TCI 2014 Conference Abstracts by TCI Network

ORGANIZATION

TCI NETWORK

NUEVO LEON STATE GOVERNMENT

NUEVO LEON ECONOMIC DEVELOPMENT SECRETARIAT

NUEVO LEON CLUSTERS

AEROSPACE CLUSTER (AEROCLUSTER)

AGROALIM CLUSTER (AGROCLUSTER)

BIOTECHNOLOGY CLUSTER (BIOCLUSTER)

AUTOMOTIVE CLUSTER (CLAUT)

HOME-APPLIANCES CLUSTER (CLELAC)

NANOTECHNOLOGY CLUSTER (NANO)

MONTERREY HEALTHCARE CITY CLUSTER (MONTERREY, HEALTHCARE CITY)

SOFTWARE AND ICT CLUSTER (CSOFTMTY)

SUSTAINABLE HOUSING AND RENEWABLE ENERGY CLUSTER (HOUSING CLUSTER)

INTERACTIVE MEDIA AND ENTERTAINMENT CLUSTER (MIMEC)

TRANSPORTATION CLUSTER

Index What is TCI Network

Message from Authorities

Agenda

Cluster Tours

Speakers

Conference Abstracts

Parallel Sessions

Parallel Sessions Abstracts

What is TCI Network TCI Network is the leading global network of main organizations and practitioners with deep expertise in clusters and competitiveness, who collaborate in a unique open, flexible and practical context to advance in the practice of competitiveness, innovation and cluster development. Founded in 1998, TCI is a non-profit, non-governmental organization with a global scope, open to members from all continents. Through its activities, TCI reaches out to 9,000 practitioners from development agencies, government departments, cluster organizations, academic institutions, companies and multilateral organizations in over 110 countries.

TCI Mission:

TCI Vision:

Support the effective use of cluster-based economic development approaches as tools to raise the competitiveness and innovative capacity of firms, cities, regions and countries.

Be the leading global network of professionals and organizations active in cluster-based economic development.

Message from Authorities Christian Ketels

Rodrigo Medina

Rolando Zubirรกn

Agenda

Marco Llinรกs

TCI Networking Session

Cluster tours Aerospace Cluster Tour Person in charge: Pauline Medori, General Manager of the Monterrey Aero Cluster

• EGADE – Opening Conference • FRISA / www.frisa.com • Center of Investigation and Innovation in Aeronautical Engineering (CIIIA-UANL) / www.fime.uanl.mx/CIIIA • Hawker Beechcraft / www.beechcraft.com

Software and ICT Cluster Tour Person in charge: Guillermo Safa Barraza, General Manager of the Nuevo Leon Sortware Advisory Council, CSOFTMTY

• EGADE – Opening Conference • NARANYA / www.naranyaventures.com • SOFTTEK / www.softtek.com • PIIT / www.piit.com.mx • ALESTRA / www.alestra.net.mx

Automotive Cluster Tour Person in charge: Manuel Montoya Ortega, General Manager of the Automotive Cluster, CLAUT

• EGADE – Opening Conference • SISAMEX / www.sisamex.com.mx • PIIT / www.piit.com.mx • CIIDIT - Centro de Investigación de la UANL / www.ciidit.uanl.mx

The Home-Appliances Cluster Tour Person in charge: Cecilia Carrillo, General Manager of the Home-Appliances Cluster

• EGADE – Opening Conference • CARRIER / www.carrier.com.mx • MESA / www.mesa.ms • UDEM / www.udem.edu.mx

Monterrey Nanotechnology Cluster (MNC-9) Person in charge: Jaime Acevedo, General Manager of the Monterrey Nanotechnology Cluster

• EGADE – Opening Conference • University of Texas at Austin Center for Global Innovation and Entrepreneurship / www.utexas.edu • Advanced Materials Research Center CIMAV / www.cimav.edu.mx • Monterrey Nanotechnology Start Ups Incubator

Agri-Food Cluster Person in charge: Adriana Luévano and Tanya López

• EGADE – Opening Conference • GRIFFITH / www.griffithlaboratories.com • PIIT / www.piit.com.mx • SUCABRITO / sucabrito.com

Housing Cluster Tour Person in charge: Víctor Salazar, General Manager of the Sustainable Housing and Urban Development Cluster

• EGADE – Opening Conference • CEMEX / www.cemex.com • Prolec / www.prolec.com.mx • Viakable Xignux / www.xignux.com

Speakers Luis Oliver Torres García Mr. García holds a Master’s Degree in Public Administration by the Tecnológico de Monterrey and has been certified by the International Economic Development Council and the Economic Development Institute of Oklahoma State University as an Economic Developer Specialist. As Coordinator of Economic Development Council of Chihuahua, he develops regional planning in order to improve local economies. Founder of the Latin American TCI Chapter and Technological Companies Development – EBT’s specialist, he has been a member of The Competitiveness Institute since 2006.

Guillermo Constancio Acosta Mr. Constancio is Secretary of Industry, former director of the Institute of Economic Research of the Stock Market of Córdoba and founding director of Innovative Projects SRL. He holds a bachelor’s degree in Economy by the Economics Faculty of the Universidad Nacional de Córdoba, and is Master in Economy by the Universidad Empresarial Siglo 21. Mr. Constancio is also professor at the Faculty of Economic Science and the Center of Advanced Studies of the Universidad Nacional de Córdoba. He has served as a consultant and contributed to a number of publications.

Fidel Otake Fidel Otake is vice-president of GKN Driveline Mexico, president of the Automotive Cluster of Guanajuato and former CEO of the Transeje and Velcon plants of DESC Automotive. He graduated from the Instituto Politécnico Nacional and holds a Master΄s degree in Human and Organizational Development by the Universidad de Celaya. He has collaborated as an evaluator for the National Quality Prize, a counselor at EMPRESER business incubator, the Knowledge Consortium and Universidad Politécnica, and a member of the Council of Economic Development of the State.

John Spears John Spears is the Director of Innovation Clusters and Skills Initiatives at the U.S. Small Business Administration, and leader of ScaleUp America; supporting high-potential small businesses. Previously, he served as a senior advisor in the Office of Government Contracting and Business Development at SBA. Former State Director in Massachusetts and in Indiana for Organizing for America, he led efforts to support President Obama’s legislation. He graduated from Southeastern College in Religion, and from Boston College in Policy, Organizing and Administration.

Hugo Lara Graduated from Chemical Engineering at Universidad La Salle, he has an MBA in Business Administration and one in International Business by Tecnológico de Monterrey. He was CEO, vice-president of the Flat Glass Division and Commercial Director in the Glass Containers Division at Vitro; and Commercial and General Director at Parmalat. He worked at SC Johnson and Grupo Christianson in the commercial and business development areas in Latin America. He is currently an independent advisor and consultant on government, corporate, operations and sales topics.

Scott E. Paradise Mr. Paradise is vice president of Marketing and Business Development for Magna International. He is actively involved with the Magna groups and is senior manager from the OE’s. He oversees the Magna Corporate North American marketing group and the Magna web-site. His background includes the roles of Vice President, Sales and Marketing for Decorative Trim and Seating at Douglas & Lomason; in-plant manufacturing and management with Sealed Power heavy stamping operations; and estimating and sales at Northern Engineering overhead crane manufacturers.

Jun Yeup Kim Jun Yeup Kim is professor at the Kyung Hee University and collaborates for the FDI Clustering and Regional Development in China. He serves as Economic Advisor of KOICA and referee of Industrial Clusters and Inter-Firm Networks for Edward Elgar Publisher. He is Ph.D. in Planning Studies by University College London, M.Phil. by the University of Cambridge, M.A. in International Area Studies, Major in Chinese Studies by the Korea University, and B.A. in Business by the Tamkang University. He has published many articles on infrastructure and cluster development.

Alfredo Sánchez Alcántara Mr. Sánchez was co-founder of the first Unix computing company in Latin America and chairman and CEO of Onyx Technologies in Silicon Valley, founder of Red Uno, chairman of UNINET, president of Carso Global Telecom, vice chair of Prodigy online service in New York and member of the Board of Directors of Telmex. He co-founded QoS Labs in Mexico and Spribo in Florida, and is member of the Mexican Technology Platform Steering Committee. Mr. Sánchez is also a founding board member of MUSEIC and co-chair of its Regional Innovation Clusters Subcommittee.

Peter Smeets Peter Smeets leads the Metropolitan Food Cluster’s design team adressing the food provision of cities; with projects in Mexico, China, India, the Philippines and Europe. He holds a master’s degree in ecology and a Ph.D. in agricultural sciences, and has been working at the State Forestry Service and the National Physical Planning Agency in the Netherlands. Former manager of the Landscape Department of the Environmental Science Group at Wageningen UR and project director in Transforum, he aimed at innovating for the sustainable development of agriculture.

Kim Zeuli Kim Zeuli is the Senior Vice President and Director of the Research and Advisory Practice at ICIC. She was Vice President and Community Development Officer for the Federal Reserve Bank of Richmond, and director and business consultant with the Corporate Executive Board, Business Leadership Forum, in Washington. Kim has been a professor in the University of Wisconsin’s Agricultural and Applied Economics Department and the University of Kentucky. A graduate of Vassar College, Kim earned a Master and Doctorate in applied economics from the University of Minnesota.

Lotte Langkilde Lotte Langkilde is Director of REG X - The Danish Cluster Academy. She worked for the Danish Ministry of Economics and Business Affairs, serving at the Department FORA, in which she was involved in national and regional innovation strategies, cluster policy and capacity building for cluster managers. Lotte holds a master’s degree in Economics from the University of Southern Denmark and an Advanced Study Certificate in International Economic Policy Research from the Institute fur Weltwirtschaft in Kiel, Germany.

Jaime Lomelín Jaime Lomelín graduated with honors from the Chemical Engineering faculty of the Autonomous University of Mexico. He studied Business Administration at the University of Wisconsin, participated in the High Management course at the PanAmerican Institute of High Business Direction, and at the Stanford Executive Program. He is corporate director of Grupo Bal, president of the Mining Cluster of Zacatecas, and former president of the Mexican Institute of Chemical Engineers, the National Association of the Chemical Industry, and the Mining Chamber of Mexico, among others.

Amado Villarreal González Dr. Villarreal is director of the Regional Development Institute and leads the Strategic Technology Observatory of Monterrey Tech. He is also a research professor at the School of Government and Public Transformation there. Previously, he was Deputy Director of Income Policy at SHCP and Deputy Director of Regulation and Economic Studies of CONAGUA. Dr. Villarreal holds a degree in Economics by Monterrey Tech, and a master and Ph.D. by Tulane University. He is also a graduate of the Executive Program in Public Policy at Harvard University.

Jaime Parada Ávila Dr. Parada is the the CEO of the Innovation and Technology Transfer Institute of Nuevo Leon, and Chairman of the Program Nuevo Leon, Economy and Society of Knowledge. He holds a bachelor degree by UNAM and a Ph.D. in engineering from the University of Sheffield, England. Former CEO of CONACYT, he is a current member of seven CONACYT research centers in the areas of mechatronics and biotechnology, among others. He was awarded the Grand Officer badge by the Order of Merit of the Federal Republic of Germany.

Rolando Zubirán Robert Dr. Rolando Zubirán currently serves as Secretary of Economic Development for the State Government of Nuevo Leon. He has an International Relations degree from the Tecnológico de Monterrey, a Master in Public Administration from the London School of Economics and Political Science and a Master of Public Affairs issued by the Institut d’Etudes Politiques de Paris. He was awarded a Ph.D. as Doctor of Public Policy from the Graduate School of Public Administration and Public Policy.

Jaana Remes Dr. Jaana Remes is a principal at the McKinsey Global Institute in San Francisco. She leads research on productivity, urbanization, competitiveness, and growth. Dr. Remes has a Ph.D. on applied economies from Stanford University and a M.Sc. degree in economics and philosophy from the University of Helsinki, Finland. She previously collaborated as a consultant on McKinsey corporate finance and strategy projects in the US and Mexico, and other international development agencies and universities.

Ken Warwick Ken Warwick is a member of the UKâ&#x20AC;&#x2122;s Regulatory Policy Committee and an economics consultant. He was Director of Analysis in the UK Department for Business, Innovation and Skills. He has also been a senior economist in the UK Department of Trade and Industry, the UK Foreign and Commonwealth Office and the IMF in Washington. Other of his research interests include productivity and economic growth, competitiveness, globalisation, international economics, climate change, regulation, cost benefit analysis and evaluation.

Scott Stern Scott Stern is Chair of the Technological Innovation, Entrepreneurship, and Strategic Management Group at the MIT Sloan School of Management. He held positions as a professor at the Kellogg School of Management and as a Senior Fellow at the Brookings Institution. Mr. Stern is the director of the Innovation Policy Working Group at the National Bureau of Economic Research, and was awarded the Kauffman Prize Medal for Distinguished Research in Entrepreneurship. He holds a BA in economics from New York University and a Ph.D. in economics from Stanford University.

Dane Smith Dane Smith is Managing Director of FSG. He has worked as an adviser with heads of Fortune 500 companies in different industries. He has recently consulted with Coca-Cola, Western Union, Barclays, Prudential, Gold Fields, and Intel, among others. Dane has advised cabinet ministers and heads of state in Latin America and Eastern Europe, and launched National Competitiveness Councils and more than ten industry clusters. He received his B.A. from Harvard, an M.B.A. from Wharton and an M.A. in International Relations from Johns Hopkins University.

