a pezzi optatja 2011 - english

Innovating in cluster policy: the case of Catalonia

Alberto Pezzi

Department of Enterprise and LabourGovernment of Catalonia

President TCI Network

Fifth International Conference on ClustersOpatija, 9th May 2011

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Index

1. Some reference to cluster “basics”

2. Innovating in cluster policies

3. The case of Catalonia

4. Conclusions

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Index

1. Some reference to cluster “basics”

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Some reference to cluster “basics”

Cluster (“wild cluster”)

“Clusters are geographicconcentrations of interconnectedcompanies, specialized suppliers, service providers, firms in relatedindustries, and associatedinstitutions in particular fields thatcompete but also cooperate”

Michael E. Porter (2008)

Footwear industry

Raw materials(recolectors)

Leather tannersFontanellas i Marti

Vidal BoschCurtidos Badia

Apparel industryGoes SATorras SA

(...)

Chemicalproducts

Cleaning andtanningAdovinbe

WarehouseBuyers

AssociationsUnió d’adobadors

CEC-FECURGremi de Blanquers

TechnologicalCentres

AIICA

SLAUGHTER

HOUSES

Other end-users

Cluster initiative

“Cluster initiatives are organisedefforts to increase the growth andcompetitiveness of clusters withina region, involving cluster firms,government and/or the researchcommunity”

Örjan Sölvell, Göran Lindqvist & Christian Ketels in The Cluster Initiative Greenbook (2003). 

Mapping AnlysisImplementation

Institutionalization

MentoringMonitoringEvaluation

Cluster organization / association

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. 

A cluster association is a not  for profit  legally formed entity gathering businesses and other   stakeholders involved in cluster initiatives 

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Some reference to cluster “basics”

Help cluster firms to upgrade their strategies

Different strategic options at company levelIniciatives according to strategyHorizontal cooperation activitiesamong companiesStrategic change at company level………

Improve cluster business environment

Improve support and related industriesImprove factor conditions: training, 

technological transfer, etc.Reinforce sophisticated demand: 

public procurementAd hoc trainingAdapt and reinforce horizontal policy: 

innovation, internationalization, quality, etc.……..

Areas for improving competitiveness of clusters

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Index

1. Some reference to cluster “basics”

2. Innovating in cluster policies

6

Innovating in cluster policy

“Cluster policies can be defined as specific governmental efforts to support clusters”

EC Staff Working Document, SEC(2008) 2637

***

Policies directed at creating, mobilizing or strengthening a particular cluster

Microeconomics policies directed to improve business environment 

Adapted from Oxford Research, (2008) Cluster Policy in Europe, Brussels.

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Innovating in cluster policy

National cluster policies

EU policy framework for clusters

Regional cluster policies

Local and city levelcluster initiatives

Different levels of cluster policy application

Other projects and schemes:‐ Transnational level‐ Multilateral, etc.

8

Innovating in cluster policy

Some data on cluster in Europe

Over 2.000 regional clusters

38% of European jobs concentrated in clusters

Approximately 1.400 cluster organizations (*)

130 funding schemes specifically dedicated to clusters en 31 countries

Sources: EC, ProinnoEurope, The concept of clusters and cluster policies and their role for competitiveness and innovation: main statistical results and lesson learned, 2008, 

(*) European Cluster Observatory, 2011..

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Innovating in cluster policy

Why it is necessary to innovate in cluster policy?

‐ Because the way of competing and the market are continuously evolving and they need appropriate policies

‐ Because different types of competitiveness reinforcement initiatives requires different supporting policies and actions

‐ Because cluster initiatives have a very high learning by doing component

‐ Because cluster are not “islands” and are influenced by what is happening in the world (think globally, act locally)

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Innovating in cluster policy

Areas of potential innovation in cluster policy

Innovating in scooping and shaping competitiveness reinforcement initiatives at cluster level

– Industry center initiatives Vs.  market / concept grouping– Geographically concentrated Vs. territorial diffused– Industry centered Vs. Cross‐sectoral

Innovating in working with clusters (internal organization)

Innovating in methodology

Innovating in cluster management and governance

Innovating in the way of funding cluster initiatives ………..

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Index

1. Some reference to cluster “basics”

2. Innovating in cluster policies

3. The case of Catalonia

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The case of Catalonia

Why the case of Catalonia is be interesting?

