Kia Ora-Competitiveness from the Edge Magazine by TCI Network

Competitiveness from the Edge Magazine

Take stock before taking up speed: thank you auckland!

Christian Ketels

a challenge to new zealand Dolores Vicioso

20 workshop overviews

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TCI 2011 Sponsors

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2012 TCI Conferences

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Credits TCI 2011 Conference Host Auckland Tourism, Events and Economic Development (ATEED) Ltd TCI 2011 Steering Group Chairman Tony Caughey (Northern Leading) Director Clyde Rogers (ATEED), Stephen Cavanagh (ATEED), Siah Ang (University of Auckland Business School), Stephen Knuckey (MartinJenkins), Samantha Seath (Economic Development Agencies of NZ), Bruce Gadd, Andrew Love (New Zealand Trade and Enterprise) Ifor Ffowcs-Williams (Cluster Navigators), Melissa Hall, (Ministry of Economic Development, Heather Shotter, (Committee for Auckland), Harvey Brookes, (Auckland Council), Hamish Campbell (Ministry of Science and Innovation), Pam Ford (ATEED). Conference Project Team Director Clyde Rogers (ATEED), Manager Pam Ford (ATEED). TCI General Manager Patricia Valdenebro (TCI Secretariat), Leire Oiarbide (TCI Secretariat), Miriam Wilkins, Jennifer Donaldson (The Conference Company), Yvette Hellyer, to Mar 2011, (ATEED) Conference Logistics The Conference Company Design: Desktop Graphics Ltd; Photography: Ducobu Photography Venues: SKYCITY Convention Centre Auckland, University of Auckland Business School AV: Multi Media; Website: Blackweb; Networking Lounge design and production: DE Group Workshop Rapporteurs: Betty Shao, Jorge Seaman Arias, Kathryn Hutchison, Lauren Smith ATEED Assistants: Maria Regan, Claudine Murray, Joshua Ong, Cleo Bergin, Leanna Covich, Wayne Voss, Kathie Agnew, Wendy Voegelin, Tony Vujnovich, Julie Stevens, Tim Kahlen, Sukesh Sukumaran, Claire Morris, Terry Monaghan, Elizabeth Gollan, Nicky Harnett and Deirdre Foley (Auckland Council) Cluster Tours Tony Nowell (Food Innovation Network, New Zealand), David Anstice (ATEED), Peter Busfield (Marine Industry Association), Susan Milner (ATEED), Derek Fairweather, Arron McKoy (Waikato Innovation Park) TCI Board of Directors 2011 Alberto Pezzi (Generalitat de Catalunya), Christian Ketels (Institute for Strategy and Competitiveness, Harvard Business School), Klaus Haasis (MFG Innovation Agency), Barnabas Nawangwe (Makerere University), Elisabeth Waelbroeck- Rocha (BIPE), Pierre Bonnet (Lyon Chamber of Commerce), Nataliya Korchagina (Astrakhan State University), Amit Kapoor (Institute for Competitiveness), Rauli Sorvari (Estele), Jaime Echeverri (Medellin Chamber of Commerce) Kia Ora â&#x20AC;&#x201C; Competitiveness from the Edge Produced for TCI Editor: Pam Ford Design: Tagi Cole, Desktop Graphics Ltd Photography: Caroline Ducobu, Ducobu Photograhy Sailing photos courtesy KPMG Contributors: Dolores Vicioso, Finlay Macdonald, Christian Ketels, Alberto Pezzi, Clyde Rogers, Tony Caughey, Patricia Valdenebro, Bob Breault, Samantha Seath, Linda Jamison, Ed Bernacki. To order conference photos go to www.ducobu.co.nz All presentations and videos available online at tci-network.org and tci2011.com

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Competitiveness from the Edge

Competitiveness from the Edge Magazine PRODUCED FOR TCI

The 14th TCI Annual Global Conference 28 November – 2 December 2011, Auckland, New Zealand

Contents 8

New Zealand, the most competitive country in the world...in rugby, Clyde Rogers

Reflections on the 14th TCI Annual Global Conference in Auckland, Tony Caughey

Take Stock before taking up speed, Christian Ketels

KPMG & NZTE Fleet Day Racing Event

Clusters to enable international connections, Alberto Pezzi

The view from the stage, Finlay Macdonald

A challenge to New Zealand, Dolores Vicioso

My Top 5, Bob Breault

Four wise men – summary of the keynote presenters

My three (or so) best conference moments, Patricia Valdenebro

What’s innovative about innovation, Ed Bernacki

My Top 5, Samantha Seath

New Zealand, the lucky country

Our Top 5, Linda Jamison

Photo Gallery

TCI 2011 Programme

Workshop Overviews

Passing of the Torch

List of Delegates

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New Zealand, the most competitive country in the world...in rugby. Clyde Rogers, Auckland Tourism, Events and Economic Development

ive weeks before this conference, our mighty All Blacks were victorious over France in Rugby World Cup (RWC) 2011final - An event truly befitting a gigantic global battle. As New Zealanders we are feeling proud of this achievement. In Auckland, host city for RWC, we turned on a good show with our revitalised waterfront, delivering great ‘kiwi’ service and showcasing our innovation to the 132,000 visitors that came to New Zealand for this global event. Hosting the Rugby World Cup, allegedly the World’s 3rd largest sporting event, and winning, makes us relevant in the sporting world. But we need our economy, our business people and our sectors to be globally relevant and internationally connected too. Hosting the 14th annual global conference has been a chance to connect with you, and make new friends from many places around the globe. The TCI conference has been timely for Auckland. There’s an optimism and aspiration to transform our performance as seen in the Auckland Plan and Auckland’s economic development strategy for its future. We’ve been inspired by experts such as Michael Enright and Christian Ketels. We’ve learnt valuable lessons, gained insights and

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made new connections from visiting delegates and workshop presenters. In turn, we’ve shared some of our world-class people, businesses and clusters. The Foodbowl impressed many of you and it will create more value from our significant food and beverage sector. Creating new marine precincts such as Hobsonville, will strengthen the sector, attracting more business and talent to New Zealand and developing an innovation precinct at our Waterfront catering for ICT and digital companies will assist us in growing more internationally sustainable companies long term. The three C’s - clusters, collaboration and connectedness - are the key messages I take from the week and look forward to the conference being a catalyst for a more competitive, globally relevant Auckland. Without doubt the Conference was a timely reminder on how cluster based competitiveness can fit into broader economic development policy and we appreciate the efforts of TCI members in drawing together a submission to the Auckland Plan. We trust you have memories of our country that will stay with you forever and will be shared with your colleagues, partners and customers. Haere ra

Reflections on the 14th TCI Annual Global Conference in Auckland Tony Caughey, Chairman of the Conference Organising Steering Group

hen I was asked to take on the this role, I hoped that we would be able to do 2 things – first, to exceed the expectations of our overseas visitors and second that we in New Zealand could learn some valuable lessons to be implemented in our economic journey. As I now look back, I was thrilled with the response from our overseas visitors, who travelled to the other side of the world, to experience what summer could be like in December. Fortunately, the weather was kind for the yacht racing on Auckland harbour on the first day – a memorable experience and thanks to KPMG. The cluster tours seemed to give delegates some good insights into those local industries, the conference dinner resonated with many, and the formal conference had some outstanding presentations. I commented early on about the wonderful group of people that made up the TCI network and we really enjoyed getting to know them. We do enjoy meeting good people from all over the world, especially when they are so obviously so very capable in what they do. They were all very good humoured, especially at a time when most were recovering from jet lag.

Some of the feedback from our international visitors was quite humbling, so I hope that we might have achieved our first objective of exceeding their expectations. The second objective falls into 2 parts. Somewhat unusually, the date of the general election in New Zealand was set some 9 months in advance, so we knew that the timing of the conference one week after the election was not ideal in terms of getting involvement from senior politicians. I know that those New Zealanders who did attend felt that they did learn valuable lessons. Our challenge is now to implement these and I am hopeful that we will rise to this challenge. Having been involved in the TCI space for over 20 years, since my work on “Upgrading New Zealand’s Competitive Advantage” by Graham Crocombe, Michael Enright and Michael Porter, I need no convincing of the importance of the work done by TCI members. Having earlier this year visited Patricia, Alberto and Leire in Barcelona, and Christian in Stockholm, I have huge admiration for the people of TCI, and I wish you well in your challenges ahead. With the people you have I am convinced that you will continue to make a difference.

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Taking stock before taking up speed: Thank You Auckland! Christian Ketels, TCI President 2011-2013

he 14th TCI Annual Global Conference in Auckland is now concluded, leaving us with many new learnings, friends, and memories. It is again time to thank the organizers in Auckland as well as our team in the TCI office in Barcelona for their terrific work. It is also time to thank the locals as well as the many of you that have travelled from afar to make this conference a success as speakers, moderators, and participants. Having participants from 36 countries covering all continents is by itself an impressive testament to the strength of the TCI network and the attractiveness of the program that the organizers had put together. For me personally, the Auckland conference was also the start of a new journey as TCI President. Building on the huge commitment by my predecessors, I am looking forward to the opportunity to work with my colleagues on the TCI board and you, our members, in further

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developing the network. When TCI was founded almost fifteen years ago (yes, next year will mark an impressive anniversary), clusters and competitiveness were still new and for many alien concepts. The environment is now remarkably different, at least in Europe and parts of Latin America where TCI has its strongest roots. Our task is to align TCI’s activities with the new needs that this entails: • We will further enhance the value of being a member of the TCI network, both by providing direct services and by offering a platform for the collaboration between our members. • We will continue to develop the conference formats that we are offering to TCI members and the broader public. • And we will review the engagement of TCI in specific projects that are of strategic importance for the practice of cluster-based competitiveness efforts. The Auckland conference was an important reminder of how cluster-based competitiveness efforts fit into the broader economic policy environment faced in many countries today. The goal everywhere is to devise policies that can support sustainable growth. The need to achieve balance in fiscal policies and financial markets is now paramount. But it is obvious that this will be a necessary, not a sufficient condition for a ‘reset’. The new growth agenda will be driven by regional efforts that bring

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companies, educational and research institutions, government agencies, and many others together in activities to increase the capacity for productivity growth and innovation. Clusters and competitiveness efforts are at the heart of this agenda. They are clearly not a substitute for fixing the macroeconomic challenges between Beijing, Brussels, and Washington, D.C. But they are an important second pillar without which policies to achieve macroeconomic stability will have much more limited impact on prosperity levels. The New Zealand experience discussed during the Auckland conference provided interesting insights in how these dynamics are playing out. Following a dramatic shift in policy in the mid-1980s, the country has followed a strategy of macroeconomic stabilization, open markets, and limited government involvement in the economy. Now there is an increasing realization that New Zealand is ready for a new phase, where open markets are combined with smart government, organizing its efforts together with the private sector. Clusters are being rediscovered as an attractive element of the toolkit to get there; horizontal policies alone are no longer effective enough in creating the environment in which robust productivity growth and innovation can occur. With the Auckland conference behind us, the course is set for 2012 which will bring a range of TCI conferences around the globe. In April, Gurgaon in India will be

the site of a regional conference for India and the Asia-Pacific region. In May, our Latin American colleagues will welcome us at the 7th CLAC conference in Monterrey, Mexico. In June, our first ever regional Mediterranean conference will take place in Izmir, Turkey. The culmination of these events will be the 15th TCI Annual Global Conference in the Basque country. Our hosts Our hosts from the Basque Government and the Basque Institute of Competitiveness as well as myself on behalf of TCI hope to be able to welcome many of you in the two cities of Bilbao and San Sebastian in the week of October 16 to 19, 2012. See you there!

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KPMG & NZTE fleet day racing event 7 teams battled it out on the stunning Waitemata Harbour on Sunday afternoon before conference week. The ‘Olive’ team took the honours, and everyone enjoyed a kiwi barbeque in the early evening. Thank you KPMG and NZTE. “A powerful, very different and special start for the TCI 2011 conference. We will never forget it.” Christoph Beer, Switzerland.

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Clusters to enable international connections Alberto Pezzi, TCI President 2009-2011

ompetitiveness should be now more than ever on Governmentsâ&#x20AC;&#x2122; agenda. Competitiveness depends on a wide range of different factors and agents and clusters play an important role in coordinating them and improving the effectiveness of other horizontal policies. With participants from 36 different countries from the five continents the 14th TCI Annual Global Conference in Auckland demonstrated the universality of a cluster approach and its flexibility being understood and applied in places with so different local specificities and constrains.

Clusters are becoming more and more an umbrella concept and the unit of reference for designing and implementing competitiveness reinforcement initiatives at local level. As a small, geographically isolated country, New Zealandâ&#x20AC;&#x2122;s economy and prosperity depends strongly on international connectiveness. Clusters could help to establish and reinforce more focussed international linkages with other economic development stakeholders worldwide. As a practitioners network, the TCI event discussed practical projects and stressed the learnings and positive aspects of the cluster approach.

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The view from the stage Finlay Macdonald, MC

o be perfectly honest, before being invited to be MC at the 14th TCI annual global conference I had given very little thought to the concept of “clusters”. In fact, if you’d asked me what I thought of clusters, I might well have imagined you were talking about a kind of chocolate confectionary. But that’s the great thing about this kind of work – you get to see inside other worlds, and meet the people who are, very often, at the leading edge of thinking within their fields. TCI was no exception. Listening to the keynote speakers and observing the workshop sessions over the three days I worked at the conference, I was struck by how advanced the study and theory of competitiveness has become. It is, of course, a word that is thrown around

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a lot – by politicians, economists, lobbyists and business people in particular. But to hear it actually defined, debated and deconstructed was eye-opening. What I eventually realised was that this was a conversation that had been carrying on for much of my professional career. As a journalist by training I was aware of the milestone document in this country, Upgrading New Zealand’s Competitive Advantage, by Crocombe, Enright and Porter. What I hadn’t realised was that Michael Enright had maintained a long association with us, and that he was now embarked on an updated study that would measure how far we have come – or not, as the case may be. On that note, TCI conference chair Tony Caughey alerted me to an opinion piece he had written for the

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National Business Review during the week of the event. The take-away quote was, “New Zealand isn’t interested in competitiveness.” Tony was trying to be provocative – and succeeding, I might say – and basing his view on the apparent lack of serious debate and discussion of this core economic concept, despite the lip service paid by those in positions of influence. If that’s true, it’s a shame. Because the ideas – and challenges – presented at the TCI conference were considerable. Why, for example, does New Zealand rank well in various tables of openness and business freedom, yet languish nearer the bottom when it comes to productivity? Why do we have so few big companies and how do we grow smaller ones to become big ones? How can local, regional and national

governments incubate and foster competitiveness and growth? How do industry and sector clusters really work and how do they contribute to competitiveness? And, perhaps most importantly, how does a tiny economy such as New Zealand’s respond to the shifting polarities in today’s global environment? It was that final question that probably intrigued me most. Speaking informally with Michael Enright at the conference dinner, he told me of the town in China that produces eight billion socks (or was that pairs of socks?) each year. Or the town that makes 75 percent of the world’s ties. And, as he said during one of the panel discussions, how do we react when – not if – Chinese manufacturing sectors decide to re-brand their products, drop their prices and wipe out entire Western brands and industries? In New

Zealand we are often reminded of our Asian-Pacific focus and future, but the hard truth about it is that we must plan and we must be prepared. On that score, it was heartening to hear from our public sector and private equity panel members about the work currently being done to support and grow the entrepreneurial, innovative and outward-looking companies and industries that pepper this land but often aren’t noticed by mainstream media or the public. The one question I felt was left hanging, of course, was how do we prevent those firms being bought – as so many are – by foreign companies intent on global growth through acquisition? And that, in the end, is a political question. Encouragingly, however, Mayor Len Brown showed an interest in the concept of cluster development and

allowed a dispensation for a late submission by TCI to the Auckland Plan – the major strategy that aims to set out the course for urban and industrial development over the next 30 years. Incoming TCI President Christian Ketels and others worked quickly to draw up a document outlining the arguments in favour of cluster development in regional planning, and in the process filled a large and important gap in this vital process. It is to be hoped that from small things, big things grow. After all, isn’t that at the heart of everything TCI stands for? Having not paid enough attention to such matters in the past, I can say in the wake of the 14th TCI annual global conference that I will be watching with great interest from now on.

