The global cluster initiative survey Based on „The cluster Initiative Greenbook” Orjan Sovell, Goran Lindqvist, Christaian Ketels

Clusters initiatives (CIs) Organized efforts to increase growth and competitiveness of clusters within a region Involve clusters, firms, government and/or the research community CIs crucial for improving competitiveness and growth of clusters Create a new form of partnership 4 components of Cluster Initiative Performance Model: 3 drivers-the social, political and economic setting, the objectives of the CI, the process by which the cluster initiative develops

Common elements of CIs Focus on microeconomic business environment A long term agenda to improve competitiveness of clusters An emphasis on regional and local areas Improved networking among cluster firms, trust building and dialogue to create spill-overs A mix of competition and cooperation as drivers of learning and innovation A mix of SMEs and large firms Learning and innovation based on a systems-view rather than on isolated firms

Characteristics of successful CIs Success depends on national social, political and economic environment Key factors: a high level of company trust in government initiatives, influential local government decision makers Participation in a competition process to get government financing Disappointing results related to poor consensus, weak frameworks, lack of strong networks, lack of offices and sufficient budget, neglecting brand building

the source of Cis:3 distinct policy fields 1. regional industry and SME policies 2. FDI attraction policies 3. science, research and innovation policies Cis implemented to boost development in weak regions, to restructure declining clusters The shift from cost cutting (subsidies, tax incentives) to promoting innovation and upgrading new partnership

How CIs evolve Often set up as government initiative Usually 3 years needed to build up momentum for the CI Financing: a lead role of government seed money, later membership fees more important key challenges of CIs: setting objectives, monitoring performance, organizing CI process over time, integrating the CIs on microeconomic agenda

Microeconomic business environment Despite globalization, countries, regions and industries different in terms of specialization, competitiveness and industrial dynamics Sustainable competitive advantage created in the combination of internal and external resources, local and national business environment Many technologies and skills spatially sticky New technology often fine-tuned through interaction between firms and institutions in local clusters Importance of common culture, the same language and network based on trust, face to face contact between people Porter’s diamond model represents microeconomic environment physical capital and to some extent human capital travel the world but social capital embedded in local culture and institutions

The firm and its environment General business environment ↓ DIAMOND CLUSTER FIRM