Economic performance of the major european metropolises : the Role of Clusters Dr Vincent GOLLAIN, IAURIF, Paris Dr Brendan WILLIAMS, DIT, Dublin

Cluster and Regional CompetitivenessCluster and Regional Competitiveness Emergence and Development ConditionsEmergence and Development Conditions Study MethodologyStudy Methodology Synthesis of Case StudiesSynthesis of Case Studies RecommendationsRecommendations SUMMARY

CLUSTER AND REGIONAL COMPETITIVENESS 1

This idea can be traced back to Alfred Marshall (1890). A cluster is a geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementarities (M. Porter). A cluster can contain : - a small or a large number of enterprises, - small and large firms in different proportions. - Firms with local or foreign origin. Different clusters involve varied degrees of interaction among the firms involved, ranging from loose network of association to multifaceted forms of co-operation and competition Clusters can vary considerably in spatial extent. What is a Cluster ?

EMERGENCE AND DEVELOPMENT CONDITIONS 2

Elements that influence the growth of clusters We find that every large European Region has not the same chance to develop a certain cluster. Key factors : Technology transfer, Knowledge transfer, Skilled labour force in related industries, agglomeration economies social infrastructure. Cluster development is more appropriate in areas where there is already an existing diverse economic base

Two Types of Clusters 1. The « natural » Cluster (most of cases studies ) : Cluster development is attributable to several key factors, including technology transfer, knowledge transfer, development of a skilled labour force in related industries, the benefits of agglomeration economies, and social infrastructure. Researchers differ on how these factors promote cluster growth. 2. The « Public sector created » Cluster : Some clusters have been created or developed by policy makers (Regional development agencies, planners, …). These Cluster policies focus on developing a strategy that will encourage an efficient allocation of limited resources available for urban and regional economic development.

STUDY METHODOLOGY 3

1. Identification of 5 target activities : 3 common sectors / clusters : I.C.T, Pharmacy - biotechnology, Creative industries. 2 own sectors / clusters such as banking and insurance or logistics. 2. Methodology : Cluster / sector analysis Policy toward clusters Interregional comparisons General Principles

- ICT - Biotech - Creative - Finance serv. - Tourism - ICT - Biotech - Creative - Logistics - Serv. to elderly - Environment ind. - ICT - Biotech - Creative - Media - Tourism - ICT - Biotech - Creative - Banking - insu. - R & D

SYNTHESIS OF CASES STUDIES : EXAMPLES 4

Strengths : Dublin : Low corporation tax ; leader in software London : European leader ; strong demand ; proximity to clients Paris : (inter)national leaders companies, proximity to clients RhineRuhr : national leaders, multimedia ICT

Dublin : International Finance Services Centre London : One of the worlds leading financial centres Paris Ile-de-France : european and international financial centre RhineRuhr : national leaders Finance

CLUSTERS POLICIES 5

State investment. Public services. Entrepreneurship. Subsidies / Incentives. Direct Intervention Measures

Creation of a favourable business environment. Urban planning. Education and training. Soft and hard infrastructure provision. Streamlining regulation. Public office / safety / crime reduction. Access to capital. Indirect Intervention Measures

International. Regional. Local. Customers and clients. Suppliers and associated businesses. Linkage and networks

Public Infrastructure and Investment Hard infrastructure. Communications. Soft infrastructures. Environmental Issues.

RECOMMENDATIONS 6

Recommendations from cases studies Initial identification of sectors. Support and development. Role of state agencies. Future development.