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A challenge to New Zealand The no rush, no worry model Go, New Zealand, Go! By Dolores Vicioso Media delegate from the Dominican Republic

aving attended TCI conferences in Hong Kong, Lyon, Portland, Cape Town, Jyvaskyla and New Delhi, we (Jaime Moreno, representing the Competitiveness Council of the Dominican Republic and myself, the journalist wife) welcomed the opportunity to travel to “the end of the world” to widen our horizons and learn from business experiences from around the world, and especially from New Zealand. As is our TCI conference ritual, we took off a week before to bring to the conference first perceptions of our host country, and will take off another week at the end of the conference (Napier and Wellington) to see more of the land and meet more of its people. To get to the point, I would like to present the conclusions first. New Zealand needs to export its quality of life model to the world as a vaccine to prevent it absorbing more of the “modern” world and to stimulate global copying. This is the most civilized and quality of lifefilled place that we have ever been to. But more of the world needs to know about it, so it can be imitated and emulated. The world needs permission to live this way and more nations of the world would, if you would spread the word. Go, New Zealand, Go! One of our inter-city bus drivers seemed to capture the essence when he commented his philosophy was “no rush, no worry.” We perceive this no rush, no worry model prevails side by side with an impressive efficiency where things get down, run

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on time, in comfort and most important with high quality, and with a smile and enjoyment of life and the surroundings by its people. As Michael Enright concluded in his keynote presentation, New Zealand may just have got it right. During our visit, we learned how sports (collaboration and competitiveness) are driven into children, how education is so important (in all the tours the schools are pointed out almost as attractions). We learned that you have rediscovered and value your ethnic diversity, and work to push forward your differences. At the same time, we have learned that New Zealander early settlers cleared lands for farms and timber and almost deforested the country, but new generations caught themselves in time and today the environment is a pressing issue. We learned that while so abundant, water is equally precious. In Doubtful Sound and Milford Sound we learned how the fiords are just as beautiful in the sunshine as in the pouring rain, and the love of the land by those who share it with visitors. It is about going beyond weather to adaptability. We took our overnight 12-passenger Deep Cove Charters boat and spent 24-hours with a skipper Chris Lemin who introduced us to the crayfish he caught during the trip and embodied the spirit of New Zealand and the excitement for the outdoor land. In Dunedin we learned how the environment is an issue with the harbor controversy of whether to dredge the port to allow cruise ships while risking damaging surf beaches.

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We learned how in that city the tram was eliminated because of lack of vision in the middle of last century, and now they are thinking of putting it back. We came away with the feeling that investing in putting back the tram to navigate the hills would be better than investing in the dredging to attract more cruise ship tourists. The tram would make the city so coveted, no one would think twice about the half hour ground trip. We are impressed by the focus on highlighting the Maori culture – so present in museums and presentations, so forthright in the country’s branding, i.e. Air New Zealand. We have been told New Zealanders appreciate those that as we have come from so far to visit; this helps to explain the so-hospitable people. We appreciated that on each of the tables of the welcome dinner, there was a representative of New Zealand to answer questions and help us better understand the culture. We appreciate that chef Al Brown was chosen to delight us with New Zealand cuisine. In Auckland we learned that the architecture mix mash for years ignored the city’s biggest attraction – the waterfront, a classic example of people taking for granted what one has always had. And we have eavesdropped on the discussion of taking from architecture and city experience of Auckland versus Napier when deciding the rebuilding or building anew of Christchurch. Staying at small B&Bs we have met the most hospitable people – Mr. Clark at the Highbrae in Dunedin,

who picked us up gratis at the bus station; of Bernadette at our No. 70 Studio Accommodation in Queenstown who fast-posted us the camera cable we left behind at her own expense; and John in Braemar who has enabled us to live in the sequel to the year 1905 Olveston House we toured in Dunedin and took time to tell us in full detail the Maori story of how the Kiwi became the national bird. Or Robert Murrell of the historic Grand View House in Manapouri who told us that the explanation for the great coffee and sophistication of New Zealand was found in that the people of New Zealand have travelled so much abroad. Norm Thompson of Air New Zealand would confirm this with the fact that New Zealanders own up to the highest percentage of outbound travelers of any country. We listed to the passion-filled words of the proud Auckland Mayor Len Brown on priority of making Auckland a leading liveable cities. This was followed by inspirational introductions to New Zealand by Brian Richards and John Allen, Secretary of Foreign Affairs and Trade for New Zealand. We appreciated comments on sticking to selling less for more and learning how transport, education and exports are the local buzzwords. This all brings us to strongly suggest that New Zealanders take up the challenge to export their own model of quality of life. With the permission given when Michael Enright himself suggested that New Zealand may have gotten it right, we advocate this proposal for

the development of a Quality of Life Index that may serve as a benchmark for other countries and that makes sense for New Zealand because it could have a very positive boomerang effect for the country. It would be based on what New Zealand has gotten right. It would rank countries and cities on livability considerations, people inclusion and sustainability issues, and less on economic growth. It could rank countries for accessibility to outdoors, transportation (local and international), public spaces, parks ratios, school sports programs, museums and theaters, city cafes, arts programs, international sports success, people living within 1 hour of their workplace. It would find a way to measure the soft factors such as the local tendency for people to spontaneously smile and be happy, regardless of financial earnings. It could keep this list simple. This could be an undertaking of the University of Auckland, the Future Cities Institute or the New Zealand Institute. May I take the words of Christian Ketels on productivity, and say that the world also needs an explosion in data on quality of life, providing insights on areas where we can do something. This would make benchmarking easier, and enable nations and cities to assess where each stand in quality of life. Or it could be expanded to include indicators for programs for reduction of family and genderrelated violence, teenage pregnancies, crime (drug trafficking and consumption), minority groups

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A challenge to New Zealand...cont

inclusion programs, programs for the aging, preventive medical programs, environmental programs, university scholarship programs, scholarship programs, quality of university graduates (graduate, masters, doctors), life satisfaction, life expectancy, entrepreneurship. Here at the conference, James Wilson in his presentation on drivers of competitiveness of region economies spoke of the new Canadian Index of Well-Being and a British well-being index under development. Add in an indicator for foreign investment that is a key indicator to attractiveness of the country, taking from Professor Torger Reve of BI Norwegian Business School. Plus there are others such as the Mercer Quality of Life Index and others, such as the Human Development Report to develop an

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extensive list in the style of the aggregate list of the World Economic Forum Global Competitiveness Index or others, for creating the New Zealand Quality of Life Index. During the Competitiveness Interventions: Whatâ&#x20AC;&#x2122;s Around the Corner session ended with a call for societies to develop new systems of accounting, more holistic ways to measure progress as a whole, moving away from the traditional dependency on traditional indicators that take less into account social and environmental sustainability analysis, as James Wilson concluded We appreciate that spokespeople for New Zealand have freely met with us during the event, responding to our questions as to why they are the â&#x20AC;&#x153;luckyâ&#x20AC;? country during the social and more structured sessions. What is most important is that the new index

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highlight the positive in the New Zealand quality of life model, the entrepreneurship, ingenuity and transparency ingrained within it, much that has not been planned and has strengthened spontaneously over the years. This would be important to reinforce that what is positive continue for the future generations, when the local population doubles, visitors double and other sought after economic growth indicators happen. New Zealand could instead reinforce the essence of its brand. And the rest of the world would have a benchmark that because of the distance of New Zealand very few that have not had the privilege of traveling here, are aware of. As we heard from Mark Solomon of Ngai Tahu, we want to get on the waka with you for the ride of becoming long-term thinkers.

My Top 5 Moments from TCI Auckland 2011 Bob Breault, Tuscon, Arizona

Christian Ketels “Competitiveness – getting to grips with a difficult term”. I took three pages of notes. As someone who has been involved in Cluster work for 20 years I must have missed a lot over the years. I go to these TCI meetings to pick up these new insights and incorporate them into my region’s Clusters.

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Michael Enright’s presentation, “Competitiveness at the leading edge”, showed why he is TCI’s resident expert on China. Slide #25 of his presentation on Benchmarks, generated a page of notes by me on just what is prosperity. Some frequently used benchmarks, such as GDP, are by themselves not meaningful. It made me think deeper.

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The sailing “Race” in the bay. Great weather, scary close encounters, a lot of fun. I was at the dock just 3 hours after a 24 hour travel flight. It energized me for the week.

Innovation Eco-systems. Speakers from the New Zealand National Level; Murray Brian, Peter Chrisp, and Franceska Banga. I mentally related our failing global eco-systems with threats to our climate eco-systems and what regions and nations can do to have a positive impact as the presentations discussed.

Brian Richards “The Youngest country on earth” A great wealth of little known knowledge about the place most of us had travelled to see. I enjoyed the historical background.

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Four Wise Men Summary of keynote speakers

he TCI 2011 conference programme was headlined by four world leading figures in competitiveness. TCI stalwarts Michael Enright and Christian Ketels were both on the programme providing their usual thought provoking and insightful views on the state of competitiveness.

Xianbin Yao of Asian Development Bank’s (ADB) perspectives provided fresh thinking from Asia. Dr Yao was a welcome guest to the TCI network and we trust that the relationship among ADB, Asia, and TCI practitioners will grow as a result of the conference.

Xianbin Yao Competitive, sustainable and inclusive cities of the future Xianbin Yao pointed out that few economies sustain growth for more than a generation and that Asian countries have had their ‘easy’ phase of rapid growth. He warned of the ‘middle income trap’ saying that city competitiveness is essential to avoid this trap. By 2050, urban population in Asia will double to 3billion requiring careful strategic planning and investment now. Xianbin Yao’s three key points: Avoid the ‘Middle Income Trap’ – the 3E Trap 3P Troika – Implementing Strategies, planning and investments ADB New Urban Agenda and Opportunities for Co-operation The Asian Development Bank has 67 member countries, 48 of these in Asia. It has $170billion capital and $50billion in loan and equity investment.

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On the final day, David Skilling also based in Asia, focussed on small economies. The first three presenters’ powerpoint presentations are available to download and you can view the full address at tci2011.com or tci-network.org.

Michael Enright Competitiveness at the leading edge Michael Enright opened with the ‘disaster graph’ and posed the question “Competitiveness on the Edge of what?” He suggested we are may be on the edge of a new world order, or the edge of a communications revolutions, or on the edge of a flat world? Michael emphasised that clusters are about the economic success of firms. Firms are at the core of any cluster, more important than any professor, consultant of government agency. He talked of his ‘inverted T’ theory where regions are either ‘flattenors’ or ‘flattenees’ Conscious of the New Zealand audience and interest in the host country, Michael suggested two scenarios for New Zealand. Either the world turns to New Zealand or the world turns away from New Zealand. Thought provoking as always, Michael left us all with some thoughts to take home.

“Clusters are about the economic success of firms”

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Four wise men...cont

Christian Ketels Competitiveness – getting to grips with a difficult term Bob Breault summed it up when he said “I took three pages of notes, even having heard Christian speak many times before”. Christian’s emphasised that competitiveness is so important to achieving sustainable prosperity and growth. He asked ‘what have we learnt in the academic world that can be used in a practical sense?’ His presentation focussed on 1) drivers of competitiveness, 2) effective competitive strategy and 3) the role of clusters in competitiveness. Christian pointed out that clusters and entrepreneurship are intertwined and that “clusters make entrepreneurship more likely to happen” David Skilling Small countries in a changing world: How can small countries position themselves for success in a disruptively changing global environment? David’s message was that small countries, regional groupings and cities will drive the global economy in the future. He talked about small countries being fundamentally different to larger ones and that therein lies competitive advantage. Common traits include a high emphasis on R&D, knowledge and innovation, and high investment in education. David said smaller countries figure out their value proposition and are active in free trade agreements. “Small countries are the canaries in the mine of the global economy” he said. “So look to the small”.

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My three (or so) best conference moments Patricia Valdenebro, TCI General Manager

y conference memories go back to late 2008 when the decision to hold the 2011 conference in Auckland, was taken. At that time my references about this, to me, remote country were scarce and plenty of clichés: wonderful landscapes, the All Blacks, I didn’t even know the real kiwis were birds! After my first visit to New Zealand in 2010 and seeing the professionalism of ATEED, I had no doubt this would be a great conference as it has finally turned to be, and during the last year working with Pam at very odd hours in early morning or night, I learnt why New Zealanders pride themselves on being honest and hard working and how they value ease and simplicity at work. After the conference, I have a deeper understanding on this open market-oriented economy, where every single product is ready to export and where entrepreneurship and flexibility are in the DNA of every person, of every business. My memories of the conference are flashes that will help advance my knowledge and will inspire my daily work: keynote sessions with Christian Ketels, Xianbin Yao, Michael Enright, John Allen (that’s passion!) and Brian Richards (the power of stories, collaboration, the formation of digital tribes, it takes a whole village to raise a child); envisioning what’s next in the panel on the future of competitiveness;

learning from regional experiences like Northern Ireland, Denmark, Portugal; sharing latest developments and projects around clusters during the workshops; the Food Bowl that supports the food and beverage innovation network in Auckland; the University of Auckland Business School that works on the development of New Zealanders whose ideas will impact business and management in the future. Most importantly, the conference is the place for me to catch up with old friends and colleagues and to meet new ones, to build stronger connections within the TCI Network; the members gathering on the Thursday evening was a good time to confirm that “TCI is a lucky network”.

None of us will forget the extras - the great setting of the city of Auckland, the Sky Tower, the Cloud (the long white cloud), the Viaduct, colored by the tradition and the talent (the Powhiri Welcome, the all-male choir, Selina’s poem) and sparkled with the food, the wine and the hospitality of New Zealand. The Kia Ora newsletter was a fresh and funny way to recap all this flashes. And the sailing was a fantastic plan to break the ice and to forget about the jetlag, at least for some hours! We will try to take the best of Auckland’s winds for next year conference in the Basque Country. To all of you who attended and made this conference a success, Kia Ora!

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What’s innovative about innovation? Ed Bernacki, The Idea Factory

ad we recorded the presentations during the conference and then analyzed the transcripts to find the most commonly used words, I suspect ‘innovation’ would top the list followed by competitiveness and entrepreneurship. I’m not an innovation historian yet I’ve seen many interpretations of the concept. Here are some thoughts about innovation. In the 1960s a UK based management academic Dr M Kirton explored the question of how executives make decisions for major change, perhaps to launch a product, acquire a business or adopt a new internal process. He called this work the Study of Management Initiative. The use of the term initiative is interesting. It does presume the success of the initiative. Not all initiative was successful much less innovative. Kirton noticed that managers often took initiative that reflected their style of thinking. This insight led to a body of work called cognitive diversity. It recognized that people do not think alike. As such, what one person sees as a risky radical innovation may seem like a mundane improvement to someone else. Kirton’s work started at Victoria University in New Zealand. In the mid 1990s Edward de Bono told an audience that innovation is something you only know in retrospect. As such, you may work on project but you will not know if it is an innovation until it creates value in ways that go beyond basic problem solving. You only know this when you look back to see your results. During the TCI conference, I heard different interpretations of innovation. A major issue is the complexity of creating a definitive answer to three simple questions: 1. What is innovation? 2. What can prompt innovation?

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3. What makes innovative organizations innovative? If you review academic and management literature, you will see many definitions of innovation. Some are highly questionable. One academic journal article selected companies to study for innovation based on asking executives if they launched an innovation in the past year. This seems intellectual sloppiness to me. It also leads to weak terms that become generally accepted, such as this often quoted distinction between: • Incremental innovation • Radical innovation It begs the question; if the literature defines incremental innovation as a minor change, how does this differ from basic problem solving or continuous improvement? One result of this sloppiness is that innovation becomes jargon or a cliché rather than inspiring and insightful. At TCI we discussed innovation and entrepreneurship. One paper commented on the weak Kiwi focus on innovation to create entrepreneurship. Is innovation always the best approach? Perhaps but it ignores the opportunity for more sophisticated entrepreneurship strategies. When I look at successful New Zealand companies, their ability to create value is not simply based on innovation in product or service development but more on commercialization approaches that focus on branding, logistics and building international relationships. In fact, New Zealand agricultural success seems a mix of some innovation in product development and lots of gumption to market overseas. Andrew Ferrier of Fonterra talked of the global success of the Kiwi dairy industry. I suspect this is a result a thousand innovative ideas in product development and production, distribution, logistics and marketing.

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Perhaps its innovation is its design of an innovation system. It is completely audacious to think that a company in a tiny country would create research centres locally in Palmerston North, and globally in Melbourne, Chicago, Amsterdam and Singapore. There are a couple of truths that I believe are useful perspectives for all organizations: 1. Build a capacity to innovate. All organizations need a capacity to innovate. I often call this an idea factory. This starts with the basic skills of staff to solve problems and manage change. It extends to the expertise of researchers, scientists or marketers to conceive of new products. It takes leaders who give people the courage to step up with their ideas. 2. During the conference I joked, “Talking about innovation and expecting to be innovative is as effective as talking about physical fitness expecting to get fit.” Talking does not make us innovative. Many years ago Dr Kirton suggested we stop using the term innovation and focus on what people are doing when they are supposed to be innovating, that is, they are solving problems, making decisions and dealing with change. If we do this well and execute the ideas we create, then we can let others judge our work as being innovative. George Orwell once wrote an essay on the bad use of jargon in management writing. He offered rules to make writing more effective. One rule was: Never use a foreign phrase, a scientific word or a jargon word if you can think of an everyday English equivalent. I think this is good advice. To successfully innovate, people need the insight from come clarity and simplicity. Let’s not allow sloppy language get in the way of results.

