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

2. Region of Twente

3. 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

4. High-tech spin-offs University of Twente

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

6. 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

7. 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-++++

8. 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

9. 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

10. 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

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

12. 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

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

14. 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

15. Thank you Mr. Peter den Oudsten Mayor of Enschede