cluster foundation and fundamentals of cluster management

Module: Cluster Foundation and Fundamentals of Cluster Management

Gerd Meier zu Köcker

Institute for Innovation and Technology (iit)

April 2014

• Clusters are Individuals

• Cluster Mapping

• Analysing the demand of cluster actors

• Creating synergies

• Matching interests and expectations of cluster actors

• Developing a services spectrum

Lessons to Be Learned in this Modul

2

• Cluster

• Clusterinitiative

• Clustermanagement

Definitions

3

Prevailing Clusters Chemical Industry

Difference between Cluster and Cluster Initiatives

Framework conditions

(e.g. infrastructure, regulation, work force, level of

education, image, macro economy)

Cluster actors

(business, research, public agencies)

Cluster management organization

Utilizing clusters as tool for economic or industrial development means developing industrial networks and value chains by means of

cluster management!

Three Dimension of a Cluster

Co-location ...little relevance in terms of competitive performance; firms do not emphasise the local area, or firms within it as important vis-à-vis their own competitiveness

Agglomeration ...co-location enhances firms’ competitive performance, but does so for reasons that are- in essence- ‘passive’. The place / area is regarded as important by firms, but for reasons other than active interaction with other local firms

Clustering …co-location enhances firms’ performance because it facilitates collaborative working relationships with a range of local suppliers, customers, competitors, universities, research institutions, etc.

Source: thanks to dr. Philip Cooke

Networks and Collaborative Working Relationships

com

petitive

ne

ss

Clusters – What is Inside?

Clustering – How it is Working?

Leading

Firms

Key firms exporting

Goods and Services

Outside the Region

Network of Supplier Firms

Firms supplying inputs, raw materials, components, parts and specialized services

Economic Foundations

Human Technology Access Physical

resources to Capital Infra-

structure

Collaboration

Networking

Competition

REGION

Products / Services

Resources

Working Together

Cluster Key Actors - Ideal Structure

Thematic focus

Reginonal concentration

Vertical cluster

9

SMEs

Large

Enterprises

Research

Institutes

Service

Providers

Universities

Education

& Training

Cluster

governance Manufacturer Supplier Partner (finance, marking, logistic) Developer Researcher

Clusters are Key to Economic Growth

Geographic concentrations of

industries

Home of specialized local firms with

specialized buyer-supplier relationships

Firms cooperate and compete

Firms share similar

technologies,

skills,

financing mechanisms

Environment that enables

Firms to develop technologies, skills to

service often distant or even global

markets

Local actors to develop unique know-

how develops that distant rivals find

hard to imitate

• Concentration • Networks and linkages • Proximity


• Cluster Mapping



• Developing a demand oriented services spectrum


11

SME in clusters are performing better…..

….. than the sector-specific average

Cluster Monitor Germany, July 2012, 50 Cluster representing about 5000 company

Much better

Better

Similar

Slightly worse

Much worse

Higher intensity of iInvolvement leads to

higher monetary added-values

Monetary added-value for SMEs in clusters

All actors Actors that cooperate more intensive than others

Cluster Monitor Germany, July 2012, 50 Cluster representing about 5000 company

low similar high

low similar high

• 50% of the wind turbines around the world being developed and produced by Danish manufacturers along with many component suppliers based in the country.

• Around 11,000 of the 25,000 employees in the Danish wind industry work less than one hour’s drive from Aarhus

• Wind power accounts for more than 20 percent of the total power consumption in Denmark

• Intended to be increased to up to 50 percent by 2020.

North Jutland Denmark –

Global Production and Knowledge Center of Wind Energy

Singapore

620 km²

Pop: 3.2 million

GDP: US $85 billion

40% World Market Share in Hard Disks (1995)

Singapore –

Hot Spot in Hard Disks Production in 1995

China – Wenzhou Footwear Cluster

One of the seed beds of the Chinese private

shoe manufacturing industry - globally

competitive

Over 4,000 footwear firms,

Employ over 400,000 workers

Home of 70% of the top 30 domestic

footwear firms

Production:

– 1 billion pairs of shoes

– 25% of the gross domestic footwear output

– 12,5% of the global footwear production

Clustering plays a significant role in helping rural industries overcome the

growth constraints of capital and technology in the incipient stage of

industrialization

Clusters are Different in terms of Composition of Actors

www.cluster-analysis.org

Clusters are Different in terms of Size

Clusters are Different in terms of Public Funding Rate

Different Clusters – Different Objectives

Clusters are Different in terms of Industrial Fields Covered

BioTech vs. Chemistry Clusters

Clusters are Different in terms of Legal Forms

ICT vs. Chemistry Clusters

Clusters are Different


• Cluster Mapping





25

Massachusetts Medical Device Cluster

Government Regulators Development Institutions

(Governmental)

