session 1 - cluster analysis - academia

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This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907 http:// www.cit.ie Monday 28th and Tuesday 29th of September 2015 Proudly Sponsored by: Faculty of Business and Humanities & Cork County Council As featured in: Programme: Session 1: Cluster Analysis - Academia. Monday 28 th 2:30 to 4:30pm Venue: Seminar Ro CIT. Session 2: Building Internatio Collaborations - Industry. Monday 28 th 6:00 to 7:30pm Venue: County H Council Chamber. Session 3: Building Economic Growth Thro Clusters - Policy. Tuesday 29 th 10:00 to 12:00pm Venue: CIT Coun

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Page 1: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

http://www.cit.ie

Monday 28th and Tuesday 29th of September 2015

Proudly Sponsored by: Faculty of Business and Humanities & Cork County Council

As featured in:

Programme:• Session 1: Cluster Analysis - Academia. Monday 28th 2:30 to 4:30pm Venue: Seminar Room, CIT.• Session 2: Building International Collaborations - Industry. Monday 28th 6:00 to 7:30pm Venue: County Hall Council Chamber.• Session 3: Building Economic Growth Through Clusters - Policy. Tuesday 29th 10:00 to 12:00pm Venue: CIT Council Chambers.• Session 4: Cluster Organisation Development. Tuesday 29th 2:30 to 4:30pm Venue: Seminar Room, CIT.

Page 2: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Triple Helix Clusters?

Page 3: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Academic Session Presenters

Joan Martí Estévez

Director of Cluster Development ACCIÓ (Catalan Agency for Competitiveness)

[email protected] @JMartiClusters

Tamara Högler

Head of Innovations and International Affairs CyberForum e.V., Karlsruhe, Germany.

[email protected] @CyberForum

Justin Doran

School of Economics University College Cork

[email protected] @justin_doran

Eoin Byrne

Department of Management & EnterpriseCork Institute of Technology

[email protected] @eoinbyrne9

Page 4: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

http://www.cit.ie

Running order for Session 1: Cluster Analysis

Thursday 10th of September 2015 13:00 – 14:00

www.cit.ie/vlinc

Monday 28th 2:30 to 4:30pm Venue: Seminar Room, Melbourne Building, CIT.Opening of Session by Mr Gerard O’Donovan, Head of Faculty Business and Humanities, CIT.

• Eoin Byrne (CIT): Adding Geography to Network Analysis of Clusters using the V-LINC analysis.• Justin Doran (UCC): Bringing Econometric Analysis to Clusters and Networks.• Tamara Högler (CyberForum) and Joan Martí Estévez (ACCIÓ): Cluster Theory Vs. Clusters in Practice.

Q&A

Page 5: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

http://www.cit.ie

Cluster Seminar SeriesAcademic Session: Cluster Analysis

By: Eoin Byrne, Dr John Hobbs & Brigid Walsh Monday 28th September 2.30 – 4.30pm

Department of Management and Enterprise, Cork Institute of TechnologyE-mail: [email protected]

V-LINC – Visualisation of Linkages In Networked Clusters

www.cit.ie/vlinc

Page 6: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Clusters: Identifying, Mapping and Visualisation, and Analysis

Identifying: Define them and their presence.Geographical concertation and industrial specialisation indices Methods: Gini coefficient, Herfindahl-Hirschman index, Input-Output, Location Quotient., Van Egeraat et al. (2015). Qualitative methods survey and expert opinion (case studies).

Mapping: Presence, profile, economic performance.US Cluster Mapping Project and the European Cluster Observatory.

Figure: The establishment of the European Cluster Observatory. Source: Sölvell et al. 2009, and authors own elaboration.

Page 7: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Cluster Visualisation

Figure: Observatory Star Rating for IT by EU Region. Source: www.clusterobservatory.eu.

Figure: Cluster Stars IT Sector EU Regions. Source: European Cluster Observatory 2015.

Figure: Specialization in Analytical IT Cluster by Area, 2013. Source: US Cluster Mapping Project, 2015.

