey

Inés Sagrario

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PROGRAM DESIGN Need to plan medium-long term

WORK WITH COMPANIES Goal is competitive companies

IMPACT MAXIMIZATION From plans to effective change and actions

Cluster-based development programs need a holistic approach in order to maximize impact on shared regional prosperity Take home

EVIDENCE-BASED POLICIES Apply lessons from micro-level to meso-level

EXPERIENCE •  200 cluster initiatives •  40 economic sectors

•  60 regions

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PROGRAM DESIGN

A Competitiveness Program aims at raising prosperity in a territory A Competitiveness Program needs:

•  Clear objectives •  Careful planning •  Inter-institutional coordination

Program Design

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The case of Chile

Competitiveness Program to combine national level actions

(National Competitiveness Council) +

Local cluster activation (Regional Development Agencies)

+

2006 Decentralization as a political objective

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The case of Chile

Competitiveness Program to combine national level actions

(National Competitiveness Council) +

Local cluster activation (Regional Development Agencies)

+

2006 Decentralization as a political objective

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CLUSTER ACTIVATION

Clusters are not an end but a means More competitive companies need better strategies Clusters provide economies of scale in strategic analysis But in the end people need to change their beliefs and actions

Program Design

Work with companies / clusters

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APLs in Brazil

ARRANJOS PRODUTIVOS LOCAIS Launched in 2000, APL associations as the “new” private sector stakeholder

from which to receive requests for intervention by the public sector

“I’m delivering mortuary services. The support to certain actions is sometimes just helping the guy reach the bottom. […] We say we will solve their problems, but we don’t touch what is essential.”

- Regional Manager at SEBRAE-MG

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APLs in Brazil

ARRANJOS PRODUTIVOS LOCAIS Launched in 2000, APL associations as the “new” private sector stakeholder

from which to receive requests for intervention by the public sector

CLUSTER ACTIVATION Providing:

Strategic information to companies for them to take better decisions and move

to more attractive businesses Intensive field work to convince

businessmen to change Concrete actions with which to improve

their business environment

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IMPACT MAXIMIZATION

Change needs to happen Consolidate partnerships Efficient project management Reinforce strategic analysis Dissemination Measure results

Program Design

Work with companies / clusters

Impact Maximization

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Harvard Business School N9-795-105

The Catalan Leather IndustryIn early 1993, Antoni Subira, the Minister of Industry of Catalonia, wondered how to help

the local leather tanning industry which was seriously threatened by the upcoming introductionof Spanish legislation to enact European Union (EU) environmental standards. He had just metwith a delegation of the major Catalan leather tanners. The industrialists had claimed that a recent

Harvard Business School N9-795-105

The Catalan Leather IndustryIn early 1993, Antoni Subira, the Minister of Industry of Catalonia, wondered how to help

the local leather tanning industry which was seriously threatened by the upcoming introductionof Spanish legislation to enact European Union (EU) environmental standards. He had just metwith a delegation of the major Catalan leather tanners. The industrialists had claimed that a recent

In early 1993, Antoni Subira, the Minister of Industry of Catalonia, wondered how to helpthe local leather tanning industry which was seriously threatened by the upcoming introductionof Spanish legislation to enact European Union (EU) environmental standards. He had just metwith a delegation of the major Catalan leather tanners. The industrialists had claimed that a recent

Implementation in Colombia - #RutasCompetitivas

Implementation by the teams that lead the effort

Agile National Government response +

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EVIDENCE-BASED POLICIES

Apply lessons to the broader economy Adapt existing support programs Design new programs considering broader strategic challenges Develop new public-private partnerships

Program Design

Work with companies / clusters

Impact Maximization

Evidence- based

policies

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Experiences in Europe

Catalonia 20 years of Cluster Policy

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Experiences in Europe

Catalonia 20 years of Cluster Policy

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Experiences in Europe

Catalonia 20 years of Cluster Policy

EU 10 years of Cluster Policy

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CONCLUSION

Establish inter-institutional alliances to make sure that everyone learns from the experience

Program Design

Work with companies / clusters

Impact Maximization

Evidence- based

policies

Reinforcing competitiveness requires planning

Companies are the ones that need to be competitive…

… Not cluster associations

Prepare (some) resources to make sure things happen

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www.competitiveness.com

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ines.sagrario@competitiveness.com

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