Removing the barriers to collaborative network development amongst cluster stakeholders

Brno 30 May 2005Ifor Ffowcs-Williams

Cluster Navigators LtdNew Zealand

Business Culture

“The key problem for small firmsis not their size, but their isolation”

Seminar - Local Systems of Small Firms and Job Creation

OECD Paris

Ensuring private sector ownership, leadership

of the clustering initiative

“Innovation Norway owns and directs

the project”

Innovation Mountain Tourism Cluster, Norway

Gaining broad agreement on the cluster’s strategic directionThe Preferred Future

Establishing a stretch challenge

Carefully definethe cluster

1. Move from generic descriptors, e.g.:• Food & beverages• IT• Light manufacturing• Biotech

2. Avoid broad regions• Western CZ

1. Identify specific competencies: • Airline catering• Wireless software• Tableware• Animal remedies

2. Narrow boundaries• Karlovy Vary

Opening up communications within the cluster

• Web sites, Newsletters• Cluster directory …who’s who?• Regular meetings with social time

• At company premises• Workshops to establish common

agendas• Establishment of temporary task forces

• Competitors joint addressing common roadblocks, opportunities

Early benchmarking visits

• Team visits to related clusters• Especially more dynamic clusters in other

countries

• Opportunities for joint learning, the development of joint action

• Provides ‘Data shocks’ • Drives early action, and team engagement

Moving early into action

• Portfolio of initiatives, projects• Spread risks, and benefits

• Not wish lists for other people’s action

• Pick the ‘low hanging fruit’• Ensure early benefits to cluster

stakeholders

Just do it!

Don’t allow paralysis by analysis

• Businesses, especially SMEs, seek early pay-offs• Prioritise by passion• Move at the speed of business• Analysis simply provides the platform for

action

Developing one-stop-service centres

E.g Biella, Italy Whole-of-government support

1. Specialised support for the textile cluster:• Training• Export market information• Applied research• Know-how transfer

2. Provides a neutral meeting place

Co-location of firmsEyeballing, not emailing

• Enables subcontracting, outsourcing• Incubators• Science / Technology parks• Coffee shops as meeting places• Common physical infrastructure

• E.g. effluent management• Specialised logistics e.g. cool storage

IncubatordevelopmentCape Town, South AfricaHome for IT start-ups

Developing the cluster’s brand Creating social glue, togethernessA visual icon

Udine chair cluster Italy

Developing the cluster’s brand Creating social glue, togethernessA visual icon

Udine chair cluster Italy

The cluster’s logoOceans AdvanceNewfoundland

Video conferencingBetween related but remote clusters

• Sharing similarities, exploring differences, making initial contacts

• In Australia, telephone savvy participants

• But to-date limited commercial interaction

Cluster facilitatorsKey change agents

Kalgoorlie Australia

Hawke’s BayNew Zealand

Facilitator’s neutral corner

• Facilitating linkages:• Between firms• Between government agencies

• Continually moving the development agenda forward

• Requires long term public funding• And high level facilitation skills

Facilitator’s activityBuilding block: 1 on 1 communication

• Building knowledge of the key players• Core firms• Support firms• Soft infrastructure

• Facilitator active in the initial cluster analysis…not contracted out

• Forming alliances, special interest groups as well as cluster-wide initiatives

Cluster workshopsIdentifying development priorities

• A key element in the cluster process, transparent

• Gaining broad agreement on cluster’s strategy

• Captures hearts and minds

• And motivates volunteers to take action

Empower private sector leadership

• Early (and careful) establishment of the cluster’s Leadership Group• Build around the players, not the

spectators• Empower private sector CEOs• Build on their strengths, resources,

connections• Establish project teams, self-destruct

task forces

Cluster developmentNeeds more than solo players & a magic wand!

Ifor Ffowcs-WilliamsCluster Navigators Ltd

New Zealand

E4@clusternavigators.com+644 388 1449

www.clusternavigators.com