Page 8: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Cluster Analysis: How to Understand Clusters?

How do they function and operate?• Are the firms well connected? • Who participates in the cluster?• Who are the key connectors?• Are there links with research institutes, universities and B2B research links.• Is the cluster focused on specific markets?• Is there a local “buzz” or global “pipeline”.

Case Studies and qualitative analysis – surveys, interviews and expert opinion.

Clusters Analysis

Page 9: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Cluster Analysis: How to Understand Clusters?Nature of interactions that firms engage in, how these lead to competitive advantage.

Network analysis techniques have been applied to investigate the structure of interactions in regions and clusters, (Giuliani and Bell, 2005; Eraydın and Fingleton , 2006; Morrison, 2008; Ter Wal and Boschma, 2009; Giuliani and Pietrobelli , 2011).

Figure 2a: Information network. Source: Morrison, 2008.

Figure 2b: The structure of the local knowledge network, 2006 (NetDraw). Source: Giuliani, 2013.

Clusters Analysis and Network Analysis

Page 10: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

How to Understand Clusters

V-LINC is a methodology and software application which informs and develops policy recommendations through mapping, visualising and analysing the strength of key relationships within Cluster Ecosystems. V-LINC can be applied to any industry sector.

The V-LINC research team work in partnership with cluster organisations, regional/national authorities and academics to develop strategic short, medium and long term policies based on Regional/National strengths and capabilities.

Page 11: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Visualisation of Linkages in Networked ClustersLinkages between firms and other organisations are at the heart of how clusters function.

The key components of V-LINC data are; 1. Define the linkage category,

Page 12: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Visualisation of Linkages in Networked Clusters

These linkage categories are derived from Marshall’s (1890) ‘Triad of External Economies of Industrial Localisation;’ Porter’s (1998a) ‘Diamond of Local Industrial Clustering,’ and Leydesdorff’s (2012) ‘Triple Helix Cluster configuration’ each of which recognise the role of knowledge, innovation, collaboration, administrative supports and specialised inputs.

Page 13: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Visualisation of Linkages in Networked ClustersLinkages between firms and other organisations are at the heart of how clusters function.

The key components of V-LINC data are; 1. Define the linkage category, 2. Define geographic scope, and

Page 14: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Visualisation of Linkages in Networked Clusters

The methodology distinguishes itself from Porter’s (1990, 1998) work in that it recognises that clusters are dynamic and have linkages which occur with partner’s external to a cluster.

Markusen (1996) recommends a broader institutional approach which encompasses the degree of embeddedness across district boundaries.

Page 15: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Visualisation of Linkages in Networked ClustersLinkages between firms and other organisations are at the heart of how clusters function.

The key components of V-LINC data are; 1. Define the linkage category, 2. Define geographic scope, and 3. Assess the business significance of each linkage as perceived by respondent firm personnel.

• Firm linkage data is collected through structured, face-to-face interviews with firms. • When uploaded, the linkage data for a sample of firms is aggregated to produce an insight

into the network of firm linkages of a cluster. • A novel section of the methodology is the Perceived significance scores for the firm’s

linkages. This allows the researcher to assess what types of linkages are most important in the cluster and where they occur.

Page 16: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Ile de France ICT Cluster Ecosystem

Local National

European International

Total Linkages = 393 (Local = 150; National = 73; European = 88 and International = 82)

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This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Ile de France ICT: Local Linkages

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This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Ile de France ICT: Local R&D

Page 19: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Policy Recommendations Slovenia ICTV LINC Analysis of Linkages in the ICT Sector in Slovenia‐

1. Increase ICT TN’s membership and value to members in order to provide a voice and networking cluster for Slovenia’s growing SME base. The Triple Helix Cluster organisation should take responsibility for access to finance for SMEs and co-ordinate co-operations between SMEs.

