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1. AIM OF UNIDO CLUSTER APPROACH

UNIDO POGRAMME PROMOTES DIALOGUE AND COOPERATION BY:

• HELPING STAKEHOLDERS DEVELOP A CONSENSUS-BASED VISION

• STRENGTHENING THEIR CAPACITY TO ACT UPON SUCH A VISION

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2. PILLARS OF UNIDO CLUSTER

DEVELOPMENT APPROACH

CREATION OF LINKAGES THROUGH BUSINESS GENERATION AND HENCE:

• NEED BASED – STAKEHOLDER LED AND MANAGED

• FLEXIBLE – MATCHES REQUIREMENTS OF THE LOCAL DYNAMICS

• FOCUSED ON INTERMEDIARY GROUPS AND NOT ON INDIVIDUAL STAKEHOLDERS

COOPTITION

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• SMES CAN COLLECTIVELY ACHIEVE ECONOMIES OF SCALE THROUGH

•BULK PURCHASE OF INPUTS

•ACHIEVE OPTIMAL SCALE IN USE OF MACHINERY AND EQUIPMENT

•POOL PRODUCTION CAPACITIES TO MEET LARGE ORDERS

• INTER-ENTERPRISE COOPERATION ENABLES SMES TO SPECIALIZE

• INCREASED RESPONSIVENESS TO MARKET CHALLENGES

• SPEEDY DISSEMINATION OF BEST PRACTICES: ORGANIZATIONAL

CAPABILITIES, SKILLS, TECHNOLOGICAL INNOVATION, ETC.

3. ADVANTAGES OF COOPERATION

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DS

APs

Implementation of SR Activities

Monitoring & Evaluation

Social capital at local levelthrough a business agenda

TB

Exit

4. Steps of Cluster Development Approach

Full time CDA

Intermediary led

Role of BDS

3-4 years’ time

Entry: Pressure point

Holistic thereafter

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5. MAIN STAGES OF CLUSTER

DEVELOPMENT PROGRAMME

• SELECTION OF TARGET CLUSTERS

• DIAGNOSTIC STUDY

• TRUST BUILDING

• DRAFTING OF A CLUSTER ACTION PLAN

• IMPLEMENTATION

• MONITORING AND EVALUATION

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6. SELECTION OF CLUSTERS

CRITICAL DETERMINANT OF THE SUCCESS OF THE PROGRAMME

SELECTION FRAMEWORK BASED ON THE:

• IMPORTANCE OF THE CLUSTER

• PROMOTABILITY

• VIABILITY

• SUSTAINABILITY

HELPS TO ENSURE AN EFFECITVE AND WIDE REACHING IMPACT Contd……….

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HELPS ENSURE AVAILABLE RESOURCES ARE USED ON CLUSTERS WHERE THE APPROACH HAS THE GREATEST LIKELIHOOD TO BE A SUCCESS I.E.

• CONTRIBUTE TO ECONOMIC SUCCESS OF SMEs

• REVITALIZATION OF SYSTEMIC INTERACTIONS

• DISSEMINATION OF BEST PRACTICES

7. SELECTION OF CLUSTERS …contd.

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8. DIAGNOSTIC STUDY

THIS IS AN ATTEMPT TO

• IDENTIFY OBSTACLES FACED BY THE CLUSTER

• AND OPPORTUNITIES THAT WOULD BECOME AVAILABLE

IF BARRIERS TO COLLABORATION ARE DISMANTLED IN THE SELECTED CLUSTERS

AND IF SYSTEMIC INTERACTIONS ARE REVITALIZED

Contd……….

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THIS IS A PARTICIPATORY STUDY NOT ONLY ABOUT THE CLUSTER CONSTRAINTS AND POTENTIALS

BUT ALSO LOCAL LINKAGES AND SUPPORT MECHANISMS

THE PARTICIPATORY PROCESS HELPS BUILD INITIAL TRUST AMONG POSSIBLE PARTNERS AND SECURE THE POSITIVE INVOLVEMENT OF DIVERSE ACTORS

VALUE ADDED DATA

9. DIAGNOSTIC STUDY….contd.

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10. TRUST BUILDING

ESTABLISHING AN ATMOSPHERE OF TRUST WITHIN A CLUSTER IS AN ESSENTIAL PRE-REQUISITE FOR BUILDING A REALISTIC ACTION PLAN FOR THE CLUSTER THAT WILL HAVE SUPPORT FROM CLIENTS, SERVICE PROVIDERS AND SUPPORT AGENCIES.

THIS IS AN ON-GOING ACTIVITY IN CLUSTER DEVELOPMENT

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11. DRAFTING OF THE ACTION PLAN

THE ACTION PLAN IS A ROADMAP

THAT WILL HELP TO DEVELOP AND FOSTER LASTING RELATIONSHIPS AMONG THE CLUSTER ACTORS

WHILE AT THE SAME TIME DELIVERING RESULTS

THIS IS AN ATTEMPT TO EMBODY THE VISION OF THE CLUSTER AS A WHOLE

INTO A SET OF ACTIVITIES THAT CAN BE IMPLEMENTED IN COLLABORATION BY THE VARIOUS CLUSTER ACTORS

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12. IMPLEMENTATION OF THE ACTION PLAN

THE IMPLEMENTATION OF THE ACTION PLAN IS NOT SIMPLY THE REALIZATION OF THE TARGETS SET

BUT MORE AMBITIOUSLY A RADICAL CHANGE IN THE WAY THE CLUSTER ACTORS INTERACT WITH ONE ANOTHER AND CONDUCT THEIR BUSINESS

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13. IMPLEMENTATION OF THE ACTION PLAN

IMPLEMENTATION OF ACTIVITIES GRADUALLY SHIFTED TO THE PRIVATE SECTOR WITH SUPPORT DRAWN FROM LOCAL INSTITUTIONS

IT IS IN THE IMPLEMENTATION OF THE ACTION PLAN

• THAT THE ADVANTAGES TO BE DERIVED FROM CLOSER COOPERATION

• AND GREATER SYSTEMIC INTERACTION ARE

• DISCLOSED AND EXPERIENCED BY THE CLUSTER ACTORS

ULTIMATELY LEADS TO CREATION OF SOCIAL CAPITAL

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14. MONITORING AND EVALUATION

• MONITORING OF QUANTIFIABLE OUTPUTS IS AN IMPORTANT COMPONENT OF CLUSTER DEVELOPMENT

• IT HELPS IN DISSEMINATING BEST PRACTICES AND STRENGTHENING TRUST

• FIRM LEVEL AND CLUSTER LEVEL

• NEED TO IDENTIFY SUBTLE AND SLOWLY EMERGING CHANGES IN THE RELATIONSHIPS AMONG CLUSTER ACTORS, MAKES THIS TASK CHALLENGING: SUSTAINABILITY INDEX