TCILatinAmerica15 Pillars for Sustainable Cluster Ini2a2ves

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…



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!



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



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



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 [email protected] + 64 3 548 0606 www.clusternavigators.com www.linkedin.com/in/

clusterdevelopment Skype: ‘clusterguy’

Economy & Finance

TCILatinAmerica15 Pillars for Sustainable Cluster Ini2a2ves