2. Develop the ICT TN Triple Helix Cluster to strengthen the linkage with National Government to increase the levels of Research, Development and Innovation. ICT TN to support interactions and collaborations between firms in the ICT sector and Government agencies to incentivise RD&I. Government should encourage linkages between MNE units, indigenous SMEs and academia, which may lead to increased innovation and R&D partnerships.

3. Focus on the Internationalisation of Slovenian ICT Firms through mechanisms such as the Business Roaming Agreement and the BeWiser project. A cooperative development plan is needed to help SMEs and micro enterprises make international connections. ICT TN are in a position to be able to facilitate the creation of linkages through their participation in the BeWiser project (www.be-wiser.eu), and partnership with CyberForum’s Business Roaming Agreement.

V LINC report endorsed by:‐

Page 20: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Identification of Key Connectors: Cork ICT

Key Connector it@cork EI CCC UCC CIT IDAHigh 30 to 40 6% 12% 0% 10% 22% 44%Medium 20 to 30 44% 65% 44% 40% 44% 44%Low 10 to 20 44% 24% 50% 50% 22% 11%Tenuous 0 to 10 6% 0% 6% 0% 11% 0%Total (n) 18 17 16 10 9 9

Linkage Category 15 IA, 3 TN

14 GA, 3 TN

11 IA, 5 TN

5 RD, 4 TN, 1 SS

6 RD, 3 TN 9 GA

Page 21: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Cork ICT and Biopharma: Specialist ServicesSpecialist Services are the 2nd most frequent linkage category for ICT MNEs, 19% (n=61) and 77% of Specialist services linkages are within Ireland.

ICT

Bio-pharma

Specialist Services are the most frequent linkage category for Biopharma MNEs, 19% (n=150) and 85% of Specialist services linkages are within Ireland.

Page 22: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

International and European Output Linkages Operated by Cork ICT SMEs.

Internationalisation Strategy developed for Cork ICT firms using:• Trade Missions• Business Roaming Agreement - Clusterize• V-LINC matchmaking – Be Wiser Connect (Launched on 28th Sept)• Dealbroker program (leveraging MNCs)

Total Linkages = 75 (Local = 16%; National = 28%; European = 23% and International = 33%)

Key target regions:

Internationalisation strategies for clusters.

Page 23: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Research Teams’ Experience and Project Portfolio

Experience working on European and Nationally Funded Cluster Projects:

BEWISER project (www.be-wiser.eu).

REMCAP project (www.remcap.eu).

WCPD Agri-food (www.wcdp.ie).

Bord Iascaigh Mhara (www.bim.ie).

Other experience includes:• Smart Specialisation Peer Review• Executing SWOT & PESTLE Analysis • Undertaking Market Analysis• Animating Policy Roundtables• Developing + Conducting Online Surveys &

Analysis• Joint Action Planning• Dissemination Activities• Academic Publications

V-LINC Analysis has been undertaken on clusters in the following industry sectors:

• Information Communications Technology• Biopharma• Maritime • Agri-food• Tourism

V-LINC analysed Clusters across the following countries.

Page 23

Page 24: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Final Thoughts

What’s next for identifying, mapping and visualisation, and analysis of clusters?

• What is the best method for analysing clusters?

• Important to realise the aim and the audience for different types of analysis.o National or Regional Gov., cluster organisations/practioners, academia.

• What are the needs of national/regional policy makers and cluster organisations?

• The role of visualisation.

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Bringing Econometric Analysis to Clusters and NetworksJustin Doran, Eoin Byrne* & John Hobbs*School of Economics, University College Cork, Cork, Ireland*Department of Management & Enterprise, Cork Institute of Technology

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Introduction

• Overview of statistical analysis which can be accomplished through the use of V-LINC data.

• What determines networking activity?• Uses V-LINC data from over 110 firms across sectors and countries.

• How resilient are networks to shocks?• Case study of the ICT sector in Cork.

• What networks do firms find most Important?• Case study of the ICT sector in Cork.

• Shows how analysis based on V-LINC data can provide insights into cluster dynamics.

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Overview of Key Issues

• V-LINC is a methodology which maps, visualises and analyses firm linkages to investigate cluster ecosystems.