My Top 5 Moments TCI Auckland 2011 Samantha Seath, Economic Development Agencies of New Zealand (EDANZ)

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People people people â&#x20AC;&#x201C; what a fantastic group of people to meet with and discuss collaboration/clusters and economic development. I met many new contacts and learnt a lot from my many and varied discussions.

My two stand out speakers were Michael Enright and Christian Ketels â&#x20AC;&#x201C; such energy and passion for this space was obvious in their speeches and gave me plenty to take away.

Brian Richards was fantastic and brought a completely new perspective to how we sell ourselves as a country. His presentation made you listen and the use of music just added to the emotion that came through in his speech.

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The conference dinner has to be on my list. What a wonderful array of food, wine, entertainment, and a great group of people to share it with.

Finally, I think a stand out for me was just the fabulous way in which the whole conference came together. Everything was seamless and added to all having an enjoyable time in Aotearoa. Kia ora everyone.

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New Zealand, The Lucky Country From the Conference Dinner, Selina Tusitala Marsh’s poem:

Welcome, welcome, welcome Australia, Brazil, Canada Chile, Croatia, Columbia Burkina Faso, Czech Republic Estonia, Finland, Denmark Welcome France, Germany, Ghana Hong Kong, Japan, India Jordan, Kenya, Lithuania Dominican Republic, Nigeria Welcome Mozambique, Mexico, Trinidad and Tobago Netherlands, Northern Ireland, Norway, Switzerland Welcome Pakistan, Portugal, Tanzania Philippines, Russia, Slovenia Spain, Turkey, Sweden Thailand, United Kingdom Uganda, United States, Vietnam Welcome, welcome, welcome To New Zealand, the lucky country Aotearoa, land of divine memory where Papatuanuku and Rangi lovers of land, sky and sea progenitors of Maori. Yes, New Zealand’s a lucky country. Lucky, the brothers were restless sons lucky, they warred where dark had won lucky, they longed for the light of the sun and the warmth of the open air. Lucky, Tane was the heart-led son seeking bloodless revolution lucky, he had the strength to stand and pry his parents apart.

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Lucky the lovers loved so much missing the caress of each other’s touch for Rangi cries tears from the sky so freely and Papa’s fecund soil’s so healing giving us Tanemahuta’s forests of jade green rivers, lakes, underground springs a green belt round the nation’s hips kissed all over by Moana’s blue lips from Te Wai Pounamu to Te Ika a Maui; greenstone to fishtail, lucky, lucky country. See the Pohutakawa blush deeply along cliff edges rising steeply where the dead depart for Hawaiki from Cape Reinga to Rakiura’s sea.

Yes, New Zealand’s a lucky country. If you’re not Tangata Whenua your Tangata Tiriti whether British, South African or Somali Chinese, Indian, or Israeli we’ve got the diversity no ethnic cleansing policy – well, except for around 1833 that ‘infected blanket’ strategy Britain’s ‘Manifest Destiny’ taking land by any means necessary historical platform for Maori fighting land wars, foreshores, Bastion Pointing the way to O, blessed Tiriti o Waitangi setting a fire in your belly against paternalistic tyranny ‘Just do it’ said Sir Tipene way before Nike. Yes, New Zealand’s a lucky country this land, home to migrant tauiwi from 1858 Wellington Gujarti to Al Wendt’s flying fox in a freedom tree Pule’s tapatalk canvased ten metres by three where 250 thousand at Western Springs drink deep from the well: hear them sing Kiribati, Fijians, Tuvaluans, Samoans

Tahitians, Rotumans, Tongans, New Zealand- borns and the fusion from Niue to Scottish Highlanders makes Fij-ongans, Raro-moans, and Pakeha-islanders. We had our Muldoon but he was no Mugabe we’re fourth in the world with the least political conspiracy we wear our sloganed t-shirts freely. In Queen Street I see: Politicians are the same all over. They promise a bridge where there is no river. And this one, from Taupo, down by the lake: In New Zealand anyone can be Prime Minister – it’s a risk you take. New Zealand’s a lucky country where our birth-right civic duty lets you vote, or not - it’s free there’s no one purple finger vote no machete held at your family’s throat no AK47 to persuade you at the polls no standing in the dust, waving the same flag as the presidential Rolls. New Zealand’s a lucky country we’re inconvenient geography no land-locked topography we’re far but close enough to see our dairy economy makes the milk in this land of honey Kiwi-Shakespeare shearing in farming families gumboot brigading, black singlet parading No. 8 wire mentality in Enterprise and Industry it’s Fred Dagg haggling in the city. We’ve got water like no other wind turbines and solar polar and Antarctica: Terra Australus Incognita our polar explorers – our global heroes.

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It’s a land of opportunity hard work meeting synchronicity where we can still think differently cos we’re Te Moana Nui a Kiwa’s Kiwis totara waka parked next to chromed Humvee next to Vesper next to suped-up mini where beaching beauty is for free: reservations of canvas teepees jandals flip-flopping Rachael Hunter tip-topping barefeet lapping the sea under our holy ozone CV Bro’town cartooning our TVs Eagle vs. Shark mentality Jim Baxter’s Jersalumming it in Ponsonby Sam Hunt’s DB Bitter poetry Mansfield’s Devonshire scones over a cuppa tea corduroy jacket dignitaries swarming hive blue-suited bees.

New Zealand’s a lucky country when our nation’s greatest anomaly is the freedom ‘to be’ or ‘not to be’ to be nouveau culture or customary to walk with burqa or face and hair free we’ve got education high school to kindy hospitals, recycling, and libraries.

Yes, New Zealand’s a lucky country it’s a plucky country Cuba Street busking, husking money where you can buy McDs and KFC next to pork bones, puha, and palusami taro, kumara and chopsuey swirling Indian curries Korean woking - no MSG in this free market of inclusivity.

We need a bit of Sir Ed Hillary who had the same fears as you and me but “knocked the bastard off ” anyway.

Don’t we good globally? Didn’t the All Whites do all right in the World Cup 2010? Winston Reid did the deed and we all remember when and our All Blacks – all tact, all style Rugby World Cup 2011 this nation wearing All Black in Webb Ellis Cup heaven.

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New Zealand’s a lucky country, but like Sir Tipene and Sir Paul Reeves we’ve got to horizon-seek otherwise it’s ‘Goodnight Kiwi’ and everything we think is free lies hostage to a world economy. We need inter-generationality eco-sustainability for our fossil fuels and energy in this land of space, water, and sea.

Yes, New Zealand’s a lucky, lucky, lucky, lucky, lucky, lucky, country.

Our Top 5 Moments TCI Auckland 2011 Linda Jamison, Invest Northern Ireland

Such a diverse range and style of presenters who have inspired, informed and entertained, ranging from the extremely creative Brian Richards, to the inspiring, informative and thought provoking presentations delivered with by Prof Dr Michael Enright, Dr Christian Ketels, Norm Thompson and Andrew Ferrier. I wish I could hit the pause and rewind button to listen to the many great presentations over again and play them back to my colleagues in N. Ireland.

No better way to start a conference than sailing in the sunshine, our sincere thanks to KPMG for making this possible, you will always be remembered as the consultancy who provided us lasting memories on board a yacht, but more importantly helped to forge business collaborations. On day one of the conference, such as meeting JanErik Odhe of Triple Steelix who we plan to engage with on our wind and maritime networks. As well as collaboration, there was a liberal sprinkling of competitiveness among the teams, a great metaphor to start the conference.

TCI Conferences just keep getting better, the 2011 Conference was so professionally organised, BIG THANKS to Pam, Bruce and the ATEED team, the correct balance of time allocated to presentations, informative cluster tours, networking events, evening entertainment, hospitality and fabulous food (even the brown paper bag lunch :o) ). Hospitality highlights included the Maori welcome at the Cloud and that fabulous choir at the conference dinner. A delight to meet Tony and every region in the world should have such a leader and visionary helping shape and drive their economy. The whole team in New Zealand made us all feel so welcome and introduced us to the very best of Auckland food, wine and entertainment.

What to do at the end of the TCI Conference, between 2.00pm on Friday and 9.00pm on Saturday if you want to experience Auckland- and we really did pack all this in: Take a ferry to Waiheke Island, hire motor bikes and tour the island with a really (really) nice Turkish guy who we met at the TCI conference, go shopping in Smith & Caugheyâ&#x20AC;&#x2122;s, Louis Vuitton (window shopping only) stroll up and down Parnell Rd, taking in the exquisite quintessential architecture and sample a cocktail or two, join in Christmas carols at the town hall Christmas concert, meet up with several TCI friends for dinner and drinks at the Depot, go bopping and stay up to the early hours of the morning with friends from Ireland, Turkey, Sweden, Norway, Denmark and Australia. Indulge in two hours sleep then meet with up with the esteemed Michael Enright to plan the next opportunity to avail of his expertise, reconvene with group ,have coffee and skype family in the wireless Coffee Club, catch another few hours shopping downtown Auckland to acquire the latest All Black rugby shirt and ball, later catch the Bush and Beach tour to sample the New Zealand rainforest and walk along the black sands at Awana beach and or take a wine tour on Waiheke Island, reconvene at the Sky Tower and take in the highest most scenic view of Auckland from the top floor, have more cocktails and beers and say goodbye to our friends from Denmark.

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NI delegates embarked upon a 36 hour journey to travel to the edge of the planet to meet with over 220 delegates from around the world to share and exchange knowledge at the 2011 TCI Conference in beautiful sunny Auckland. 6 days of intensive yet delightful networking, 5 evenings of fun and laughter with new found friends, 4 very special TCI events packed full with great entertainment, fantastic food, music and exquisite wine. Collectively we brought an investment of $55,000 to New Zealand economy and returned home with gifts that are priceless. Greater opportunity to collaborate, an understanding and insight into the role of clusters in growing a regional economy, the importance culture, sport and tourism play in the New Zealand economy, many new friends, at least 4 potential tourist for NI and much much more!

Thank you for providing us with so many memorable moments. Happy Christmas and sincere best wishes from the NI delegation

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Gallery

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Networking

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University of Auckland Business School 29 Nov

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Powhiri Welcome The Cloud, 29 Nov

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New Zealand Conference Dinner Viaduct Events Centre, 30 Nov

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Programme

Monday 28 November: Cluster Tours Tour 1: Marine – Westhaven Marina precinct, Hobsonville -Yard 37. Led by Peter Busfield NZ Marine Industry Association Tour 2: Food and Beverage – Hansells, The Foodbowl, Villa Maria. Led by Tony Nowell, NZ Food Innovation Network Tour 3: Ag-Bio – Waikato Innovation Park, Hamilton. Led by Derek Fairweather CEO of Waikato Innovation Park 1800 – 2000 Informal Networking Function at New Zealand Trade Centre, Albert St Tuesday 29 November: University of Auckland Business School, Owen Glenn Building, Grafton Road 1000 – 1005 Welcome and Introduction, Professor Greg Whittred, UOABS 1005 – 1035 Auckland Unleashed, Harvey Brookes, Auckland Council and Clyde Rogers, ATEED 1035 – 1100 New Zealand Agri-Business agenda, Ian Proudfoot, Partner, KPMG 1100 – 1230 Competitive Advantage New Zealand Colin Campbell-Hunt, University of Otago Shaun Mitchell, Aviation Industry Cluster, Waikato; Paul Frater, Greenchip Ltd, Titanium Industry, Tauranga Stuart Trundle, CEO Venture Taranaki, Oil & Gas, Taranaki 1230 – 1330 LUNCH 1330 – 1415 Making the most of this year’s conference – Ed Bernacki 1415 – 1615 Clusters 101, Ifor Ffowcs-Williams, Klaus Haasis, Christoph Beer and Goran Lindqvist 1830-2000 Official Conference Powhiri Welcome, The Cloud, Queens Wharf Host: Mayor of Auckland Len Brown Wednesday 30 November: Competitiveness at the Edge 0845 – 0900 Welcome to the 14th Annual Global Conference TCI President, Alberto Pezzi Welcome to Auckland – Auckland Tourism, Events and Economic Development Chairman, David McConnell 0900 – 0930 The youngest country on Earth, Brian Richards, Brian R Richards 0930 – 1000 Keynote Address: Competitiveness, sustainable and inclusive cities of the future Xianbin Yao, Director- General, Asian Development Bank 1000 – 1040 Keynote Address: Competitiveness at the Leading Edge, Michael Enright, Director, Enright, Scott & Associates

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1040 – 1055 Panel discussion Xianbin Yao and Michael Enright facilitated by Tony Caughey 1055 – 1130 Coffee Break 1130 – 1200 Competing in the new global economy - how smallopen economies leverage national competitive advantage, John Allen, Secretary of Foreign Affairs and Trade, New Zealand 1200 – 1230 China and India – the rise of Asia-Pacific: Michael Enright (China) & Amit Kapoor (India) compare the two rising economies and what this means for the rest of the world. Facilitated by Alan Koziarski, NZTE, Singapore 1230 – 1400 Lunch and networking 1400 – 1530 Workshop sessions #1 Open Economies and Regional Competitiveness, Part One Session 1.1 Clusters and Internationalisation – Moderator: Alan Koziarski, New Zealand Accelerating internationalisation in clusters - we've cracked the code! Bjarne E. Jensen, Denmark Improving cluster internationalisation through learning and training; Pavla Bruskova, Czech Republic How the edge is taking advantage of the centre: the Dunedin engineering cluster benefiting from the China phenomenon; Sergio Biggemann, New Zealand Session 1.2 Competitiveness in emerging economies – Moderator: Jaime Echeverri, Colombia Strengthening the competitiveness of Colombia; Martha Rodriguez, Colombia The prosperity pathway: a new innovation paradigm for emerging markets; Mark McCord, USA Session 1.3 Government policy and clusters – Moderator: Christian Ketels, USA The impact of Danish cluster policy; Morten Thomsen, Denmark 2010-2013 Basque Competitiveness Plan; Inmaculada Freije, Spain SpainHow to launch and increase internationalisation; Ana Teresa TavaresLehmann, Portugal Session 1.4 Linking clusters across regions and nations – Moderator: Rauli Sorvari, Finland Baltic Sea Region - macro regional approach to cluster development; Karin Nygard Skalman, Sweden IT2Rhine – a model to generate reliable economic strategic information; Michael Lill, Germany Dealing with cluster diversity – combining urban,

regional and meta-clusters; Klaus Haasis, Germany 1530 – 1600 Coffee Break 1600 – 1730 Workshop Session #2 Open economies and regional competitiveness, Part Two Session 2.1 Best features of winning regional and urban strategies – Moderator: Alberto Pezzi, Spain Catalonia: Towards world-class clusters; Joan Marti, Spain Local competitiveness, global concerns; Marynella Salvador, Chile Building up regional capacity in Izmir through clustering and innovation; Erguder Can, Turkey Session 2.2 The role of clusters in regional growth – Moderator: Pierre Bonnet, France Industrial clusters of National Capital Region, Delhi; Rajveer Singh, India The role of the automotive cluster after the crisis; Manuel Montoya, Mexico Assessing the Cosmetic Valley cluster readiness; Daniel Bretones, France Session 2.3 Collaboration and networks, Part 1 Northern Ireland – Moderator: Bruce Gadd, New Zealand Collaborative Business Networks; Linda Jamison, Northern Ireland By working together, big things can happen; Hilary Kinney, Northern Ireland NI Cloud Services Collaborative Network 'punching above our weight’; Dermot Walsh, Northern Ireland Session 2.4 New Strategies for cluster development – Moderator: Klaus Haasis, Germany Challenges and opportunities for an academia led clusters programme; Barnabas Nawangwe, Uganda The role of clusters for developing open innovation; Rene Tonnisson, Estonia Engineering the future: transforming Denmark’s challenged industries; Rodin Genoff, Australia 1900 – 2200 New Zealand Conference Dinner Venue: Viaduct Events Centre, Halsey St, Auckland Thursday 1 December: Competitiveness in the changing global economy 0900 – 0910 Welcome from Tony Caughey, TCI Conference Chair 0910 – 0955 Keynote Address: Competitiveness - getting to grips with a difficult term Christian Ketels, Harvard Business School and European Business School