Christian Ketels Dr. Christian Ketels is a member of the Harvard Business School faculty at Professor Michael E. Porterâ&#x20AC;&#x2122;s Institute for Strategy and Competitiveness. He holds a Ph.D. from the London School of Economics. Dr. Ketels is President of TCI, a global network of professionals in the field of competitiveness, clusters, and innovation, Honorary Professor at the European Business School Oestrich-Winckel, and Senior Research Fellow at the Stockholm School of Economics.

Klaus Haasis With degrees in Journalism and Media Engineering, Klaus Haasis has over 35 years of experience in the design of communication processes and related systems. He has worked in Creative Industries, in the field of Information Technology and Communication, as well as in the chemical and pharmaceutical industry. He also has experience as a photographer and publicist. Since 1995 he has been the CEO of MFG, one of the most important innovation agencies in Europe. Klaus Haasis is the Director of TCI, the global network of specialists for competitiveness, clusters and innovation.

Rogelio Garza Rogelio Garza holds a BA in Economy from the Tecnol贸gico de Monterrey and a Master in International Trade from the Universidad Pontificia de Comillas in Madrid. He was General Director of the National Chamber of Electronics, Telecommunications and Information Technologies Industries, and private from the Head of the Department, Deputy Director General of International Trade Negotiations and Deputy Director of Negotiations of the Automotive and Electronic sectors at the Ministry of Economy. He was also Quality Coordinator in the ISO-9002 Program.

Thit Juul Madsen Thit Juul Madsen is head of secretariat at Design2innovate as well as a co-founder of the project. She is also head of secretariat for the Danish Design and Architecture Consortium. Her path to Design2innovate has gone via a job as CSR manager in the private firm Eurotex. Thit Juul Madsen holds a Master of Arts degree in Business Innovation and Concept Creation and she studied public administration and international development at Roskilde University, specialising in CSR.

Conference abstracts Monterrey, City of Knowledge: Jaime Parada Ă vila

In 2004, the Government of Nuevo Leon decided to follow a strategy to transform the economy of the state from a manufacture-based to a knowledge-based economy. To achieve this, two main strategies were established: the creation of a technology park to attract research and development centers and the promotion of the clusterization of main industries in Nuevo Leon. In these ten years, Nuevo Leon has been able to attract more than 40 R&D Centers in the technology park with more than 2,000 researchers, and to promote 11 clusters, that fostered collaboration among companies, academic institutions and government.

Opening Conference

Lotte Langkilde, Rolando ZubirĂĄn Christian Ketels (Moderator)

The role of design and creativity in the development of strategic partnerships and innovative clusters was the focus of the discussions among participants in last yearâ&#x20AC;&#x2122;s TCI conference. The TCI community met in Southern Denmark to learn from the best practice on clusters in one of the leading economies in Europe, where innovation and creativity are part of its DNA. This year, the discussion moves to the North of Mexico, a very different setting between the developed economies of North America and the developing world of Latin America. Different parts of the world with different challenges and valuable lessons to share, that will need to get closer to make the global economy a more sustainable one.

The Economy of Mexico, the Challenge of Growth Rogelio Garza

Manuel Montoya (Moderator) After 20 years of Free Trade Agreement with Canada and the USA, Mexico gained a key role in the competitiveness of North America. This led Mexico to attract important Foreign Direct Investments that supported the creation of jobs and the stability of the macro economy of the country. Nevertheless, 2% of the average growth of the country’s GDP in the last 13 years is still low for the required growth in a country of 115 million people where the challenge to close the gap between the poorer and the richer regions is still present. The current federal government has launched important economic reforms, i.e. to open energy production to private investment, the limitation of monopolies in telecommunications industry, a more flexible financial system, etc. Will these reforms allow Mexico to break free from its limited growth? What will be the industrial policy for the country and the role of clusters in upgrading its competitiveness?

Mexico and Latin American Economies

Jaana Remes, Carlo Pietrobelli, Amado Villarreal Alonso Ramos (Moderator)

Latin America accounts for 8% of the world economy. A population of 588 million inhabitants comprises 8.5% of the world population. What makes the difference today is the youth of its population, with an average of a 25 year-old population, in contrast to the developed world with over 40 year-old. With the general increase in life expectancy all over the world, Latin America’s “youth bonus” may give the region an opportunity to meet the needs of other regions with older population. But, what are the obstacles faced by this region to play a more competitive role in the world? What are the main actions that Latin America needs to perform in order to grow as necessary and improve the quality of life and wealth of its people?

Cluster Labs The cluster labs are designed to give interested participants an opportunity to get knowledge and immerse themselves in new and alternative topics related to cluster development. For each cluster lab there is a lab director who is in charge of designing and facilitating his/her own lab. • Room A: Management 3.0 for cluster management • Room B: Cluster Ecosystems Analysis • Room C: Cluster Academy Workshop: Learning from a “cluster region”

Shared Value Creation Dane Smith

Frederic Miribel (Moderator) “The concept of shared value can be defined as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates. Shared Value creation focuses on identifying and expanding the connections between societal and economic progress” (Porter & Kramer, 2011). Dane Smith is the Managing Director of FSG, a nonprofit organization that guides big multinationals and other organizations to promote the creation of shared value projects in developing countries. Dane will present these projects and the kind of benefits that they brings to the communities and multinationals that promote them.

Panel: Birth of Clusters in Mexico

Hugo Lara, Juan Romero, Jaime Lomelín, Fidel Otake Eduardo Ruiz-Esparza (Moderator)

The role of the industry leader in the early stages of cluster creation has been identified as key to its success and continuity. In this session four industry leaders will share their personal experience while promoting a cluster approach in their industry in three different regions of Mexico. The complexities of doing this in a developing country may give some clarity to other regions in the world that may share similar conditions and limitations and, in some cases, certain advantages. 23

Role of Innovation and Entrepreneurship in Competitiveness and Regional Economic Performance Scott Stern

Christian Ketels (Moderator) During the last years, Dr. Scott Stern has been playing an active role as an advisor for the White House in the way the US Government may use innovation and entrepreneurship to gain regional competitiveness and economic performance. As an intellectual leader he has been able to identify the role of clusters as a catalyst for innovation and entrepreneurship in a specific region. What is the US Government doing to promote Innovation and Entrepreneurship at regional level? What lessons can be shared with other regions of the world?

New Cluster Approaches: Inner City Clusters, Metropolitan Food Clusters, Cross National Clusters Kim Zeuli, Peter Smeets, Marc Papell Klaus Hassis (Moderator)

The cluster approach has proved to be effective in different regions of the world when conducted in a serious and professional way. Cluster initiatives have helped to promote collaboration among companies and organizations based in the same region, fostering competitiveness in their industries and taking advantage of their regional conditions. This collaboration among organizations shifts to new and different arenas like big cities, where design and creative clusters flourish in places with an important concentration of talent or where the food chain logistics is bringing together different actors to collaborate, or even to organize collaboration through a market-driven approach. Experiences of these new approaches will be shared in this panel.

Cluster to Cluster Meetings and Regional Development Agencies Meeting The session will provide an opportunity to meet with colleagues working in similar clusters and organizations in other regions of the world. It is a space to share bestpractices and to explore ways of collaboration among similar clusters (Cluster to Cluster Meetings) and among regional development agencies (Regional Development Agencies Meetings).

TCI Networking Session Discover what is going on in the main global network of practitioners working on clusters, competitiveness and innovation. Get to know our people: connect with colleagues from around the world, meet our Board and Secretariat, let us know what your specific needs are and explore how the TCI Network can support your own activity through our services for members.

The Reindustrialization of North America Scott Paradise, John Spears

Eduardo Ruiz-Esparza (Moderator) President Obama had promoted the Reindustralization of the United States organizing national resources to reinvigorate the American Economy. The process of re-shoring is bringing new challenges to the American Idustry, where technology is balancing the higher wages in comparison with the emerging markets costs. In this session the views for the industry wil be complemented with those of the Goverment.

Clusters in Latin America

Jaime Echeverri, Oliver Torres, Guillermo Acosta Patricia Valdenebro (Moderator)

Members of the Latin America TCI Chapter will share the development of the cluster and cluster policy in their regions and countries. Different countries have different manner. What these approaches have in common and what has to be “tropicalized”?

Clusters in North America

Sarah Maxted & Richard Bryden, Alfredo Sánchez, John Spears

Christian Ketels (Moderator)

The Cluster concept was born in the United States but its development had been faster in others regions. How are clusters in North America? What do the world has to know about them and how do regions may collaborate with them?

Clusters Models in the World

Christian Ketels, Scott Stern, Ken Warwick, Ifor Williams, Jaime Parada Karin Gjerlow (Moderator)

Next year we will celebrate the 25th Anniversary of the publication of “The Competitive Advantage of Nations”. Michael Porter’s ideas on clusters have gone beyond his initial proposal of clusters as effective tools to promote economic advantage for regions. Companies, research centers, universities and government organizations have experienced the effectiveness of clusters for collaboration and for building bridges between stakeholders of the microeconomic system. How did clusters evolve in different parts of the world? What works and what doesn’t work? Can some good practices be transferred to other contexts in the world? Relevant academics and advisors to cluster programs from different countries and continents will share their own experiences and thoughts on clusters and the effectiveness of these for promoting successful economic development.

Beyond Industrial Policy Ken Warwick, Ivan Rossignol

Alberto Pezzi (Moderator) In 2013 the OECD published â&#x20AC;&#x153;Beyond Industrial Policyâ&#x20AC;?, a document that gathers experiences held in different regions of the world and that helps to understand what works and what doesnâ&#x20AC;&#x2122;t work when implementing industrial policies. Ken Warwick will present which public policies have been more effective for economic development and which are the conditions that reinforce the efforts by policy makers.

Future Cluster Policy in Korea: Towards Global Collaboration Cluster Program Jun Yeup Kim

Since the Industrial Complex Cluster Corporation Program (KICOX) was launched in 2005, the global innovation clusters have been promoted with special emphasis on building pan-regional networks of industries, universities and research institutes; fostering open innovation and creating a healthy industrial ecosystem. The knowledge spillover among the firms enhances regional competitiveness from an open innovation platform in a knowledge-based and creative economy. Furthermore, each cluster attempts to expand its innovative capacity by reinforcing competition and collaboration with global clusters. By integrating a global collaborative cluster program, huge opportunities and a variety of channels of knowledge and innovation exchange will be created. These different types of connections are a key factor for establishing clusters, through contributing to the local economic development of Korea.

Parallel Sessions Tuesday 11th Parallel Sessions 1 14:30-15:50

1.1 Common problems, common markets and shared value creation. Room A Moderator: Madeline Smith

• Carola Muschke / Hamburg Aviation / The EACP (European Aerospace Cluster Partnership).

• Enric Pedros / CLUSTER FEMAC / ESCP Natureef - European Strategic Cluster Partner-

ship for a natural resource efficient Europe – fostering solutions via cluster cooperation. • Werner Pamminger / Clusterland Upper Austria / Cross-Cluster-Innovation The future is now. • Andres Guimon / Competitiveness / Share Value Creation: the Case of the Healthcare Industry in Barranquilla, Colombia. • Etienne Choupay / Pontificia Universidad Católica de Valparaíso / The Importance of the inter-organizational trust of the actors in a wine cluster as a distinguishing element for its competitiveness”. • Alberto Pezzi / ACCIÓ-Catalonia Government /Cluster 0.0: Back to Basic. Room B

Moderator: Joan Martí • Juan Pablo Zanlungo / Universidad de Chile / Salmon industry in Chile: an industrial resilience case?. • Pavla Bruskova / Tomas Bata University & National Cluster Association-CZ / (Untitled). • Claudia Milena Vaca / Bogota Chamber of Commerce / The Bogota Chamber of Commerce Cluster Initiative: a mechanism to promote shared value. • Carlos Tarrason Collado / Cluster consulting / Shared value creation in the coffee industry in Minas Gerais (MG), Brazil. • Richard Walker / TCI Network Oceania / IP Management in Industry Clusters. • Enrique Díaz Moreno / Businessfokus / The Cluster’s competitiveness perceived by Stakeholders. Indexfokus: The methodology for evaluation of the perceived competitiveness. 28

Academic 1. The role of clusters in creating shared value. Room C Moderator: Emily Wise

• Elvira Naranjo / EGAP Gobierno y Política Pública / The influence of economic clusters performance in the competitiveness of Nuevo Leon.

• Sandra Dijk / University Leipzig / The Clustermanagement as an incubator for Service Innovation

• Saidi Flores / EGAP-ITESM / Methodology for Identifying Potential Stakeholders of a Cluster.The Case of Aerospace Industry in Mexico.

• Judith Cortés / UPAEP-Sintonía / Sintonía, a main actor creating shared value in Puebla, México

• Artemisa Gomez Garcia / Instituto Tecnologico Superior de Tepeaca / Vegetable Cluster ITSTEPEACA.

• Zbigniew Bochniarz / University of Washington / The Role of Clusters in Creating Shared Value.

Parallel Sessions 2 16:10-17:30

2.1 Cluster as a tool to create global innovation winners and increase competitiveness. Room A Moderator: Jaime Acevedo

• Christoph Beer / ICT Cluster Bern, Switzerland / Electro Mobility as a tool for regional

development and clusters. • Espen Warland / Innovation Norway / Global Innovation Winners, Collaboration Project for NCE Clusters in Norway. • Jacques Bersier / Science and Technology Center of the Canton of Fribourg / Fostering Competitiveness through transnational cluster. • Joep Brouwers / Brainport Development / Brainport Industries Cooperation a rather typical cluster. • Rene Tonnisson / Smart City Lab/ How Can Small Countries Use Clusters to Compete on Global Level: The case of Estonian smart city lab cluster initiative. 29

2.2 Cluster implementation in different parts of the world. Room B

Moderator: Víctor Salazar • Jose Vicente Mogollón / The Cluster Competitiveness Group / How to maximize implementation of cluster initiatives: the role of government and the importance of capacity building:The case of Colombia (2010-2014). • Marco Llinás / Alejandro Caicedo / Red Cluster Colombia / Colombian Cluster Network (“Red Cluster Colombia” - RCC) and Colombia’s cluster development efforts. • Evgeniy Kutsenko / Higher School of Economics (Russia) / Trust in society and cluster program design in Russia. • Marc Papell / CLUSTER DEVELOPMENT COLOMBIA / Differences between clusters in America and the rest of the world. • Ulrich Harmes-Liedtke / PTB and Mesopartner / The role of Quality Infrastructure Cluster Competitiveness.