• As part of an ongoing process, data is collected at the firm-level to investigate the following;

1. the type of linkages that firms engage in;2. the geographic scope of the linkages;3. the importance of linkages to the firm.

• The data contains information on firms from different countries and sectors.

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28

Part 1: Patterns of Networking Behaviour

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Explaining Variation in Linkages Across Sectors• Different firms may engage in different types of

linkages to a greater or lesser extent than others.

• Some may be more inclined to engage with local partners while others engage with international agents.

• Firms’ age, sector, size and other factors may drive its networking decisions.

• This section shows how V-LINC can be used to analyse networking patterns in general across different clusters, sectors and firm types.

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Methodology

• The methodology adopted is regression analysis which enables the identification of relationships between variables.

• Specifically we estimate the following model

• This is estimated using Possion regression techniques.

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Results – All Linkages

31

Sector Specific Effects

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Results – Local to Global

32

Sector Specific Effects

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Results – Local to Global

33

• Summary of highest number of linkages to lowest number of linkages based on coefficients presented in the previous slide.

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Results – By Linkage Type

• Summary of highest number of linkages to lowest number of linkages based on coefficients presented in the previous slide.

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35

Part 2: Resilience of Networks – The Case of the Cork ICT Sector

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Methodology

• In this section we talk about what defines a resilient network.

• A resilient network is one in which the departure of firms from the network does not reduce the flow of knowledge through the network by a significant degree.

• However, there is a trade off between resilience and the development of ‘gatekeepers’ or ‘key connectors’ of knowledge.

• There is a need for both resilient flows of knowledge but also efficient channels through which knowledge can flow.

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Typology of Networks

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Resilience of the Cork ICT Sector

38

1. Many Nodes2. Numerous

Linkages between the core and periphery

3. Resilient structure

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Resilience at Different Spatial Scales

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1. Similar Pattern to overall network plot.

2. Resilient structure

1. Somewhat similar Pattern to overall network plot.

2. Resilient structure

1. Few linkages between core and periphery

2. Not resilient

1. Few linkages between core and periphery

2. Not resilient

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40

Part 3: The Importance of Networks

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Methodology

• Here we discuss the measurement of how important a firm finds different linkages.

• While before we have treated all linkages as being equally important it is likely that firms will find some linkages more advantages than others.

• Here we model what types of linkages firms are likely to find most important.

• We ask whether the linkage type or geographical location impact on firms perceived importance of the linkage.

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Determinants of the Importance of a Linkage

42

Different linkage types are more or less important

Geography varies in importance

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Geography of Linkage

43

Ranking of Linkage Importance

Network Type

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44

Part 4: Example Conclusions from Statistical Analysis

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Discussion

• Drawing the implications from the various parts yields insights into the Cork ICT cluster’s dynamics.

45

Part 1•Comparing Specific Sector against a benchmark•Identifying the type of linkages and geographical scale firms’ typically engage in.

Part 2•Identify resilient/exposed networks•Identify key-connectors within the cluster

Part 3•Identify the most important linkage types within a network.

Part 4•Combine insights from previous parts to identify strengths/weaknesses of a cluster’s network.

Page 46: Session 1 - Cluster Analysis - Academia

Discussion

• We note that ICT firms are amongst the least likely to engage in networks relative to other sectors.

• However, relative to other sectors, they are more likely to engage in EU and international linkages.

• Bio-pharma, tourism etc. have higher levels of local and national level linkages.

• ICT engages more frequently in IA linkages but engages to a lesser extent with IN linkages.

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Discussion

• When we consider the resilience of local, national and international linkages in Cork’s ICT sector we note that

• Local and national network are resilient to shocks• However, EU and international linkages are dependent

upon a few key nodes and lack resilience.

• This suggests that EU and international networks may be heavily disrupted if key connectors leave the cluster.

• This can be linked with the finding that EU and international linkages are view as the most important types of linkages.