0955 – 1020 The ecosystem of competitiveness - a holistic view of competitiveness Research project presentation led by Siah Ang, University of Auckland Business School 1020 – 1100 The future of competitiveness, five practitioners debate including: Nigel Kirkpatrick, New Zealand; Tracy Meharg, Northern Ireland; Pavla Bruskova, Czech Republic; Jaime Moreno, Dominican Republic. Moderator: Christian Ketels 1100 – 1130 Coffee Break 1130 – 1300 Workshop Sessions #3 New thinking in Collaboration and Networks Session 3.1: How to innovate in uncertain environments; Klaus Haasis, Germany Session 3.2 Cluster development case studies – Moderator: Barnabas Nawangwe, Uganda National competitiveness, local innovation; alcolm Fraser, New Zealand Cluster development approach of UNIDO - a case study from Turkey; Vedat Kunt, Turkey Brunei - transition to knowledge economy; Sasha Lennon, Australia Session 3.3 New approaches and successful Collaboration models – Moderator: Bob Breault, USA National innovation competitions - experiences and state of the art; Lars Eklund, Sweden New roles for regional business groups; Ted Lyman, United States Benchmark of 4 innovative ecosystems; Yoni Abittan, France Session 3.4: Cluster lifecycle perspectives – Moderator: Siah Ang, New Zealand The cluster-lifecycle - a strategic perspective for successful Management; Simon Alig, Germany Cluster facilitation in a cluster life cycle perspective; Mads Bruun Ingstrup, Denmark 1300 – 1430 Lunch and networking 1430 – 1600 Workshops Sessions #4 Trends and developments Session 4.1 Rural cluster development at the edge – Moderator: Ifor Ffowcs-Williams, New Zealand Lars Albaek, Bornholm, Denmark with Roger Haessel, Alberta, Canada, Michael Crowe, Alice Springs, Australia. Session 4.2 Unique approaches to improving competitiveness – Moderator: Ted Lyman, USA Increase cluster competitiveness through gender diversity; Jan Sandred, Sweden Gender perspective as a driving force to more

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Programme...cont

innovations; JanErik Odhe& Mats Williams, Sweden Diversity of models and tools in modern business practice; Irena Rezec, Slovenia Session 4.3 Trends in EU cluster policy – Moderator: Alberto Pezzi, Spain Cluster policy and cluster management; Goran Lindqvist, Sweden Cluster-Excellence.eu on cruising speed; Daniel Stürzebecher, Germany Cluster winds blowing in Europe; Cecilia Johansson, Sweden & Dorota Fraczek, Poland Session 4.4 Competitiveness interventions: What’s around the corner? – Moderator: Simon Alig, Germany Analysis of the drivers of competitiveness of regional economies; James Wilson, Spain From industrial clusters to global knowledge hubs; Torger Reve, Norway 1600 – 1630 Coffee break 1630 – 1800 Workshop Sessions #5 Managing and facilitating change Session 5.1: Responding to competitiveness challenges Part 3 – Moderator: Ifor FfowcsWilliams, New Zealand SMEs high tech clusters in Russia: government support to boost innovation; Marina Sheresheva, Russia & Yury Vladimirov, Russia The 5C’s of competitiveness: non-traditional thinking in traditional business; Hanh Do Hong, Vietnam The status of interfirm co-operation in Australia; John Dean, Australia & Garry Wall, Australia Session 5.2: Sustainability and competitiveness – Moderator: Amit Kapoor, India How does the development of sustainable cities attract new innovation? Cecilia Johansson, Sweden Sustainability as a driver of regional competitiveness; Elizabeth Redman, USA Session 5.3: Measurement and evaluation – Moderator: James Wilson, Spain Ongoing evaluation - experiences from the Swedish Triple Steelix-initiative; Jan Messing, Sweden Care of measuring cluster effects - the impacts on

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innovation systems; Mats Williams, Sweden Competitiveness and performance measurement systems - survival of the adaptive; Kristina Dervojeda, Netherlands Session 5.4 Cluster management and facilitation – Moderator: Christoph Beer, Switzerland Cluster Management in the Cloud - new tools for new roles in the digital era; Klaus Haasis, Germany Insights from cluster facilitator training in Denmark; Rikke Lund, Denmark Increasing the entrepreneurial mindset with international exchange programmes; Carolyn Gale, USA 1800 – 1900 TCI Members Function, Networking Lounge

Friday 2 December 0800 – 0920 TCI General Assembly 0930 – 0950 Welcome to the final day of the 14th TCI Annual Global Conference Passing the Torch Ceremony, 15th TCI Annual Global Conference 0950 – 1045 Innovation Eco-systems for the 21st Century Rick Boven, Director, New Zealand Institute Murray Bain, CEO, Ministry of Science and Innovation Peter Chrisp, CEO, New Zealand Trade and Enterprise Franceska Banga, CEO, New Zealand Venture Investment Fund 1045 – 1110 The sleeping giant of New Zealand’s economy – Maori economic development Mark Solomon, Chair, Ngai Tahu 1110 – 1145 Coffee break 1145 – 1245 Edgy Innovation, Norm Thompson, Deputy CEO, Air New Zealand Innovation and globalization, Andrew Ferrier, former CEO, Fonterra 1245 – 1305 Small countries in a changing world: How can small countries position themselves for success in a disruptively changing global environment? David Skilling, Singapore 1305 – 1310 Closing from TCI President, Christian Ketels 1310 – 1430 Conference Farewell Lunch

Workshop Overviews

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1.2 Competitives in emerging economies Moderator: Jaime Echeverri, Colombia The prosperity pathway: a new innovation paradigm for emerging markets; Mark McCord, USA Strengthening the competitiveness of Colombia; Martha Rodriguez, Colombia

The prosperity pathway: a new innovation paradigm for emerging markets; Mark McCord he box is gone. Now what? The link between innovation and prosperity • Getting rid of the “box mentality”. We are taught to think outside the box, but when working in emerging markets, when we run into problems we go straight back to the box as we use it as safety net. So we should get rid of this mentality. • The pathway to prosperity: innovation drives productivity. Productivity builds competitiveness. Competitiveness creates prosperity. Prosperity is sustained through innovation. • “Prosperity will not happen overnight… it takes time, strategy, stability and adequate resources… but most of all it takes committed, visionary, risktakers to drive the process.” “It is a journey not a destination… Function follows structure follows strategy follows vision… The journey is the reward.” Key factors for success: 1. No need to fight over resources as everyone can come together. 2. This is an indigenous exercise. It is about training the managers and not running everything ourselves. 3. Good to focus on the early winds/low-hanging fruits as this

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will keep the clusters going. Start little and this will lead to bigger things. Challenges: 1. Unrealistic expectations. Working in Jordan as a company from the USA, people from Jordan expect that there is a “pot of gold at the end”. Firms may begin by getting involved in the cluster for the wrong reason, but they quickly leave. 2. Government didn’t want to get involved. But now they can see

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the benefits and want to take the credit and get involved. 3. Overall integration of clusters as an overall development strategy of a country. Strengthening the competitiveness of Colombia; Martha Rodriguez Case study from Colombia Programme to strengthen competitiveness of clusters in Colombia, 2006–2011

Programme goal: “To deepen the public’s understanding of microeconomic factors behind the national and regional competitiveness and contribute to the definition of best practices about clusters’ interventions through measurable results in terms of productivity, marketing, innovation and technological development, partnership and institutional strengthening of selected clusters.” • Clusters examples in programme: graphic arts in Santander de Quilichao, Cauca; embroidery and lace in Valle del Cauca; coffee in Tolima; chocolate in Santander; apparel in Cúcuta , Norte de Santander; knowledge in agricultural and industrial biotechnology in the Coffee Ring; cosmetics in Bogota; leather and footwear in Valle del Cauca; energy in Medellín, Antioquia; non-ferrous metals in Bogota, health in Atlántico.

• Priority was given to the use of local consultants whenever possible. • Evolution of cluster average productivity factors. Lessons learned: • Different models for different clusters – different clusters are unique, with their own characteristics depending on the degree of maturity, which determines the level of support necessary. • The ideal model is to develop clusters from the bottom up. Starting from entrepreneurs and then support by public and private initiatives. • Success of initiatives depends on level of coordination between collaboration entities. • It is a long-term process – it takes 5 to 10 years to observe significant results. Future sustainability depends on a range of institutional, technical and financial factors.

Discussion There are similarities between the two presentations, but also differences in the way they have developed. One difference is that Colombia had political and government involvement, but Jordan did not. Both cases emphasized the contextual nature of how to run a cluster and how benefits arise. It depends on the country situation, the region, the type of cluster, the firms and the stage of the development. Martha explained the process of some of the clusters in Colombia, and also highlighted that everything depends on a variety of factors. Both talked about it being a longterm process. According to Martha, “association is a journey”. You have to be in it for the long run for the real benefits to arise.

“Prosperity will not happen overnight... it takes committed, visionary risk takers.”

Workshop overviews prepared by Jorge Seaman Arias, Kathryn Hutchison, Betty Shao and Lauren Smith

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1.3 Government policy and clusters Moderator: Christian Ketels, USA This session presented three government initiatives supporting the development of clusters in Denmark, Portugal and the Basque Country. The impact of Danish cluster policy; Morten Thomsen, Denmark Policies in Portugal – how to launch and increase internationalization; Ana Teresa Tavares-Lehmann, Portugal 2010–2013 Basque Competitiveness Plan; Inmaculada Freije, Spain The impact of Danish cluster policy; Morten Thomsen he Danish cluster policy presentation exhibited background of this initiative, presented the economic impact generated among participant companies and provided takeaway lessons for practitioners. Morten Solgaard Thomsen indicated that the Danish cluster policy is part of the “Innovation Network Denmark” programme conducted by the Ministry of Science, Innovation and Higher Education. This cluster policy aims to create a lasting platform for collaboration between different private and public sectors and to increase Danish firms’ innovative capacity. The policy has a budget of €10 million per year and covers five regions in Denmark. Morten indicated that the programme created major economic benefits for companies that took part in the clusters’ initiatives. Firms within the cluster generate on average 30% more return on investment (ROI) on research and development activities than those not engaging in clustering. Moreover, the probability of becoming innovative and identifying collaboration partners are four times higher for companies participating in the Danish cluster than those who do not. The Danish cluster policy experience also provided TCI

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practitioners with key takeaway lessons by pointing out some elements of success and potential challenges that the programme faced. These lessons are summarised in Annex 1. Policies in Portugal – how to launch and increase internationalization; Ana Teresa TavaresLehmann The presentation addressed the recent cluster policy implemented in Portugal and showed how public policy measures have facilitated the internationalization of local companies. This policy was conceived by the Portuguese central government in 2008 and aims to increase the firms’ innovation capacity and to stimulate linkages between the public and private sector. Portugal’s cluster policies have enhanced firms’ internationalization by providing them with valuable elements such as greater networking and linkages between larger and small firms. The means and the degree of the internationalization process are nevertheless heterogeneous and vary across different sectors. Ana Teresa exposed the internationalization process of clusters in the fashion, health, product technologies and agroindustry sectors. Some internationalization strategies undertaken by these sectors are

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highly supported by government institutions such as Portugal’s Investment and Trade Agency (AICEP) and others adopt more innovative approaches by monitoring market trends, adopting differentiation strategies and building international brands. Portugal’s cluster policies provide us with a unique example of the benefits that firms perceive by being part of a cluster. Firms not only become more efficient but have greater opportunities to internationalize their activities. In Portugal, public servants enable the cooperation between firms and simplify the development of clusters. 2010–2013 Basque Competitiveness Plan; Inmaculada Freije Inmaculada Freije’s presented the Basque Competitiveness Plan 2010– 2013. The plan aims to position the Basque Country as an open, innovative, entrepreneurial and technologically advanced economy. The Competitiveness Plan focuses on sectors that fulfill three requirements: (1) that are likely to create greater business opportunities; (2) that greatly contribute to the local economy; and (3) that need to reinvent themselves. Currently the Competitiveness Plan develops industrial cooperation within 11 cluster initiatives in the sector of machine tools, automotive, aeronautics, information technology,

appliances, electric vehicles, ecoconstruction, renewable energies, health and wellness, and tourism and entertainment. The Competitiveness Plan has an evaluation system that relies on different indicators to monitor the impact of cluster policies. These indicators are selected following a precise guideline of five criteria known as “SMART”: 1. specific 2. measurable 3. achievable 4. result driven 5. timely available. Finally, the Basque Plan is financed by both the government and the private sector and has a budget of €11.8 billion over three years, equivalent to 4.1% of the country’s Gross Domestic Product. Debate Many insightful questions came from the audience. The speakers informed that their cluster’s policy was generally open to all firms. Funding seems to be sourced from both government and private initiatives. There were also some questions about cluster’s capacity to support an economy during the financial recession that took place in 2008. The speakers agreed that even though clusters are not the panacea to resolve the economic crisis, they provide an interesting approach for countries to remain competitive in a turbulent world.

Annex 1: Danish cluster policy lessons • Continuity (mature clusters) is very important – but there should also be room for emergent clusters • It is important to have a mass critical of companies and management staff. • It is crucial to establish a neutral organization to avoid bias. • Leading companies must be on board in order to attract other companies. • The size and age of the cluster have a positive impact on firms’ performance.

• The quality and services of the management of the cluster have a positive impact on firms’ performance. • There must be flexibility in the use of public funding. • Clusters must collaborate internationally. • There is a huge potential in cross-cluster collaboration. • Clusters should play a more strategic role in the innovation system (coordination with other innovation policy instruments).

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1.4 Linking clusters across regions and nations Moderator: Rauli Sorvari, Finland Baltic Sea Region – macro-regional approach to cluster development; Karin Nygard Skalman, Sweden IT2Rhine – a model to generate reliable economic strategic information; Michael Lill, Germany Dealing with cluster diversity – combining urban, regional and meta-clusters; Klaus Haasis, Germany

s the title of the theme suggests, this session comprised discussions on cross-regional and transnationallevel clustering. The phrase “linking” best captures the essence of these macro-level collaborative efforts. The first presentation by Karin Nygard Skalman (Sweden) demonstrated ongoing work within the Baltic Sea region stars. Expectation that small economy players can grow stronger and become more attractive through working together has been a major driver of cluster participants. The second presentation by Michael Lill (Germany) introduced an ICT-based cluster model known as the IT2Rhine (constituting 15 institutions and IT networks from France, Germany and Switzerland, representing more than 2000 firms), and describes the methodology from network founding to the dissemination of the results. The final presentation from Klaus Haasis (Germany) gave his view on diversity, especially cognitive diversity and the challenges diversity brings to clustering development and management. It generated strong interest and agreement among the audience. Key discussion points: • Why are initiatives, plans, frameworks and models regarding clusters important? • What have we done and what can we do to better develop and

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implement clusters and achieve greater competitiveness? • How can we progress further from now? Key questions and responses from the session: 1. What are the major challenges of linking regional clusters? • Establish a better appreciation and understanding of business needs. • Identify key partners. • Establish trust among businesses as well as between businesses and governments. • Come to the realization that cluster management is people management. A better understanding of diversity and its impact is of critical importance for cluster managers. 2. It all works well in theory, but in reality, since many clusters are already established, what are some of the drivers that make firms within the established clusters to be motivated start collaborating with firms in other clusters? • Educating firms about the benefit of doing so (e.g. enlarged market opportunities; greater capabilities and competencies to achieve more than going alone; attracting more talents and resources, etc.). • Putting appropriate incentives in place.

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Final comments There is a universal understanding that linking cross-regional and transnational clusters is challenging. A better understanding of the social aspect of cluster development and management is crucial.