Academic 2. Industrial trends, innovation and the cluster ecosystems. Room C

Moderator: Amado Villarreal • Geunwoo Ryu / Byoungki Kim / Keimyung University/Shiga University / A feasible connectivity on industrial clusters between Dae Gyung in South Korea and Osaka Regional areas in Japan. • Francisco Gasca Sánchez / EGAP ITESM / High Tech Clusters in Urban Areas: Localization and Geographical Nearness with Universities in the Metropolitan Area of Monterrey. • Teresa Paiva / Instituto Politecnico da Guarda / Innovation and knowledge transference in a cluster user‐driven innovation perspective–the Inovcluster experience. • Daniel Covarrubias / Orkestra-Basque Institute of Competitiveness / Promoting Cross--‐Border Inter--‐clustering:The case of the Aquitaine–Euskadi Euroregion. • John Hobbs / Department of Management and Enterprise, Cork Institute of Technology / Visualisation of Linkages in Networked Clusters (V-LINC): Analysis of the ICT Cluster Ecosystem in Cork, Ireland. • Juan Carlos Sosa Giraldo / Consultor Investigador / Innovative Cluster.

Wednesday 12th Parallel Sessions 3 14:30 - 15:50

3.1 Cluster implementation in different parts of the world. Room A

Moderator: Hans Eirik Melandsø • Manuel Montoya / Cluster Automotriz de Nuevo Leon / Building a gold label cluster in Mexico: The Automotive Cluster of Nuevo Leon. • Gaute Moldestad / The Industrial Development Corporation of Norway / The role of a national Norwegian infrastructure of innovation companies in cluster development and operation. • Luis Ramis / Cluster Development / Lessons from more than a decade of policy clusters: Medellin (Antioquia) and Barcelona (Catalonia). • Adolfo Moreno / Medellin Chamber of Commerce / The case of Medellin Health City. • Tiyan Shen / Cluster management in China. • Ines Sagrario / Competitiveness / Cluster-based regional development programs in Latin America and Europe: Failures, successes and lessons learned for the future.

3.2 Topics on new cluster trends. Room B

Moderator: : Enric Pedrós • Jaime Quesado / CEIIA - Cluster of Mobility / Clusters and Reindustrialization. • David Fernández Terreros / SPRI - Basque Country Business Development Agency / Clusters, FDI Policies and Competitiveness in the Light of RIS3: the Basque Country case. • Thit Juul / Design for Clusters and Clusters for Design. • Xavier Ginesta / University of Vic / Building Cluster Brands. Methodological Bases for its Definition and Conceptualization. • Tomás Sibaja / Aerospace Cluster of Baja California / The aerospace industry in Mexico and the embryo role of cluster formation. 31

Academic 3. The evolution of clusters: From the competitive advantage of nations to the cluster initiatives Greenbook 2.0. Room C

Moderator: Jaime Echeverri • Ulrich Harmes-Liedtke / Mesopartner / Is cluster promotion an obvious or complex endeavor? • Elisabet Juan Tresserra / Freelance / The evolution of cluster policies in Europe from regions to cluster organizations: The cluster trap. • Emily Wise / IEC / Research Policy Group at Lund University / Clusters and innovation ecosystems – same-same, or different? • Scott Dempwolf Dempwolf / University of Maryland / The emergence of regional clusters and the role of innovation as a primary driver of economic growth. • Armando Peña Castro / Simon Bolivar University / Key success factors on footwear agglomerations.

Parallel Sessions 4 16:10 - 17:30

4.1 New cluster policies and cluster evaluation. Room A

Moderator: Alberto Pezzi • Hans Eirik Melandsø / Innovation Norway / Introducing the new Norwegian cluster program. • Madeline Smith / Institute of Design Innovation, Glasgow School of Art / Cluster evaluation working group: Collating expertise and evidencing cluster value. • Frederic Miribel / Invest in Lyon / 15 years of Clusters and Pole de Compétitivité in France: Evaluation of a bottom-up and top-down approach. • Lorena Rivera Leon / Technopolis Group / Approaches to cluster policies and evaluation: Evidence from EU initiatives in the last 10 years. • John Hobbs / Cork Institute of Technology / Visualisation of Linkages in Networked Clusters (V-LINC): Analysis of the Biopharma Cluster Ecosystem in Cork, Ireland. • Emily Wise / Lund University / Evaluating the human element in clusters. 32

4.2 Topics on new cluster trends. Room B

Moderator: Carlos Tarrasón • Zbigniew Bochniarz / University of Wahington / Industrial trends, innovation and cluster ecosystems. • Lotte Langkilde / Louise Fenger / Danish Cluster Academy / David meets Goliath: Collaboration between entrepreneurs and large corporations in clusters. • Antonio Ruiz / TASO / Getting long-term sustainable clusters through cluster incubators’ support. • Nadine Barthel / Project Future | Berlin’s Senate Department for Economics, Technology and Research/ Cross innovation: How collaboration with creative clusters boosts other business. • Joan Martí Estévez / ACCIÓ-Catalonia Government / Attraction, retention and professionalization of cluster managers.

4.3 Topics on new cluster trends. Room C

Moderator: Ted Lyman • Éva Skultéti / Pharmapolis Debrecen Innovative Pharmaceutical Cluster / Hungarian best way: From the cluster definition to the world class cluster. Sectors. What is cross innovation? • Ilaria Massari / Politecnico di Milano University - CESVIN Innovation Center / Worldclass cluster born on reindustrialization of the settlement of Olivetti. • Tomas Mejia / Jaime Echeverri / Cluster ecosystem, innovation and sustainability: The case of Medellin. • Cecilia Johansson / Vinnova / An effort to strengthen national growth through crossclustering. • Jose Martinez / IT@Baja/ Clustering small IT companies to attend a big market.

Parallel Sessions Abstracts Parallel Sessions 1 1.1 Common problems, common markets and shared value creation Cluster initiatives try to address common problems that affect the competitiveness of companies and organizations in their regions. New markets are difficult to reach without certain critical mass. Clusters are also beneficial for exploiting economies of scale. Establishing successful cluster initiatives, along with good cluster management, gives the opportunity to identify and solve economic and social failures. The clustersâ&#x20AC;&#x2122; activities generate common solutions to problems and are a helpful tool for companies to gain market access, creating shared value for their members. This track includes presentations related to the following questions: What strategies are followed to identify and address common problems and solutions in cluster initiatives? Is value creation identified by the actors of the cluster? How do the initiatives strengthen the social capital between the cluster actors, and between clusters and their surroundings? This track is relevant to cluster actors that manage the activities of a cluster organization and work out these common problems and activities.

Room A

Moderator: Madeline Smith

The EACP (European Aerospace Cluster Partnership) Carola Muschke / Hamburg Aviation

Hamburg Aviation is not only a Leading Edge Cluster at national level but also was awarded with the Gold Status by ESCA . With the EACP (European aerospace cluster partnership) it also established a best practice in the field of cross regional cluster cooperation. The EACP networking hub gives the European aerospace clusters a permanent platform for information exchange, policy studies and mutual cooperation. This strengthens the sense of European community. The EACP is coordinated in and financed by Hamburg. There are 41 members, all European Aerospace Clusters, including Russia and Turkey. The EACP aims at initiating an active exchange of information and knowledge between all partners and at developing and realizing concrete steps for long-term trans-national coo34

peration between clusters and companies for a stronger and more competitive European position in the world aerospace markets. The EACP is organized as a partnership based on a Letters of Intent. It provides the opportunity for each member to participate in one or several working groups that aim at solving common challenges and contribute to the development of each member cluster to achieve high-level performance by various joint projects. The concrete cooperation is organized via 3 working groups which tackle the following areas: • Skills and innovation: In accordance with the Lisbon Strategy, to contribute to adequate internationally trained human resources needed for innovation and to face the international challenges. • Strategy : To support clusters to achieve a better performance and a sustainable strategic orientation by collecting the best information about: • needs of the market • regional funding programmes • future people • Internationalization: To prepare and support innovative European aerospace clusters to increase their international competitiveness in the context of global market competition. This year we are celebrating 5 years of EACP, a success story ready to be transferred to other sectors or regions.

ESCP Natureef - European Strategic Cluster Partnership for a natural resource efficient Europe – fostering solutions via cluster cooperation Enric Pedros / CLUSTER FEMAC The NATURREEF consortium leaded by FEMAC and formed by other 9 different European clusters was created for promote the efficient management of the natural resources, and that is why in the consortium we can find Agrotechnology clusters, water, biomass, plants, chemical, and ICT clusters. 35

The concept and objectives of ESCP Natureef - European Strategic Cluster Partnership for a natural resource efficient Europe – fostering solutions via cluster cooperation are founded on the regional integration of two European policies: Resource-efficient Europe and Promoting Research and Development as well as Innovation. EU and international Cluster networking is an effective instrument to channel business co-operation initiatives towards innovation that allow the development of dynamic knowledge economies. ESCP Natureef can play a pioneer role by promoting “new model-businesses” willing to design and implement a joint strategy promoting cross-sectoral cooperation and facilitating dissemination and mentoring small and medium companies’ innovative technologies and internationalization in new Natural Efficient Resource Concept that will contribute to societal EU Challenges of better natural resource efficiency. The Consortium has a strong innovation and business focus and its ultimate goal is to see knowledge-based enterprises grow and thrive along with the sustainable and recycle oriented use of natural resource, improving the resources efficiency in the agro chain as well as natural resource-energy chain. On the one hand there is need for further scientific and practical innovations in natural resources management, through targeted research. On the other hand there is need for business development and for adjusting existing techniques from the sectors involved in the consortium, like biomass, energy services, agro technology, water technologies or plant production, to mention some examples and from 10 different EU countries participating and approaches an International scale

Cross-Cluster-Innovation The future is now Werner Pamminger / Clusterland Upper Austria

Cluster Founding was mainly driven by branche focus like automotive, plastics or machinery in the very beginning of cluster development. Looking on the demands on SME focused challenges within globalization it needs a next step to create value and to support innovative companies by topics . The interdisciplinarity approach for those companies is collaboration within competence mapping along the required supply chain for one special interest. This needs a roadmap process where cluster´s and cluster inter-collaboration are of fundamental importance to initialize and to select proper partners. Clusterland Upper Austria and in a leading role the plastics cluster which is one of the 36

largest networks in plastics processing along the whole value chain in Europe started this roadmap process around 5 years ago. With a strategic implementation of so called special interest groups those groups of selected companies are working on one topic and are served and organized by the clusters. First topic was wood plastic composites where plastic processors and wood â&#x20AC;&#x201C; carpenter clusters are working in close cooperation. The second special interest group implemented was the smart plastics initiative (plastics, mechatronics, automotive and design) followed by cross collaboration of plastics, mechatronics and textiles with Plas-Tex-Tron . For Leight Weigth Design a new approach could be started in 2014 with A2LT where steel, leightweigth metal, automotive,mechatronics and plastics are organized and work together in R&D, projects but also marketing to get an international visibility. The presentation will go in detail on how those interdisciplinary companies of different clusters and branches are learning to work together, find international partners with same interests and create added value with transnational collaboration .

Share Value Creation: the Case of the Healthcare Industry in Barranquilla, Colombia Andres Guimon / Competitiveness

In 2010, the Chamber of Commerce of Barranquilla started a Competitiveness Reinforcement Initiative for its local healthcare cluster. The initiativeâ&#x20AC;&#x2122;s objective was twofold: to generate a common strategic vision for the cluster towards value based healthcare, and to define strategic projects that would help local companies transition towards more profitable and sustainable business models. The presentation will argue that cluster initiatives, when conducted with a thorough strategic analysis and the right change management methodology, can be very useful tools to motivate companies and institutions towards thinking about Shared Value and actually putting it into practice. The presentation will build on the Barranquilla case study as it can adequately show how leading healthcare companies and institutions have made specific progress towards creating Shared Value by redefining their products and markets, building new value chains and developing strong collaborations locally. The following are some of the key points to be highlighted in the presentation: 37

• The Strategic Vision “From Reactive to Patient Centered Care”: an opportunity was identified to better serve the demand for chronic care (80% of total healthcare demand) by offering new products and services that focused on maximizing chronic patient health across the whole care continuum. This patient centered strategy required healthcare companies to rethink their role in the value chain and enter into new partnerships with insurers and IT providers, among others, to allow for patients to keep healthy. Also, it was a unique opportunity to generate Shared Value by putting a social benefit (maximizing community health while keeping expenses low) at the center of the business activity. • Creating Shared Value at the Company Level: Procaps example: leading local pharmaceutical company that launched a new business unit in 2011(http://diabetrics.co/), after participating in the cluster initiative, that today provides remote and interactive health services to patients with diabetes in Barranquilla and other places in Colombia. This is having a direct positive impact on the company’s bottom line: it makes business sense to keep patients healthy and out of the hospital, while it obviously has a significant social impact. • Creating Shared Value at the Institutional Level: key role of the Chamber of Commerce of Barranquilla in promoting the strategic vision in the region over the years and partnering with universities and health institutions to generate the right business environment for the transition to occur. Additionally, the importance of training local teams to ensure that Shared Value projects actually get implemented and follow the right direction.