47

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Thank you for your attention and your comments and questions are very welcome

48

Contact details:

Justin DoranEmail: [email protected] Twitter: @doran_justinWeb: www.justindoran.ie

Page 49: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

Session 1Cluster Theory vs. Cluster Practice

Tamara Högler, Head of Innovations and International Affairs, CyberForum e.V.Cork, 28.09.2015

Page 50: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Overview

• Introduction– Have you ever heard about… Karlsruhe?– CyberForum – An IT and Hightech Business Network

• Porter´s Cluster Theory vs. Practice

Page 51: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Karlsruhe – A Medium-Sized City with Huge Opportunities • Karlsruhe is a European ICT Hub (4th place among > 1,000 regions, only Munich, London and Paris

ahead)• Karlsruhe is a German ICT stronghold and participant of the German Software-Cluster• 99% SMEs, but also large companies (SAP, Siemens, Bosch, United Internet, …)• Many Hidden Champions (e.g. security, logistics, traffic management)• Many companies and research facilities are involved in the top cluster „Electric Mobility South-

West“• Outstanding research facilities

• Karlsruhe Institute of Technology (largest German research facility)• FZI Research Centre for Information Technologies• 3 Fraunhofer institutes

• Many citizens are tech- and media-savvy• 13 of 100 citizens possess an own domain (2nd place in Germany after Munich)• 12 of 100 citizens use cloud applications (top position in Germany)

• Largest regional German ICT cluster => CyberForum

Page 52: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Cyberforum… Who we are & what we do

1997Inception

1000IT Start Ups

4000NewEmployees

>1000Members

23.000Staff

600Trainees

33Employees

2015Today

MultipleCertifications* as oneof the best IT-clusters in Europe!

1

Page 53: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Our services – A short overview…

Founders´guidance Mentoring Business

AngelsVentureCapital

Innovation-Transfer

Internationali-sation

Networking: InfoMarket, CyberCongress, RoundTables…

Idea Foundation Early Growth Growth Maturity

Catch-the-JobCyberStarter

Page 54: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Porter´s Cluster Theory – vs. CyberForum Practice ITheory:• Once a cluster forms, the whole group of industries

becomes mutually supportingPractice:• Nope… it´s a long and exhausting way to get

companies start / used to support each other• Trust building is of key importance and does not

happen „by nature“• Think big. Start small! Build trust. Step by step.

Page 55: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Porter´s Cluster Theory – vs. CyberForum Practice IITheory:• Benefits flow forward, backward, and horizontally.Practice:• Benefits flow to strong, well connected companies• Startups and SMEs are always in danger of being

swallowed by bigger ones.• Think big. Start small! Build trust. Step by step.• Support first and foremost SMEs. • Build an ethical code!

Page 56: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Porter´s Cluster Theory – vs. CyberForum Practice IIITheory:• Entry from other industries spurs upgrading in the

cluster by stimulating diversity in R&D and introducing new strategies and skills.

Practice:• No comments needed. Just think about the current

refugee crisis.• Think big. Start small! Build trust. Step by step.• Bring them pro-actively together, e.g. by small common

projects!

Page 57: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Porter´s Cluster Theory – vs. CyberForum Practice IVTheory:• Information flows freely and innovations diffuse

rapidly through the conduits of suppliers or customers who have contact with multiple competitors.

Practice:• Information is kept either by single companies or by

small groups of companies.• Build trust. Step by step. Support innovation

processes!

Page 58: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Porter´s Cluster Theory – vs. CyberForum Practice VTheory:• Interconnections within the cluster, often unanticipated,

lead to the perception of new ways of competing and entirely new opportunities, where people and ideas combine in new ways.

Practice:• People and ideas do NOT combine in new ways.• This process has to be actively supported and triggered!• In most clusters such unanticipated coop does not exist.

Page 59: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Porter´s Cluster Theory – vs. CyberForum Practice VITheory:• The presence of the cluster increases information

flow and the likelihood of new entry from spin-offs, downstream, upstream and in related industries.

Practice:• … only if the cluster management does a really really

good job (trust…!)!