Universities, Technical

Schools and Institutes

Financial Services Trade Unions

Feed Production Suppliers

Equipment, Inputs and

Floating

Equipment and Instruments

Suppliers

FRESH WATER Fish Eggs, pisciculture

Prefarming: hatchery and smolts

SEAWATER Sea cages;

Farming

PROCESSING PLANTS

DISTRIBUTION

Traders, Direct Channels, Brokers

MARKETS

Waste handling

and by products (oil and fish

meal)

Transport

of smolts (trucks,

ships)

Harvest Transport

(Ships, trucks)

Pharmacy,

Biotech

Inputs and

Services

Transports and

Maintenance Suppliers

Packaging Suppliers

Transport and Logistics

N: Estimated No of companies or

institutions

Aquaculture Cluster

Commodity

Excange Market

Public Relations &

Marketing Services

Form Input Services

Collaborative R&D Services

Maintenance and Repair

Services

Palm Plantations

(Upstream)

Palm Industries

(Downstream)

Refinery – PPO • Refined bleached deodorized

oil (RBD)

Milling CPO • Crude Oil Palm

• Palm Kernel Oil

Foods • Cooking oil

• Industrial margarine

• Health-based foods

Fractionation – PPO • Palm oil – cleorin, stearin

• Kernel oil – oleorin, stearin

Non-food products • Biodiesel

• Oleo chemical

• Nutraceutical

Recycling of Waste • organic manure

• bio gas

Government

Agencies

• FELDA, NPOB

Educational

& Research

Institutions

Industry Groups • Palm Oil

Association

Plant & Equipment

Manufacturing

Shipping & Logistics

Services

Financial Services

Packaging, Labeling

Service Companies

Distribution Network

Undeveloped

Competitive

To improve

Malaysian Palm Oil Cluster Map

Group Working

Government

Agencies

Educational

& Research

Institutions

Industry Groups

Competences of Industrial cluster actors (inside cluster)

Industrial key actors outside cluster providing input

Other key actors outside the cluster actors depend of

Elements of Food Value Chain


• Cluster Mapping





31

Cluster Key Actors

SMEs

Large

Enterprises

Research

Institutes

Service

Providers

Universities

Education

& Training

Cluster

managment

SWEEP-NET – The Real Case

• Young network

• Expectation of member unknown

• No tailor-made services offered

• No synergies gained

• Need to increase share of private

financing

First Three Key Actions

Mapping of members

Grouping of members

Analysing expectations

and demands

35

Local authorities

Regional goverments

Private sector (service providers, technology providers, private consultants)

International organisations / donors

Non-Governmental Institutions

Academia / educational institutes

Main Customers / Clients of SWEEP-Net

Mapping of members

Grouping of members

Analysing expectations and demands

Group Working

What are characteristic expectations of selected target groups?

Local authorities

Regional goverments

SME

Global firms

International organisations / donors

Non-Governmental Institutions

Academia / educational institutes

37

Contribution to the fulfillment of political goals

Demand oriented assistance

Access to knowledge, information and key actors

Capacity building

Support in becoming prepared and eligible for entering international projects

Project and financial management

Expectations of Governmental Authorities

38

Access to knowledge, information and market trends

Capacity building

Generation of new business / matchmaking

Support in increasing innovation capabilities

Increased visibility

Support in internationalization

Improved visibility towards policy and administration

Access to local markets

Expectations of Private Sector

Fine Tuning of Cluster Actor‘s Expectations (I)

Fine Tuning of Cluster Actor‘s Expectations (II)


• Cluster Mapping





41

Added-values provided by the Cluster Management

Bundling regional competences of industry and academia


Marketing, public relations

Networking with internal or external partners and political lobbying

Community building

Stimulation of innovations processes between different actors

Project fund acquisition and access to public support programmes

Information and experience exchange between the cluster actors / external

Human resources / Recruiting

Support regarding internationalisation

Engaging in collaborative R&D development and transfer

43

Contribution to the fulfillment of political goals

SWEEP NET can be used by governmental authorities as an active tool to fulfill political objectives.

Demand oriented assistance

Due to its knowledge, competence and international links, the SWEEP NET Secretary can actively support governmental authorities in solving day-to-day issues as well as to support them to fulfill long term political objectives.

Access to knowledge, information and key actors

Local authorities are interested in having easy access to knowledge, information and key actors. SWEEP-NET Secretary can satisfy this demand by providing information and experience exchange, matchmaking etc

Capacity building

In the MENA region there is still are strong need for capacity building and international experience exchange on all levels. Governmental authorities are interested in SWEEP NET Secretary to provide training schemes for capacity building

Turning Expectations into Synergies

Governmental Authorities (I)

44

Support in becoming prepared and eligible for entering international projects

Entering international projects or becoming eligible for getting funded is of increasing importance for local authorities. SWEEP-Net Secretary can advice the candidate under which preconditions they are eligible to apply for funding or enter international projects.

