Options for National Development

Cluster development as a Tool for

Economic Development and
Transformation
Emiliano Duch
CEO, Competitiveness.com
Coordinator, Cluster-Excellence.EU
Port of Spain, November 9th, 2011

Options for National Development

The first steps in development:
health and education
And for economic development?
Who should decide?
What should it be decided?
How should it be implemented?

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Options for National Development

The first steps in development:
health and education
And for economic development?
Who should decide?
What should it be decided?
How should it be implemented?
Can cluster based development
help better governance?
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The first steps in development

Health
Education
Political rights

Every body wants them,

everybody deserves them.
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And for economic development?

Infrastructure
Roads
To where? For what?

Specialized education
Vocational facilities
On what?

Research Institutions
For what?

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Research Institutions?
CTM Manresa (Spain)

Microsoft Innovation Center

Evolution of CTMs Income and

Source of Income

Source: Local SPPD, World Bank

Every body wants them, everybody

DOES NOT deserves them.
New Competitiveness/World Bank study
on Local Sector Public Private Dialogue
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Infrastructure?
Access road
to Sassuolo
(Italy)
ceramic tiles
cluster.
30% world
production
60% world
exports
Single lane
bridge
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Infrastructure?
Access road
to Sassuolo
(Italy)
ceramic tiles
cluster.
30% world
production
60% world
exports
Single lane
bridge
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Porter Diamond
CONDITION
S FOR
FIRM
STRATEGY,
STRUCTUR
E AND

GOV.

Integrated Sales
Distribution
Address new
strategic segment

RIVALRY

Establish
intercluster
alliances
FACTOR
CONDITION
S

DEMAND
CONDITION
S

Foster specialized training

programs
R+D in cluster related
technologies
Cluster specific information
tools

RELATED
AND
SUPPORT
INDUSTRIE
S

Supplier improvement
programs
Cluster participants forae
Specialized cluster
infrastructure

Serve more sophisticated

customers
Upgrading encouraging
regulation
Cluster oriented
certification

Options for National Development

The first steps in development:
health and education
And for economic development?
Who should decide?
What should it be decided?
How should it be implemented?
Can cluster based development
help better governance?
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Who should decide?

The Food and Drink cluster in
Yorkshire?

11

Sector

Companies Jobs

Meat & Poultry

68

20,000 2 Sisters Premier Division, F.W.

Farnsworth, Farmers Boy, Grampian
Country Food

Fruit & Veg

42

12,000 Del Monte, Axgro, Daniels Chilled

foods, Gordon J opling

Seafood

120

10,000 Youngs, Seachill, Sealord

Confectionery

21

7,000 Nestle, Dunhills (Haribo)

Beer

31

5,000 Carlsberg, Theakstons, Black Sheep,

HB Clark

Water/Soft Drinks

18

4,500 Major Companies: Cott Beverages,

Benjamin Shaw, Nestle Waters
Powwow, Coca Cola

Ethnic

10

1,500 Kwoks, King Asia, Mumtaz Food

Industries

Ice cream

15

Tea

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Major Companies

Limited data available

Who should decide?

The Humber seafood sub-cluster?

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Who should decide?

The Humber Seafood Group?
The Humber Seafood Group.
The Cluster organization?

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What should be decided?

Setting the strategy (the CRI)
5-8 months

Setting the
future
challenges

Defining a
sustainable
competitive
advantage

First meeting

Interviews
with
companies
and

Second
meeting

Benchmarking
trips
Buyer interviews
Strategy

Structuring
actions to
build the new
value chain

Third meeting

Action lines task

groups

How should it be implemented?

The CRI workflow

Who, what and how: The

Competitiveness Reinforcement
Initiative in a cluster
6-8 months

HOW

WHAT

WHO

2nd Public
Meeting

1st Public
Meeting
Interviews with
cluster agents
Documents and
past study analysis

International
Benchmarking
BPC
Strategy groups

3rd Public
Meeting
Definition and
launching of
actions

The CRI evolution

1993

2001

2006

2008

2009

2010 2011

The CRI evolution

2001

2006

2008

2009

2010 2011

1993
Initial Years: Spain
From theory to practice:
applying Porters theories
and learning by doing
Execution through own
teams of top-level
consultants
Building the Consulting
Manual: a collection of
errors

The CRI evolution

1993

2008

2001

2009

2010 2011

2006

Triangle Region (Denmark

First experiences with
methodology transfer:

CRI execution by new local

teams, hired by the client

Improvement of On-line
methodology tutorial

Feedback to policy through

local Steering Committee

The CRI evolution

1993

2008

2001

2006
at the
same
time in
Latin
America

2009

2010 2011

The CRI evolution

1993

2001

2009

2006

2008

7 Northern Regions (Chile)

21 CRIs in two years
Large scale methodology
transfer:
Joint Training Sessions (3) to
benefit from economies of
scale
Intensive tutoring combines
virtual and on-site support
Execution by existing local
teams
1 policy seminar with limited

2010 2011

The CRI evolution

1993

2001

2006

2008

2010 2011

2009-2010
Sao Paulo (Brazil)
14 CRIs in parallel in 1
year
Proves scalability of the
Chilean experience:
Joint Training Sessions
(7) to increase sharing
of experiences
Intensive involvement
of client teams
Continuous Policy
Feedback

The CRI evolution

1993

2001

2006

2008

2010 2011

2011-12

European Union
Standardized
training materials
Open source
6 weeks in class
1 parallel CRI with
tutors (8 m)
2nd CRI (8 m)
Certification

Cluster-Excellence.EU training materials (I)

Knowledge area

Concepts /tools

Cases studies and materials

CLUSTER
ECONOMICS

Location theory
Industrial Districts
Clusters
Innovation Systems

Finland and Nokia (HBS)

Singapore (HBS)
New York (HBS)
California Wine (HBS)

CLUSTER
INITIATIVES
SCREENINGS

Statistical cluster mapping

(econometric foundations,
statistical analysis)
Cluster initiative selection
(industry analysis and
segmentation, value chain and
system)

Cluster Initiative Selection

Note(REGX)
Screening in Yorkshire (IESE)
Screening in Vastra Gotaland (IESE)

INDUSTRY
ANALYSIS AND
SEGMENTATION

Industry analysis (5 forces)

Strategic segmentation

Cirque du Soleil IINSEAD)

Montreal Circus Cluster (IESE)
Avocado Valparaiso
(Competitiveness)

VALUE CHAIN
ANALYSIS

Value chain
Local value system
Global value system

ZARA and Catalan Textile

(HBS/IESE)
Antombel (HBS/IESE)

BENCHMARKING

Advanced Buyer Purchase

Criteria
Key Success Factors
Value Chain Activity
benchmarking

Seafood in Humber (IESE)

Ventilation in Boras (IESE)

Cluster-Excellence.EU training materials

(II)
Knowledge
area

Concepts /tools

Cases and materials

CHANGE
MANAGEMEN
T

Individual behavioral change

Group change
Communication strategies
Presentation skills

Estonia in Transition (HBS)

IT in Estonia (BIA)
Geothermal Cluster in Iceland
(IESE)

CLUSTER
ORGANIZATIO
N
MANAGEMEN
T

Organizational structures
Non-profit organization
management
Pattern identification

Oill drilling in Soderlandet

(Innovation Norway)

PROJECT
MANAGEMEN
T

Project planning
Project monitoring
Project evaluation

Clusterland Upper Austria (IIESE)

SEBRAE MG (Competitiveness)

CONTINUOS
POLICY INPUT

Policy review
Diamond analysis
Nationals and supranational
competitiveness framework

Cluster Policy in Catalonia (GC)

Policy implications of ITC Cluster in
Aalborg (REGX)

CLUSTER
POLICY
EVALUATION

Cluster management evaluation

Cluster policy monitoring
Impact analysis

Cluster Policy Evaluation in Norway

(Innovation Norway)

Why methodology transfer?

Strategic change is a long term process:
local teams are best positioned to ensure
cluster assimilation of the strategy
Long term interaction with local companies
and institutions, with regular strategic
updates
Ensures implementation of the action lines
that result from the CRIs

Builds local capacity to incorporate CRI

tool
into
longer
term
regional
development programs

Results: Example of feedback from

Brazil
For SEBRAE-Minas Gerais, this
new methodology allowed us to
change the way we relate to our
clients, achieving a more
intelligent dialogue about their
strategic needs.
That in turn, allowed us to start
changing our own structure in
SEBRAE-MG, to contribute to our
clients being more competitive in
the long term , turning
ourselves in to a source of
knowledge and analysis.

Lina Volpini
Manager Intl. Markets
SEBRAE MG - Brazil

Thank you for listening!

Emiliano Duch
Emiliano.duch@competitiveness.com
Educh@iese.edu
www.competitiveness.com
www.cluster-excellence.eu
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