Clusters 0.0.: back to basicsAlberto Pezzi

Parallel 1.1 Common problems, common markets and shared value creation

11 November 2014

CLUSTERS 0.0.: BACK TO BASICS

ALBERTO PEZZI

DIRECTOR OF COMPETITIVE STRATEGY AND CLUSTERS DIVISIONACCIÓ / DIRECTORATE GENERAL FOR INDUSTRYGOVERNMENT OF CATALONIATREASURER AND MEMBER OF THE BOARD OF DIRECTORS - TCI NETWORK

This presentation does not represent an official position and shall neither be binding nor construed as institutional commitment by ACCIÓ - Generalitat de Catalunya. The examples it contains should be considered as illustratives.

Business clustering before the invention of cluster concept

Wild clusters Vs. domesticated clusters Current and future challenges for cluster

policy

INDEX

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END OF XIV CENTURY: COMMERCIAL REVOLUTION Via degli orefici

Via calzolerie…

Via seterieBOLOGNA

Carrer argenteriaCarrer dels assaonadors Carrer dels sombrerers…

BARCELONA

5

END OF XIX CENTURY: INDUSTRIAL REVOLUTION

Sheffieldcutlery

Lancashirecotton textiles

North Staffordshirepottery

Yorkshirewoollen textiles

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BEGIN XXI CENTURY: DIGITAL REVOLUTION

Source: Joint Venture Silicon Valley Network, Internet Cluster Analysis 2000

XIII Cent. Today

1990: first mention to “clusters” by MEP1992: first cluster-based regional development policies

2000 ca: first cluster-based organizations

AND(Vs.)

“domesticated” clusters

€POLICY MAKERS’ INTERVENTION

Apply managerial techniques and practices to increase cluster performance

POLICY MAKERS’ INTERVENTION

Observe cluster dynamics and try to learn and take advantage from it

“wild”clusters

Silicon Valley

Sports / luxurycars (Modena – IT)

Wine (California)Biotech(Cambridge – UK)

Packaging machinery(Bologna – IT)

Clusters generate endogenous competitiveness advantages by:

- improving companies’ operational efficiency

- fostering innovation and tacit knowledge diffusion

- stimulating creation of new companies especially through spin-offs

- accelerating social capital formation

Source: adapted from M.E. Porter, 1998

Firm working in a cluster environment are more competitive

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 AnlysisImplementationInstitutionalization

MentoringMonitoringEvaluation

POLICY INTERVENTION

Cluster organization

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.

POLICY INSTRUMENT

The California Wine Cluster

Educational, Research, & Trade Organizations (e.g. Wine Institute,

UC Davis, Culinary Institutes)

Educational, Research, & Trade Organizations (e.g. Wine Institute,

UC Davis, Culinary Institutes)

Growers/VineyardsGrowers/Vineyards

Sources: Michael E. Porter. California Wine Institute, Internet search, California State Legislature. Based on research by MBA 1997 students R. Alexander, R. Arney, N. Black, E. Frost, and A. Shivananda.

Wineries/ProcessingFacilities

Wineries/ProcessingFacilities

GrapestockGrapestock

Fertilizer, Pesticides, Herbicides

Fertilizer, Pesticides, Herbicides

Grape Harvesting Equipment

Grape Harvesting Equipment

Irrigation TechnologyIrrigation Technology

Winemaking Equipment

Winemaking Equipment

BarrelsBarrels

LabelsLabels

BottlesBottles

Caps and CorksCaps and Corks

Public Relations and Advertising

Public Relations and Advertising

Specialized Publications (e.g., Wine Spectator, Trade Journal)

Specialized Publications (e.g., Wine Spectator, Trade Journal)

Food ClusterFood Cluster

Tourism ClusterTourism ClusterCalifornia

Agricultural Cluster

California Agricultural

Cluster

State Government Agencies(e.g., Select Committee on Wine

Production and Economy)

SPONTANEOUSPHENOMENON

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 (2008)

Help cluster firms to upgrade their strategies

Help to identify and choose among different strategic options

Horizontal cooperation activities among companies

Promote strategic change at company level

Improve cluster businessenvironment

Improve support and related industries

Improve factor conditions: ad hoc training, technological transfer, etc.

Reinforce sophisticated demand: public procurement, etc.

Adapt and fine-tune other horizontal policies : innovation, entreprenueship, quality, internationalization, etc.

Microeconomic Competitiveness

Cluster policies-> better economies of scale in analyzing

and acting

MACROECONOMICCOMPETITIVENESS

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RELEVANT SCOPE

• Cluster scope defining elements:

⁻ KETs⁻ societal challenges⁻ advanced services⁻ business models

evolution

CLUSTER CONNECTIVITY

• Cross-cluster projects• International linkages• Specialized networks and

institutions• Other horizontal policies:

₋ Entrepreneurship ₋ FDI attraction₋ Internationalization₋ Innovation and R&D

GOVERNANCE AND

MANAGEMENT• Excellence of cluster organizations• Training and capacitation cluster

managers• Public-private cooperation• Business leadership

MONITORING, FINE-TUNING

AND EVOLUTION

• Evaluation of policy intervention• Evolution of business• Market and technological foresight• New emerging industries and clusters

apezzi@tci-network.org