The Importance of the inter-organizational trust of the actors in a wine cluster as a distinguishing element for its competitiveness” Etienne Choupay / Pontificia Universidad Católica de Valparaíso

Multiple influential factors on the competitiveness of a cluster have been studied, yet little attention has been placed on their actors’ interactions (Doloreux and Parto, 2005) and, specifically, how inter-organizational trust contributes to the cluster competitiveness. CEPAL (2010) points out that companies forming a cluster only have access to new conditions of competitiveness and social capital in a territory if they proceed based on trusting relationships. In this context, the aim of this research project is to determine the existing relation between the actors´ inter-organizational trust and competitiveness within a cluster. 38

Even though the beginnings of the clusters in Chile date back to 1998 (Perez-Aleman, 2005), when lumber, salmon fruit, copper, and wine were leading exports, currently there are no cluster policies promoting a fundamental change in the diversification of the economy. A recent report positions Chile on the 6th place of countries with more wine production, which perceived a 2% of increase with respect to year 2012, below Argentina that reaches the 5th position with a 27% increase. That being said, Chile is in urgent need to become a more competitive country (OIV, 2014). McDermott, Corredoira y Kruse (2007) claim that the improvement of wine production in Mendoza (Argentina) is due to the creation of public-private alliances and their associative work. On the contrary, businessmen of the Chilean wine industry do not trust among themselves nor facilitate the coordination of collective action (Visser, 2004). Considering that wine industry needs to be supported by intra-cluster relationships and the associativity of public and private actors, so as to improve its competitiveness, this research is developed through a comparative study of two wine clusters: Casablanca (Chile) and Mendoza (Argentina).

Cluster 0.0: Back to Basic

Alberto Pezzi / ACCIĂ&#x201C;-Catalonia Government This presentation aims to combine the main arguments of my last two interventions at TCI global annual conferences: Bilbao (2012) and Kolding (2013) and to analyze them in connection with this year main theme: clusters and shared value. Clusters existed well before their own name was invented and many years before they started attracting the attention of both academics and policy makers. The reason why they appeared and they continue to be present in our economies is simply because they create shared value for the actors involved. An enhanced tacit knowledge circulation, a greater efficiency in production and a more fertile environment for new business creation are the main outcomes that clusters bring to a territory almost without any policy intervention. Additionally regional development practitioners and policy makers started realizing their potential just a couple of decades ago and they have recently gone further using clusters to structure a variety of programs and initiatives for innovation and regional development. 39

Some important policies like Smart Specialization Strategies in Europe assign clusters a pivotal role in identifying distinctive competitive advantages. Others, like the new wave of reindustrialization in both sides of the Atlantic consider clusters as a key element for rejuvenating the economic fabric and generating new quality jobs. In many emerging economies clusters are taken as a reference to try to emulate successful high-tech hot spots or simply to articulate incipient businesses almost from scratch. Clusters are therefore assuming a great responsibility and, sometimes, a mission impossible especially when they are regarded as the panacea for innovation and economic growth. But, to make clusters release their full potential it is important to know their essence and their basic functioning. My purpose is then to contribute to the discussion regarding the changing role of clusters in the new industrial revolution as well showing the great coincidence between clusters and the concept of shared value. Room B

Moderator: Joan MartĂ

Salmon industry in Chile: an industrial resilience case? Juan Pablo Zanlungo / Universidad de Chile

The main interest of this presentation is to elucidate the applicability of industrial resilience in the salmon cluster in Chile. This case will be discuss in relation to Faroe Island and Norway salmon industries in relation to the common sanitary crisis due to infectious salmon anemia (ISA) virus. The concept of resilience will deepen as an adaptive ability or differential capability of a cluster to face changes. Until 2006, the growth of the Chilean salmon industry was sustained, catching up NorwayÂ´s production. There have been several papers showing the development of this industry and the formation of a virtuous cluster powered by the public system through the granting of property rights and regulations. However, this successful process was interrupted by the appearance of ISA virus, event which was officially recognized in Chile, in July 2007. From that moment the salmon industry suffered the effects of the infectious disease produced by ISA virus, arriving in 2009 to have inactive 60% of the production centers. Nowadays, the salmon industry generates more than direct and indirect 40,000 jobs. Ship40

ments abroad of salmon in 2013 exceeded USD $ 2,500 million annually supported by a record production (over 800 thousand tons). Despite the great crisis that hit the salmon industry, there is little literature to examine the explanations of the output of this collapse; so, the presentation will delve into the process that led to the recovery of the industry, mainly regulatory changes and institutional modifications.

(Untitled)

Pavla Bruskova / Tomas Bata University & National Cluster Association-CZ Since 2002, the Czech Republic has been engaged in the support of cluster development projects amounting nearly 60 Mâ&#x201A;Ź within the EU Structural Funds-based national programs. The return of this public investment can be seen in existing successful cluster organizations as carriers of the shared value creation. With advanced management and high viability, as assessed by the National Cluster Association in 2012, they represent a high performance infrastructure able to accomplish jointly large R&D projects, developed internationalization activities and human resources upgrading actions. The latter can be demonstrated by the Moravian-Silesian Automotive Cluster, Czech Machinery Cluster and IT Cluster in projects bridging the deficit of qualified workforce in technical branches and the high unemployment rate in the region. The path-breaking Cluster of Social Enterprises is at its promising start. However, the regional government stakeholders, so important for the shared value creation through enabling local clusters development, stand aside, as found out by the research carried out by the Faculty of Management and Economics (FaME) of the Tomas Bata University in Zlin. The two-year research grant of the FaME yielded the methodologies for the national and regional cluster policies that received the certification by the Czech Ministry of Industry and Trade. In particular, the Certified Methodology for the Regional Cluster Policy provides the regional policy-makers and officials with the due diligence techniques how to capitalize the regional cluster potential and competitive advantages for the shared value creation. Next to cluster mapping, skilled-facilitator-led cluster initiatives, the incubation of the start-up cluster organizations with the public support is designed including the relevant monitoring and evaluation of the cluster performance and cluster policy impact. The training course for the enhancement of competences of the public sector officials in competitiveness, cluster governance and shared value creation follows to guarantee the effective implementation of the methodology. 41

The Bogota Chamber of Commerce Cluster Initiative: a mechanism to promote shared value Claudia Milena Vaca / Bogota Chamber of Commerce

The Bogotá Chamber of Commerce -CCB- Cluster Initiative program is becoming an effective mechanism to solve societal challenges. The role of the companies, as well as the cluster managers, have been increasingly focusing on identifying mechanisms to enhance the companies and cluster productivity, while at the same time helping others. Programs such as the promotion of the rational use of natural resources, and the use of clean and efficient energy are common examples. Shared value is the main purpose of the Bogotá Chamber of Commerce as the way to contribute to the city´s businesses growth and Bogota´s prosperity. Shared Value is the aim of its new business model. The CCB decided to innovate and offer Bogotá´s business community new scenarios to connect, discuss, and create a joint vision for their future, to promote competitiveness and to play a leading role to solve many social problems driving forward the city´s prosperity. Today the CCB is working with more than one thousand six hundred companies, universities, ID centers and government agencies in 10 clusters initiatives across the diverse spectrum of the city´s economy. There are Cluster initiatives in sectors such as: creative industries, and graphic communication, apparel and textiles, leather goods and footwear, jewelry, cosmetics, software and information technologies and business tourism. The cluster initiatives topics of discussion, strategies and agendas includes themes such as social innovation, better use of natural resources, strengthening suppliers among others activities. The aim of the Chamber is to enhance the role of the private sector as a positive force to transform, improve and resolve many of the city´s current social, environmental and economic challenges. In order to encourage more companies to apply shared value practices, the Bogotá Chamber of Commerce has created the CCB Shared Value Award to recognize business initiatives that contribute to resolve societal needs or problems. During a very important event held last May 6th in Bogota, the President of the Bogotá Chamber of Commerce Ms. Monica de Greiff and the event keynote speaker Professor Michael Porter presented the First CCB Shared Value Award. After the award committee studied more than 50 cases presented by different companies, the Shared Value Award was granted to a financial company due to their efforts to help poor Colombians to access banking services. During his speech, Professor Porter recognized the Bogotá Chamber of Commerce´s role in helping business leaders to become the new heroes of our society. During this conference, we will present you the successful experience of the Bogotá Chamber 42

of Commerce through the establishment of a strategy that works together with the Cluster Initiatives Development program and the Shared Value program, which have represented a combination that promotes the identification and management of projects that have a positive impact on the businesses competitiveness, and at the same time contribute to the construction of a city environmentally friendly and socially sustainable.

Shared value creation in the coffee industry in Minas Gerais (MG), Brazil Carlos Tarrason Collado / Cluster consulting

Minas Gerais is the main producer of green coffee beans in Brazil and Brazil is the main producer and exporter of green coffee in the World. Although better prices are paid to producers in MG in the last years because of differentiation of the green coffee by certifications, quality and identity, there is still a large part of the value that goes to other states and countries where the coffee is processed (roasted, packed, marketed and distributed). Moreover, in the last decade, the small and medium regional coffee industries in MG have been losing competitiveness and profitability competing with multinationals that arrived to Brazil. In this context, SEBRAE-MG that already worked with green coffee producers was requested by the MG industry association to help them. SEBRAE-MG identified an opportunity for processing high value coffees in MG as Brazil is the second world consumer of roasted coffee and society is demanding specialty coffees (following the trend of the USA). To define the strategies to make the most of this opportunity and create new value was applied a methodology that step by step defines the market (Brazil), the business segments (regular, good quality, experience), the evolution of the attractiveness of these segments, the purchasing criteria of clients, the main strategies observed in each segment, the key successful factors in the main strategies, the ideal value chain and different successful business models. The analysis helped old industries and new entrants (green coffee producers, independent roasters) in MG to develop strategies to serve the Brazilian market. All this process generated a new social capital between the cluster actors, as they are not competing among themselves and they are working to develop new business segments in Brazil. Finally, the processing of high value coffee in MG will increase the shared value in the value chain and benefit thousands of families that work on the sector.

IP Management in Industry Clusters Richard Walker / TCI Network Oceania

Collaboration by Australian businesses lags behind the collaboration levels for businesses in other developed economies [The Global Competitiveness Report 2012-13]. In analysing the low rate of collaboration amongst Australian SMEs, the issue of protecting IP was raised as a main reason for not collaborating. Much of this reluctance by SMEs to collaborate is due to a lack of understanding of the mechanisms of collaborative initiatives such as clusters. Before addressing the IP issue it is important to discuss the main aspects of collaboration including the creation of shared values, trust building, open innovation and stakeholder commitment. The development of a commitment codex which all members of the cluster agree to, is essential. IP toolkits can assist this process. In addressing the IP issue, the Australian Government has launched a program to develop an IP toolkit for collaboration accompanied by appropriate training materials. A review of international programs to address this problem include the Lambert Toolkit [UK] and the US UIDP Contract Accords. An 8 year evaluation of the Lambert toolkit in 2013 indicated that whilst knowledge of the toolkit was relatively high amongst research organisations (80%) and large businesses (50%), it was much lower amongst SMEs and more effective communication with SMEs, including case studies, are needed. This paper reviews the toolkits, the evaluation of their effectiveness and makes some suggestions on IP management in Clusters.

The Clusterâ&#x20AC;&#x2122;s competitiveness perceived by Stakeholders. Indexfokus: The methodology for evaluation of the perceived competitiveness Enrique DĂaz Moreno / Businessfokus

Indexfokus gives a chance to the Stakeholders to participate in the competitiveness evaluation of an economic sector, cluster or territory. As the Stakeholder Theory suggests, managing and to take into account the Stakeholdersâ&#x20AC;&#x2122; interest to the design of the strategy, is the best way to obtain and defend competitive advantages and to create value for the organizations. The perception of whom observes the organization from different perspectives, encloses therefore enormous valuable information for its survival and collective development. Working on perceptions, Indexfokus avoids using figures and statistics that hinder and slow down the evaluation process. While answering questions, the evaluators deepen the concepts of competitiveness and 44

align their knowledge with the other members of the organization about the best practices that are applied by the best competitors. The evaluation method uses an ordered script of proposals related to the competitiveness that the evaluator has to weight. First, the evaluator must weigh the importance of Competitiveness Factors involved in the market. Second, the evaluator should assess the degree to which a set of good practices that distinguish the best competitors in each of the Competitiveness Factors is successfully applied to the organization. The Indexfokus Methodology allows the Sectorâ&#x20AC;&#x2122;s leaders to obtain a general perception of its Competitiveness, and contrast the different perceptions of different stakeholders have of it. Indexfokuss has been developed in cloud computing as a management tool and is ready to help Cluster`s leaders to measure and improve the competitiveness.

Academic 1. The role of clusters in creating shared value â&#x20AC;&#x153;The concept of shared value can be defined as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates. Shared value creation focuses on identifying and expanding the connections between societal and economic progress.â&#x20AC;? (Porter & Kramer, 2011) The track will address how clusters are helping companies and nonprofit organizations to collaborate in different ways. Does the activity of a cluster reduce the perception and reality that communities have little benefit from the companies operating in their location? How does the local government address the disconnection between organizations and their communities?

