Clusters - what they are, how they work, and what to do with them

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Keynote lecture at the 7th CLAC conference in Monterrey, Mexico, 30 May 2012.

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<ul><li> 1. Clusters what they are, how they work,and what to do with themCLAC7, Monterrey, 30 May 2012 Gran LindqvistStockholm School of Economics</li></ul> <p> 2. 1What are clusters?2 3. Alfred MarshallPrinciples of Economics, 18903 4. Staffordshire Sheffield pottery culteryBuckinghamshire chairsBedfordshirestraw plaiting4 5. Giacomo Becattini Paul Krugman Michael Porter 19905 6. What are clusters?Clusters are groups ofgeographically proximatefirms in related industriesand related institutions6 7. 7 8. SurfSurfshopsclothingCompetitionsFoam &amp; FestivalsLocalfiberglass surf heroes Surf ClubsSurfboard Surf SchoolsWax makers Manu-facturingChemicalsAssociation MediaLobbyGroupsSkateboards MuseumsandOtherSnowboardsLocallocaluniversity educationSource: HBS MOC student team8 9. ResearchGovernmentorganisationsFirmsCapital Educationproviders organisations9 10. 2 How do they work?10 11. How do clusters arise? Clusters are naturally occurring phenomena The grow out of seeds such as: o natural resources o particular local demand o acts of entrepreneurship Evolution versus construction o Most clusters have evolved spontaneously o Some clusters are built as acts of policy11 12. What are the benefits of clusters? Mechanisms Externalities: when firms benefit from the presence of other firms in ways they dont have to pay for Access to highly specialised inputs Knowledge spill-overs Local labour pool12 13. What are the benefits of clusters? Competitiveness Increased entrepreneurship Increased innovation13 14. 3 What to do with them?14 15. GovernmentResearchorganisationsA clusterCompaniesCapitalprovidersEducationorgansiations 15 16. GovernmentResearchorganisationsA clusteror isolatedCompaniesislands?Capital Educationproviders organsiations 16 17. Weak interaktionStrong interaction Poor knowledgeGood knowledge Sparse networks Dense networks Different languages Common language Different norms and Similar norms and attitudes attitudes Different visions Shared vision Low trust High trust Negative incentives Positive incentives17 18. Reality is inefficiencies + Knowledge failures + Network failures + Collaboration failures + Coordination failures = Innovation failures18 19. The seven gaps of innovation Government gap41 The researchgap 5 The company-to- company gap The capital gap 32 The education gap19 20. Cluster-to- cluster gap620 21. Global market gap6721 22. Are you a cluster manager? We need Latin Americanparticipants in the Global ClusterInitiative Survey An online survey, in English About your cluster organisation Interested? Contact me!22 23. What are clusters? They are groups of geographically proximate firms in related industries and related institutions How do they work? They improve competitiveness by fostering entrepreneurship and innovation What to do with them? They need cluster initiatives to help improve collaboration in the cluster23 24. Contact Gran Lindqvist, PhD Center for Strategy and Competitiveness Stocholm School of Economics www.sse.edu/csc goran.lindqvist@hhs.se +46 8 736952424</p>