Clusters and the regional innovative systems - example of Lodzkie region Małgorzata Brzezińska Brussels, 9 October 2007

Tradition vs new trends Łódź (and surrounding cities) used to be the textile center huge textile factories mainly old technologies women dominating in the labour market industrial monoculture poor diversity of proffessions inflexibility of labour market INSTITUTE OF NEW TECHNOLOGIES

Tradition vs new trends Collapse of textile industry 80s and 90s The flow of Asian cheap products Huge unemployment Empty, devastated factories Low competitiveness of companies Poor expenses on R&D Low level of used new tech INSTITUTE OF NEW TECHNOLOGIES

Tradition vs new trends Łódź used to be the important academic center – University, Technical University, Medical University, Artistic Academies The famous Film and Theatre High School in Łódź Lots of students leaving Łódź after graduation Cultural and medial events of high importance were held in Łódź The Polish film center was located in Łódź INSTITUTE OF NEW TECHNOLOGIES

Tradition vs new trends In the past: The region mainly dependent on the capital of region – Łódź The agriculture dominating ouside the municipal center of region The poor relations between administration, education and business The weak co-operation between business and science (R&D field) INSTITUTE OF NEW TECHNOLOGIES

Tradition vs new trends Last years – changes in the region profile Analysis of advantages of Łódź and region and tendencies in the global economy Implementation of a new strategy of Łódź based on households goods cluster (eg.Indesit, Bosch/Siemens) Creation of good conditions for investors Dynamic development of Łódź Special Economic Zone Developing transportation infrastructure Huge academic potential (22 higher schools) INSTITUTE OF NEW TECHNOLOGIES

The change of industry profile The new strategy of development: Development of new technologies Gaining investors in three main branches: Business offshoring Household goods Logistics Creation of programs of assistance for investors and convenient conditions for the development of investments INSTITUTE OF NEW TECHNOLOGIES

Clusters - the strength in the group More effective way of finding investors Better co-operation between the companies and local administration Lower costs of co-operation Logistics – simplified Promotion of the Cluster make INSTITUTE OF NEW TECHNOLOGIES

Clusters - the strength in the group Effective promotion combined with the region/city promotion Stronger relations with the R&D Growth of competitiveness of companies operating within the cluster Better access to know-how Integration of the chain of suppliers and receivers INSTITUTE OF NEW TECHNOLOGIES

Clusters and the regional development Clusters can foster the local development Innovations determine the international competitiveness of the cluster Dynamic clusters attract new investors Clusters can be the platform of business and science co-operation Clusters can give the synergy effects INSTITUTE OF NEW TECHNOLOGIES

Household Goods Cluster The first cluster that operates in Łódź The snow ball effect The attraction of new companies and investors Concentration of well-known global companies producing household goods Positive influence on the general image of the city and the region Support of the local administration INSTITUTE OF NEW TECHNOLOGIES

With the reference to the tradition… Textile industry is still the leading sector in Lodzkie Region Textile industry has long and significant tradition Lodzkie is the main Polish producer and exporter of textiles Restoration of the textile industry can be observed The rate of employment in the textile industry in the region is 37% in relation to all employed in the industry INSTITUTE OF NEW TECHNOLOGIES

Why the textile cluster…? The industry is open to innovations. In about 26% textile companies implemented technical innovation Almost 90% textile companies implement innovations on their own without the co-operation with other entities Well developed R&D backup 92% of experts point out that the textile cluster is necessary in the region There is a need to be more competitive and innovative The co-operation with science, administration and business institutions must take place The advantages that the cluster can give the companies INSTITUTE OF NEW TECHNOLOGIES

The aim of the textile cluster is… Support of innovation development and competitiveness of textile industry Entrance to new markets and development of export Growth of new tech, innovations and R&D in textile industry Concentration on quality and new solutions in textiles Co-operation with science and research centres Future co-operation with other national and foreign clusters of advanced technology in textiles and creating the multinational network INSTITUTE OF NEW TECHNOLOGIES

The actions of the textile cluster Promotion and make building Co-operation in investments, new tech implementation and technical development Common export activities Consulting and advisory services Expansion of the cluster operations to other regions and countries Representing the cluster business and lobbing INSTITUTE OF NEW TECHNOLOGIES

Tradition again… Media cluster Roots connected with the film production center (eg.famous Film and Theatre High School in Łódź, the film production studios) Good infrastructure and qualified staff Festivals and medial events of international importance Realization of media projects in the field of movie, TV, new media Post-industrial infrastructure that can be revitalized for the needs of a cluster The cluster will be developed with the participation of education, media, business, culture and administration INSTITUTE OF NEW TECHNOLOGIES

New trends, old potential Eco-Energy Cluster Cluster of Advanced Technologies Eco-Energy was set up because of: Rich natural resources Diverse ecology undertakings Convenient geographic location Significant human, science and economic potential of Łódź and neighbouring regions Cooperation of institutions dealing with ecology, energy, R&D etc. Ecology as an important element of regional strategy INSTITUTE OF NEW TECHNOLOGIES

Aims of Eco-Energy Cluster Common R&D undertakings will concentrate on: New tech implementation Ecologic coal production and processing Production, transportation, housing the fuel Usage of re-newable energy Elaboration of new technologies in the scope of producing ecologically pure energy etc. INSTITUTE OF NEW TECHNOLOGIES

The obstacles that clusters meet Insufficient knowledge about the cluster conception and its functions and tasks Difficult access to the informations about clusters (especially for business people) Too academic approach and not clear business profits The poor information about the advantages that clusters give Low trust refering to the co-operation with competitors Short time perspective instead of long time planning Few good cases INSTITUTE OF NEW TECHNOLOGIES

The Successful Cluster The clusters MUST be a part of the regional development strategy The growth of innovations and development of R&D MUST be the basic aims of a cluster The optimal effect can be achieved only as a result of long-lasting co-operation of companies, administration, business institutions and research centers INSTITUTE OF NEW TECHNOLOGIES

Thank you for your attention Małgorzata Brzezińska Institute of New Technologies 9 October 2007, Brussels