2.1 Best features of winning regional and urban strategies Moderator: Alberto Pezzi, Spain This session presented some key features characterizing successful regional clusters in Spain, Chile and Turkey. Catalonia: towards world-class clusters; Joan Marti, Spain Local competitiveness, global concerns; Marynella Salvador, Chile Building up regional capacity in Izmir through clustering and innovation; Erguder Can, Turkey Catalonia: towards world-class clusters; Joan Marti, Spain oan Marti presented background on the clusters located in Catalonia and stated that different actors participate in their development. These include: central government, the TCI headquarters, world-class leading clusters consultants and a series of business schools. These institutions have supported the creation of 30 clusters in Catalonia. According to the Catalonian experience a key element of successful cluster development is the identification of active leaders in the field and getting them to be involved in the programme. Joan called these leaders “karatekas”, since they possess a unique ability to “fight” and overcome any challenges in order to prevail. These “karatekas” enhance the cooperation between the members of the clusters. Once the right leaders are identified, it is crucial to set a new business strategy for the participating companies in order to increase their business opportunities. This strategy aims to perform market differentiation activities. To accomplish this, there must be cooperation between the companies. Four elements are essential to attain this objective: (1) to create a sense of trust between the different players; (2) to develop

transformational projects based on the strategic challenges; (3) to work with small groups of leaders sharing the same vision; and (4) companies must be able to “sweat the t-shirt” for the others. Local competitiveness, global concerns; Marynella Salvador, Chile The presentation addressed the cluster policy implemented in the Atacama region in Chile by the Atacama Region Competitiveness and Innovation Corporation (CCIRA). The CCIRA coordinates and monitors different private and public initiatives aiming to increase Atacama’s competitiveness. Since 2005, the CCIRA has registered some impressive results and managed to substantially decrease the poverty index across its municipalities. Marynella Salvador explained that the CCIRA had created a measure of municipal competitiveness (MCI) that monitors the evolution of Atacama’s competitiveness. The MCI is composed of 57 indicators such as incomes, investment and health. Municipalities are ranked according to the ratings they receive and are grouped into an index. These indicators provide CCIRA with valuable information on where to prioritize their efforts. In the long run, the MCI registers the

competitiveness across the region and it is considered a crucial tool for policy makers to help them prioritize their resources into regions lacking in competitiveness. Building up regional capacity in Izmir through clustering and innovation; Erguder Can, Turkey Erguder Can presented the regional cluster initiatives in Izmir region. These initiatives are promoted by the Izmir Development Agency. The Agency has developed a Regional Development plan

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2.1 Best features of winning regional and urban strategies...cont

that aims to increase firms’ competitiveness by setting a series of strategic priorities. One of the priorities, “Establishing clusters and realizing planned industrialization”, provides the following concrete objectives for cluster development: • to form a clustering strategy; • to develop cooperation networks; • to raise awareness on clustering benefits; • to grant support to highly specialized clusters. In practice, the region has designed a systematic process to enhance cluster development. First, a Clustering Committee determines the potential of clustering in different sectors. The Committee investigates potential clusters through statistical analysis and field research. Once these steps are completed and the sectors are properly identified, a roadmap is conceived for the implementation

of a clustering initiative. Two sectors possessed a high potential for cluster development in Izmir: (1) the industrial ventilating, air conditioning and cooling appliances; and (2) the processed fruit and vegetables sectors. Clusters benefit from financial and technical assistance. Each cluster has been awarded an average of US$ 200,000. The Agency also facilitates national and international networks to enhance their internationalization process. Debate At the end of each presentation, there was an open floor for questions and answers. The audience provided the moderator, Alberto Pezzi, and the speakers with insightful questions regarding the role of clusters in articulating today’s public policies, the impact of clusters and how to retain adequate talents. The speakers agreed that

clusters are an excellent tool to help policy makers know where to invest their resources in order to increase a country’s innovative capacity. In terms of talent retention, Catalonia has created a specialized technical university in the textile sector to align the demand and offer in the job market. In contrast, Atacama currently has some difficulties in retaining talent since most of young students migrate to the capital city to study. Izmir has nine regional universities that support the retention and attraction of young talents. Finally, the three speakers agree that there are both tangible and intangible spill-over effects in clustering. While tangible effects such as turnover can be measured easily, intangible effects such as business cooperation cannot be measured.

“The Municipal Competitiveness Index helps attract investment and improve productivity to achieve higher levels of competitiveness in the region.”

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2.2 The role of clusters in regional growth Moderator: Pierre Bonnet, France Industrial clusters of National Capital Region, Delhi; Rajveer Singh, India The role of the automotive cluster after the crisis; Manuel Montoya, Mexico Assessing the Cosmetic Valley cluster readiness; Daniel Bretones, France

industry in the state of Nuevo Leon, responsible for 25% of the state’s exports. CLAUT is working with large companies to develop more local suppliers, inviting multinationals to establish operations in Nuevo Leon, negotiating with government for subsidies to foster local manufacturing activities and liaising with international R&D centres to strengthen local universities and manufacturers.

Industrial clusters of National Capital Region, Delhi; Rajveer Singh ajveer Singh, of Apex Cluster Development Services, presented his insights into the industrial clusters and competitiveness of Delhi’s National Capital Region (NCR). NCR has the fourth highest GDP of India’s regions, with a sub-regional annual growth ranging between 5.51 and 11.39%. The region hosts natural clusters, including textiles, general engineering, rubber and chemicals, and auto components, as well as induced clusters in Special Economic Zones (SEZs), IT Townships, Export Promotion Industrial Parks (EPIP), HiTech Townships and Industrial Townships. The growth factors for the region include customisation of

local policies, regional infrastructure and soft infrastructure. The role of the automotive cluster after the crisis; Manuel Montoya Manuel Montoya, from Mexico’s Automotive Cluster of Nuevo Leon (CLAUT), detailed how Mexico has been able to gain competitive advantage in the automotive industry following the 2008–2009 crisis. Following the crisis, more automotive manufacturing has moved to Mexico, due in part to its competitive labour costs and more business-oriented unions. Mexico is currently the ninth largest automotive manufacturing nation globally, and the largest exporter to the USA of autoparts. The automotive industry is a key

Assessing the Cosmetic Valley cluster readiness; Daniel Bretones, Daniel Bretones presented an overview of France’s “Cosmetic Valley”, a cluster established to promote the perfumery and cosmetic industries. The cluster has grown strongly over the past six years, with currently more than 200 affiliated companies, and a turnover of €15 billion. In examining the cluster’s enabling and supporting factors, Cosmetic Valley’s strengths lie in its market conditions, public policy and legal enablers, industrial competitive enablers, and social and cultural environments. In particular, the current global market, the presence of world-class players, the proficiency of the cluster as part of a global production network, and the effective, supportive and innovative regional system all contribute to the competitiveness of the Cosmetic Valley cluster.

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2.3 Collaboration and networks, Part 1 –Northern Ireland Moderator: Bruce Gadd, New Zealand Collaborative business networks; Linda Jamison and Adele Dunn, Northern Ireland By working together, big things can happen; Hilary Kinney, Northern Ireland NI Cloud Services Collaborative Network – ‘punching above our weight’; Dermot Walsh, Northern Ireland

inda explained collaboration and networks, with Adele to back up the ideas from an academic study. Hillary and Dermot both explained the networks they are involved in. Collaborative Business Networks; Linda Jamison, Context: Structural problems, labour market, brain drain, country dominated by SMEs, innovation and R&D. Model: • Collaborative networks – nothing is black and white • Two-phase programme: 1. Scoping study to find firms that are eligible (eligibility – minimum of four NI firms from the private sector). 2. Full-time facilitation where support is provided by employing a person who is financially supported by the organization. Importance of trust and a clear vision for the success of the networks. • Networks must identify market opportunities themselves but the initial opportunity recognized may change, e.g. global wind alliance first recognized the opportunity to manufacture wind turbines but later realized that the opportunity was really in the warranty stage. • Structural characteristics – all networks are different.

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Impact: • Measure by interim evaluation and structural changes. Academic; Adele Dunn Reasons for engaging in networks: • Most common = intellectual capital, market capital, social capital. • From her study, knowledge sharing is one of the early wins of a network. • Financial objectives take longer to achieve compared with the other objectives. But the study shows that networks do help to achieve financial objectives in the long run. • Unanticipated gains, e.g. business process developed, increase in staff skills. • Factors that inhibit networks – most frequently stated were change in economic

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environmental and lack of finance. • Interesting – in the study, complexity of leadership issues/ lack of leadership was not indicated as a problem. By working together, big things can happen; Hilary Kinney Glantek – Clean tech alliance • Collaborative supply chain network established in 2010. • Five private, small firms – this is the driving network but it is project-dependent, so more firms could be added to a specific project. • Beneficial to keep it small with core members – purposefully kept small. • Objective: market and develop clean tech solutions. • Over the past 2 years the alliance

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has been collaborating on R&D, sales and marketing, lobbying and information sharing. Challenge – private companies need to see quick and early benefits of the alliance to keep them going. Benefits of networks: increase in sales and profitability, increase in R&D, increase in expertise. But, not always a straightforward path and has natural bumps, e.g. changing aims to be more aligned with the market. Critical elements: – Developing relationships and a common goal “not always a love fest” – Commercial focus “not about a cuddle” – Flexibility to be market led – Facilitation role = key – Important for mangers to be very actively involved – “Don’t grow for growth’s sake” → there needs to be a rational for membership

NI Cloud Services Collaborative Network – “punching above our weight”; Dermot Walsh Whisple Cloud Services • “…whole greater than sum of parts”. • What is important to us? Constant search, changes and innovation. • Network had target milestones but the reality has been different. It “has been a roller coaster ride” with its ups and downs.

• Challenges: – Who owns the network – ownership and stakeholder issues – Business model – Conflicts throughout – Constituent input from members – Ensuring no members give up – Small market scepticism “it will never work” – By far the biggest challenge = friendship. Dermot has lost a friend during the process • Highs: – Making it through the first year – Committed members – Strong pipeline – International profile – Evolving further clusters, e.g. engaging univeristies and entrepreneurs – Investment by members – But by far the highest… people can now see the global possibility and know that they can do it Discussion • Big and small firms working together – who gets the leadership role? • Larger firms usually provide funding while smaller firms can provide the technology or other specific skill • Discussion about the practical running of the network, e.g. Dermot – legal entity, compared with Glantek, which is not a legal entity.

• Q: is it a case of going out and finding a network or is it about something worth doing? A: doing it because they can’t do it on their own. It is not about going out and finding it themselves, firms have to identify the opportunity themselves.

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2.4 New strategies for cluster development Moderator: Klaus Haasis, Germany Challenges and opportunities for an academia led clusters programme; Barnabas Nawangwe, Uganda The role of clusters for developing open innovation; Rene Tonnisson, Estonia Engineering the future: transforming Denmark’s challenged industries; Rodin Genoff, Australia

he discussion in this session embraced a range of rather diverse yet consistent topics. Surrounding this is the underlying question of how we can strategize better so that promising outcomes can be generated from clusters. The first presentation given by Professor Barnabas Nawangwe (Uganda) opened the discussion by introducing the triple helix concept and elaborating on the increasingly important role universities, researchers and students play in developing a cluster programme. The second and third presentations (given by Rene Tonnisson, Estonia and Rodin Genoff, Australia respectively) showcased how open innovation approaches enhance cluster competitiveness, and the impressive progress Central Denmark’s Advanced Manufacturing and Engineering (AME) cluster has been making by concentrating on what they already have.

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Key learning points: A university can not only lead a cluster-based programme, but it can actually drive the programme quite efficiently if the elements of the triple helix are exploited adequately and appropriately. Clusters are suitable test beds for trying out and experimenting with different open innovation approaches. Cluster-based Living Labs can become promising source of innovation. Success in innovation does not necessarily lie within technological excellence and solutions, but more often in cooperative networks and partnerships. A region’s technology trajectory comes from the industries it already has – work with what you have. Understand what you have to work with: your suppliers,

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customers, the networks that drive innovation, and investment and market development opportunities. Key question and response from the session: 1. How do you encourage the collaboration across industry participants, governments and universities? • A key challenge for the university coordinators is to overcome the perception that a university cannot successfully lead a largely commercial enterprise, given the “ivory tower” tag normally hung on a university. However, what academia can bring to the table is of great importance: the ability to identify where more value could be added and foster knowledge transfer. This needs to be clearly conveyed to the other parties. • Building trust across the three pillars.

3.1 Managing networked creativity How to innovate in uncertain environments; Klaus Haasis, Germany

Klaus Haasis encouraged participants to consider their expectations regarding the TCI conference and to understand what drives and motivates them.

hrough a series of various techniques, Klaus helped the attendees to reflect on their thoughts and professional competences and provided them with different ways to advance their skills. Understanding and practising skills such as effective teamwork, accurate self-presentation and well-founded self-confidence enabled practitioners to continue to grow and develop professionally throughout the conference. This session provided participants with the following learning. • An extended repertoire of personal and professional skills. • Discovery of their own strengths and weaknesses as emerging professionals. • It developed reflective inquiry practices. • It worked generatively with different people in group situations. • For some, it started the transition into a future career path.

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3.2 Cluster development case studies Moderator: Barnabas Nawangwe, Uganda National competitiveness, local innovation; Malcolm Fraser, New Zealand Cluster development approach of UNIDO – a case study from Turkey; Vedat Kunt, Turkey Brunei – transition to knowledge economy; Sasha Lennon, Australia

his session consisted of three interesting discussions. The first presentation given by Malcolm Fraser (New Zealand) analysed the role of the ICT industry in economic growth, productivity and national competitiveness. The second presentation given by Vedat Kunt (Turkey) illustrated the effort that UNIDO (United Nations Industrial Development Organization) and the Turkish government put in place to harness sustainability linkages in the textile sector by adopting a cluster approach. The final presentation given by Sasha Lennon (Australia) demonstrated Brunei’s desire and commitment to transit from a natural resource-dependent economy (with crude oil and natural gas production accounting for nearly 50% of GDP) to a knowledge economy through effective land use planning. Key questions from this session: 1. How do you identify the promising cluster(s) for future development? • One method is to conduct comprehensive case study to establish a better understanding of the potentials for candidate industries. Michael Porter’s diamond model is one of the frameworks being deployed. Sometimes, certain industry participants request that research and analyses to be done for their sectors, which also brings ideas for

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candidate selection. • Another method is to conduct “growth share matrix”. Identification for future cluster development is done through looking at an industry’s size, level of growth, as well as degree of specialization and existing level of expertise. 2. How do you sell the cluster idea to those small textile firms that may be content with their current level of productivity and revenue, what will motivate them to participate? • First of all, it is an initiative developed and promoted by UNIDO. UNIDO has also put in place a cluster development fund for the development of the eastern region of Turkey. Smaller players within the textile sector need to be educated about the shift of value chain. If no effort is given to improve value-added activities and industry capacity and capability building, one day the production may move offshore. Cluster development contributes significantly to local employment as well as regional competitiveness. Final comments While the Turkish government is working closely with UNIDO in a cluster development programme to bring about poverty reduction, Brunei, one of the most prosperous economies, is also

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making an obvious effort to utilize cluster development to achieve transformation of its economy and ensure sustainable economic growth. This contrast vividly illustrates how the cluster approach can be adopted to address rather diverse economic issues.

3.3 New approaches and successful collaboration models Moderator: Bob Breault, USA National innovation competitions – experiences and state of the art; Lars Eklund, Sweden New roles for regional business groups; Ted Lyman, USA Benchmark of four innovative ecosystems: Silicon Valley, Israel, France and Morocco; Yoni Abittan, France

National innovation competitions – private investors at the test; Lars Eklund • Involve public sector more in a smarter way to help the world’s problems. • Public innovation competition. • Governments should concentrate their funding at earlier stages in the process. • Private investors should be offered to buy equity in the winners of innovation competitions. • Target innovation markets, nations and unions, e.g. USA, China, Russia, India, Africa; multinational regions, e.g. northern Europe, German Europe, Greater Turkey, DanubeBalkan. • Global innovation competitions – climate. Assure the commitment of the private financers. Establish an Investor-in-Innovation Club. The Club members would elect a Competition Board among themselves. • Possible test beds: Nordic countries, northern Europe, German Europe, an American state, an Indian state New roles for private sector and regional business groups; Ted Lyman • Private sector needs to step up and have a role in economic development. • “New partners need to stand

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up”, e.g. civic entrepreneurs – entrepreneurs passionate about product and place. The question is: how to raise money in the current economic situation? How we define ROI? In the USA there is a job problem. Four million people have been out of a job for 2 years. More than 25 million people are looking for full-time work. Average US unemployment rate is 9.5%, but nearly 17% are either unemployed or underemployed; 20% of the unemployed in America have college degrees. USA has lost key industries Public sector budget cuts are not only limited to the USA. Won’t come from the public sector through taxes, because public sector cannot afford it, so it has to be the private sector. Statistics show that there is a significant waste in economic development. “Strategies worn out”. Need a paradigm shift. Private sector leaders need to see the need for change, e.g. Starbucks’ Howard Shultz – has hired 36,000 people in the USA and Canada since January. Starbucks expects to hire 70,000 people over the next six to 12 months in the USA. He created jobs “because he can”. We need to understand these business leaders better so that we can be in conversation with them

and engage with them better. • Redefining ROI – we need a new definition! To include a businesssocial definition. Include nonfinancial terms, for example: – brand/reputation improvement (new markets, new customers) – talented workers (attracted by region’s quality of life) – goodwill (licence to operate with new political leaders or ability to get concerns on the table with new leadership, i.e. Mayor or City Council) – civic leadership (in increasingly globally competitive world) – improved social/business status in the community. • “At a time when job creation is Job #1, and governments are

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3.3 New approaches and successful collaboration models...cont

fiscally constrained, we must bring private sector resources and other non-traditional funders into our cluster initiatives.” Discussion with audience about whether or not this would work in other countries. In other countries there may not be leaders from the private sector who are willing to give money. An example from the audience was given from Pakistan where a community wanted an airport but the government wouldn’t provide the necessary support. The community came together with the private sector and made the airport happen.

