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On Nurturing Competitiveness #3
In this issue  

  1. Welcome to "On Nurturing Competitiveness"
  2. Green Lights in the process of cluster development
  3. Caution: Red Lights
  4. Cluster training workshops in Scandinavia
  5. 1st Pan African Competitiveness Forum, Addis Ababa
1.   Welcome!

Greetings from Ifor Ffowcs-Williams and Cluster Navigators Ltd.  This occasional newsletter focuses on the practicalities of economic development with a cluster focus.

A special greeting goes to those I met on my January-February round-the-world trip which included Sweden (a visit with an international team reviewing VINNOVA’s major innovation programme and attending an EU Conference) and Canada (in Ontario, Saskatchewan and Alberta).

The European Presidency Conference on Innovation and Clusters attracted 400 people. Whilst 26 of the EU’s 31 countries now have national cluster programmes in place, the conference concluded that cluster policy needs a step-change in ambition and effectiveness to be a real driver of prosperity. For further information and to download the European Cluster Memorandum:    http://www.vinnova.se/In-English/misc/Speciella_sidor/Innovation-and-Clusters/

2. Reinforcing Green Lights in the process of cluster development

Cluster development remains an art, with better practices being shared and debated at conferences such as those of The Competitiveness Institute (www.competitiveness.org ). Drawing on this material and Cluster Navigators’ own experiences, we offer this Green Lights summary: 

·        On initiating a cluster intervention, move early into action. Establish small scale projects that quickly offer benefits to the clusters stakeholders, rather than yet more analysis and workshops. It is not too difficult through a workshop process to quickly identify some ‘low hanging’ fruit and engage. Avoid paralysis-by-analysis; SMEs in particular have a low tolerance for delay and will fall away.

·        Develop a portfolio of projects, spreading the pay-offs and the risks.

·        Ensure there is a trained cluster facilitator in place, a person who is a comfortable networker, able to build bridges between diverse stakeholders.

·        Nurture and support the front-line facilitators; bring them together regularly to share their valuable experiences.

·        Empower the private sector, encourage business to take the lead with short-term, self-destruct task forces; not committees in perpetuity.

·        Build collaboration on multiple fronts: clusters and supply/value chains, hard & soft networks

3. Caution: Red Lights in the process of cluster development

·        Expecting short term results; resource for a two year minimum. Ideally 5+ years. Removing clumps (local agglomerations of isolated firms with little trust between them) and addressing clutter (unaligned public agencies / donors, each second guessing the needs of a cluster, working with individual firms in isolation) requires perseverance.

·        Over analysing published statistics; use surveys to gather the very necessary hard data.

·        Being parochial over cluster boundaries; the functional region of a cluster may well extend over local political boundaries

·        Viewing cluster development as a static process; new clusters emerge from the more traditional: Nelson is New Zealand’s ‘seafood capital’, it is also now a centre for marine engineering and marine lawyers.

·        The clustering initiative remains ‘owned’ by the public agency; whilst a public agency often starts a clustering initiative, ensure that it is handed over. Who does the cluster belong to?

·        The cluster’s development agenda is being decided by a few, perhaps an ‘old boys network’, the ‘usual suspects’ or a public agency. Ensure that a transparent decision-making process involving the stakeholders from across the cluster is needed.

·        Having a narrow development agenda. Clustering initiatives resourced by technology agencies tend to be R&D intensive; those resourced by export agencies tend to over focus on internationalisation and supply chain links. Ensure the development agenda is broad enough to cover the scope of the cluster.

4. Cluster training workshops in Scandinavia

In April, Ifor is leading a number of 3 day cluster training workshops in Scandinavia that are being organised by Oxford Research. Over 3,000 economic development professionals from 35 countries have attended similar workshops. Places are still available at a workshop in Norway, 7-9 April in Kristiansand, the language is English. Want more information? Then make early contact with:   .

5. Pan African Competitiveness Forum, Ethiopia

Addis Ababa is hosting the 1st Pan African Competitiveness Forum  14-16 April, 2008. This new forum provides a focus on innovation and cluster based competitiveness approaches. It is tailored for national and regional economic development across Africa, and donors. The forum is sponsored by the African Union (AU) and the Swedish International Development Cooperation Agency (Sida) in collaboration with The Competitiveness Institute. Registrations to date cover 23 countries.  See you there?

Comments are welcome on the content of this newsletter. The next one will focus on the central role of universities and tertiary institutions in the process of cluster development.

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If this newsletter has been forwarded to you in error, please accept our apologies.
 

Ifor Ffowcs-Williams

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