1. Developing Cluster Based Policies in Montenegro Changing Paradigms of Cluster Development Learning from Global Experiences Ned Delhi - 20th to 22nd February 2014 Conference

2. About Montenegro Location: Southeast Europe Market – based economy EU candidate country Currency: EUR Member of WTO Free Trade agreements with EU, CEFTA, EFTA, Russia, Ukraine… High level of FDI

3. Importance of cluster development for regional development Montenegro – NUTS 1 Three geographic areas (Nationally Divided) – North, Central and South Teritorial organisation – 22 municipalities Aims for introducing clusters in Montenegrian economy – to overcome regional differences, reduce unemployment, stimulate job creation and increase export capacities Cluster development concept main focus on SMEs and Northern region

4. Cluster Development process - initial activities 2009/2010 starting with mapping process In the Durmitor region there were 26 potential clusters mapped, 23% is focused on tourism, 30% on forestry and wood processing, and 47% on agricultural production. In the same areas 3 CDS have been prepared. In all 5 municipalities potential members were facing simular problems and challenges (product quality, increase prodactivity, new market entrance).

5. Implemented activities up to now Mapping process (2011/2012) Strategy of Clusters Development Elaborated diagnostic studies (2012) according to UNIDO methodology Pilot Clusters: 1.Freshwater fish cluster 2.Olive oil cluster 3.Wood processing cluster 4.Meat production cluster 5.Mushroom cluster 6.Organic Crop/Buckwheat Cluster

6. Mapping process (2011/2012) Methodological approach (UNIDO recommendations) – Getting info from CRPS – Research conducted on a field – Analyzing data – Analyzing current position of linkages – Mapping

7. Strategy of cluster development Methodological approach

8. Main challenges in the CDP Clusters Market Product quality Production technology Lack of recognition of the brend Institutions Limited access to capital Lack of organisation for cluster development supprot

9. Conclusion Implementation Strategy Capacity Building Phase – Competence development, – Awareness raising – Cluster level execution – Strategic direction – Knowledge management & dissemination – Monitoring & reporting Rollout Phase – Cluster level execution – Monitoring & reporting – Strategic considerations UNIDO program for Montenegro

10. THANK YOU Changing Paradigms of Cluster Development Learning from Global Experiences Ned Delhi - 20th to 22nd February 2014 Conference