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On Nurturing Competitiveness #1
  In this issue  
  1. Welcome to "On Nurturing Competitiveness"
  2. Cluster Facilitators: Three key roles
  3. Secondary Schools: A neglected component
  4. The Art of Defining a Cluster's Boundaries
  5. Congratulations to... Robot Valley, Sweden
  6. Future Events
1.   Welcome!!

Greetings from Ifor Ffowcs-Williams and Cluster Navigators Ltd.

This newsletter focuses on the practical aspects of nurturing competitiveness through taking a cluster-based approach.

It is being circulated to the 3,000 people across 35 countries who have participated in a Cluster Navigators' training workshop. It is also being forwarded to economic development professionals in a further 30 countries where there is interest in cluster-based economic development.

Each newsletter covers topical points on the practicalities of cluster development, drawing on the "Five Phases, Twelve Steps" process that is introduced in Cluster Navigators' training workshops. 


2.   Cluster Facilitators: Three key roles 

Most clustering initiatives around the world have a facilitator (or a facilitating team) in place, usually resourced in part by a public agency. Typically, the role of the facilitator includes:

  1. Communicator and boundary crosser
    Connecting stakeholders and opening up communications across the cluster.
    Providing a neutral voice to facilitate linkages.

  2. Strategist
    Strategically understanding the cluster, its competitive position, its culture and its development options.

  3. Change agent
    Facilitating the establishment of collaborative initiatives to upgrade the cluster’s competitiveness, ideally acting as the lubricant rather than the engine.

The range of collaborative initiatives for many clusters includes both:
  • Capability development

    • productivity improvement; skills development and training; mentoring smaller businesses; incubators; quality development; technology upgrading; removing bottlenecks, etc.
  • Development of new business opportunities

    • Export promotion; export missions; linking into external value chains; investment attraction; joint purchasing, etc.

In the next newsletter we will answer the following question:

What type of person is needed for this demanding role?
 

3.   Secondary schools: a neglected component

In cluster development much emphasis is appropriately placed on building tight alignment between universities and business, two corners of the Triple Helix. In addition, the role of secondary schools in upgrading competitiveness should not be neglected. The growth of many clusters in both developed and developing economies is being constrained by shortages of skilled labour. Three clusters that are proactive in linking secondary schools into their development are:

  • Margaret River, Western Australia  

    • The secondary school in this prime wine growing region is surrounded by its own vineyard. 
  • Sweden's Robot Valley

    • A new secondary school will have an emphasis on robotics, and it is intended that half of the students will be girls (read more on Robot Valley below);
  • Daejeon, South Korea 
    • This city has a high school with a focus on mechatronics, one of the region's prime clusters.

If you have other examples of specialised competencies at a secondary school level that are an integral part of deepening and widening the local capabilities, we would welcome hearing from you 

4.   The art of defining a cluster's boundaries

Much effort goes into defining the functional boundary of a cluster. This effort needs to take into account that clusters:

  • can stretch over regional, even international boundaries;
    This demands a flexible approach by development agencies;

  • are broader than conventional industry classifications;

  • cover a wider range of activities than most industry associations; and possibly a narrower geography.

Cluster development is a journey, and part of that journey is discovering the functional boundaries of the cluster. Boundaries must not be too broad, for example, ‘shipbuilding in Finland’. Boundaries also need to encompass a critical mass of firms.

When starting a clustering intervention there is unlikely to be a cluster directory available that identifies the cluster's core firms, the support firms and the soft infrastructure participants. The geographic boundary around these firms and organisations should be flexible. As the cluster grows, so will the functional boundary. Larger clusters may be more effectively addressed as a series of sub-clusters, each with specific characteristics and growth issues.

5.   Congratulations to.... Robot Valley, Sweden

Each of our newsletters will highlight a successful clustering initiative. The first to be placed on this pedestal is Sweden’s Robot Valley.

Key features of this initiative are:

  • The long term horizon: a 10 year timeframe;

  • Active Triple Helix engagement, including two mayors and the major businesses;

  • A high energy and well connected facilitation team;

  • A broad range of projects underway, largely driven by the private sector; and

  • Ongoing encouragement and support from Sweden’s national innovation agency

Ifor Ffowcs-Williams had the opportunity of visiting this cluster in late 2006 as part of reviewing the major innovation systems programme driven by VINNOVA in Sweden.

6.   Future Events 

Events that Ifor Ffowcs-Williams will be participating at include:


The next newsletter will comment on the role and establishment of cluster leadership groups, and identify common characteristics of successful facilitators. 

Please pass this newsletter on to others.
If this newsletter has been forwarded to you in error, please accept our apologies.


- Ifor Ffowcs-Williams

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