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Benchmark of four innovative ecosystems: Yoni Abittan Silicon Valley • The reality: culture of coopetition, firms are marketfocused, use of social networks, creativity/serendipity, technological standards, risk culture. • Silicon Valley = an “open innovation” ecosystem. Innovation stems from: internal R&D centres, competitors, Customers, Suppliers, Professional Associations, Ethnic networks, Venture capitalists, consulting firms, medias, human resources company, law firms. • Key factors of success: networking, flexibility of the labour market, bright people (“nerds”) and rich people, cool

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weather, proximity between scientists, entrepreneurs and investors, environment propitious to innovation, critical mass, time to market, solidarity, kinship ties, co-opetition, top universities (Stanford and Berkeley), role models, civic entrepreneurs – facilitators, boundary spanners. Israel Israel has a culture of entrepreneurship… why? • Spirit of pioneer, role of the army: build up citizens’ personality, entrepreneurship is in Israeli’s DNA: it seems to be natural, entrepreneurs by passion not by duty, entrepreneurs because Israeli society tolerates failure, risk takers, family boosts, incites them in their young age, Israeli society is individualistic

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and there is nearly no hierarchy in the business ecosystem. Clusters are tightly related to local culture, importance of trust: why does it matter? Innovation comes from creative individuals. Israel: small village with an extremely diverse population. Cultural diversity, i.e. different nationalities.

France • Pôles de compétitivité (PDC) set up by the government in 2005. • 71 pôles de compétitivité (French competitiveness clusters). • PDC are associations that bring together similar area companies, research laboratories and higher education establishments focusing on the same domain. What is the purpose of a PDC? • Enhance collaboration between academics and companies.

• Develop R&D and innovation by mutualization of resources and capabilities. • Promote the regions’ attractiveness (like Cosmetic Valley does). • Boost SMEs’ expertise and know-how. • Facilitate networking between two worlds (academia and company) with two different ways of thinking and working, two different requirements in terms of time, two different aims. • Improve technology transfer from university to industry. • Help companies (especially SMEs) to export their products and services. Morocco • McKinsey realized a study for the Moroccan government in order to detect the domains in which Morocco could be competitive.

• “Emergence programme” emerged with six domains. • Morocco imitates the French model of PDC. • Family ties are very important in most SME companies (90%). • Potential to technology transfer, know-how and the spirit of entrepreneurship. What are the main ingredients of a cluster? 1. High-level of networking in the whole ecosystem (Silicon Valley). 2 Culture of risk/tolerate the failure (Israel). 3 Be operational with concrete projects involving public and private stakeholders (France). 4 Diaspora: trying to mobilize and to integrate it inside the ecosystem without encouraging it to return to home countries forever (Morocco).

“We must bring non-traditional funders into our cluster initiatives”

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3.4 Cluster life cycle perspectives Moderator: Siah Ang, New Zealand The cluster life cycle – a strategic perspective for successful management; Simon Alig, Germany Cluster facilitation in a cluster life cycle perspective; Mads Bruun Ingstrup, Torben Damgaard, Denmark

New thinking in collaboration and networks he Cluster and ValueChain Management Department of the University of Technology Darmstadt, Germany, specializes in clusters, networks and international business, and is associated with the HESSENMETALL cluster initiative. The Cluster Development Model, presented by Simon Alig, is based on the Relational View (Dyer & Singh, 1998) and applies the mechanisms of effective governance, complementary resources, knowledge exchange and interplant assets. Successful cluster

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management occurs when clusters have network characteristics, through being regionally co-located with cooperative relationships. As clusters evolve over time through different stages – initiation, activation, development and sustainability – so too do the tasks of cluster managers. Continuous evaluation is critical to success. Successful clusters are based on a common vision and strategy with continuous evaluation. Torben Damgaard and Mads Bruun Ingstrup of the University of Southern Denmark discussed the role and characteristics of cluster facilitation from a cluster life cycle perspective.

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To make a cluster perform and develop, cluster facilitators need to adapt their facilitation to the changing characteristics of clusters. A facilitator’s role, focus, competencies and tasks will vary depending on the cluster’s position in the life cycle – as a potential cluster, a latent cluster or a working cluster. It is critical to acknowledge the fit between clusters and cluster facilitators, and in doing so, provide effective training and education to the individuals or teams involved in cluster facilitation. Successful cluster facilitation requires a process focus for the facilitator, instead of an output focus.

4.1 Rural cluster development at the edge Moderator: Ifor Ffowcs-Williams, New Zealand Lars Albaek, Bornholm, Denmark with Roger Haessel, Alberta, Canada and Michael Crowe, Alice Springs, Australia

his session presented several cluster development experiences that have taken place in rural areas as a part of decentralization strategies in different countries.

term values for companies engaging in clustering. • Business sustainability is a great challenge. Cluster coaching and constant capacity building is crucial.

Roger Haessel The Federal Government in Canada supports rural development in Alberta through not-for-profit organizations such as Community Futures (CF). These initiatives aim to enhance rural diversification of isolated regions in the country. CF assistance is comprised of two critical components. The first assistance involves planning and implementing different projects leading to rural economic diversification. The second portion of CF’s programmes facilitates funding for specific projects. One of the major components of CF’s programmes is to provide firms with short-term financial support (1 to 3 years) for cluster development. This initiative has supported the creation of various clusters in Alberta in three sectors as follow: (1) health manufacturing; (2) health and wellness; and (3) technology. Since the implementation of the programme, CF’s role has been crucial to promote the cooperation between businesses in Alberta. The takeaway lessons : • Companies must stay nimble and adapt to changes. • The agenda must be businessdriven and not governmentdriven. • There’s a need to provide short-

Lars Albaek The Cluster Development in Rural Areas project in Denmark is the result of a cooperation agreement between Business Link Greater Copenhagen and Business Center Bornholm. The objective is to promote business development in Bornholm and create a model for development of growth clusters in peripheral regions in Denmark and abroad. This project has been granted a total of €1.5 million for the 3-year project period. These funds have been granted by a mix of public and private sources, as follows: the Bornholm Growth Forum (€70,000), the National Agency for Enterprise and Construction (€400,000), the EU Regional Development Fund (€800,000) and private co-financing (€230,000). The project employs a business cluster development team that promotes collaboration between different business actors. The most prominent clusters were developed in tourism, energy and construction. As an important lesson from these experiences, Lars believes that to develop a successful rural cluster takes time and the government needs to bring into the table multinational export-oriented corporations and innovative small and medium size companies.

Michael Crowe Desert Knowledge Australia Outback Business Networks Project is a free network for businesses operating in or within remote and desert Australia. It aims to strengthen the small to medium enterprise sector in regional areas helping them to build local economies. The project establishes new networks and builds on existing cross-border industry networks across Outback Australia. Outback Business Networks develops networks and business opportunities across nine regions of Outback Australia by facilitating business cooperation with elements such as training programmes, information sessions, meetings, collaborative projects and forums, and links to established regional services. Outback Business Networks has assisted Indigenous entrepreneurs in the development of clusters providing tourism services in the Mid-West region. Being part of this network may increase companies’ revenues and reduce their marketing costs through collaboration. Some important takeaway lessons were also provided to the audience. Similar to Lars, Michael believes that to develop a successful rural cluster takes time and that respect and cooperation among business actors is crucial. Another important element for cluster development is to provide implementation agencies with a continuous flow of funding.

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A glimpse into the value of rural clusters Ed Bernacki

he value of the cluster model has been well explored in areas of technology, manufacturing and science. Much of this focuses on developed urban areas were the physical distance between businesses is relatively small. Often these are mid-sized sophisticated businesses. In the presentation of New Zealand’s petroleum cluster, businesses were in the same community yet they not are aware of each other. The same was true about Kiwi software companies who came together 20 years. I suspect these stories could be repeated in most countries. The TCI conference highlighted fascinating examples of how the cluster model has expanded to regions of the world where physical distance cannot be easily overcome. Ifor Ffowcs-Williams hosted an interesting workshop on rural clusters that showed how it is possible to overcome the issue of distance. In some cases, the secondary issue is that we are dealing with much smaller business, even micro businesses. The issue of distance was illustrated extremely well by Australian Michael Crowe. As an introduction to his Desert Knowledge Networks, he talked of shaping a number of rural clusters by using of Australia superimposed on a map of Europe. His region is about the size of continental Europe. In his words, it took extreme technology to overcome this distance to some degree. Today the network includes 1350 businesses involving creative industries, local produce, mining services, sustainable building and tourism. The guiding principles supporting this work include: • Collaborative: work with organisations and people that share common goals. • Intercultural: actively bring Aboriginal and other

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Australians together. • Sustainable: work to achieve long term widespread change. • Desert voice: build a voice for desert people. • High impact: focus effort where it will make the greatest change. Another positive example of rural clusters came from a region of Alberta in Canada. Alberta relies on oil and gas for its financial success, sometimes ignoring the potential of other sectors. In a region around the small community of Canmore (population of under 15,000), Roger Haessel leads initiatives to engage businesses into clusters. This is part of the rural economic strategy. The region is known for its picture postcard beauty and its proximity to the world famous Banff ski fields. It has many small businesses that focus on fitness, health and wellness. Perhaps one of the most interesting success stories is metal fabrication. Eight companies began to collaborate after seeing their traditional markets disappear. This led to a complete shift in focus and a range of new manufacturing opportunities that companies could create in collaboration to tackle bigger fabrication projects. Some of these have export opportunities. He concluded that the success of the overall program was based on the need for the business executives to drive the agenda of the cluster rather than imposing an agenda. His final recommendation would apply to all clusters; focus on building capacity within the cluster. Bornholm Island offers a unique challenge for cluster as it is a Danish island in the middle of Baltic Sea. Lars Albaek delivered this session. From one perspective, it has a small population in the middle of nowhere. From another perspective, it has access to millions of consumers as it is central to several countries. Again, the solution

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was found in focusing on small scale clusters based on a model for rural development. Often the benefits of clusters focus on business results. Lars concluded that there was another type of benefit from business owners learning to collaborate and share insights; self confidence. Another fascinating look at rural clusters came from Barnabus Nawangwe of Uganda. He presented a fascinating overview how many businesses, often led by just a few people, are learning to collaborate to compete in software, fashion, furniture, metal work and various basic food industries. So far about 22 clusters are in place but at different levels of development. A major insight was training people within each industry to help manage the cluster to avoid the perception of outsiders trying to influence people. Also, these people were taught to be facilitators to help businesses grow. Uganda’s recent troubled history puts into perspective the ability of a new generation of people to see a way forward. Barnabus also emphasized that many of the businesses were related to food production and many of these were led by women. Common to all of these case studies was to show some results in a relative short time period. Funding was often limited to an initial period of just three years. Lars Albaek summarized this well when he commented that it takes time for businesses to cooperate; it takes longer for businesses to collaborate. The common element of these programs in different countries is that were able to demonstrate value in the clusters. For more information on these clusters see: www.desertknowledge.com.au/obn www.bornholm.info www.ugandaclusters.com www.apexalberta.ca

4.2 Unique approaches to improving competitiveness Moderator: Ted Lyman, USA Increase cluster competitiveness through gender diversity; Jan Sandred, Sweden Gender perspective as a driving force to more innovations; Mats Williams, Sweden and JanErik Odhe, Sweden Diversity of networking, partnering and clustering models, and tools in modern business practice; Irena Rezec, Slovenia Increase cluster competitiveness through gender diversity; Jan Sandred, VINNOVA, The problem: • Higher education: 80% female, 20% male. • Industry: 30% male, 70% female. here is a significant recruitment problem because the educated skilled females are not getting jobs in industry. This results in a high number of females in unpaid work, which is low productivity. How did the problem arise? • Institutionalized norms, e.g. pink toys are for girls, and blue toys are for boys. Just like specific industry jobs are for males. Implications: • Miss out on potential growth areas without women involved. • Everyone should have equal opportunities. • Use women to find new unexploited markets. “Rethinking innovation”: • In Sweden, the women in the household are usually the ones to give consent to purchase a boat or a new car. So it makes sense that women design cars and boats as they understand what appeals to women.

Gender perspective as a driving force for competitiveness; Mats Williams Northern Central Sweden: • 3 regions • 3 universities – 55,000 students and researchers • 15 cluster organisations – 700 companies, 60,000 employees. Problem: • Many employers face retirement. • Need for core competencies. • Competition to attract employers – now have demands for a balance between work, family and leisure; firms need to be attractive. • Career paths for men and woman. • Regional facts are similar to those of the previous speaker in that the majority of woman work in the service sector while men are in the industry sector. • High proportion of woman in service-related higher education and more men in industry-related higher education. Examples Triple Steelix – focus on competence. Need to recruit more women into the industry in the next 10–15 years to ensure that they have sufficient employees with the right skills. Visit Dalarna – focus on growth. Visit Dalarna is an initiative to promote tourism in the area. The area is dominated by small familyowned businesses that are womandriven. The first challenge was to

change the mind-set of the people who lived in the area because they had no interest in developing and growing the region. Find IT – focus on innovation. This is a forum for industrial IT solutions, a male-dominated industry, but this cluster is 90% woman-dominated with only one man. There have been multiple positive innovations developed out of this system. Gender perspectives and SLIM: • Common conceptual understanding. • Clarify the link between equality/ diversity and growth/innovation. • Support to create equality strategies. • Highlight good practice. Gender issues in steel and engineering – leadership as a driving force; JanErik Odhe Challenges: • Mature, male-dominated industry (12.8 % women in 2005). • Large number of retirements. • Number of youth is decreasing. • More female than male students at universities. • “Engineering isn’t cool!” • Need to attract more people, especially women to the industry. What we do Overall strategies: • skills development and improved image. Target groups: • today’s leaders • tomorrow’s leaders

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• future leaders. Future leaders • Working with small kids in school programmes to inspire them to become engineers. • “Can’t teach an old dog new tricks”. • Leadership programme – both women and men (80% of managers are men so they need to be educated as well). Summary “Increased diversity is a matter of survival for our industry”: • Necessary to ensure competence. • Affect growth and competitiveness. • 2010: 15.2% in our industry are women (increase from 2005). • 2011: 19.4% of member companies had a change in attitude Discussion • In the USA this could be an emerging problem as there is a sharp shift with an increasing number of woman in education (and a decrease in men). • Both Norway and Sweden are working on this problem together as they have a similar problem.

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Diversity of networking, partnering and clustering models, and tools in modern business practice; Irena Rezec Systematic approach to the diversity of models. Divide into groups: 1. Consortium – short term and project based, usually for the purpose of a group of partners working together to present a competitive offer and win a tender. 2. Cooperative – long-term time frame, with a focus on ensuring an organized market for local products, by jointly using the same distribution channels. Also could be to share machinery, tools and other equipment. 3. Cluster – long-term focus, with partners all working together to achieve a common strategic goal. 4. Strategic alliance – long-term forces, partners working together towards a common strategic goal by jointly using limited resources. 5. Virtual networks, online collaboration platforms – short to long term, no clear purpose and they are different from the

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other groups because they have NO RULES AT ALL related to their legal form, organizations and management, main sources of financing, specific sectors, typical geographic coverage or marketing approach. Examples • In practice – collective product development, open innovation www.quirky.com • UK standard BS 11000 – a standard for collaborative partnering • BSI British Standards “Collaborative Business Relationships – Part 1: A framework specification”. In practice: spirituality, leadership and business Main observations • People are at the centre, no longer companies. • Everyone is a source of something to someone. • The purpose of the majority of virtual/online platforms is too general. • Countries with competitive advantage will be those who are able to quickly adapt their education, legal, financial and business support systems to new business models.

4.3 Trends in EU cluster policy Moderator: Alberto Pezzi, Spain Cluster policy and cluster management; Goran Lindqvist, Sweden The way towards cluster excellence: Cluster-Excellence.eu on cruising speed; Daniel Stürzebecher, Germany Cluster winds blowing in Europe; Cecilia Johansson, Sweden and Dorota Fraczek, Poland

lberto Pezzi introduced the workshop session “Trends in EU cluster policy” with a brief introduction of European cluster data, cluster milestones over the past 20 years and the new European framework for cluster policy. Göran Lindqvist, of the Stockholm School of Economics, gave a comprehensive presentation on cluster policy and cluster management. He outlined the functions and tools of the European Cluster Observatory, which provides cluster data and analysis and is coordinated by the Stockholm School of Economics. Different views on the direction of cluster management occur as perspectives vary, yet people ultimately determine a cluster’s success. Lindqvist summarized the inefficiencies of clusters that can lead to internal and external cluster gaps, and explained how bridges are required to overcome these weaknesses. Dr Lindqvist explained that cluster organization can take the form of membership or a partnership model, both with different characteristics and funding sources. Cluster management should drive and support cooperation and innovation, internationalization, national and international recognition, and sustainability. Daniel Stürzebecher of the European Cluster Excellence Initiative provided information on Cluster-Excellence.eu, an EUlevel project that seeks to foster

excellence in cluster management. The project has four modules: the Cluster Management Excellence Label, Cluster Management Excellence Training, the European Cluster Managers Club and the European Cluster Collaboration Platform. Assessment of the quality of a cluster is challenging, but the European Cluster Excellence Initiative has developed a framework of 31 indicators based around the three levels of the Shell Model: cluster organization, cluster actors and framework conditions. Dorota Fraczek of the Polish Agency for Enterprise Development (PARP) and Cecilia Johansson of Vinnova gave a detailed presentation entitled “Cluster winds blowing in Europe”. The presentation included an overview of the role of Tactics (Transnational Alliance of Clusters Towards Improved Cooperation Support) whose objective is to develop better cluster policies and practical tools for clusters and their firms in the EU. Johansson summarized the key messages from the taskforces – that clusters can play an instrumental role as a preferred funding instrument, innovation policy “test bed” and internationalization vehicle. Fraczek presented details of the activities of PARP and cluster policy development in Poland, including the highlights and summary of the recent Polish Presidency Conference on “Strengthening cluster policy cooperation in Europe: looking ahead to a new policy agenda”.