Page 60: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Porter´s Cluster Theory – vs. CyberForum Practice VIITheory:• The presence of the cluster increases information

flow and the likelihood of new entry from spin-offs, downstream, upstream and in related industries.

Practice:• … only if the cluster management does a really really

good job (trust…!)!

Page 61: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Porter´s Cluster Theory – vs. CyberForum Practice VIIITheory:• Joint projects by trade associations involving firms

from different industrial sectors are common.Practice:• … only if the cluster management does a really really

good job (trust…!)!• It is a HUGE amount of work to get them to cooperate.• You mostly need a „germ cell“ that starts cooperation.

Page 62: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Porter´s Cluster Theory – vs. CyberForum Practice IXTheory:• The pull of size and prestige in attracting talent to the

cluster becomes stronger, leading to an increase in the nation’s international reputation in the field.

Practice:• … only if the cluster management does a really really

good job (trust…!)!• … only if you have an excellent PR (which in fact most

clusters do not have!)

Page 63: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

www.be-wiser.eu

Porter´s Cluster Theory – vs. CyberForum Practice XTheory:• A cluster may thus be defined as a system of

interconnected firms and institutions whose value as a whole is greater than the sum of its parts.

Practice:• … only if the cluster management does a really really

good job (trust…!)• Unfortunately: Most companies do not recognise this

fact… and act as lone fighters.

Page 64: Session 1 - Cluster Analysis - Academia

This project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no. 319907

Tamara HöglerHead of Innovations and International AffairsEmail: [email protected]

Thank you for your attention!

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Cluster Analysis in CataloniaFrom theory to practice

Cork, Monday 28th September 2015

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Carrer argenteriaCarrer dels assaonadors Carrer dels sombrerers…

Catalonia: a country of clusters

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Leather tanners Igualada: s. XVIII and nowadays

Source: J. Nadal, Atlas de la Industrialización en España 1750-2000, Barcelona 2003

Source: Googlemap. T. Megia, Infforme situació sector cluster pell a IgualadaInforme intern del OPI-SIE Internal report – not published

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Clusters: an economic reality

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Cluster (“wild cluster”)

“Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, firms in related industries, and associated institutions in particular fields that compete but also cooperate”Michael E. Porter

Footwear industry

Raw materials(recolectors)

Leather tannersFontanellas i Marti

Vidal BoschCurtidos Badia

Apparel industryGoes SA

Torras SA(...)

Chemical products

Cleaning and tanningAdovinbe

WarehouseBuyers

AssociationsUnió d’adobadors

CEC-FECURGremi de Blanquers

TechnologicalCentres

AIICA

SLAUGHTER

HOUSES

Other end-users

Cluster initiative

“Cluster initiatives are organised efforts to increase the growth andcompetitiveness of clusters within a region, involving cluster firms,government and/or the research community”

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

Mapping Analysis ImplementationInstitutionalization

MentoringMonitoringEvaluation

Cluster 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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CLUSTERS IN THE WORLD

2001199719921980

Regions and countries with initiatives based on cluster development

•+

•-

Emilia-RomagnaToscana....

Basque CountryScotlandArizonaCataloniaMassachusetts New Zealand

Costa RicaCalifornia....

SwedenTurkeyLithuania

AustriaJordanianMéxicoSouth Africa....

FranceEstoniaDenmarkSloveniaUKMinas Gerais...

1990 2003

Aprox. More than 3.000 initiatives in different countries

and regions (*)

2005

PakistanKazakhstanPoland….

2015

(*) Estimation from TCI,European Cluster Observatory 2011

Catalonia: a pioneer country

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Catalan productive fabric is very concentrated in clusters (40% of total industrial turnover).

Economy mainly composed by SMEs (99% of total firms).

Cluster policy allow to intervene on endogenous assets with limited budget.

Working at cluster level represent a good way of structuring strategic dialogue between Government and other stakeholders.