Room C

Moderator: Emily Wise

The influence of economic clusters performance in the competitiveness of Nuevo Leon Elvira Naranjo / EGAP Gobierno y Política Pública

In different subnational competitiveness studies in Mexico (IMCO, 2010; ITESM, 2012), the state of Nuevo Leon ranks among the leaders in competitiveness; there are different factors behind these results. According with the ITESM’s report, the economic performance is a relevant key in the environment of competitiveness and attractiveness where the economic and social activities take place in Nuevo Leon. In this report, the concept of competitiveness includes 196 indicators that show up the state´s competitiveness profile which is summarized in 4 criteria: Infrastructure, Business Efficiency, Economic Performance and Governmental Efficiency. Moreover, the same competitiveness report includes a study about 19 indicators to test the long run competitiveness driving forces in the Mexican states, and again, Nuevo Leon ranks in second position with the strongest environment to successfully perform economic activities. How has the economic evolution of Nuevo Leon been to set the basis of these competitive characteristics? Have there been any specific economic structures and processes in the state to developed competitive advantages? This Mexican state contributes with around the 8% of the national GDP, it is the 3rd best FDI attractor in Mexico, and the GDP per capita is $19,900 USD, well above of the $10,200 USD of the national average. The economic structure of Nuevo Leon has been based mainly in the industrial sector, where performs as the 10.8% of the national manufacturing GDP. Although Services and Commerce sectors represent 55.6% of the state´s GDP, manufacturing activities such as Metal Products; Equipment and Machinery comprises the 38.9% of the manufacturing GDP. The tradition of Nuevo Leon as a competitive economy was established at the beginning of the 20th century, as the result of the leadership of an important entrepreneurialgroup in at the time key sectors as textile, beer, steel, glass, packing, and cement (Cerruti,2000), turning Monterrey (the state´s capital) into the first industrial city in the country. Some authors (Delgado, Porter and Stern, 2012) set the hypothesis that regional economic development occurs when there exists a “group of closely related and complementary in46

dustries operating within a particular region”. We look into Nuevo Leon’s economic performance to assess if such phenomenon is the source of its competitiveness and innovation leadership. Recently a study about regional economic development (Villarreal, 2008) explores the emergence and development of clusters in Nuevo Leon around economic sectors such as automotive, appliances and electric products where the governmental support is relevant to launch cluster initiatives to face the challenges of the new global competence and to participate in the knowledge economy. We set the hypothesis that Nuevo Leon´s competitiveness roots lays on the interaction among the sound production chains of traditional local activities and the linkages of these chains with specialized inputs, services, and economic infrastructure suppliers (human, technological, physical, financial, institutional and natural capitals) supported by the alignment between public and private interests that reinforced an emergent clusterization process.

Cluster management as an incubator for Service Innovation Sandra Dijk / University Leipzig

Focusing on the role of cluster managers and their supply with several supportive services, the aim of this paper is to suggest practical implications for cluster managers in order to consolidate service competence in clusters (e.g. regarding service development in cluster companies). As a result service innovation in clusters can be fostered, competitive advantages be generated and last but not least an endogenous paradigm shift towards serviceoriented-thinking be initialized. The evident importance of services in general is indisputable; the same is true for service innovation. However service mentality seems to be a problem, especially for producing firms. On the one hand the problem manifests in the inadequate consideration of servicesignificance. Producing firms often just rely on their core competences, ignoring opportunities which may come with an additional offer of services. On the other hand, if services are developed it happens “along the way” without a systematic approach and services often do not match with customer’s needs. Based on a survey with 98 German cluster mangers the same problem for firms in clusters was identified. To overcome this challenge, the specific structure of clusters, meaning a centralized management, can be exploited to precisely address service specific issues to cluster members. The application of service management as well as service science outcomes can induce sustainable success regarding service development and service innovation in clusters. 47

Methodology for Identifying Potential Stakeholders of a Cluster. The Case of Aerospace Industry in Mexico Saidi Flores / EGAP-ITESM

The principle of shared value involves creating economic value in a way that also creates value for society, not by social responsibility, philanthropy or sustainability; but economic success. This perspective focuses on improving growing techniques and strengthening the local cluster of supporting suppliers and other institutions in order to increase efficiency, yields, product quality, and sustainability by implementing policies and operating practices that enhance the competitiveness of a company while advancing the economic and social conditions in the communities in which it operates (Porter & Kramer, 2011). According to the authors, there are three ways shared value is created: reconceiving products and markets, redefining productivity in the value chain (energy use and logistics, resource use, procurement, distribution, employee productivity, location) and building supportive industry clusters at the companyÂ´s locations. Particularly, aerospace industry (AI) in Mexico is considered strategic due to the possibilities offered to national business (economic actors strongly connected to the local economy) to be inserted into global value chains, by establishing vertical links which promote the development of positive externalities such knowledge spillover. These effects are by definition social benefits created, in a given space, from the business activity, which may be presented by sharing technology improving supplier quality, efficiency, and productivity. In this sense, location reappears as part of companyÂ´s competitive strategy determining its capacity to generate profits long-term since it is this particular space where are installed supporting companies and infrastructure required. According to Porter and Kramer (2011), stronger local capabilities as training, transportation services, and related industries boost productivity, making it necessary for companies to identify those gaps and deficiencies in areas such as logistics, suppliers, distribution channels, training, marked, organization and educational institutions to cover them. This paper focus on one of the social issues identified by influencing the competitive advantage of the company: supplier access and viability for AI in Mexico. In this sense, a methodology is proposes to identify those economic actors able to establish connections between international companies and local economy. For this two stages of analysis are carried out: first, is determined by using the specialization index (Qij) the degree of specialization of AI in Mexico, to then applies spatial statistics trough the Co-location Quotient (CLQ) statistic in five Mexican entities in order to detect spatial co-location patterns in agglomerations of firms related to the AI. The results indicate that firms in AI tend to co-locate with them48

selves, as well as with sectors such as electronics, machinery and equipment. Additionally, it can be identified differences in regards co-location patters with respect to the productive vocation of each entity. This suggests inputs for the design of industrial policy in terms of clustering policies according to regional productive vocations.

Sintonía, a main actor creating shared value in Puebla, México Judith Cortés / UPAEP-Sintonía

Sintonía, created as an Institution for Collaboration (IFC) in the state of Puebla in 2012, has faced diverse challenges in order to establish a new way to understand competitiveness. Based on the model of the Institute for Strategy and Competitiveness (ISC) at Harvard Business School, Sintonía has been providing the infrastructure and support as a regional competitiveness initiative. It has also been using a platform designed to improve the business environment in Puebla without linkage to any administration or political party. Sintonía has been acting as a column which helps to the development and implementation of unique cluster value proposition strategies with a particular interest in promoting shared value projects in organizations and between the key clusters identified in Puebla. After two years of work, Sintonía has achieved important collaboration networks between its members. This paper has the objective to present the advances of three main clusters in Puebla - energy cluster, agro cluster and health clusterwhich have taken shared value as well as collaboration like their main goals to develop collaboration and competitiveness. The Energy Cluster was founded with a very different approach due to Energy Industry peculiarities in México, therefore, the Energy Cluster was first composed by the only government electric company (Comisión Federal de Electricidad). With government employees closely audited in their processes, there was no room left for initiatives so it was practically impossible to find a detonator project. Nevertheless this was not a traditional cluster, it was imperative to find a new strategy. Sintonía discovered a great amount of very small and young companies leaded also by young entrepreneurs that aware of their size and influence had gathered in many different groups. Sintonía has addressed a strong initiative to capitalize these connections and unify wills in a unique cluster share value proposition. Knowing the situation of the migration to the United States of the poblano agricultural workers, Sintonía has proposed in the Agro Cluster, an innovative rural development model tol strengthen the existing production capacity of the suppliers of sorghum through a shared value approach. Between the anchor company –buyer- and the growers in thirty communities across the “Casas Comunitarias” model. This proposes the broadening of 49

the scope of an existing focused support system by using a shared value approach- which provides leadership, coordination and implementation of local hiring, purchasing, placemaking and intentional partnerships between universities, local Firms, a foundation and growers. Finally, Sintonía’s neutral brokers are partnered with the State Government´s Secretary of Health and the Health Cluster to convene the public and private hospitals of Puebla to gain support for their “Zero Tolerance to Maternal Death.” Infant and maternal mortality is a key indicator of competitiveness and quality of life in the national competitiveness index. In order to secure the commitment of all hospitals, Sintonía and the Health Cluster created a “Competitiveness Agreement” between the Department of Public Health, Sintonía and the existing 36 out of 70 hospitals of the state to eliminate Puebla´s rate of mortality through collaboration and shared value approach.

Vegetable Cluster ITSTEPEACA

Artemisa Gomez Garcia / Instituto Tecnologico Superior de Tepeaca The vision of the National System of Technological Institutes is “to be one of the fundamental pillars of sustainable, equitable and sustainable development of the nation”. In teaching, the priority is the development of skills and attitudes that provide students with the ability to meet the challenges of a changing society. Located in the middle of a region where the main activity is the production, purchase and sale of vegetables, Tepeaca´s Institute of Technology, developed a proposal for a shared value project focusing on the connection of economic and social progress with research and technological development generated in the curricula of Engineering in Computer Systems Engineering, Information Technology and Communications, Industrial Engineering and Engineering Food Industry, which covers the process of germination, planting, harvesting and post-harvest production cycle; generating tangible social benefits as the reconception of products and markets, redefining productivity in the value chain and facilitating future development of the local cluster.

The Role of Clusters in Creating Shared Value Zbigniew Bochniarz / University of Washington

The Aviation Valley Cluster (AVC) has been one of the most dynamically developing clusters in Poland since its inception in 2003. The cluster initiative that gave rise to its founding was inspired and financially supported by Polish business leaders and their respective foreign investors. 50

The goal of the eighteen founding members of the AVC was an ambitious one - to build the most competitive aerospace industry cluster in Central and Eastern Europe in one of its poorest regions â&#x20AC;&#x201C; the Podkarpackie Region of Poland. The leaders were encouraged by the legacy of the Central Industrial District (COP) with powerful aviation industry built by the Polish Government in the 1930s just within three years, and by the decades of mass aviation production by the country mainly for other Warsaw Pact members from the end WWII through 1990. The systemic transformation of the 1990s revealed that most of the industry concentrated in few big state enterprises was inefficient with over 40,000 employees and had to be radically reconstructed, including privatization with mass laid offs. The democratic government that assumed power in 1989 was not interested in keeping state ownership of the industry or in continuing to subsidize its inefficient production processes. In order to avoid backlash from militant Polish trade unions, including Solidarity, the leaders of reconstructed aviation companies had to create a new value proposition based on shared values, in collaboration with trade unions and governments at the national, regional and city levels. In addition, they sought to re-integrate the aviation industry based on market principles, as the industry had come to be dominated toward the end of the 1990s by small and medium enterprises (SMEs) suspicious of any integration initiatives. It was a big challenge for the AVC organization to operate in uncharted waters of creating shared values for the major stakeholders and restoring trust amongst them. The paper based on the field research conducted in AVC by an international team recently. It reveals the major AVC initiatives to expand and integrate the cluster mainly by significant investments in human and social capital. In order to make the region more attractive for talented employees, AVC leaders have also promoted development of the Life Quality Cluster, which emphasizes unique local ecological values. Today the AVC has 120 members, over 20,000 employees and over $2 billion revenues, which proved that investment in shared values paid off.

Parallel Sessions 2 2.1 Cluster as a tool to create global innovation winners and increase competitiveness Cluster initiatives are aimed at improving the relationship between companies, and academic and research institutes, reinforcing the innovation ecosystems in regions. The purpose of this track is to understand how companies have increased their competitiveness through innovation projects and other activities, which would not have happened otherwise. We have included presentations showing best practices examples of cluster initiatives engaging in innovation support, which has a positive impact on companies and especially SMEs. The question we raise in this track is: Which role do research centers and providers of competence (e.g. universities) have in the creation of innovative new products and services within a cluster? Best practices and the introduction of new tools are will be discussed. Room A

Moderator: Jaime Acevedo

Electro Mobility as a tool for regional development and clusters Christoph Beer / ICT Cluster Bern, Switzerland

Clusters have to be in the driver seat for innovations. This influences SMEâ&#x20AC;&#x2122;s as well as regions. Performing regions are embedded in a regional innovation system or better called the innovation space. The concept of the innovation space includes innovation support, innovation culture, cluster organisations and innovation philosophies. With the philosophy of openInnovation, a paradigm shift in implementing innovations has started. The openness and willingness to share the intellectual property right and the working tasks as well as the research tasks is one of the important characteristics. This paradigm shift is well supported by the generation Y. This generation follow different values in relation to working environments, knowledge and innovation. The proposed presentation will rise up on one hand openInnovation and cluster as a winning team and on the other hand it will address the following challenges: â&#x20AC;˘ How can openInnovation influence good practice in cluster management? 52

• How can a cluster profit from the innovation space? • How can we improve innovations? • Why do we need a paradigm shift? Some examples of already implemented openInnovation tools (for example Crowd‐Sourcing, Crowd‐Financing and so on) and or process will complete the presentation. Some of the example are results of the EU‐Research Project ELMO’s – Electro Mobility Solutions for Cities and regions.