‐ For its long‐haul: almost two decades of experience

‐ Because it is based on an original methodology

‐ Because it is a learning by doing experience

THE MICROCLUSTER APPROACH AS THE UNIT OF REFERENCE FOR COMPETITIVENESS REINFORCEMENT INITIATIVES

1993 ‐ 2004I phase

2009 onwardIII phase

2004 ‐ 2009II phase

CONSOLIDATION,INTERNAL SKILL DEVELOPMENT, PROJECT DIVERSIFICATION

EVOLUTION OF CLUSTER CONCEPT,INSTITUTIONALIZATION, PROFESIONALIZATION AND FUNDING

‐ Because it is well documented…

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THE MICROCLUSTER APPROACH AS THE UNIT OF REFERENCE FOR COMPETITIVENESS REINFORCEMENT INITIATIVES

1993 ‐ 2004I phase

EVOLUCIÓN DE LES POLÍTICAS DE CLUSTERS EN CATALUÑAKEY MILESTONES IN CATALAN CLUSTER POLICY

The case of Catalonia

Michael, E. Porter, On Competition, 1998

Innovating in cluster conception and use 

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THE MICROCLUSTER APPROACH AS THE UNIT OF REFERENCE FOR COMPETITIVENESS REINFORCEMENT INITIATIVES

1993 ‐ 2004I phase

EVOLUCIÓN DE LES POLÍTICAS DE CLUSTERS EN CATALUÑA

2004 ‐ 2009II phase

CONSOLIDATION,INTERNAL SKILL DEVELOPMENT, PROJECT DIVERSIFICATION

KEY MILESTONES IN CATALAN CLUSTER POLICY

The case of Catalonia

Creation of an internal cluster unit to retain talent and knowledge

Develop cluster‐specific instrumentsto facilitate strategic change

Design of different cluster reinforcement initiatives to work with different groups of companies (clusters or similar)

Innovating in internal organizationand cluster initiatives design

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Competitiveness reinforcement initiative of a group of companies group by alternative criteria (ex. market, concept, etc.)

VariableWell‐beingKid‐related products

Other competitiveness reinforcement initiatives

Screening of main economic activities and existing clusters to define cluster‐based initiatives

City or countyRipolles county development planOsona innovation plan

Local competitiveness reinforcement

Identify potential and incipient clusters and fostering their development

VariableOptics and photonicsPhotovoltaic 

Incipient and emerging clusters ..

Identify emerging winning strategies inside a cluster or sector and prepare a “taylor‐made” and innovative support scheme

Variable Transformation of textile industry: branding and retailGrowing strategies in food industry

Strategy‐focused clusters

Cluster competitiveness reinforcement by promoting strategic change and horizontal cooperation initiatives

One or more counties

Sanitary taps BaixLlobregatCork industry in Costa Brava

Local cluster competitiveness reinforcement initiatives

ObjectivesScopeExampleType of project

Source: OPI, 2009

The case of Catalonia

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THE MICROCLUSTER APPROACH AS THE UNIT OF REFERENCE FOR COMPETITIVENESS REINFORCEMENT INITIATIVES

1993 ‐ 2004I phase

EVOLUCIÓN DE LES POLÍTICAS DE CLUSTERS EN CATALUÑA

2009 onwardIII phase

2004 ‐ 2009II phase

CONSOLIDATION,INTERNAL SKILL DEVELOPMENT, PROJECT DIVERSIFICATION

EVOLUTION OF CLUSTER CONCEPT, INSTITUTIONALIZATION, PROFESIONALIZATION ANDFUNDING

KEY MILESTONES IN CATALAN CLUSTER POLICY

The case of Catalonia

Innovating in cluster scooping and Governance

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Big Distr.Chains

HORECA

Leading

Brands

Retail 

Brand

Distribution service

Foodservice

Retailspecialist

+ Brand

‐ Brand

Gourmet

Trad. retail

Retail specialist

Organic

food

New

Channels

FunctionalFood

The case of Catalonia

From traditional statistically‐definedcluster initiatives to strategy‐centere ones

Food‐sector clusters

Meat processingWine and cavaOlive‐oil…Farm machineryFishing

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INDUSTRY – OWN PRODUCT COMPANIES

FOOD(food, children specific products‐breakfast, snack..‐ confectionery, sweets...)