Rationale of introducing cluster policy in Catalonia

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International recognition

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Raw materials Technology Products Strategy Final marketProductive process

CRO

SS-S

ECTO

RIAL

MU

LTIP

RODU

CT

Water treatment

Kids cluster

Habitat

Beauty

Fashion

Railway

Fish Farming

Biotech

ICT

Optics and photonics

Agricultural machineryMotorcycle

Gourmet food

GROUPING FACTOR

+

-

TRADITIONAL CLUSTERINITIATIVES

EMERGING CLUSTERSINITIATIVES

“NEW GENERATION “CLUSTER INITIATIVES

Innovating in cluster policies: the case of Catalonia

Pork meat

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Strategic Change Process

Month 0 Month 4

Competitive analysis

Strategic AnalysisDefinition main characteristics of the sectorStrategic analysis (competitive strengths)Environment analysisBusiness tendencies at global levelSuggested actions for companiesSuggested actions for Government

Cluster monitoring

Publ

ic p

rese

ntat

ion

Action planCompanies’ Strategic change

Technological change

Executive training

Internationalization

Benchmarking

Strategic Dive

Tailored actions

Cluster Methodology

Month 16

1Understanding the business

2Changing the strategy in

the right direction

Set up cluster

association

3Stablishing governance

Hiring Cluster manager

4 Guarantying sustainability

Governance

Month 20

Analysis Udate after 4 years

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Cluster analysis

-Analysis and process:2 sides of the same coin

- Fact-based , but also anthropology

- Impartial- author and customer

-Consistent-analysis experts vs sectorial experts

-Updated

-Don’t allow paralysis by analysis

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Definition Scope and segments

1 2 43

Basic content of cluster mapping

International data

5 6 7 8

Cluster analysis in 8 steps

DDBB quantification

Value chain and agents

mapping

Tendencies International Benchmarking

Strategic challenges

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Who to interview?

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Personal commitment with innovationBreak the conventional wisdom

Vision of the futureBusiness Ambition

RootsResilience (They try harder!!)

Who to interview: key people

FIRST PEOPLE, THEN STRATEGY

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1. Business definition

Gourmet food Cluster

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Info gathering and analysis from secondary sources

Interviews to experts and companies and DDBB analysis

2013

HABITAT

HIPOTESISCONTRAST

2. Scope

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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 ENTERTEINMENT (toys, audiovisual products, books...)

SCHOOL EQUIPMENT(stationery,textbooks...)

Retailers

Child specialist

IndependentRetailers

Child specialist

IMAG

E O

WN

ERS-

LICE

NSE

S

LICE

NSE

S ST

AKEH

OLD

ERS

Independent Retailers

DIST

RIBU

TIO

N

School Distribution

Pharmacy

MARKET

ORGANISED EDUCATION SERVICES

ORGANISED LEISURE SERVICES

3. Kids related activities value chain

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PURE PLAYERS

COMPANIES WITH SPECIFIC PRODUCTS

100% OF TURNOVER AND WORKERS CONTRIBUTE TO

THE BUSINESS

% UNKNOWN OF TURNOVER AND WORKERS CONTRIBUTE

TO THE BUSINESS

Estimation:

Interviews to companies. Analysis of companies’ product portfolio. Secondary sources.

4. Mapping quantification

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Definition Scope and segments

1 2 43

Basic content of cluster mapping

International data

5 6 7 8

Cluster analysis in 8 steps

DDBB quantification

Value chain and map of agents

Tendencies International Benchmarking

Strategic challenges

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FSG.ORG

© 2013 FSG© 2013 FSG84

Tools for analysis: original methodology adapting Porterian tools

Value chain + 5 forces + diamond

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Porter tools at 2015:new challenges

-Crisis of capitalism: shared value

- Global value chains- Cross sectorial business models:5 forces or maybe 7?

-Diamond for local (?) ecosystems

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Go raibh maith agat!

Joan Martí EstévezDirector Cluster Development Division

[email protected]:@JMartiClusters

LinkedIN: http://es.linkedin.com/pub/joan-martí-estévez/10/433/34b