Global Innovation Winners, Collaboration Project for NCE Clusters in Norway Espen Warland / Innovation Norway

The Norwegian cluster program, now named Norwegian Innovation Clusters, is consisting of 3 program-levels. • Arena – Regional cluster in an early phase • NCE (National Centres of Expertise) - More mature clusters with a national position • GCE (Global Centres of Expertise) – Mature clusters with a global position Almost all members of the NCE and the GCE clusters need a strong innovation focus, to survive in a global market with the high cost levels in Norway. They need to be ahead on efficiency, speed of innovations, new products and strong market position. This is the background for a project initiated by NCE level in the Cluster program called “Global Innovation winners”. The project is a cooperation between the cluster program and all NCE/GCE clusters, over period of time. This is a new way of thinking competence development in the program, together with relevant innovation focus for the clusters and last but not least to think cluster to cluster collaboration in a big scale in Norway. The main goal for the project is to develop and boost the clusters role to initiate Global Innovations Winners among their members. The project has looked into following areas: • What characteristics have known “global innovation winners” • What are critical success factors for such companies? • What are the most important success factors, and on which factors can the Norwegian companies have an advantage • What are the cluster role in initiate and support global innovation winners 53

• Are there any common areas for the NCE clusters to collaborate to develop a Norwegian advantage based on their competence and other premises This project should be interesting for a presentation regarding the new way of cluster collaboration, the collaboration between the cluster program and the clusters, the new way of thinking learning area and competence building and the high focus on results for the cluster members. The project is still ongoing, but we would be able to present the project and the different activities on the conference. Disruptive innovation, Big Data, Systems Engineering, innovation methodic, innovation infrastructure are some of the key words the project have focused on.

Fostering Competitiveness through transnational cluster

Jacques Bersier / Science and Technology Center of the Canton of Fribourg The Alpine Space economy is largely based on SMEs; clusters are a powerful tool to enhance competitiveness. Transnational cluster networks can favour cross-border cooperation and increase the international visibility of cluster initiatives, supporting the EU strategic priority of establishing world-class clusters as drivers for innovation and competitiveness. Added-value of cross-border initiatives are not known or not fully appreciated by the SMEs or the policy maker. They need to be convinced by the added value of transnational cooperation. During the last seven years, the Alpine Space Programme had as it’s main objective to enhance competitiveness and attractiveness in developing transnational cooperation. Many specific objectives have been defined including encouraging innovation, strengthening research and innovation capacities of SMEs and fostering cooperation between R&D centres and SMEs. 57 projects have been supported in three thematic fields called priorities: competitiveness and attractiveness, accessibility and connectivity, environment and risk prevention. The project AlpClusters2020, aims to contribute to the design of an integrated policy approach for the support of transnational cluster networks. The project has reviewed the achievements and the experiences already gained in both the Alpine Space Programme and EU programmes. It has: • Explored how transnational clusters can foster and accelerate internationalization and so facilitate the emergence of new industries. • Valorised achievements of previous initiatives. • Encouraged public-private collaboration. • Support a new policy development process. 54

Brainport Industries Cooperation a rather typical cluster Joep Brouwers / Brainport Development

It was for 8 years that a small group of CEO of high tech suppliers for the large OEM’s in the southern part of the Netherlands (PHILIPS, ASML, NXP, FEI, CANON/Océ and DAF/Packard) sat together and discussed the shared challenges working for those very large global players In this meeting they decided to initiate a research project to find out what were the opportunities and threats working with those global companies and in what way they should have to behave to strengthen their position in the relation to these companies. They invited the large OEM’s to join the project, which they did. This was the start of two large investigations to sort out the best way of corporation between OEM’s and suppliers and what should be the agenda of the suppliers. ’The asked the regional economic development agency to support them in this project. Now, the year 2014 there is a cooperation with more than 90 suppliers called ‘Brainport Industries’. It has a agenda with three program: 1. People: how can they work together with educational institutes to accommodate that they get employees that fit the needs of the companies 2. International markets: all suppliers work with OEM’s on a global market. How can the enter these markets themselves looking for other OEM’s to work for. Reducing individual effort by working together 3. Technology: what are the demands of the OEM’s for the perspective of research and development and how can the work together so every member can get full support to be able to meet the requirements of the OEM’s. My presentation is about the start and the development of this special cooperation and how it has grown so strong during the last three year attracting companies from all over the Netherlands. It will also elaborate on how their shared agenda contributes the competitiveness of the individual members.

How Can Small Countries Use Clusters to Compete on Global Level: The case of Estonian smart city lab cluster initiative Rene Tonnisson / Smart City Lab

Estonia might be well known in some countries for its advanced e-Government solutions and other ground breaking ICT applications in many fields. It might also boost of being the country where Skype comes from but the truth is that it is a very small country with small companies, even Skype has only 500 employees in Estonia, and it has big challenges to compete with global innovation players. Still many people in Estonia firmly believe that Small is Beautiful and it is possible to create global innovation winners outside of Silicon Valley and other leading innovation metropols as the example of Skype demonstrates. The current presentation therefore examines how clusters and cluster initiatives have been used in Estonia to stimulate the growth and internationalisation of the existing companies and creation of new start-up and spin-off companies with aim to support the emergence of new future global innovation winners as Skype. It will also introduce a case study about Estonian ICT cluster initiative Smart City Lab aiming at helping those Estonian companies which have developed different ground breaking ICT solutions and inventions in Estonia to become global winners using for example such novel cluster tools as Living Labs and Start Up Accelerators. The paper ends with some reflections what has Estonia learned from those new cluster based approaches and what other countries might possible learn from Estonian cluster experiences.

2.2 Cluster implementation in different parts of the world For the last 20 years cluster initiatives have been developed in different parts of the world, with different results. In Europe the cluster concept has spread extensively, with different approaches depending on the region. But what has happened in other parts of the world? How have clusters evolved in Asia, Africa, Oceania and Latin America? What works for these regions and what does not? Does innovation have a similar role in clusters in these regions compared to Europe or North America? The main purpose of this track is to present experiences on how clusters can be implemented in regions outside Europe and North America and how they can help to foster regional development. Negative experiences are also important in order to understand what doesnâ&#x20AC;&#x2122;t work in different parts of the world and why.

Room B

Moderator: Víctor Salazar

How to maximize implementation of cluster initiatives: the role of government and the importance of capacity building: The case of Colombia (2010-2014) Jose Vicente Mogollón / The Cluster Competitiveness Group Context of the Rutas Competitivas Program (RCP) in Colombia: • As of 2010, the Colombian Government started preparing itself for what has become today a vital part of its regional competitiveness policy. By doing 3 cluster initiative pilot projects in 3 states 2010, the national government designed a much larger project in 2012 taking into account the following guidelines: • The program must integrate the following 3 elements: • Redefinition of the strategic direction of the cluster • A change process with cluster stakeholders (not more studies) • “Capacity building” of teams of people at the local level • Regions were to be autonomous in terms of the sectors they wish to promote. The national government must not choose forthe regions. • Strong institutions at the national and local level are to beimportant for the continuity of the project. • With the lessons and guidelines from the 2010 pilot, the RCP was born in 2012. The program was carried out in 3 different phases in 18 states, 2 cluster initiatives per state, for a total of 36 cluster initiative projects (CIPs). • After the end of the 1st group of 12 CIPs, around 50 people in 12 different states were already trained in the CIP methodology. However, in order to keep the momentum alive in the regions, the national government also had to adjust its policy instruments in order to better address the clusters strategic needs. In the middle of 2013, the national government rolled out 2 different “instruments” in order to help implement the action plans derived from the new strategic direction of the cluster in each of the 12 states. The 2 instruments: • Instrument to strengthen capacity building and / or implement CIP action plans (IFR004). 57

In this call, the institution had to identify a problem that was an obstacle for growth in the state and possible solutions or alternatives in order to solve the problem. Although this call financed many action plans, a good example is the furniture cluster in Barranquilla, Atlantico. • Problem: to many furniture companies competing in a low value added / traditional furniture business segment, and hence, low growth and few business opportunities. Customers have changed but companies have not. • Alternative: migrate to a “ready to assemble” (RTA) business segment, where customers can buy better-designed furniture, for lower prices but they must partake in the assembly of the piece. • Amongst other lines, IFR004 financed various courses for furniture businessmen interested in migrating to the RTA segment • Instrument to Strengthen “Regional Competitiveness Commissions” (IFR005) • Before RCP in 2012, the Regional Competitiveness Commissions were composed of people in the 32 states of the country in charge of “articulating and coordinating” different competitiveness matters. Such teams did not have a strategic vision and as a result, they ended up carrying out low impact projects with little support from key actors at the local level. As time progressed, they had less public and private sector support. • The RCP helped redefine the role of the Regional Competitiveness Commissions, where they were integrated into the cluster initiative teams, started developing a more strategic vision, and helped implement action plans of the RCP. This allowed them to gain support from the public and private sector as the projects they started doing had much more impact. • This instrument was vital in order to finance those teams working in the regions. Helped strengthen the “institutions” at the local level.

Colombian Cluster Network (“Red Cluster Colombia” - RCC) and Colombia’s cluster development efforts Marco Llinás / Alejandro Caicedo / Red Cluster Colombia

Colombia is currently undertaking the most important efforts in its history –and probably some of the most important efforts around the world– regarding cluster development programs. One example is the Competitive Routes Program led by Innpulsa, through which 36 cluster initiatives are being implemented in 18 departments (regions). Other examples include the cluster development strategies being undertaken by several Chambers of Commerce around the country. A preliminary count adds up to more than 60 cluster initiatives currently being undertaken in Colombia. 58

Through these efforts Colombia is starting to build local capabilities and teams that will allow this type of agendas to be replicated in many other clusters and regions. Given this context, the Colombian Private Council on Competitiveness and Innpulsa decided to launch the Colombian Cluster Network (RCC – “Red Cluster Colombia” – www.redclustercolombia.com) as a way to catalyze these cluster development efforts and to shorten the country’s learning curve in these matters, through the articulation of actors and knowledge exchange. The RCC aims to achieve this objective through the implementation of a set of strategies and tools, such as: (1) a map of all clusters initiatives in Colombia, which will allow the identification of potential areas of collaboration between RCC members; (2) an inventory of government programs and resources that could support cluster initiatives’ underlying agendas; (3) an easy-to-use library with both theoretical and practical documents and relevant links; (4) webinars and forums aimed at sharing good and bad practices and addressing challenges faced by Colombian cluster practitioners; and (5) other tools that will support synergy creation among cluster initiatives in Colombia and abroad. Probably it is too early to call it a success story. However, what Colombia is currently doing in terms of its cluster development efforts –as part of its modern industrial policy and competitiveness agendas– is certainly something worth learning about. Moreover, the RCC initiative sets up a precedent for other countries with regards to what can be done at the national level to articulate local cluster practitioners amongst themselves and with the rest of the world, under the TCI network.

Trust in society and cluster program design in Russia Evgeniy Kutsenko / Higher School of Economics (Russia)

Cluster policy requires a high level of trust between 1) regional actors and the government, 2) regional actors representing different sides of the “triple helix”. Since the level of trust in society directly influences the effectiveness of cluster program, it is important that the design of its instruments includes mechanism to develop (or at least maintain) trust in local/ regional communities. Russian government started the program to support the 25 pilot innovative clusters in 2012. Analysis of the detailed applications from the clusters and results of the special survey conducted in the late 2013, allows to compare the Russian cluster program and the pilot clusters with the European ones (on the base of “Greenbook 2.0” and “Clusters are individu59

als”). Research focus is made on indirect parameters which could “catch” and evaluate the level of trust in regional communities that constitute clusters. Comparison of the European and Russian clusters let us to single out the most obvious weaknesses of the latter regarding issues of trust and culture as a whole: • low number of participants (the indicator of willingness and ability to cooperate with other members of the regional community); • low proportion of private organizations (the indicator of trust of private business to the initiatives of the government); • low proportion of small and medium enterprises (the indicator of power distance in regional communities); • the lack of competition (the indicator of the possibility of coexistence of several influential interest groups in one cluster; stability VS growth; the level of risk avoidance); etc. The state program to support innovative clusters in Russia has traditional design, borrowed elements of administration from the previous programs, and does not contribute to solving identified problems with trust. Fundamental features of even new policy are prone to path dependent.

Differences between clusters in America and the rest of the world Marc Papell / Cluster Development Colombia

I have been worked implementing cluster initiatives in Europe, mainly in Spain, last 14 years, and now I am working with cluster initiatives in different regions of Colombia since 2010, full time locally. From my experience, the main objective, as in Europe as in Latin America, to foster the regional development is always the same: create value through reinforce the competitiveness of the companies in a region. In Latin America, there are some issues that can be considered in different way than in Europe. The social differences and the importance of the base of the pyramid, the different levels of economic development also between regions in the same country, the levels of economic informality, the educational gap, the access to basic services or basic infrastructures, etc.. are challenges that make differences with Europe in how the value is created and then is shared. The presentation wants to reinforce the idea of how the implementation of cluster initia60

tives can help to face these problems creating value through a reinforced competitiveness and sharing it through all the business value chain and the regional environment developing a better connection of the base of the pyramid with markets, better employability, enhanced educational programs, etc. With two real examples CAFĂ&#x2030; and EXOTIC FRUITS I would like to show concrete actions from cluster initiatives that help not only to create value to a reinforced competitiveness but also share value to reduce social gaps for a regional development profitable and sustainable.

The role of Quality Infrastructure Cluster Competitiveness Ulrich Harmes-Liedtke / PTB and Mesopartner

The research on clusters highlights the role of support institutions and an enabling environment in fostering competitiveness. Little attention has been paid to the relevance of technical bodies related to measurement (metrology), standards, and certification and laboratory services. An integrated system of these quality-related services is referred to as the Quality Infrastructure (QI).

