government as a leader in cluster development as opposed to academia or the private sector pacf...
TRANSCRIPT
Government as a Leader in Government as a Leader in Cluster Development as Cluster Development as
Opposed to Academia or the Opposed to Academia or the Private Sector Private Sector
PACF Entebbe
2-4 February 2011
Nigel Gwynne-Evans
Dep.of Economic Development: Western Cape Government
Government’s Role as leaderGovernment’s Role as leader and managerand manager of a of a Cluster Cluster
ProgrammeProgramme
PACF Entebbe
2-4 February 2011
Nigel Gwynne-Evans
Dep.of Economic Development: Western Cape Government
Hypothesis: Hypothesis:
To ensure the long term success of a cluster programme, requires the development of strong capacity in government to initiate, fund, facilitate, champion and defend the cluster programme.
In other words: A sustainable In other words: A sustainable programme requires a dedicated programme requires a dedicated
sectoral capacity within sectoral capacity within government to be established to: government to be established to:
Motivate and fight for budgets Make decisions and manage resource allocation Facilitate new initiatives Carry out M&E, and package successes Assist cluster initiatives through challenging times Withstand political change
Background to the Western Cape Background to the Western Cape Programme Programme 1998 - 20111998 - 2011
History of the Cluster History of the Cluster Programme in the Western Programme in the Western
Cape Cape National DTI’s cluster roadshows in 1996/97First cluster launched in 1998 Steady progress through to 2004 – 8 clusters 2004 – Recognition & dedicated budget to
“The Special Purpose Vehicle/ SPV Program”
2011 – 17 government supported clusters
Where we are now - 2011Where we are now - 2011
17 Cluster initiatives5000 company membership $8m annual budget + Further $8m
leveraged from members/other sources30 Staff Managing SPV Program in Gov80 employed within the SPV’s
Cape Clothing Cluster
Cape Clothing Cluster
Visual Arts Network
Visual Arts Network
CCDI (Craft)
CCDI (Craft)
SA Aqua-culture
Institute
SA Aqua-culture
InstituteCape Film
Commission
Cape Film Commission
WC Tooling Initiative
WC Tooling Initiative
CTBi(Boatbuilding)
CTBi(Boatbuilding)
SA Wine and Brandy Trust
SA Wine and Brandy Trust
WC Furniture Initiative
WC Furniture Initiative
ElectronicsElectronics
CT Fashion Council
CT Fashion Council
Clotex(CMT’s)
Clotex(CMT’s)
Cape IT Initiative
Cape IT Initiative
GreenCape Initiative
GreenCape Initiative
Environmental Goods & Services
Environmental Goods & Services
Cape Bio-techTrust
Cape Bio-techTrust
Prof. Bus. Services
Prof. Bus. Services
Established Clusters
Emerging Clusters
SAOGA (Oil and Gas
supply)
SAOGA (Oil and Gas
supply)
Auto-componants
Auto-componants
Performing Arts Network
Performing Arts Network
Cape Ship Repair
Cape Ship Repair
Calling the Cape
Calling the Cape
Clusters with potential
Western Cape - Industry Cluster Portfolio
Cape Musicinitiative
Cape Musicinitiative
SA Fine Foods Association
SA Fine Foods Association
Nature of Sector InitiativesNature of Sector Initiatives
Average 5 employees per SPV (CCDI - 25)Not-for profit companies Public/ private sector fundedOpen membershipRepresentative boards (majority industry +
reps from academic & research institutions / government)
CEO’s – industry specialists
5 Key Functions of SPV’s 5 Key Functions of SPV’s
Strengthening of Cluster Networks Marketing & promotion of sectorFirm Level CompetitivenessInfra-structure & LogisticsSkills
Snapshot outcomes Snapshot outcomes
27000 jobs created in the call-centre sector over 8 years
$200m worth of Oil and Gas repair work pa200 ICT start-ups graduated through the “Bandwidth
barn”3000 crafters assisted with technical supportImproved productivity by 20% across large clothing
manufacturing firms SA boat-builders now produce 30% of the world’s
catamaran’s
Lessons Learnt in Building Lessons Learnt in Building Capacity in GovernmentCapacity in Government
The WC Trade and Sector The WC Trade and Sector Development (TSD) Unit Development (TSD) Unit
Chief Director 4 support staff
Resource Based Sectors(Bush tea, Aqua-
culture, Fine Foods)
5
Manufacturing Sectors (Oil and Gas, Boat-
Building, Clothing & Textiles, Furniture,
Tooling, Renewables)12
Services Sectors (ICT & Telecoms,
Call Centres, Financial)
5
Creative Industries (Craft, Performing, Visual Arts, Music)
4
Tourism 15
Tough to build up Sectoral Tough to build up Sectoral Capacity!Capacity!
Where does one start?Need confident, experienced professionals
who can relate to CEO’sNeed deep understanding of issues
pertaining to the economy and its sectoral strengths
Need skills mentioned above AND be able to survive in government!
Maintaining the team Maintaining the team
Good professionals hard to keep in gov. (hope for 4-5 years?)
Sectoral staff need constant encouragement and mentorship
Structure your team that there is support to do the paperwork/ bureaurocratic stuff
Protect staff from politician’s whims
Facilitating new initiativesFacilitating new initiatives
Doing background investigation Selling the concept to both gov/ private sector Facilitating the cluster through initial processes Leveraging capacity and resources/ Seed capital Incubation within the Department (3m – 12m) Bedding down the Corporate governance and
reporting systems. Take out e4’s “Bad” by sharing CG learnings
Fighting for budgets – (Bob?)Fighting for budgets – (Bob?)
Need to understand budgetary cycles and processes
Need to win political support from the minister to be able to obtain an allocation
Need the M&E systems to prove delivery and impact (but avoid e4’s “Ugly”)
Providing support over Providing support over challenging timeschallenging times
Board is responsible for keeping order. But have had crisis situations where both the CEO and the board may be in trouble.
May be necessary to step in to restore order (CFC, CITI, WCTI)
NB support in making new appointments (CTFC, SAOGA)
Taking decisive action over corporate governance challenges (CS, CITI, CBT)
Understanding Cluster Lifecycles Understanding Cluster Lifecycles
Clustering is a Long steady process – need 10 – 20 year time horizon
5 year: Building of foundations, institutions, networks & projects
5 – 10 years: Expanding of portfolio & Consolidating programme
10 – 20 years: Transformation of the sector, and focus on bigger projects
Surviving Political Change: WC – Surviving Political Change: WC – 8 Ministers, 7 DG’s in 12 years 8 Ministers, 7 DG’s in 12 years
Need to lean on all the international experience as examples (3000 initiatives can’t be wrong!)
Must be clear on methodology, choice of sector, and that demonstrate SPV delivery
Need support of other politicians from different parties to protect the programme over transition
Ensure private sector behind sector programme to overcome the sceptics
Role of academia Role of academia
Academics play a powerful role in alerting government as to clustering & future opportunities
Can assist in fostering new initiatives, and may take the lead initially
Use credibility to convince government to build capacity, and invest
Academia to train and guide government officials WC – Academic Scientific Committee
To conclude:To conclude:
FFrom the Western Cape experience rom the Western Cape experience developing internal government capacity developing internal government capacity has been critical in building up its cluster has been critical in building up its cluster programme, as well as ensuring its programme, as well as ensuring its sustainability. sustainability.
