Recent Developments and Current Challenges

Transcription

1 3 rd International Cluster Conference Clusters and Cluster Initiatives: Recent Developments and Current Challenges Dr Christian H. M. Ketels Institute for Strategy and Competitiveness, Harvard Business School President, TCI Network

2 An Old Concept. 2 Copyright 2015 Christian Ketels

3 with a Stable Set of Core Building Blocks Related Variety Proximity Critical Mass Collaboration 3 Copyright 2015 Christian Ketels

4 in a New Economic Context Rising Knowledge-Intensity Falling Transportation/ Communication Costs Lower Trade Barriers Agglomeration Accelerated Technological Change Globalization of production sites Dispersion Globalization of markets Clusters are a critical facet of modern economies Clusters are becoming more specialized Clusters are becoming more connected 4 Copyright 2015 Christian Ketels

5 Research About Clusters Case Studies Cross-sectoral quantitative Studies Show nature of clusters Establish types of linkages that exist within clusters Identify patterns of cluster dynamics and their drivers Develop hypotheses on the impact of clusters on firms and regions Systematic comparison of clusters across sectors and locations Measurement of the overall importance of clusters Tracking of cluster evolution Empirical tests of the impact of cluster presence on regional and firm-level economic performance Cluster Mapping 5 Copyright 2015 Christian Ketels

6 Clustermapping.US Project Background - Methodology - Data Sources - Partners Clusters Other Examples Regions European Cluster Observatory Organizations Canadian Cluster Data Portal Covers all sectors and regions Puts cluster data in the context of regional data Allows systematic comparison across locations Easy-to-use interface to engage practitioners Research - Policy Examples - Case Studies - News Organizational registry to enable collaboration 6 Copyright Christian Ketels

7 Clusters and the Nature of Competition Traded vs. Local Share of the U.S. Economy EMPLOYMENT INCOME 36% 64% 51% 49% PATENTS 91% 9% Traded Industries Spiky across space; 2/3s of all traded industry employment is in strong clusters Serve national and global markets Exposed to competition from other regions and nations Critical for prosperity through higher wages, productivity, and innovation; growth potential set by the global market Local Industries Present everywhere at similar levels Serve exclusively the local market Little exposure to cross- regional competition Important for jobs, but lower wages; growth potential limited by size of the local market 7 Copyright 2015 Christian Ketels

8 Clusters and Regional Specialization Denver, CO Business Services Medical Devices Hospitality and Tourism Oil and Gas Production Chicago, IL-IN-WI IN Distribution & E-Commerce Transportation and Logistics Financial Services Upstream Metal Manufacturing Pittsburgh, PA Upstream Metal Manufacturing Coal Mining Electric Power Generation Vulcanized and Fired Materials Boston, MA-NH Education and Knowledge Creation Financial Services IT and Analytical Instruments Biopharmaceuticals Seattle, WA Aerospace Vehicles and Defense IT and Analytical Instruments Water Transportation Fishing and Fishing Products San Jose-San Francisco, CA IT and Analytical Instruments Biopharmaceuticals Video Production & Distribution Marketing, Design & Publishing Los Angeles, CA Video Production & Distribution Apparel Music & Sound Recording Medical Devices New York, NY-NJ-CT-PA Financial Services Marketing, Design and Publishing Performing Arts Music and Sound Recording Raleigh-Durham, NC Livestock Processing Vulcanized and Fired Materials Textile Manufacturing Education and Knowledge Creation San Diego, CA Recreational & Small Electric Goods Biopharmaceuticals Water Transportation Marketing, Design & Publishing Dallas Aerospace Vehicles and Defense Oil and Gas Production Communications Equipment Transportation and Logistics Houston, TX Oil and Gas Production Construction Products & Services Upstream Chemical Products Environmental Services Atlanta, GA Textile Manufacturing Apparel Communications Equipment Business Services Source: Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School; Richard Bryden, Director. 8 8 Copyright 2015 Christian Ketels

9 Clusters and Economic Performance Presence of Strong Clusters Prosperity Entrepreneurship Structural Change Wages Productivity Job growth Resilience Patenting New business formation Survival of new firms Job growth in new firms Path of structural change(emergence of new clusters) 9 Copyright 2015 Christian Ketels

10 Putting Clusters into Context (Creative) Skills Framework Conditions Clusters Innovation Systems Entrepreneurial Ecosystems Social Capital Complexity Urbanization 10 Copyright 2015 Christian Ketels

11 Clusters emerge naturally Clusters emerge and develop in a context deeply affected by policy choices Collaboration within clusters provides benefits but requires purposeful collective action Policies for upgrading business environment What role conditions for policy? can be more effective if they are clusterspecific but require information sharing and collective action 11 Cluster-based policies enable informed decision making and collective action

12 Two Opposing Approaches to Cluster Policy BETTER (Competitiveness) Long-term impact New model of publicprivate collaboration High risk Traditional industrial policy FINISH MORE (Agglomeration) 12 Copyright 2015 Christian Ketels

13 The Case for Cluster Policy Levers Create Platforms for Joint Action within Clusters Path dependency Organize Public Policy around Clusters Coordination failures Local Externalities Information asymmetries 13 Copyright 2015 Christian Ketels

14 Current Status of Cluster Policies and Programs The European Cluster Observatory lists more than 2000 cluster initiatives and related organizations; many other countries and international organizations, too, deploy significant efforts The highest number of cluster initiatives (absolute, per employee) is in information technology and biotech Most OECD countries and many regions have cluster-related policy programs Spending on cluster-related l t programs is meaningful, but only a modest percentage of total spending per policy area 14 Copyright 2015 Christian Ketels

15 Cluster Initiatives: The Track Record So Far Large number of initiatives, many Significant heterogeneity of impact have shown sustainability over time Benefits for broader regional Visible strengthening of networks economic performance hard to and local l capacity for collective quantify action Government remains dominant Significant engagement g of funder of the majority of cluster companies, including private sector initiatives investment Tendency to strengthen existing Positive impact on firm performance structures; less successful in for participants in collaborative enabling structural change projects initiatited through cluster iniatives 15 Copyright 2015 Christian Ketels

16 Cluster Initiatives: Organisational Models Membership Organization Government Agency Existing Economic Dev. Organization Cluster Initative Service Provider 16 Copyright 2015 Christian Ketels

17 Critical Success Factors of Cluster Efforts Setting Organization Cluster with critical mass of existing economic activities Broader policy environment focused on competitiveness upgrading External Internal Capabilities of the Cluster Initiative Manager and her/his staff Robust funding model Governance structure that supports a private sector logic driving the organization Activities Strategic action agenda grounded in fact-driven analysis of the relevant market and the cluster s competitive position Operational effectiveness in individual activities 17 Copyright 2015 Christian Ketels

18 Current Cluster Policy Priorities in the European Union EXCELLENCE CLUSTER DATA EMERGING, CROSS-SECTORIAL DOMAINS INTERNATIONALIZATION 18 Copyright 2015 Christian Ketels

19 The Bleeding Edge : Three Issues for Cluster-Based Economic Development Emerging clusters Impact assessment Clusters and competitiveness 19 Copyright 2015 Christian Ketels

20 What is Different about Cluster-Based Economic Development? Cluster vs. Narrow Industries Public-Private Collective Action Competitiveness Focus Regional Perspective Policy Design with Firm Involvement Build on Strengths 20 Copyright 2015 Christian Ketels

21 The TCI Network: A Global Community of Practice in Cluster-Based Economic Development Copyright Christian Ketels