THE CANADIAN CLUSTER HANDBOOK

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WORKING PAPERAPRIL 2019 34

ISBN: 978-1-927065-33-4

INTERACTIONS

CLUSTER ACTORS

WITHIN A CLUSTER ECOSYSTEM

CLUSTERS CANNOTBE CREATEDThey emerge frompre-existing conditions

FOSTERINGCLUSTERGROWTH

RECOMMENDATIONS FOR CLUSTER ACTORS

CLUSTERS ACTORS CAN COLLABORATE BETTER WHEN THEY FORMALLY ORGANIZE

PORTER DIAMOND ELEMENTS

GROWING CLUSTERS FROM THE GROUND UP

Factors of production such as specialized labour and infrastructure that enable firm productivity and innovation

Local context that affects firm behaviour, competition, and government regulation

Specialized support of firms through supply chain innovation and inputs

Demand of sophisticated consumers for better and new products and services

Hire a cluster manager who can help

connect members

Cluster managers work in a cluster organization

made up of cluster members

They work together on

cluster initiatives

Co-locationof actors

Existing industrial strengths

Specialized knowledge of talent and suppliers

Determine areas of improvementCluster evaluation Cluster labelling Strategy Cluster mapping

• Take the lead on cluster initiatives• Collaborating always outweighs working alone• Being inclusive and embracing diversity in talent is a good long-term strategy

FEDERAL GOVERNMENT• Separate cluster policy from innovation policy• Collect granular data for effective analysis and improvement• Train cluster managers and benchmark cluster organizations• Create body dedicated to support cluster development in Canada• Keep track of the clusters that submitted ISI proposals

PROVINCIAL GOVERNMENT• Invest in talent through education and retraining• Integrate rural regions with urban centres• Integrate policies with federal and municipal/regional ambitions• Remove trade barriers and regulations

• Take the lead in supplying cluster talent• Establish stronger ties between academia and cluster organizations

Determine networksand linkages

Scale clusters by developing winning

strategies

Backbone of a cluster and source of

economic activity

Improves, regulates and, at times, funds

cluster ecosystem

Educates talent and produces useful

research for cluster

Provide funding and expertise to

scale firms

GOVERNMENT

ACADEMIC /RESEARCH

ORGANIZATIONS

FIRMS

GOVERNMENT

ACADEMIC /RESEARCH

ORGANIZATIONS

FIRMS

VENTURECAPITALISTS

Factor(input)

conditions

Contextfor firmstrategy

andrivalry

Relatedand

supportingindustries

Demandconditions

A cluster consists of geographically proximate groups of interconnected companies, suppliers, service providers, and associated institutions.

6  INSTITUTE FOR COMPETITIVENESS & PROSPERITY

EXECUTIVE SUMMARY

INTERACTIONS

CLUSTER ACTORS

WITHIN A CLUSTER ECOSYSTEM

CLUSTERS CANNOTBE CREATEDThey emerge frompre-existing conditions

FOSTERINGCLUSTERGROWTH

RECOMMENDATIONS FOR CLUSTER ACTORS

CLUSTERS ACTORS CAN COLLABORATE BETTER WHEN THEY FORMALLY ORGANIZE

PORTER DIAMOND ELEMENTS

GROWING CLUSTERS FROM THE GROUND UP

Factors of production such as specialized labour and infrastructure that enable firm productivity and innovation

Local context that affects firm behaviour, competition, and government regulation

Specialized support of firms through supply chain innovation and inputs

Demand of sophisticated consumers for better and new products and services

Hire a cluster manager who can help

connect members

Cluster managers work in a cluster organization

made up of cluster members

They work together on

cluster initiatives

Co-locationof actors

Existing industrial strengths

Specialized knowledge of talent and suppliers

Determine areas of improvementCluster evaluation Cluster labelling Strategy Cluster mapping

• Take the lead on cluster initiatives• Collaborating always outweighs working alone• Being inclusive and embracing diversity in talent is a good long-term strategy

FEDERAL GOVERNMENT• Separate cluster policy from innovation policy• Collect granular data for effective analysis and improvement• Train cluster managers and benchmark cluster organizations• Create body dedicated to support cluster development in Canada• Keep track of the clusters that submitted ISI proposals

PROVINCIAL GOVERNMENT• Invest in talent through education and retraining• Integrate rural regions with urban centres• Integrate policies with federal and municipal/regional ambitions• Remove trade barriers and regulations

• Take the lead in supplying cluster talent• Establish stronger ties between academia and cluster organizations

Determine networksand linkages

Scale clusters by developing winning

strategies

Backbone of a cluster and source of

economic activity

Improves, regulates and, at times, funds

cluster ecosystem

Educates talent and produces useful

research for cluster

Provide funding and expertise to

scale firms

GOVERNMENT

ACADEMIC /RESEARCH

ORGANIZATIONS

FIRMS

GOVERNMENT

ACADEMIC /RESEARCH

ORGANIZATIONS

FIRMS

VENTURECAPITALISTS

Factor(input)

conditions

Contextfor firmstrategy

andrivalry

Relatedand

supportingindustries

Demandconditions

A cluster consists of geographically proximate groups of interconnected companies, suppliers, service providers, and associated institutions.

THE CANADIAN CLUSTER HANDBOOK 7