“Cluster management should drive and support cooperation and innovation, internationalization, national and international recognition, and sustainability.”

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4.4 Competitiveness interventions: what’s around the corner? Moderator: Simon Alig, Germany Analysis of the drivers of competitiveness of regional economies; James Wilson, Spain From industrial clusters to global knowledge hubs; Torger Reve, Norway

his session was composed of two top-level presentations. The content and quality of discussion definitely generated a great deal of interest from the audiences. Starting the session James Wilson explained a framework that has been developed for the European Cluster Observatory in order to assess and benchmark the drivers of competitiveness of regional economies. The second presentation given by Torger Reve addressed the importance of transforming traditional industries into new, vibrant, knowledge-intensive industries that operate globally.

for policy makers to change their national and regional industrial policies into knowledge-based policies, which significantly impact on the development of a successful global knowledge hub. • Build on what you already have. Transforming existing, traditional industries could be highly effective due to accumulated expertise overtime and already available supports for these sectors. When creating new industries, new clusters, making sure there are sufficient complementary sectors (e.g. suppliers, customers, etc.) and supports.

Key learning points: • It is important to understand what factors determine the competitiveness of regions. By isolating factors that can and cannot be influenced by policy, it is easier to track what works, whether policy has been designed and implemented to foster competitiveness, whether things are moving towards the right direction. • The Emerald Model introduced by Torger Reve (Norway) defines knowledge attractiveness in terms of six dimensions: (1) cluster attractiveness; (2) education attractiveness; (3) talent attractiveness; (4) research and innovation attractiveness; (5) ownership attractiveness; and (6) environmental attractiveness. This model provides guidelines

Key questions from the session: 1. Is there any empirical evidence on sustainability and competitiveness? James: At the firm level, there are some available data and evidence indicating a relationship between a sustainable approach and performance/competitiveness. But at the regional and national level, it is rather difficult to obtain comprehensive empirical data to draw any conclusion on this matter. Torger reported that in the Emerald Model, environmental attractiveness is one of the key dimensions to work on. Sustainability and quality of life are increasingly being recognized as important indicators for regional and national competitiveness.

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2. Regions and nations are obviously adopting cluster approach to improve competitiveness and do better than other regions and nations; is it possible to achieve a win–win situation? Response: Definitely. As a matter of fact, it should be a win– win situation. Regions and nations should collaborate to achieve mutual benefits despite the existence of competition. Taking the drilling industry in Norway for instance, collaborating with Brazil has helped Norway to attract many talents for the sector, yet it is evident that Brazil is a powerful emerging market giant that is imposing much pressure to many developed market competitors. 3. Is there a certain point that certain traditional industry can not be transformed any further? Response: There should not be a limitation on how many times and how much an industry can be transformed. It requires facilitation from knowledge-based policies and successful development of a knowledge hub that continuously stimulates creativity and identification of new opportunities based on existing strength and specialization. 4. Do you think your small economy-based model is applicable to large economies? James: the current model is designed for regional-level assessment, which is difficult to apply to national level. Separate models will be developed to be

applicable to national level and larger economies. Torger: The rationale behind the model is to call for a paradigm shift: change the focus from industrialoriented to a knowledge-based economy. As a matter of fact, China is a good example to showcase that this model is applicable to a large economy as some major changes and transformations are already taking place in China. 5. Focusing on transforming existing industries rather than creating new industries and clusters may not work for a large economy in terms of job creation, especially given the current tough economic and financial environment in Europe and around the world. Response: Focusing on transforming core industries may not create many immediate jobs within the focal sectors. However, these knowledge hubs create wealth. Once wealth is created, jobs will become available in other fields and industries. Final comments Competitiveness does not come from cost-based advantage alone. A focus on strength and building a knowledge-based economy will give a nation/region great opportunity to thrive in the global market in the absence of cost advantage. Agglomeration on its own is not going to add much value. It is the interaction among firms within the cluster that contribute to success.

â&#x20AC;&#x153;Regions and nations should collaborate to achieve mutual benefits despite the existence of competition.â&#x20AC;?

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5.1 Responding to competitiveness challenges Part 3 Moderator: Ifor Ffowcs-Williams, New Zealand SME high-tech clusters in Russia: government support to boost innovation; Marina Sheresheva, Russia and Yury Vladimirov, Russia The 5C’s of competitiveness: non-traditional thinking in traditional business; Hanh Do Hong, Vietnam The status of interfirm cooperation in Australia; John Dean, Australia and Garry Wall, Australia

arina Sheresheva and Yury Vladimirov of the Higher School of Economics, Russia, presented a well-received overview of high-tech SME clusters in Russia. Clustering initiatives within Russia are growing in popularity, although Russia lags behind other BRIC countries on the level of cluster development. There is a low level of innovation within Russian firms, particularly in SMEs. Although collaboration networking can stimulate innovation, it is necessary to examine whether there are sufficient incentives for firms to collaborate, and whether there is a favourable institutional environment. Research was undertaken to examine these matters and found that most companies exhibited no incentives towards cooperative behaviour, local authorities are highly sceptical of clusters and research institutions are not engaged. Results from a study

found that the main obstacle for innovation within Russian SMEs and potentially therefore Russian innovative cluster development was found to be property rights insecurity. A further study will be undertaken in 2012 to examine clustering of independent internet providers. Do Hong Hanh provided a case study of her organisation, Hong Kong-based Esquel Group. Esquel Group is one of the world’s leading producers of premium cotton shirts, and successfully applies innovative strategies to sustain its competitiveness in the traditional industry of textile and garment manufacturing. Esquel’s competitiveness model is based on the 5 C’s, namely: cost containment, creativity, conservation, collaboration, caring. Corporate values and culture are key success factors for Esquel

Group, and empowerment and selfmanagement are seen as critical to individual and organizational success. John Dean and Garry Wall discussed the status of interfirm cooperation in Australia, which was strongly endorsed in the 1990s but has not taken widespread effect. Although collaboration is not promoted by policy makers as a tool of competiveness, there is a growing awareness of the importance of interfirm cooperation. Collaboration could be a key strategy to deal with many obstacles for Australian industry, especially scale and risk; however, it requires specific skills and is often impeded by cultural factors and the small size of firms. Examples of collaboration to date have all involved some form of government participation.

“Collaboration could be a key strategy to deal with many obstacles for Australian industry, especially scale and risk”

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5.2 Sustainability and competitiveness Moderator: Amit Kapoor, India Sustainability as a driver of regional competitiveness; Elizabeth Redman, USA How does the development of sustainable cities attract new innovation? Cecilia Johansson, Sweden

ustainability as a driver of regional competitiveness; Elizabeth Redman, USA • Sustainability can drive competitiveness and benefit local business. Supermarkets used to have to buy the plastic bags to supply them to customers. Now supermarkets are able to sell bags to customers, for example reusable canvas bags. • Sustainable cities attract educated workers. • Drive new clusters with sustainability by focusing on new markets and industry developments. Implications: • Understanding the connection between sustainability and competition. • Realize the role of sustainability in driving new clusters. • Actionable plans – think about what players are involved and how are these players involved. Discussion: • Variations in definition of sustainability. Some define sustainability only related to the environment and others also include social aspects. Amit Kappoor explained the definition of sustainability in India, which is used as quite an inclusive term to include the environment, poverty and healthcare among others. • Discussion around the urgent need to expand the definition of sustainability because the Gini coefficient is rising in the USA.

How does the development of sustainable cities attract new innovation? Cecilia Johansson, Sweden Societal challenges: 1. Health, wellbeing and medical care. 2. Sustainable and attractive cities. 3. Information society 3.0. 4. Competitive industry. Three largest Swedish cities working to increase sustainability: • Stockholm – sustainable city section at Stockholm Royal Seaport and introduction of congestion tax for vehicles in the

inner city centre. • Gothenburg – R&D centre for sustainable and safe transport systems. • Malmö – working to increase green and blue spaces in the city. Also, to develop a compact city to avoid exploitation of surrounding highly fertile arable land. Elizabeth focuses on using policy to drive sustainability and competitiveness. Cecilia’s focus is on developing and supporting solutions, with little discussion on policy.

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5.3 Measurement and evaluation Moderator: James Wilson, Spain Ongoing evaluation – experiences from the Swedish Triple Steelix-initiative; Jan Messing, Sweden and JanErik Odhe, Sweden Care of measuring cluster effects – the impacts on innovation systems; Mats Williams, Sweden Competitiveness and performance measurement systems–- survival of the adaptive; Kristina Dervojeda, Netherlands

his session exposed the audience different measurement and evaluations methods that have been used in several countries to assess the impact of cluster policies.

Ongoing evaluation – experiences from the Swedish Triple Steelixinitiative; Jan Messing and JanErik Odhe Jan Messing and JanErik Odhe presented the evaluation and measurement methods that have been implemented by the Swedish cluster Triple Steelix-initiative and Steel and Engineering. These clusters group businesses, local and regional authorities, and universities that are working in the steel sector. They conduct a series of quantitative and qualitative methods in order to assess the impact of clustering policies that are being implemented. Qualitative methods include performing reflective talks with business leaders and conducting different surveys. Quantitative studies analyse variations over time of basic financial data of business belonging to the cluster, such as turnover, number of employees and on investments. This experience indicates that it is possible to combine different elements to assess cluster policies. Nevertheless, the presenters warned the audience that it is important to remain objective when evaluating cluster initiatives.

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Care of measuring cluster effects – the impacts on innovation systems; Mats Williams Mats Williams presented the SLIM project, a programme that manages innovative platforms and cluster organizations in Northern Central Sweden. SLIM has some support, evaluation and policy learning initiatives aiming to create a more extensive collaboration between companies, universities and public organizations. Similar to the Triple Steelix-initiative, SLIM assesses cluster policies with a series of quantitative and qualitative methods. Qualitative methods include performing self-assessments reports and surveys. These elements assess growth, competitiveness, cooperation, and research and development activities that take part in local businesses. Quantitative studies analyse the variations of basic financial data of business belonging to the cluster, such as value added, number of employees and competitiveness. The project has shown that evaluations methods provide policy makers and businesses with insightful information to identify the areas where businesses are growing as well as those where more efforts are needed.

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Competitiveness and performance measurement systems – survival of the adaptive; Kristina Dervojeda Kristina Dervojeda from PricewaterhouseCoopers International Limited presented the cluster performance management system as a powerful tool to assess the impact of cluster policies. She believes that in order to identify the adequate measurement tools companies must first clearly acknowledge the purposes of measuring clustering policies. Some of the reasons for measuring the impact of clustering policies are creating accountability, securing funding, planning and identifying the main benefits and challenges that it provides to businesses. Kristina stated that different sets of indicators are required for different purposes. Some examples of specific indicators were presented to the audience. To measure the impact of government clustering policies for example, government may assess the number of new jobs created, the employment rate of the cluster region compared with that of the country as a whole, the number of new firms and the their growth. Debate At the end each presentation, there was an open floor for questions and answers. The audience provided the speakers with insightful questions regarding the generalizability of the presented evaluation methods.

5.4 Cluster management and facilitation Moderator: Christoph Beer, Switzerand Cluster management in the Cloud – new tools for new roles in the digital era; Klaus Haasis, Germany Insights from cluster facilitator training in Denmark; Rikke Lund, Denmark Increasing the entrepreneurial mindset with international exchange programmes; Carolyn Gale, USA

hanks to the moderator Christoph Beer, this session was organized and conducted in a dynamic and vibrant way. Starting with the presentation given by Klaus Haasis (Germany), the discussion was on the role new tools play in the digital era. Rikke Lund’s (Denmark) presentation provided insights from acluster facilitator training programme in Denmark. The final presentation given by Carolyn Gale (USA) illustrates how international exchange programmes for Swedish students help to establish their better understanding of entrepreneurship. The session was then organized into group discussions based on various topics of interest to the audiences. A brief summary of each discussion was reported to everyone.

Key learning points: • We need to acknowledge the component of virtual collaboration and interaction and we need to explore how standard online tools in the Cloud could facilitate the daily work of cluster managers. • Learning by doing and a high level of interaction and engagement in activities are effective ways to provide training to cluster facilitators. Summary for group discussions • There seem to be some universal characteristics across many countries that are road blocks, obstacles and constraints for developing a culture of innovation. These characteristics include: social and family pressure (e.g. knock off the tall puppies), not OK to share, and the “I can or I should do it

on my own, I can deal with it” mentality. A major challenge therefore is can we remain independent yet still embrace opportunities to collaborate and create something better? • To be a successful cluster manager/facilitator one needs extensive industry knowledge, working experience and passion. • Much talk about effective cluster manager/facilitator concentrates on idealizing a “superman”, who is capable of doing everything. However, in reality, many cluster managers/facilitators could be occupied by many other tasks such as information processing, decision making, business trips, etc. A team of experts in different areas may function better in terms of facilitating cluster development.

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Passing the torch: Auckland, New Zealand to Basque Country, Spain

he 15th TCI Annual Global Conference will be held in the Basque Country, Spain in October 2012. Hosts Orkestra-Basque Institute of Competitiveness and the Basque Government, launched the conference ‘Let’s Grow Together’ on the final day of the conference.

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The 2012 conference will focus on constructing place-based competitiveness in times of global change. To ‘pass the torch’, the Auckland team of Tony Caughey, Clyde Rogers and Pam Ford exchanged flags with Jose Luis Curbelo of Orkestra and Inmaculada Freije of the Basque Government.

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Other TCI conferences to be held in 2012 were promoted by the respective hosts: Amit Kapoor, Asian Conference, Gurgaon, India Manuel Montoya, 7CLAC Latin American Conference, Monterrey, Mexico Ergüder Can, Mediterranean Conference, Izmir, Turkey.