SALES BIG DISTRIBUTIONCHANNEL

HYGIENE, COSMETICS, HEALTH(Cologne, soap, nappies, creams, medicines...)

FASHION AND ACCESSORIES(Clother, shoes, accessories for children...)

HABITAT(decor, children’s furniture, home textile...)

CHILDCARE ITEMS (prams, child car seats...)

LEISURE AND ENTRETEINMENT (toys, audiovisual products, books...)

SCHOOL EQUIPMENT(stationery,textbooks...)

Retailers

Child

specialist

Independent

Retailers

Childspecialist

IMAGE OWNER

S‐LICE

NSES

LICE

NSES STAKEHOLD

ERS

Independent Retailers

DISTR

IBUTION

School Distribution

Pharmacy

MARKET

ORGANISED EDUCATION SERVICES 

ORGANISED LEISURE SERVICES

Kids related activities value chain in Catalonia

The case of Catalonia

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Selected competitiveness reinforcement initiatives at cluster and sectoral level(2005 – 2010)

Moulds and DiesMotorcyclesMedical devicesGraphic Arts in BarcelonèsTaps and valves Baix LlobregatOptics and PhotonicsFashion IndustryLightning industryGourmet FoodFood ServiceMaritime industryTechnical FabricsRenewable energies: photovoltaics and wind powerChildren‐related productsWell‐being clusterSports equipmentGreen vehicle (in progres)

Farm Machinery in Lleida

Leather Tanning in OsonaFireplaces in Centelles

Knitwear in Anoia

Textile in Bages

Household Furniture in la Sénia

Household Furniture in la GarrigaTextile in Maresme

Cork Industry in Costa Brava

Metal‐mechanical in  Ripollès

•Cluster competitive reinforcement initiatives•Strategy centered reinforcement projects•Emerging Clusters •Local Development and Innovation Plans•Other projects

Wine and cava

Manresa Innovation plan

Delta of Llobregat IP

La Selva IP

Osona IP

The case of Catalonia

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Source: OPI

FASHION AND DESIGN

MOBILITY

HABITAT

ENERGY AND CLEANTECH

HEALTH AND WELLBEING

CHEMICAL

CONTENTAND CREATIVE INDUSTRIES

FOOD

ICT

MACHINERY

Main features of “new generation” cluster initiatives:

‐ Bigger market dimension

‐ Cluster initiatives defined by strategy rather than by industry / technology

‐ “Cross‐industry” focus

‐ Transnational dimension

‐ Private leadership in the medium‐long term

‐ Professionalized management

‐ Flexible concept of cluster seen mainly as a tool for designingand implementing competitiveness reinforcement initiatives

‐ Temporary limited and decreasing co‐funding

The case of Catalonia

ILLUSTRATIVE

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CONCEPTION

MicroclusterTerritorial clustersBusiness centered

IMPLEMENTATION

No dedicated toolsNo dedicated personnel

GOVERNANCE

Existing bodiesGovernment only as catalyst

CONCEPTION

Diversification of projects:cross‐sectoral, definition by marketor strategy Efficient critical mass

IMPLEMENTATION

Cluster specific toolsInternal skills building

GOVERNANCE

New organizations at cluster levelGovernment with a more proactive role

SUMMARY OF MAIN CHANGES IN CLUSTER POLICIES IN THE LAST YEARS

The case of Catalonia

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Index

1. Some reference to cluster “basics”

2. Innovating in cluster policies

3. The case of Catalonia

4. Conclusions

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Conclusions

How do innovation in cluster policy could arise?

‐ Internal learning by doing 

‐ External inputs and guidance from other cluster practitioners experience and especially from TCI Network

‐ Deep knowledge of local economic fabric and “smart observation” of market trends

Lessons learned

‐ The cluster is the tool not the goal

‐ Competitiveness (the goal) is a moving target that requires constant adaptation of policies

‐ It is not the ingredients, but the recipe.. (Prof. AnnaLee Saxenian)

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if properly managed!

Cluster are not about creating associations or funding schemes……….

clusters are a spontaneous socio‐economic phenomenon which can be helpful to reinforce 

regional competitiveness ….  

Conclusions

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For more information or for request a copy of Cluster and competitiveness: the case of Catalonia (1993‐2010),please contact me at:

apezzi@gencat.cat