The presentation will explain the concept of the QI and clarify its role in integrating clusters and value chains into international trade. Usually, international buyers require that their supplies fulfill various quality criteria, which must be assessed by internationally recognized bodies. Without a well-developed QI in the country, local firms find themselves at a huge disadvantage or even lack any access to promising markets. On the other hand, the establishment of quality services within a cluster helps to upgrade and increase the innovation capability of the whole agglomeration. The conceptual argument will be illustrated by case stories from Latin America and the Caribbean. These experiences were developed within the framework of the International Cooperation of the German National Metrology Institute (PTB) and will give insights into how to develop a national quality infrastructure according to the needs of specific industrial clusters. The methodological background is the CALIDENA approach, which is a participatory platform designed to facilitate cooperation between the stakeholders of a given cluster or value chain and the representatives of the National Quality Infrastructure. The outcome of this kind of collaboration is mutually beneficial: The stakeholders of a cluster are more aware and better informed about quality requirements and services; at the same time, the QI bodies get a clear idea of the real demand for their services, which helps them to be more customer orientated. 61

Academic 2. Industrial trends, innovation and the cluster ecosystems The new cloud approach and virtual manufacturing are leading to new industrial trends, with technology content and more environmental care. How do clusters ecosystems foster innovation to cope with these new industrial trends? Are regions with strong cluster ecosystems better prepared for the new industrial era and for developing their clusters? This academic track brings in research around cluster ecosystem effectiveness for innovation, and how it reacts to new technological challenges. Can policy makers and cluster practitioners have an active role in this? Room C

Moderator: Amado Villarreal

A feasible connectivity on industrial clusters between Dae Gyung in South Korea and Osaka Regional areas in Japan Geunwoo Ryu / Byoungki Kim / Keimyung University / Shiga University

1. Why Traded Clusters are important in Korea? Growth of region-industry employment is known to be a dependent factor of increasing in the size and strength of the regional cluster, of related clusters, and of common clusters in neighboring regions. Strong regional cluster facilitates the creation of industries within that cluster. Cluster strength affects related performance dimensions, such as productivity and innovation. 2. Possibility to Improve Heavy Dependency of Foreign Sector by Effective Regional Policy? Korea has the fourth highest foreign content (over 40%) of its exports amongst OECD countries, with only Luxembourg, Slovakia and Hungary recording higher levels of international fragmentation. Korea exports significantly less, proportionately, to China in value-added terms than it does in gross terms, with higher shares to the United States, Japan and Germany. China remains the biggest source of imports, but there significantly more imports, proportionately, from Japan and Australia in value-added terms by OECD/ WTO, TRADE IN VALUE-ADDED(TIVA) DATABASE, KOREA, 2013. Koreaâ&#x20AC;&#x2122;s trade surplus with China decreases significantly (nearly 80%) in value added terms whilst its deficit with Japan falls close to balance and its surplus with the United States increases significantly. At just over 37% the services content of Koreaâ&#x20AC;&#x2122;s exports is the fourth lowest in the OECD, with only Mexico, Chile and Norway recording lower shares. 3. A Feasible Connectivity on Cross-border Regional Clusters between Two Nations? 62

High Tech Clusters in Urban Areas: Localization and Geographical Nearness with Universities in the Metropolitan Area of Monterrey Francisco Gasca SĂĄnchez / EGAP ITESM

Universities have a high impact in the generation of scientific researches and qualified workers for different sectors composing urban economy. There are empirical results in which universities show that they produce spillovers for some sectors. Hereof, the need to know if universities, in addition to contribute to spillovers, create other kind of effects on urban space, as the agglomeration of certain type of firms around them. Hence this research analyzes the spatial structure of high technology services and their relation with Universities in the Metropolitan Area of Monterrey. By using these spatial statistical techniques, grades of agglomeration were determined for sectors composing the high technology services such as their spatial clusters. The results highlight that all sectors have a sort of concentration degree, therefore a diversity of spatial associations were found in between the high technology clusters and universities. Consequently it can be infer that universities and high technology services display a high spatial association degree in the studied Metropolitan Area, thus more than 50 percent of these services are located in a 1000 meters buffer around universities.

Innovation and knowledge transference in a cluster user-driven innovation perspectiveâ&#x20AC;&#x201C;the Inovcluster experience Teresa Paiva / Instituto Politecnico da Guarda

With this article we pretend to show the importance of assessing trends and promote innovation in a real business context, through a cluster ecosystem, mainly composed by micro enterprises in the agro industrial Portuguese sector. As many studies shows Inovcluster, which has 160 associates from which 120 are enterprises, is also a cluster of a geographic region that improves innovation performance of business seeking to gain competitiveness and capacity to improve their exportations, in the agro industrial Portuguese sector. The role of the cluster is fundamental to create a model to knowledge transfer of innovation capacity, interconnecting its institutional and scientific and business associates. This model 63

has to be adapted to the sector and enterprises characteristics relying in an interconnecting structure more or less decentralized accordingly with the features’ mentioned. Here we present an experience and case study of the Inovcluster ecosystem and trends and innovation transfer to business value creation, contextualized within the smart specialization region strategy. We’ll show how through Inovcluster network establishment it’s possible to integrate different research and academic centers contribution channelized to assist micro enterprises to innovate within a geographical constraint.

Promoting Cross-Border Inter-clustering: The case of the Aquitaine–Euskadi Euroregion Daniel Covarrubias / Orkestra-Basque Institute of Competitiveness

Clusters, inter-clustering, and cross-border regions are all topics that appeal to researchers in different areas of academia and policy research, but few attempts have been made at linking these themes. Further, much of the existing empirical research on inter-clustering explores regional and local attempts, leaving open the possibility of studying this concept at a cross-border regional level. Considering that cross-border cooperation emerged in the areas of economic and regional geography as a response to economic integration and cooperation subjects of the time such as: clusters, industrial districts, networks, trust, embeddedness and cooperation, and that clusters are an established platform for regional economic development and the promotion of competitiveness, this paper outlines the integration of these two subjects within an interclustering initiative – promoting business and innovation cooperation between actors on both sides of a border through the facilitation of clusters. This paper examines the different activities and research that have been conducted under the Aquitaine-Euskadi Euroregion funded project “Analysis of patents, public policy and the innovation system of the Euroregion for the promotion of cross-border interclustering”. It identifies industrial specialization patterns in both regions and evaluates its similarities, differences and opportunities, all while distinguishing the scope which actors of both regions recognize as possibilities for cross-border cooperation. Finally, it assesses the potentials for generating cross-border interclustering collaborations based on the results of the Euroregion’s patent study. 64

Together Aquitaine and Euskadi make up the Aquitaine‐Euskadi Euroregion. This cross- border space is an impressive area totaling just under 7,000 square kilometers with a total population of over 6 million people. This case of cross-border interaction is particularly interesting because both territories share a common cultural background, which is the Basque culture. Even with that common cultural background this united territory features: two different languages (Spanish & French) plus one common language (Euskera), two different economic structures, and more than four different government administrative levels, making interactions between them quite fascinating.

Visualisation of Linkages in Networked Clusters (V-LINC): Analysis of the ICT Cluster Ecosystem in Cork, Ireland John Hobbs / Department of Management and Enterprise, Cork Institute of Technology

This paper applies V-LINC, a methodology which identifies, records and analyses the linkages that firms in clusters engage in, to the information and communications technology (ICT) sector in Cork, Ireland. V-LINC was developed in the Department of Management and Enterprise, Cork Institute of Technology to enrich the academic literature on clusters as it provides visual information on the geographic footprint of industry clusters, and measures the perceived business significance of cluster linkages. The Irish Exporters Association (2013) notes the importance of foreign ICT multinational companies (MNC) to Ireland and its economic recovery. Total exports from the sector grew by 12% in the past year maintaining Ireland’s place as the second largest exporter of computer and IT services in the world. Of the Top 20 exporters listed in the report, 10 are ICT MNCs. The ICT sector contributes exports worth €72 billion per annum, 40% of total national exports (ICT Ireland, 2013). Furthermore, there is a thriving indigenous digital technology sector in Ireland. The indigenous sector alone employs over 30,000 people with total sales of over €2 billion per annum (ICT Ireland, 2013). Opportunities now exist for greater collaboration between the indigenous technology sector and the burgeoning multinational technology companies, and to strengthen the innovation potential of the sector by engaging in co-operative research and development projects with academia. A unique opportunity exists to harness the complementary capabilities of both the multinational and indigenous technology companies, as well as academia in a collaborative manner. Collaboration will allow the technology community to be greater than the sum of its parts, enabling the country to become a leader in ICT. 65

In challenging times it is important that industry players, support organisations and policy makers understand the detail of how the ICT ecosystem operates in Ireland, and its relationships beyond the island.

Innovative Cluster

Juan Carlos Sosa Giraldo / Consultor Investigador Since the mid 1990s, an increasing amount of research has been devoted to study of innovative cluster and network. Scholars from various field such economics (especially industrial economics and new economy geography), as well as economic sociology and strategic management, have engaged in continuous investigations, either theoretical/conceptual, methodological or empirical. Once important and common challenge of these research efforts has been to provide in depth analysis of these spatial dimension and mechanisms (mainly at national or regional level), underlying the clustering and networking phenomena in prominent high tech sector, notably in biotechnology, information and communication technology (ICT), nanotechnologies, new materials, and space and defense industries. This academic interest in innovation cluster and network analysis has been accompanied and encouraged by the growing conviction expressed since late 1990s by many governments and international organizations (notably the OECD and EU), that national competitiveness in a global economy lies paradoxically, as porter (1998) puts it, in local thing. Following this conviction, most government in developed, emerging or developing countries have engaged in, more or less, active cluster policies, national o regional government and international organizations have support and funded a large set of academic research in order to enlighten their choices and actions an favour of innovative sectors and regional development and competitiveness. Among the numerous research issues addresses in the literature, the analysis of the logic (scientific/technological, economical/financial, historical/institutional), behind emergence, structuring and evolution of innovative activities within various geographic areas (metropolitan, regions, countries) appears to be a core topic. In most works, the emphasis is placed on two central issues. The first one relates to the nature and the intensity of the relationships between the key actor involved in innovation activities (especially in high tech sectors): universities and research lab, firms, funding organizations and public/governmental institution. The second issue concerns the relevant spatial geographical scaling of innovative cluster and networks. Of course, behind these issues also lies the conceptual challenge of defining what a cluster is en general, and what is an innovative cluster or innovation network in particular. 66

Furthermore the developing countries, in order to be more sustainable, are faced with the challenge of basing its economic and social development by implementing strategies based on innovation management, knowledge management and creation cluster. The key question facing policy-makers is how best to create the conditions to stimulate innovativeness, and consequently, (Schumpeterian) competitiveness. There is a need to link innovation, knowledge management, human resource and cluster policies. In my study it seeks to evidence the reasons for developing theoretical framework for innovative cluster is of great importance for Latin American countries and a great contribution to the academic. The purpose of my research study to opt a PhD in Management from the Maastricht School of Management, is to study the theoretical aspects of innovative cluster and present a theoretical framework which will be validated in the city of Medellin, a city which is basing its competitiveness and their socio economic development in innovation, knowledge and cluster initiatives.

Parallel Sessions 3 3.1 Cluster implementation in different parts of the world For the last 20 years cluster initiatives have been developed in different parts of the world, with different results. In Europe the cluster concept has spread extensively, with different approaches depending on the region. But what has happened in other parts of the world? How have clusters evolved in Asia, Africa, Oceania and Latin America? What works for these regions and what does not? Does innovation have a similar role in clusters in these regions compared to Europe or North America? The main purpose of this track is to present experiences on how clusters can be implemented in regions outside Europe and North America and how they can help to foster regional development. Negative experiences are also important in order to understand what doesnâ&#x20AC;&#x2122;t work in different parts of the world and why.

Room A

Moderator: Hans Eirik MelandsĂ¸

Building a gold label cluster in Mexico: The Automotive Cluster of Nuevo Leon Manuel Montoya / Cluster Automotriz de Nuevo Leon

The clusterization was proposed originally as a strategy to foster regional economic development, where the local government will promote those industries considered as strategic, to gain competitiveness and develop their value chains. Michael Porter proposed these ideas in his work the Competitive Advantage of Nations, but he havenâ&#x20AC;&#x2122;t give evidence. But we find concrete cases of cluster associations of companies, universities and governments, where they organize common activities that generates benefits and help them to gain competitiveness. In this paper we review the basic concepts about cluster associations and how they work. We present the concrete case of the Automotive Cluster of Nuevo Leon, Claut, where the companies had generated competitive advantages through collaboration. We made a research between the managers of some of the companies and organizations associated, to understand the kind of benefits they got from collaboration. We found that the associates got measurable benefits that varies between the big and medium and small businesses.

The role of a national Norwegian infrastructure of innovation companies in cluster development and operation Gaute Moldestad / The Industrial Development Corporation of Norway

The Norwegian Innovation Cluster program is a collaboration between three governmental institutions, each providing different financial instruments, expertise and operational roles in the program. One of the institutions, The Industrial Development Corporation of Norway (Siva), is dedicated to the task of establishing and developing a national infrastructure of innovation companies and innovation communities. This infrastructure consists of incubators, business parks, research and science parks as well as other networks that constitute a physical environment for innovation. These provide an important innovation capacity in Norway and are essential for the implementation of national and regional industrial policy. Since the cluster program was launched in Norway 12 years ago, the innovation companies have contributed to establishment, development and operation of many clusters. As a result, many clusters have today a close cooperation with the innovation companies. This partnership has created a strong foundation for achieving innovation performance and commercial position for Norwegian industry. For example, the innovation companies are building blocks in the clusters innovation platforms and they are key partners for the innovation communities in the establishment of the necessary physical 68

infrastructure for innovation. Today there are about 150 innovation companies and 40 clusters under the umbrella of The Industrial Development Corporation of Norway. The presentation will provide an overview of the Norwegian infrastructure of innovation companies and how this is organized in addition to examples of the interaction between innovation companies and clusters.