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Delegates

Abittan Yoni University of Versailles St-Quentin Adamek Petr SODA Inc Albæk Lars Business Link Greater Copenhagen Alig Simon Hessenmetall Cluster-Initiative Allen John Ministry of Foreign Affairs and Trade Alvarez Fernando Freelance Anderson Andre Ministry of Economic Development Ang Siah University of Auckland Business School Angelia Suci Bank Indonesia Anstice David ATEED Arnold George New Zealand Trade and Enterprise Bain Murray Ministry of Science and Innovation Ballantyne Sarah Banga Franceska New Zealand Venture Investment Fund Bassett-Foss Michael Hawke’s Bay Regional Council Beaman Sarah Strategic Reality Beer Christoph Mundi Consulting AG Benischke Mirko University of Auckland Benson-Rea Maureen University of Auckland Beresford Mark Kinetic Cubed Bernacki Ed The Idea Factory Bevin Sean Economic Solutions Limited Biggemann Sergio University of Otago Birnie Douglas Sapere Research Group Blakeley Roger Auckland Council Bonnet Pierre Chamber of Commerce and Industry of Lyon Boven Rick New Zealand Institute Breault Robert Breault Research Organization Bretones Daniel ESCEM Business School Breunig Donovan University of Auckland Business School Brookes Harvey Auckland Council Bruskova Pavla National Cluster Association Bull Peter New Zealand Trade and Enterprise Campbell-Hunt Colin University of Otago Can Ergüder Izmir Development Agency Carroll Neasa Ministry of Economic Development Caselli David MartinJenkins Caughey Tony Northern Leading Caughey Christine Waterfront Auckland Cavanagh Stephen ATEED Chaudhary Mansi Apex Cluster Development Services Chen EeMun MartinJenkins Chrisp Peter New Zealand Trade and Enterprise Christie Julie Eyeworks New Zealand and Australia Clark Tony Ministry of Science and Innovation Collins Anne New Zealand Trade and Enterprise Conners Sarah Council of Textile and Fashion Industries of Australia Conway Peter New Zealand Council of Trade Unions Cooper Geoff Auckland Council Craig Gary Hutt City Council Craig Alison University of Auckland Business School Crowe Michael Desert Knowledge Australia Curbelo José Luis Orkestra - Basque Institute of Competitiveness

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CLICHY HAMILTON RØNNE – BORNHOLM DARMSTADT WELLINGTON VIGO WELLINGTON AUCKLAND JAKARTA AUCKLAND AUCKLAND WELLINGTON AUCKLAND AUCKLAND NAPIER AUCKLAND BERN 7 AUCKLAND AUCKLAND LANCASTER MELBOURNE NAPIER DUNEDIN AUCKLAND AUCKLAND LYON AUCKLAND TUCSON POITIERS AUCKLAND AUCKLAND OSTRAVA WELLINGTON DUNEDIN IZMIR AUCKLAND AUCKLAND AUCKLAND AUCKLAND AUCKLAND NEW DELHI AUCKLAND WELLINGTON WELLINGTON AUCKLAND AUCKLAND MELBOURNE WELLINGTON AUCKLAND LOWER HUTT AUCKLAND ALICE SPRINGS SAN SEBASTIAN

FRANCE NEW ZEALAND DENMARK GERMANY NEW ZEALAND SPAIN NEW ZEALAND NEW ZEALAND INDONESIA NEW ZEALAND NEW ZEALAND NEW ZEALAND NEW ZEALAND NEW ZEALAND NEW ZEALAND NEW ZEALAND SWITZERLAND NEW ZEALAND NEW ZEALAND UNITED KINGDOM AUSTRALIA NEW ZEALAND NEW ZEALAND NEW ZEALAND NEW ZEALAND FRANCE NEW ZEALAND UNITED STATES FRANCE NEW ZEALAND NEW ZEALAND CZECH REPUBLIC NEW ZEALAND NEW ZEALAND TURKEY NEW ZEALAND NEW ZEALAND NEW ZEALAND NEW ZEALAND NEW ZEALAND INDIA NEW ZEALAND NEW ZEALAND NEW ZEALAND NEW ZEALAND NEW ZEALAND AUSTRALIA NEW ZEALAND NEW ZEALAND NEW ZEALAND NEW ZEALAND AUSTRALIA SPAIN

Delegates

Daly Neil ATEED AUCKLAND NEW ZEALAND Damgaard Torben University of Southern Denmark KOLDING DENMARK Daya Linda-Rose New Zealand Trade and Enterprise WELLINGTON NEW ZEALAND de Almeida Sônia Sebrae SÃO PAULO BRAZIL De Zoete Jan University of Auckland Business School AUCKLAND NEW ZEALAND Dean John Bremer and Company GRIFFITH AUSTRALIA Dervojeda Kristina PricewaterhouseCoopers THE HAGUE NETHERLANDS Devine Hilary Ministry of Economic Development WELLINGTON NEW ZEALAND Dixon Adrian Opportunity Hamilton HAMILTON NEW ZEALAND D’Lima Nisha Mount Albert Grammar School AUCKLAND NEW ZEALAND Do Hong Hanh Esquel Group HANOI VIETNAM Douglas Jo Waikato Institute of Technology HAMILTON NEW ZEALAND Downes Malcolm KPMG AUCKLAND NEW ZEALAND Dundon-Smith David Department of Labour WELLINGTON NEW ZEALAND Dunn Adele University of Ulster BELFAST NORTHERN IRELAND Echeverri Jaime Medellin-Antioquia Chamber of Commerce MEDELLIN COLOMBIA Edwards Aileen Wellington City Council WELLINGTON NEW ZEALAND Eklund Lars Scandinavian Competitiveness Group STOCKHOLM SWEDEN Elphick Anna New Zealand Trade and Enterprise WELLINGTON NEW ZEALAND Enright Michael Enright, Scott and Associates CENTRAL HONG KONG Ferrier Andrew CANZ Capital AUCKLAND NEW ZEALAND Ffowcs-Williams Ifor Cluster Navigators NELSON NEW ZEALAND Fistonich Karen Villa Maria Estate WELLINGTON NEW ZEALAND Flitter Justin Flitter AUCKLAND NEW ZEALAND Ford Pam ATEED AUCKLAND NEW ZEALAND Fraczek Dorota Polish Agency for Enterprise Development (PARP) WARSAW POLAND Fraser Malcolm The Future Cities Institute AUCKLAND NEW ZEALAND Frater Paul Greenchip WELLINGTON NEW ZEALAND Frauenlob Hans New Zealand Trade and Enterprise AUCKLAND NEW ZEALAND Frederick Farah Monterrey Convention Bureau MONTERREY MEXICO Freije Inmaculada Basque Department of Industry VITORIA-GASTEIZ SPAIN Gadd Bruce New Zealand Trade and Enterprise WELLINGTON NEW ZEALAND Gale Carolyn Clear Communication Group LOS ALTOS UNITED STATES Gallagher Mark Ministry of Science and Innovation AUCKLAND NEW ZEALAND Genoff Rodin Rodin Genoff & Associates SYDNEY AUSTRALIA Ghiggino Ron City of Greater Dandenong DANDENONG AUSTRALIA Gil de San Vicente Ibon Orkestra - Basque Institute of Competitiveness SAN SEBASTIAN SPAIN Goh Esther Tangiblemedia AUCKLAND NEW ZEALAND Gollan Elizabeth ATEED AUCKLAND NEW ZEALAND Gomas Claire Auckland Council AUCKLAND NEW ZEALAND Grace John Dept of Innovation, Industry, Science and Research WOLLONGONG AUSTRALIA Grant Darryn ATEED AUCKLAND NEW ZEALAND Guimarães Ilse Maria Biason Assintecal NOVO HAMBURGO BRAZIL Gunnarsson Ewa Luleå University of Technology LULEÅ SWEDEN Haasis Klaus MFG Baden-Württemberg STUTTGART GERMANY Haessel Roger Community Futures Entre-Corp MEDICINE HAT CANADA Hall Melissa Ministry of Economic Development AUCKLAND NEW ZEALAND Hasar Emin Çetin Izmir Development Agency IZMIR TURKEY Hawkey David Auckland Council AUCKLAND NEW ZEALAND Howaldt Jürgen TU Dortmund DORTMUND GERMANY Hurnard Megan New Zealand Trade and Enterprise WELLINGTON NEW ZEALAND Hussni Ivan Sebrae SÃO PAULO BRAZIL Ingstrup Mads Bruun University of Southern Denmark KOLDING DENMARK

Competitiveness from the Edge

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Delegates

Jamison Linda Invest NI BELFAST NORTHERN IRELAND Jeffrey Richard Telstra Pacific AUCKLAND NEW ZEALAND Jensen Bjarne REG LAB/Netmatch COPENHAGEN DENMARK Johansson Cecilia VINNOVA STOCKHOLM SWEDEN Johnston Hayden MartinJenkins WELLINGTON NEW ZEALAND Jones Sarah Dept of Innovation, Industry, Science and Research BURNIE AUSTRALIA Joseph Betsy AUCKLAND NEW ZEALAND Jowett Stephanie Auckland Council AUCKLAND NEW ZEALAND Kahlen Tim ATEED AUCKLAND NEW ZEALAND Kapoor Amit Institute for Competitiveness GURGAON INDIA Kelly Mark Dept of Innovation, Industry, Science and Research WAURN PONDS AUSTRALIA Kerrigan Mary Papatoetoe High School AUCKLAND NEW ZEALAND Ketels Christian Harvard Business School BOSTON UNITED STATES Kevany Kevin NZ Manufacturer HAWKE’S BAY NEW ZEALAND Kinney Hilary Glantek MALLUSK NORTHERN IRELAND Kirkpatrick Nigel Grow Wellington WELLINGTON NEW ZEALAND Knuckey Stephen MartinJenkins AUCKLAND NEW ZEALAND Koziarski Alan New Zealand Trade and Enterprise SINGAPORE SINGAPORE Kunt Vedat Vego Consulting IZMIR TURKEY Lauridsen Louise REG X KOLDING DENMARK Le Pla Ruth NZ Management Magazine AUCKLAND NEW ZEALAND Lennon Sasha SGS Economics and Planning BRISBANE AUSTRALIA Lill Michael IHK Zetis GmbH KAISERSLAUTERN GERMANY Lindqvist Göran Center for Strategy and Competitiveness STOCKHOLM SWEDEN Lins Priscilla Sebrae BELO HORIZONTE BRAZIL Ljubownikow Grigorij University of Auckland RAGLAN NEW ZEALAND Love Andrew New Zealand Trade and Enterprise WELLINGTON NEW ZEALAND Lund Rikke REG X KOLDING DENMARK Lyman Ted IHS Global Insight OAKLAND UNITED STATES Lynn Brett East Gippsland Shire Council BAIRNSDALE AUSTRALIA Macdonald Finlay MC AUCKLAND NEW ZEALAND Mace William Fairfax Media AUCKLAND NEW ZEALAND Mallinson Mary-Ellen New Zealand Trade and Enterprise WELLINGTON NEW ZEALAND Martí Joan ACC1Ó Competitiveness for Catalonia BARCELONA SPAIN McConnell David ATEED AUCKLAND NEW ZEALAND McCord Mark Deloitte Consulting LLP ROSSLYN UNITED STATES McElroy Sean Charles Parsons AUCKLAND NEW ZEALAND McKinnon Suzanne ATEED AUCKLAND NEW ZEALAND McPherson Grant New Zealand Trade and Enterprise AUCKLAND NEW ZEALAND Meharg Tracy Invest NI BELFAST NORTHERN IRELAND Meijide Alberto University of Santiago de Compostela SANTIAGO DE COMPOSTELA SPAIN Messing Jan Dalarna Research Institute FALUN SWEDEN Mikalauskaite Reda Associacion New Generation Science and Business Cluster KLAIPËDA LITHUANIA Mikkelselsen Bent Central Denmark Region VIBORG DENMARK Millynn Gavin Auckland Council AUCKLAND NEW ZEALAND Mitchell Shaun Aviation Industry Cluster HAMILTON NEW ZEALAND Mitchell Ian CITL AUCKLAND NEW ZEALAND Montoya Manuel Automotive Cluster of Nuevo Leon MONTERREY MEXICO Moreno Jaime National Competitiveness Council SANTO DOMINGO DOMINICAN REPUBLIC

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Competitiveness from the Edge

Delegates

Moroney Bryan Dept of Innovation, Industry, Science and Research WAURN PONDS AUSTRALIA Morris Claire ATEED AUCKLAND NEW ZEALAND Nawangwe Barnabas Makerere University KAMPALA UGANDA Nicholls Bessie ATEED AUCKLAND NEW ZEALAND Norrström Lena Triple Steelix - Industrial Region BORLÄNGE SWEDEN Nygård Skalman Karin VINNOVA STOCKHOLM SWEDEN Odhe JanErik Steel & Engineering KRISTINEHAMN SWEDEN Oiarbide Leire TCI Network BARCELONA SPAIN O’Riley Brett Ministry of Science and Innovation AUCKLAND NEW ZEALAND Palmer Rory Auckland Council AUCKLAND NEW ZEALAND Patterson Andrew RadioLIVE AUCKLAND NEW ZEALAND Pezzi Alberto TCI Network BARCELONA SPAIN Pollock Richard Te Puni Kôkiri (Ministry of Mâori Development) WELLINGTON NEW ZEALAND Potter Mark KPMG AUCKLAND NEW ZEALAND Proudfoot Ian KPMG AUCKLAND NEW ZEALAND Provoost Donna Ministry of Science and Innovation WELLINGTON NEW ZEALAND Quinn Gerard Canterbury Development Corporation CHRISTCHURCH NEW ZEALAND Ramsawak Richard Arthur Lok Jack Graduate School of Business MOUNT HOPE TRINIDAD AND TOBAGO Redman Elizabeth IHS Global Insight OAKLAND UNITED STATES Reilly Elaine Vision Manawatu PALMERSTON NORTH NEW ZEALAND Restu Widi Ambawani Bank Indonesia JAKARTA INDONESIA Reve Torger BI Norwegian Business School OSLO NORWAY Reynolds Cheryl SODA Inc HAMILTON NEW ZEALAND Rezec Irena WOTRA d.o.o. LJUBLJANA SLOVENIA Richards Brian Brian R Richards AUCKLAND NEW ZEALAND Rocha Afonso Sebrae BELO HORIZONTE BRAZIL Rodríguez Martha Universidad de los Andes BOGOTÁ COLOMBIA Rogers Clyde ATEED AUCKLAND NEW ZEALAND Roots Tim New Zealand Trade and Enterprise AUCKLAND NEW ZEALAND Salvador Marynella Corporación para la Competitividad e Innovación COPIAPÓ CHILE Sandred Jan VINNOVA STOCKHOLM SWEDEN Schofield Janet Auckland Council AUCKLAND NEW ZEALAND Scott James University of Auckland Business School AUCKLAND NEW ZEALAND Seath Samantha Economic Development Agencies NZ WELLINGTON NEW ZEALAND Segantini Monica Sebrae BELO HORIZONTE BRAZIL Shaw Jasen New Zealand Trade Centre AUCKLAND NEW ZEALAND Sheresheva Marina Higher School of Economics MOSCOW RUSSIA Shotter Heather Committee for Auckland AUCKLAND NEW ZEALAND Singh Rajveer Apex Cluster Development Services NEW DELHI INDIA Skilling David Landfall Strategy Group SINGAPORE SINGAPORE Smedh Emma SLIM project Region Värmland KARLSTAD SWEDEN Smith Haylon New Zealand Trade and Enterprise WELLINGTON NEW ZEALAND Solomon Mark Ngai Tahu CHRISTCHURCH NEW ZEALAND Soop Teresa Stockholm Science City Foundation STOCKHOLM SWEDEN Sorvari Rauli Estele Limited JYVÄSKYLÄ FINLAND Stevens Philip Ministry of Economic Development WELLINGTON NEW ZEALAND Stille Renate Embassy of Brazil WELLINGTON NEW ZEALAND Stuart Joseph Ministry of Science and Innovation WELLINGTON NEW ZEALAND Stürzebecher Daniel MFG Baden-Württemberg mbH STUTTGART GERMANY Tavares-Lehmann Ana Teresa Universidade do Porto PORTO PORTUGAL Thompson Norm Air New Zealand AUCKLAND NEW ZEALAND Thomsen Morten Danish Agency for Science, Technology and Innovation COPENHAGEN DENMARK

Competitiveness from the Edge

Kia Ora

Delegates

Timmins Jason Department of Labour WELLINGTON NEW ZEALAND Toh Eu Jin Ministry of Trade and Industry SINGAPORE SINGAPORE Tonnisson Rene Baltic Innovation Agency TARTU ESTONIA Townsend Peter Canterbury Employers’ Chamber of Commerce WELLINGTON NEW ZEALAND Tronchin Enrico Ministry of Science and Innovation AUCKLAND NEW ZEALAND Trundle Stuart Venture Taranaki NEW PLYMOUTH NEW ZEALAND Tupuhi Glen Auckland Council AUCKLAND NEW ZEALAND Va’a Makisi Asotasi Department of Labour AUCKLAND NEW ZEALAND Valdenebro Patricia TCI Network BARCELONA SPAIN van Delden Ben KPMG AUCKLAND NEW ZEALAND Vicioso Dolores dr1.com SANTO DOMINGO DOMINICAN REPUBLIC Vimberg Indrek Estonian ICT Demo Center/ICT Export Cluster TALLINN ESTONIA Vladimirov Yury Higher School of Economics MOSCOW RUSSIA Vujnovich Tony ATEED AUCKLAND NEW ZEALAND Walker Richard Economic Development Australia OYSTER BAY AUSTRALIA Wall Garry G J Wall and Associates QUEENSCLIFF AUSTRALIA Walsh Dermot Whisple BELFAST NORTHERN IRELAND Weightman Heidi Onehunga High School AUCKLAND NEW ZEALAND White Tim KPMG AUCKLAND NEW ZEALAND Whittred Greg University of Auckland Business School AUCKLAND NEW ZEALAND Williams Mats SLIM project Region Gavleborg FALUN SWEDEN Willis Nicky New Zealand Trade and Enterprise WELLINGTON NEW ZEALAND Wilson James Orkestra - Basque Institute of Competitiveness SAN SEBASTIAN SPAIN Wright Alan Ministry of Economic Development AUCKLAND NEW ZEALAND Yang Guang Ministry of Economic Development WELLINGTON NEW ZEALAND Yao Xianbin Asian Development Bank MANDALUYONG CITY PHILIPPINES Yarwood Vaughan University of Auckland Business School AUCKLAND NEW ZEALAND

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Competitiveness from the Edge

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