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Pillars for Sustainable Cluster Ini2a2ves 8CLAC TCI Medellin, Colombia Ifor Ffowcs-‐Williams June 2015
© Cluster Navigators Ltd, New Zealand 1
Business culture, policies and strategies, Pillars for sustainable cluster ini5a5ves
Ifor Ffowcs-‐Williams
Cluster Navigators Ltd, New Zealand
Approaches to facilitate the sustainability of cluster ini3a3ves • Business led, and business co-‐funded • Long term resourcing in place • Through delivery of benefits, aOrac2ng senior business aOen2on • AOrac2ng professional cluster management • Broad development agendas in place:
1. Cluster aCrac5veness: Trust building, branding, linking the cluster…
2. Capability development: Innova2on, R&D, technical training, incubators, school links…
3. Business development: Interna2onalisa2on, investment aOrac2on, commercial coopera2on…
Pillars for Sustainable Cluster Ini2a2ves 8CLAC TCI Medellin, Colombia Ifor Ffowcs-‐Williams June 2015
© Cluster Navigators Ltd, New Zealand 2
How are these three pillars related -‐Business culture, policies and strategies? • Cultural differences par2cularly relate to differing levels of trust within a cluster. • Trust takes 2me to build…easier to build in clusters with differen2ated firms. • A common difficulty: Integra2ng policy agendas • Every development strategy should include bridge building across the cluster…improving the social interac2on: • Mix & mingle events (excuses to meet) • Ac2vites that bring compe2tors together…Trade fairs, technical training …
What is the role of culture in developing cluster ini3a3ves? Cluster development is fundamentally about rela2onship building…o]en evolving a cluster’s culture: From clumps of isolated firms…travelling solo, • To building a co-‐ope++on culture, with firms collabora2ng whilst naturally compe2ng.
From a clu-er of business support ac2vi2es, o]en remote, fragmented and supply driven, • To needs-‐driven support and organisa2on alignment.
Not easy to achieve!
Pillars for Sustainable Cluster Ini2a2ves 8CLAC TCI Medellin, Colombia Ifor Ffowcs-‐Williams June 2015
© Cluster Navigators Ltd, New Zealand 3
Does new business develop through cluster ini3a3ves? From an individual business perspec5ve • Clustering gives firms, especially smaller ones, the cri2cal mass to e.g. engage interna2onally.
From a regional economy perspec5ve • Clustering supports the aOrac2on of new businesses, new entrepreneurs, new talent. • Facilitates diversifica2on from a strong base, leading to the emergence of start-‐ups, spin-‐offs…and new clusters.
Examples of best & bad prac3ces 1. In designing cluster programmes Best prac5ces • Selec2ng the clusters that merit public support through open compe22ons • Allowing the market to iden2fy a cluster ini2a2ve’s scope: competencies & func2onal region • 5+ years support, with flexible funding • Strong process support Bad prac5ces • Confining cluster ini2a2ves to poli2cal regions • Poli2cians/funders sedng the cluster’s agenda
Pillars for Sustainable Cluster Ini2a2ves 8CLAC TCI Medellin, Colombia Ifor Ffowcs-‐Williams June 2015
© Cluster Navigators Ltd, New Zealand 4
Examples of best & bad prac3ces 2. Cluster organisa3ons Best prac5ces • Triple helix but business led, co-‐funded by business, moving at the speed of business
• Building trust, a collabora2ve culture, alignment • Broad, demand driven development agendas, including interna2onalisa2on
• Comfortable in learning-‐by-‐doing, early engagement • Shared responsibili2es, avoiding volunteer burn out • Market driven signals to public agencies, academia • Blowing the cluster’s trumpet Bad prac5ces • Paralysis-‐by-‐analysis, yet more reports • Evalua2on not integrated into ac2vi2es
Examples of best & bad prac3ces 3. Cluster Managers Best prac5ces • Very well connected, knowing who is who within their cluster’s zoo; able to (1) build so] power and (2) a coali2on of the willing
• Natural bridge builders, removing isola2on…connec2ng, empowering, anima2ng…lubrica2ng the system
• Comfortable in ac2ng as a disrup2ng agent; exploring at the cluster’s edges
• Facilita2ng cluster-‐wide ac2vi2es and more private, commercial collabora2ons…firm co-‐specialisa2on within a cluster
Bad prac5ces • Bureaucrats as Cluster Managers • The Project Manager for everything, not empowering others
• Remain in their office…all day…every day
Pillars for Sustainable Cluster Ini2a2ves 8CLAC TCI Medellin, Colombia Ifor Ffowcs-‐Williams June 2015
© Cluster Navigators Ltd, New Zealand 5
Some key lessons learned • Clusters are a social system, not an analy2c framework. • Don’t expect short term economic miracles • Carefully select the cluster Board…and the Cluster Manager • View clusters as building blocks: • Components within the regional innova2on system; • Globally, linking firms with supply chains and related clusters.
• The ever 2ghter geography of innova2on.
Ifor Ffowcs-Williams
CEO, Cluster Navigators Ltd 22 Examiner St, Nelson 7010 New Zealand E4@clusternavigators.com + 64 3 548 0606 www.clusternavigators.com www.linkedin.com/in/
clusterdevelopment Skype: ‘clusterguy’
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