TCI Conference, Auckland, NZ Cluster Development in 12 Steps
© Cluster Navigators Ltd 2011
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TCI Auckland conference Ifor Ffowcs-Williams
Cluster Navigators Ltd 29 November 2011
Cluster Development in 12 Steps
1. Introducing a process for
starting a clustering initiative
2. For renewal, revitalisation of a current clustering initiative
Cluster Development in 12 Steps
Step 1 Cluster development A centre stage strategy, rather than ‘another project’
A comprehensive framework for a range of economic development agendas, including: • Skills, training; workforce development • SME development; New business start-ups • Investment attraction; migrant attraction • Export development, internationalisation • Rural, community development; • Incubators; Industry/Technology Parks…
Step 2 Identifying, prioritising clusters Segmenting the local economy
• The majority of jobs and businesses in every local economy are the same: • Restaurants, retail, health care, house
building, vehicle repair… • In general around one third differ:
• The traded sector • Firms in this sector drive the local
economy, pull in the wealth
TCI Conference, Auckland, NZ Cluster Development in 12 Steps
© Cluster Navigators Ltd 2011
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Step 3 Initial cluster analysis Building the base
Two thrusts: • Initial competitiveness diagnosis,
fact based, understanding cluster’s current situation: structure, scale, opportunities, constraints, culture …
• Establishing platform for action, Introducing the process; motivating key stakeholders to participate; identifying potential leaders ...
Cluster analysis Developing a shared understanding across the cluster on competitiveness
It takes time to get: 1. The right people on the bus, in the right seats 2. The wrong people off the bus
Cluster Leadership Bus
Forming the Leadership Group, the cluster’s Governance
TCI Conference, Auckland, NZ Cluster Development in 12 Steps
© Cluster Navigators Ltd 2011
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Step 5. The preferred future The Vision
Building on the cluster’s current competitive position … with a challenge,
a s t r e t c h factor
Step 6 Identify stepping stones
• Looking back from the future …Back casting
• Not a continuation of the present …Forecasting
1st Generation Initiatives
2nd Generation Initiatives
Easy, quick Complex, long term
Strategic
Tactical
Step 7: Short term, tactical agenda Immediate projects that demonstrate the value of collaboration
Project implementation Moving quickly into action
• Build teams around the priority action projects
• CATs…Cluster Action Teams • Teams work best if members select
themselves
• And self-destruct on task completion
TCI Conference, Auckland, NZ Cluster Development in 12 Steps
© Cluster Navigators Ltd 2011
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Step 8: Take time in formalising the cluster’s structure
• Firms, especially SMEs, want early benefits • Not lengthy discussions on
structure
• Can take time for: • The cluster’s boundaries to emerge • The cluster’s Leadership Group to
be identified
Step 9 In-depth analysis, benchmarking
Fact based, outward focussed analysis
• Fundamentally understanding the cluster’s competitive position, the local specialisation
• Benchmarking v. reference clusters
Benchmarking visits Example: Norway’s Mountain Tourism cluster visit to Banff, Canada
• Benchmarking visits provide a collaborative learning opportunity
• Builds connections, trust, social capital amongst the travellers
• B2B links often develop during a visit
• Visits can provide important motivating data shocks
TCI Conference, Auckland, NZ Cluster Development in 12 Steps
© Cluster Navigators Ltd 2011
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Step 10: Long-term strategic agenda Establishing a portfolio of initiatives that could include: • Market development, exporting, cluster brand • Training, up skilling • Technology/R&D; test beds • SME development: incubator, equity $... • Developing local connections • FDI & talent attraction….
Step 11 Linking the cluster Building on a solid understanding of the cluster’s strengths
Three levels of leverage: 1. With other regional clusters 2. Nationally, with related clusters 3. Internationally
• Fostering specialisation between clusters • Building B2B and academic links
A portfolio of clustering initiatives Gävle, Sweden’s Cluster suitcase
The Regional Innovation System
TCI Conference, Auckland, NZ Cluster Development in 12 Steps
© Cluster Navigators Ltd 2011
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Step 12 Review, evaluation 36 months after launch
A health check with two dimensions: • Clustering process impact • Is the competitivness of the cluster
being upgraded?
Upgrading a cluster’s competitiveness 12 Step process design principles
1. Change from the status quo never comes easy
2. Successful transformation needs to be driven by a coalition of volunteers
3. Real transformation takes time 4. Short term wins build the credibility to
address bigger problems
Cluster development Drawing on both sides of the brain
Logic Details
Safe
Feelings Big picture Risk taking
• Open to all; consensus building • Depoliticise decision-making; gather
the facts • Not the ‘wisdom of the elite’ • But the ‘wisdom of the crowd’ • Capture hearts as well as minds
Cluster strategy workshops A mutual learning process
Cluster Development
Results from an interactive workshop TCI Delhi, December 2010
REALLY UGLY PRACTICES IN CLUSTER DEVELOPMENT
1. EXCESSIVE GOVERNMENT CONTROL
2. OVER EMPHASIS: PLANNING & REPORTS
3. UNDER EMPHASIS: ACTION & RESULTS !
Source: TCI Delhi Workshop
TCI Conference, Auckland, NZ Cluster Development in 12 Steps
© Cluster Navigators Ltd 2011
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Bad practices in cluster development ���
1. Inappropriate government incentives 2. Limited inclusiveness 3. Failure to find, map common ground 4. Facilitators lose neutrality
Source: TCI Delhi Workshop
Good practices in cluster development
1. Industry led 2. Clear articulation of public service needs 3. Making connections, bridging gaps 4. Full Triple Helix engagement 5. Emergence of natural leaders 6. Professional cluster facilitation &
management 7. Cluster platform for cross-sectoral
cooperation
Source: TCI Delhi Workshop
Advice to a new cluster facilitator 1. Listen! 2. Build relationships; make connections 3. Have Passion
4. Start with what requires low trust 5. Energise others; Find the cluster champion(s) that
others trust 6. Analyse and initiate; Identify goals 7. Create benefits & buy-in; Get things done 8. Be patient; Be transparent; Keep smiling 9. Long term orientation to goals & strategies
Source: TCI Delhi Workshop
Lars Albaek Bornholm, Denmark
‘It is easier to cooperate in
smaller
groups of firms’
Mats Williams Center for Strategy & Competitiveness
Stockholm School of Economics
‘Find the
BIG QUESTIONS that are common’
Ifor Ffowcs-Williams
CEO, Cluster Navigators Ltd 22 Examiner St, Nelson 7010
New Zealand
[email protected] + 64 3 548 0606
www.clusternavigators.com
www.linkedin.com/in/clusterdevelopment Skype: ‘clusterguy’
Blog: www.e4oncompetitiveness.com