Dynamic Knowledge Model for Cluster Development N. Chakpitak & A. Tamprasirt, T. Chandarasupsang, N. Harnpornchai

ompetitiveness of the nations is an economic development framework based on the integration of macro and micro economy. It is a way by which firms and government should undertaken in order to be able compete with globalization in the new economy. Impacted Information, Productivity and Innovation of the cluster are the main success criteria. CAMT C

Competitiveness Is… Intersection of Public Policy and Commercial Strategy

The Early Competitiveness Theories

Threat of New Entry Rivalry Among Existing Competitors Bargaining Power of Customers Threat of Substitutes Bargaining Power of Suppliers Economies of scale Proprietary product differences Brand identity Switching costs Capital requirements Access to distribution Absolute cost advantages Government policy Expected retaliation Relative price performance of substitutes Switching costs Buyer propensity to substitute Industry growth Fixed costs / value added Overcapacity Product differences Brand identity Switching costs Concentration and balance Informational complexity Diversity of competitors Corporate stakes Exit barriers Differentiation of inputs Switching costs Presence of substitute inputs Supplier concentration Importance of volume to supplier Cost relative to total purchases Impact of inputs on cost or differentiation Threat of forward integration Buyer concentration Buyer volume Buyer switching costs Buyer information Ability to integrate backward Substitute products Price / total purchases Product differences Brand identity Impact of quality / performance Buyer profits Porter’s Five Forces Source: Michael E. Porter, Competitive Advantage (New York: Free Press, 1985)

The Five Competitive Forces Force Entry Rivalry Substitutes Buyers Suppliers Erecting barriers (isolating mechanisms) create exploit economies of scale, aggressive deterrence, design in switching costs, etc. Compete on nonprice dimensions: cost leadership, differentiation, cooperation, etc. Improve attractiveness compared to substitutes: better service, more features, etc.. Reduce buyer uniqueness: forward integrate, differentiate product, new customers, etc.. Reduce supplier uniqueness: backward integrate, obtain minority position, second source, etc..

Diamond Model Cluster

New Competitiveness Directions

Extending of Competitiveness Model Partial only for Developed Countries Misbalance of Contributing Factors Incomplete Analysis of Contributing Factors. Misleading Competitiveness Measurement

Enright’s Meso Model

Development Chronology Competitiveness 1.0: First steps –Competitive Advantage of Nations –Focus on Industry level competitiveness –Focus on advanced industries –Focus on microeconomics Competitiveness 2.0: The cluster “recipe” Steps –Identify the clusters and potential clusters in a region –Fund universities and research institutes –Facilitate interaction among cluster members –Encourage private sector participation –Create cluster and competitiveness organizations –Provide support for innovation Competitiveness 3.0: The future of competitiveness Integration of approaches –Market/ private sector oriented approach –Innovation systems approach –Cluster approaches

Requirement of the New Models

Dynamic Vs Static Model

Dynamic Attribute in Cluster Development

Porter’s Diamond Model – The Micro Learning Strategy for Cluster Development Enright’s Meso Model Sufficiency Economy Model5 Force Model

Methods and Methodology Statement Double Loop Learning (Strategic Learning) Analysis Cluster objectives with Competitiveness and Cyafin Frameworks Capture Cluster objectives with CommonKADS Construct Knowledge Network Map Ontology with Nonaka’s Bipolar learning method

Methodology Illustration Double Loop Learning SECI and Cyafin Frameworks

Research Procedures

Cluster Pilot: North Cluster Pilot: West Cluster Pilot: East Cluster: Mae Klong CDA Program Data Mapping + GIS system Data from NESDB / Kenan public Community of Practice (COP) ‘show cases’ Cluster Knowledge Experiment/Test Bed

Results and Analysis Statement (Project/Thesis) A number of proposed solutions which unique for each cluster. Examples: LannaAndaman (Northern Ceramic Clusters), Circle of Trust (Chantaburi Fruit Cluster) Dynamic Knowledge Model for Cluster Development

Project Results Lanna-Andaman

Conclusion Statement KNOC is a model can used as a platforms for other social and economic Chronic situations i.e. Poverty Reduction, Supply Chain and etc. KM methodologies used can be applied to various theoretical framework. Knowledge Management for Chronic Situations

Implication of the model Cluster Pilot: North Cluster Pilot: West Cluster Pilot: East Cluster: Mae Klong Success CasesOntology Learning Strategy (Suitable for Thai Context) KMS for CDA Future Implication Open Source Initiatives Poverty Reduction Initiatives