Project and financial management

Governmental authorities are often interested in joining international projects for various reasons. However, they do not like to be bothered with administrative or project management issues. This can be covered by the SWEEP-NET Secretary


Governmental Authorities (II)

45

Access to knowledge, information and market trends

The private sector has issues in getting access to knowledge and relevant market trends. SWEEP-NET can satisfy this demand by providing information and experience exchange, matchmaking etc.

Capacity building

In the MENA region there is still are strong need for capacity building and international experience exchange on all levels. Private Sector is interested in SWEEP NET to provide training schemes.

Generation of new business / matchmaking

By entering SWEEP-NET private actors expect getting better access to relevant partner or potential clients in order to generate new business.

Innovation

SWM often asks for new solutions or the application of new technologies. Entering the SWEEP- NET community could facilitate the private actors to get in touch with the other partners to become more innovative or to match complementary competences.


Joining the SWEEP NET could increase regional, national and international visibility of private actors, especially those who are not known in the relevant markets.


Private Sector (I)

46

Support in internationalization

Often relevant markets in certain MENA-countries are limited and private sector actors are interested in getting access to foreign markets. SWEEP-NET is expected by private actors to offer support in this respect.

Improved visibility towards policy and administration

Private actors often expect SWEET-NET to support them in getting access to decision makers from policy and administration. This also often contain lobbying and advocating in favour for the private sector.


Private Sector (II)


• Cluster Mapping





47

From Synergies to Demand Oriented Services for Public

Sector

(1) Working Groups

(2) Coaching „Good SWM Policy“

(3) Networking, Matchmaking

(4) AWARDs

(5) Technical / Policy Papers

(6) Access to Information

(7) Advice Materplanning issues „Marakesh Declaration“

(8) Accessing International Projects

(9) Access to Key Actors

(10) Access to External Workshops

(11) SWEEP-Net Workshops

Priorisation of Services for Public Sector L

ow

m

od

era

te h

igh

Vis

ibili

ty

Degree of difficulty / time needed for implementing

Difficult / long moderate easy / short

11

10

9 8

7

6 5

4 3

2

1

a. SWM-Benchmarking

b. Labelling „Green Location“

c. Fitness Test „International Projects“

d. Support in Getting Access to International Projects

e. Cost / Benefit calculations SWM

f. Tech-Transfer

g. Services to Increase Visibility of Companies

h. Support in Internationalisation

i. Training and education

j. Services related to International Projects

From Synergies to Demand Oriented Services for Private

Sector

Lo

w m

od

era

te h

igh

Impact

on r

ecogn

itio

n /

reputa

tion

Degree of difficulty / velocity to implement

Difficult / slow moderate easy / fast

j i

h

g

a

b

d

f

e

c

Priorisation of Services for Private Sector

Priorised Service Spectrum for Public Sector

(1) Working Groups

(2) Coaching „Good SWM Policy“

(3) Networking, Matchmaking

(4) AWARDs

(5) Technical / Policy Papers

(6) Access to Information

(7) Advice Materplanning issues „Marakesh Declaration“

(8) Accessing International Projects

(9) Access to Key Actors

(10) Access to External Workshops

(11) SWEEP-Net Workshops

a. SWM-Benchmarking

b. Labelling „Green Location“

c. Fitness Test „International Projects“

d. Support in Getting Access to International Projects

e. Cost / Benefit calculations SWM

f. Tech-Transfer

g. Services to Increase Visibility of Companies

h. Support in Internationalisation

i. Training and education

j. Services related to International Projects

Priorised Service Spectrum for Private Sector

Standard Service Spectrums Provided by Cluster

Managers

2. Training and Qualification

• Analysis of branch related educational

requirements

• Activities for qualification of company staff

• Regular special events

- workshops and seminars

- study trips for employees

Typical fields of

activities of a cluster

management

1. Information and Communication

• detailed database

• frequent customer interviews

• Internet/homepage

• Newsletter

• Supplier and service catalogue

• Regular events, company tours

3. Internationalisation

• Access to international events, congresses,

topics, customers and trends

• Support of international co-operation

• Support of companies during internationalisation

• Set-up of network activities between comparable/

complementary international clusters

• Attract foreign visits in the cluster

4. Initiating Co-operations

• Initiation and support of co-operation projects

• Establishment of contacts between potential

project partners

• Co-operations with R&D, educational

institutions and special service provider

• Set-up of special support providers

• Facilitate higher innovativeness

5. Marketing and PR

• Information and marketing materials

• Generation of regional identity

• National and international PR

• Organisation of trade fairs, company visits,

presentations for major customers

• Lobbying

Cluster Management Services in Detail (I)

