Sectoral Cluster Development in Twente Mr. Peter den Oudsten Mayor of Enschede October 11th, 2006

Region of Twente

Transition to successful and innovative Region Transformation traditional industries into high-tech companies –innovative textile products for the aircraft and aerospace industry. 583 spin-off companies University of Twente Largest number of patents –per capita in the Netherlands

High-tech spin-offs University of Twente

Major challenge Closing the GRP gap Slower rise regional product than Dutch average

European benchmarking important Compare European Regions/Cities (Leuven, Grenoble, Oulu) Stronger: technological competence knowlegde infrastructure high tech spin-off, living environment Weaker access of SME´s to knowledge, number of knowledge workers innovation reputation

Scores benchmarking TwenteOuluLeuvenGrenoble Focus technological competences++++ Knowledge infrastructure++ Access of SMEs to knowledge-000 Number of knowledge workers-0++ Number of high tech spin offs+++ + Co-operation between companies/knowledge institutions 0++ Living environment++0+ Exciting cultural environment--++ Realistic self image0+++ Innovation reputation-++++

2006 Innobarometer on clusters Companies active in cluster-like environment: United Kingdom 84%, Latvia 67%, Average 24%, Netherlands 15%, Poland 4% Cluster companies more stable turnover Cluster development urgent in the Netherlands 65% clustercompanies agree: public authorities have important role supporting the cluster. Source: Flash Eurobarometer 187, The Gallup Organization, July 2006

Innovation Platform implements cluster policy Public/private partnership in regional Innovation Platform Increase innovation strength of the region Members: Captains of industry, directors of major institutions, government leaders How: Regional Innovation Action Programme 200 mln Euros, 5 years, excluding European Funds Development of public/private sectoral clusters

Support cluster development 5 clusters: Healthcare, Security, Food, Construction, Materials Challenge introducing new technology in clusters: nano-technology, ICT, mechatronics How: Companies and Institutes higher education co-operate in R&D Government facilitates encouraging SME´s to join clusters Joined promotion region

The C-airlift Example of an European award-winning healthcare product in Twente Company: INDES

Example of cross border cluster Initiative Medical Product Development, TIMP, founded 1998 Cross-border cluster companies & institutions medical/revalidation technologies (17 Dutch & 6 German) TIMP supports members contacts potential clients Joint development new product-market combinations Contribution by the EU

Cross border R&D within TIMP cluster Dry powder inhaler Developed in Twente Tested by Uselab in Münster

Food for discussion Question: What could and should local/regional authorities do to foster cluster development? Co-financing action programmes cluster development Launching customership (health, construction, security) Lobby funding at the national/European level Removal administrative and regulatory barriers Provision risk capital revolving funds

Thank you Mr. Peter den Oudsten Mayor of Enschede