Marketing / Branding

Representation of company

Support in public affairs activities /

communication strategy

Representing company on trade fair

Regional branding

Organisation of events and fairs to

promote cluster actors

Regional or cross-regional networking of

cluster actorsl

Lobbying

Policy lobbying

Lobbying for associations

Networking among cluster actors

Information and experience exchange

Initiating working groups / tasks forces

Business creation among cluster actors

Entrepreneurial support

Support of start-ups

Coaching of business plans

Fund raising / Venture Capital raising

Cluster Management Services in Detail (II)

Innovation and Cooperation

Brainstorming / creation of ideas

Identifcation and matching of right cluster actors

Support in proposal writing

Acquisition of third party funding

Project management

Creating of new business for initiating innovation among cluster actors

Internationalisation

Support in the definition of an internationalisation strategy for cluster

actors or for the entire cluster

Technology scouting / Trend scouting (Markets, technologies, competitors)

Initiiating international R&D consortia

Organisation of delegation missions

Participation in international trade fairs

Targeting / beauty contests for getting access to international key actors

Cluster Management Services in Detail (III)

Human development / training / education

Recruting

Development of platform of job vacancies

Development of vocational training schemes

Development of practical training schemes

Participation in recruiting events

Additional Services

Foundation of buying associations

• How to gather the right members in a cluster


58

• Group Working

What are suitable tools to identify “right” cluster actors


59

Tool for Acquiring Cluster Actors

60

Emerging Growth Maturity Tranformation

Time

Gra

de o

f ne

twork

ing

Data

base

Other

tools

Data

From

CoC

Actors

analysis

Value

Chain

Analysis

Networ-

king

analysis

Visual

Raod-

mapping

Tool 1: Actor Analysis

Demand profile – Actor mapping – Actors analysis

What are key objectives

What competences, products, proccesses are already available

Who is missing, what competences are missing

Who can significantly contribute to cluster objectives

Are strategic partners missing

Is there a good balance between SME, global player and R&D

institutions

61

Tool 2: Networking Analysis

Networking analysis

Who already cooperates with whom

Which key actors / lead partnern have to be involved einbeziehen

Who cooperated with partners in the region, but not involved in cluster

activities

62

63

Tool 2: Networking Analysis

Instrument 3: Wertschöpfungsketten-Analyse (1)

Methode (Staccato Taxonomie)

zwei Varianten: akteursgruppenbezogen bzw. einzelnen Akteure

analysieren und den Stufen der Wertschöpfungs-kette / zuordnen

branchenbezogene Wertschöpfungskette vollständig versus

Anknüpfungspunkte für Cross-Clustering identifizieren

fehlende Akteure / Kompetenzen werden sichtbar

welche Wertschöpfungsstufen sind minimalistisch / gar nicht abgedeckt

was sind die Gründe dafür / wer könnte geeignet sein

qualitativer Analyseansatz Fokus: alle Wertschöpfungsstufen sollten

abgedeckt werden

64

Tool 3: Value Chain Analysis

65

66


Regional coverage of Biogas value chain

67


Tool 4: Visual-Roadmapping-Methode

68

69

Tool 4: Visual-Roadmapping-Methode

70

Fee-based services

SWM Benchmarking (comparison of status of development of local SWM system)

Labelling „green location“

Fitness test to confirm eligibility for access to finance / international projects

Cost-benefits-calculations

Tailor-made trainings / workshop

Local authorities

Service spectrum

Services included in membership fee

Access to information (trends, market reports, technical papers, standards, etc.) Networking, matchmaking, working groups Access to technical / political papers (incl. comments how to deal with them) Access to external trainings / workshops Best practice missions Access to key actors on national or international level Support in accessing international projects Best SWM-solution Award / SWM Manager of the Year

71

Fee-based services

Adcanced training / workshops

Increasing company visibility (website, sponsorship, company presentation measures, meeting high level policy makers, ….)

Measures to generate new business (specific matchmaking, user-supplier-clubs, beauty contests, etc…..)

Market access measures (delegation mission abroad and in MENA region, specific market information, etc.) – intended both for MENA-companies and non-MENA-companies

Technology transfer (working groups to specific technical issues)

Additional measures (to be decided)

Private sector

Service spectrum

Services included in membership fee

Access to information (trends, market reports, technical papers, standards, etc.) Networking, matchmaking (standard), working groups Access to technical / political papers (incl. comments how to deal with them) Access to external trainings / workshops Access to key actors on national or international level

Registered Association is Prevailing Logal Form for

Cluster Initiatives

cluster foundation and fundamentals of cluster management

Leadership & Management

cluster foundation

demand of cluster actors

expectations of cluster

firms performance

cluster colocation

leading firms key firms

individuals cluster

firms competitive performance