Lessons from more than a decade of policy clusters: Medellin (Antioquia) and Barcelona (Catalonia) Luis Ramis / Cluster Development

As an expert in cluster Development at the forefront of Cluster Development (consultancy company) I have been working since 1995 in the region of Catalonia (Barcelona) developing Cluster Initiatives Furthermore we have developed initiatives in Medellin (Antioquia) in the past 3 years. The aim of my presentation is to show the comparative learning of these two regions (as a sophisticated example of one European region and a sophisticated example of Latin America one) and show some recent examples of clusters Initiative on both sides of the Atlantic in the same business (wit examples from Smart Cities, fashion and food clusters that we have carried out in both regions). Some of these lessons are: • The correct definition of the scope of the cluster initiative as a key success factor in both cases the cluster (cluster mapping ICT-smart city in Medellin, Antioquia) • Need to focus (on both cluster initiatives) in future strategies’ for companies as a key success factor in common initiatives (eg Medellin-Barcelona fashion and food) • More difficult governance issues on long-term initiatives in Latin America (cluster manager, participant’s fees, leading companies...) • Different roles of the stakeholders in each country in the development of initiatives (regional governments in Europe, Chambers of Commerce in Colombia, ...) • Increased emphasis on R & D projects in Europe in the action plans of the clusters • Mayor Need to organize the supply (with potential to be exported) along the value chain in Latin America Cluster Initiatives • … The corporate strategy in a business is quite similar (at a company level) and the business analysis is global. This is a key (a common) point in successful CI’s in both continents. Entrepreneurs are closer than it seems. Governments, policies, stakeholder roles, laws, commitment in public private partnerships,… is where we can find more differences in cluster initiatives in these two realities. 69

The case of Medellin Health City

Adolfo Moreno / Medellin Chamber of Commerce Medellin, Colombia is known for being home of leading institutions of healthcare services in Latin America and also stands out for its high value-added in terms of quality, service, technology, human talent, prices, geographic location, climate and tourism. In 2013, 19 hospitals from Colombia were included in the ranking of the 45 Best Hospitals of Latin America, 7 of them from Medellin and 1 of those recognized as the first “green hospital” in Latin America with Leed Certification. With the purpose of promoting these qualities and strengths at an international level, the Medical Services Cluster “Medellin Health City” was created in 2008 with the private sector leadership and the support of the Medellin City Hall and the Medellin Chamber of Commerce. Between 2010 and 2013 the city had an increase (66% of variation) regarding the number of international patients served by cluster members. Success factors such as the establishment of clear mechanisms for entrepreneurs to participate in market development projects, a measurement system that allows cluster members to set strategies for growth, the creation of an international congress “Medesalud” and a healthcare city brand, were critical during the implementation of this stage. From 2013 the efforts were focused on the identification of new business opportunities pushed by the capabilities and expertise of companies in this industry. The implementation of this phase has required consolidating strong business networks with clear rules among entrepreneurs for decision-making and a sustainability and governance framework linked to business development, as key elements to support the evolution of this cluster initiative.

Cluster management in China Tiyan Shen

In the last few decades, Chinese urbanization is mainly driven by land finance and low valueadded industries, which lead to many problems, like low efficiency of resource utilization, great risk of government finance, underemployment and so on. In this background, cluster is an important choice for the regional development to form competitive advantage. Entering the net era, not only does cluster research stay on investigating and interviewing, but it should also be based on big data and information to establish a database, match the search results and use some tools like market design. 70

Based on the data from industrial enterprises above designated size, out team identifies industrial cluster in China on the basis of input-output analysis. The measure of clusters applies in this research follows the same method as Porterâ&#x20AC;&#x2122;s (2003), which studies regional clusters in the US. After mapping the clusters, we describe the geographical distribution in different regions, analyze different factors including geographical advantage, lifecycle and competitive power that affect the clusters. And then we compare advantages and disadvantages of the same kind clusters. Afterwards, we research on how to manage clusters in China, which is a very difficult problem for local government, based on our cluster map. Although many policies are published to improve cluster competitiveness from central to local government, they are not so effective. One reason is that many policies aim at attracting business, which is just for local government achievements, ignoring local comparative advantage. Therefore, in many industrial parks there are some infrastructures with few enterprises or with some enterprises lacking of linkage. Matching enterprises to industrial parks is the key. According to market design mechanism and recommended algorithm, we plan to build a cluster management system as platform based on the cluster map. This system can help to recommend enterprises and industrial parks to each other, reduce the cost on information gathering, and link government, enterprise and research institution together. In the cooperation of producing, learning and research, knowledge can be translated to productivity. This platform will contribute to systematically, dynamically and scientifically manage industrial clusters.

Cluster-based regional development programs in Latin America and Europe: Failures, successes and lessons learned for the future Ines Sagrario / Competitiveness

The presentation will compare approaches to cluster programs in 3 countries in Latin America (Chile, Brazil & Colombia) vs. 3 regions in Europe (Yorkshire, Rhone Alpes & Catalonia) over the past 20 years. Chile launched a national program in 2009 as part of its decentralization efforts with IADB support and irregular outcomes, which was subsequently dismantled by the next Administration. In Brazil the first experiences with clusters date back to the early 2000s, with the launching of the first Arranjos Produtivos Locais (APLs). Since then a number of leading states have launched full-scale cluster programs, generally with IADB funding, and nationally there has been extensive debate about a APL policy 2.0, learning from over a decade of experience. In Colombia, the central government has engaged over the past 4 years in 71

partnerships with the Regional Competitiveness Commissions to carry out cluster programs with the Chambers of Commerce’s own teams. Outcomes and approaches have varied significantly across these 3 leading countries in Latin America. In Europe too, approaches, results and lessons have been very diverse. Different elements that will be compared include: • National vs. regional approach • Program scale: one-at-a-time focus vs. economies of scale • Integration with other horizontal policies • Consulting vs. methodology transfer • Role of supra-national institutions (EU, IADB) in program funding and definition • Institutionalization of cluster organizations vs. flexible networking Cluster programs have evolved significantly over the past 20 years, and although one cannot apply a cookie cutter approach to cluster development, lessons can and should be shared. The experiences from countries where they have dedicated significant resources can be an important source of lessons learned and recommendations for program design for countries and/or regions that may be only now starting their cluster programs or for others that may be restructuring existing programs and could benefit from others’ experiences.

3.2 Topics on new cluster trends The cluster approach had proven useful for promoting regional economic growth and collaboration between companies, government agencies and academic centers. In the recent years, new approaches for the cluster concept have appeared as a tool to promote innovation and entrepreneurship, to foster Foreign Direct Investment and to create more effective and sustainable economic ecosystems, in order to collaborate between regions. In this track we will share new cluster approaches from different regions.

Room B

Moderator: Enric PedrĂłs

Clusters and Reindustrialization

Jaime Quesado / CEIIA - Cluster of Mobility It is the time of a Reindustrialization Agenda. In the New Competitive Society, where the role of Clusters as the drivers of Innovation and Creativity in economy is becoming more and more important, Europe has a new challenge â&#x20AC;&#x201C; to redefine its value chaine, to integrate the global networks with new ideas, new solutions and new proposals of competence. The industrial imperative is a contract of trust in this agenda of change, an agenda of construction of a new vision for the future. Clusters play a central role in this Reindustrialization Agenda. The focus on new technological and human capital trends is associated with the challenges that clusters ecossystems play, enabling companies, universities and centers of innovation to the battle of value in the future. Clusters demand a new contract of responsibility in terms of results and impacts and the face of the New Industry represent a new vision in terms of information, connectivity, global capability and dynamics of network integrations. Clusters are the key word for a new Industrial Responsability. The Reindustrialization must be centered in an active entrepreneurial culture and attitude. We need Clusters to have a new challenge. Clusters must be able to be the real Platform of a more Entrepreneurial Society, centered in new areas of knowledge and new sectors of value. In a Modern and Active Society, the key word is Co-creation. To promote a dynamic and active creation process involving each citizen is the challenge for the next years in society and Clusters will play a central role in this Agenda.

In the future, the Reindustrialization must be the most complete example of positive attitude towards the future. Industry must be the new competitive advantage of this new Society of the Ideas pushed by Modernity, Added Value and Excellence.

Clusters, FDI Policies and Competitiveness in the Light of RIS3: the Basque Country case

David Fernández Terreros / SPRI - Basque Country Business Development Agency Cluster initiatives are powerful drivers of regional competitiveness, an essential attractiveness factor for increasing inward flows of foreign direct investment. In turn, FDI localisation is an enhancer of business and regional competitiveness; hence, the relevance of engaging relevant clusters in FDI attraction and “aftercare” policies in order to maximise its effectiveness and policies and align its externalities with generating a smart, sustainable and inclusive economic growth. The clusters’ contribution to analysing their value chain and detecting niches and needs for developing new business through intrapreneurship or FDI, to branding the territory as a key global localisation for their sector and to creating, through intercluster cooperation, the context for smart and related diversification and for the horizontal adoption of key enabling technologies, is a central issue for reaching the above mentioned objectives. This paper shows how the Basque Country is articulating the role of clusters and FDI attraction policy in the Basque Country in the light of RIS3 in order to transform and upgrade advanced manufacturing and services activities within the framework of its overall economic development and competitiveness policy.

Design for Clusters and Clusters for Design Thit Juul

Design for clusters – value creation through design Design has been described as “that which links creativity and innovation” (Cox Review, 2007). The role of design has changed, helping companies change their strategies, develop more productive cultures, and innovate more effectively. The Institute of Design Innovation (InDI) at Glasgow School of Art (GSA), Scotland, and D2i – design to innovate, the South Danish design cluster, have both been using Design Innovation approaches to help companies innovate, build collaborations and establish more productive strategies. Design Innovation can act as a guide for industry to rethink an aspect of the business model, to define new products and services or explore new markets. Design can be applied across clusters, enhance regional strengths and help companies stay competitive in a global market. 74

Clusters for design â&#x20AC;&#x201C; strengthening the synapse in the design eco-system Design approaches also help build productive collaborations, and thus are useful tools in establishing robust clusters. Design acts as a bridge and builds synergies between multiple experts, encouraging sharable ambition, helping to create ownership. Both GSA and D2i help organisations embed design capabilities, as well as training designers, and updating the skills of existing design companies to better service these new needs. D2i is an emerging design cluster in the Region of Southern Denmark, bringing the knowledge institutions, the creative industry and design-using companies together, in order to stimulate both supply and demand for design competencies as a lever for innovation and growth. Design is acting as an enabler for other clusters, and forms a creative cluster in its own right, helping to enhance the regional innovation ecosystem. The presentation will describe successes and challenges in using design approaches in non- design businesses, and supporting capacity building in design. The presentation will also explore, how playing on regional strengths can increase global competiveness, and how the knowledge centres (both GSA and D2i bring leading research and practice to the businesses) have a key role to play.

Building Cluster Brands. Methodological Bases for its Definition and Conceptualization Xavier Ginesta / University of Vic

Clusters become an essential asset for territories and a sign of their identity. Industry specialization can contribute to position a territory (a state, a region or a city) in the international market of investments. For this reason, defining a successful brand for clusters is an important strategy in order to promote a territory worldwide; and consequently, to improve the competitiveness of its industries. For example, the state of Arizona is world known for its cluster in optics and photonics engineering, or Hamamatsu in Japan concentrates some of the most important motorcycle companies in the world: Yamaha, Suzuki or Honda. Both territories could design a region and a city brand related to these industries to improve its economic strength and put together the most important signs of their local identities. The aim of this presentation is to propose a scientific and totally proved methodology to build cluster brands. We focus our attention in defining and conceptualizing these brands using tangible and intangible values of the actors of the territory, in this case, cluster 75

members. A triangulation of qualitative research techniques is proposed, based on selective focus groups, in-depth interviews with cluster experts and the revision of the different marketing initiatives that the cluster previously developed.

The aerospace industry in Mexico and the embryo role of cluster formation Tomás Sibaja / Aerospace Cluster of Baja California

The global aerospace industry in general is highly regulated with quality standards that permeate the whole value chain from design, manufacturing and integration into an aircraft. This industry traditionally moves at its own pace regardless the consumer behavior and technological changes that commonly affect other sectors. The cluster formation is no alien to the aerospace industry in other countries and Mexico has become an important hub in the aerospace global platform in the last decade. Still the emergence of new technological advances remains in the ‘mature’ countries that dictate the rules of engagement thus limiting the creativity and the absorptive capacity of emerging economies like Mexico to induce new value propositions in the industrialization process. Mexico although important in its contribution to the aerospace industry is a passive contributor that executes more than innovate. The cluster formation in Mexico in this particular industry should push for a paradigm change that redefine how we create value and engage in more complex processes and engineering with the intent to have access to more lucrative projects that will pull more talent and technological capabilities. To attain results Mexico should accelerate the clusterization process with an industry-centered approach with the clusters properly constituted. Technology changes aren’t the threat per se in the aerospace industry in Mexico via manufacturing and advanced technological assets but poor cluster formation that serves territorial interest rather than industry needs and requirements. The role of clusters is also to enhance the ecosystem beyond the existing conditions that separately cannot be perceived and search transversal advanced technologies to increase the use of idle capacity with existing players that will enrich the value-chain. Or to the contrary, offer a particular aggregate demand to new technology providers that will robust the industrialization process. 76

Academic 3. The evolution of clusters: From the competitive advantage of nations to the cluster initiatives Greenbook 2.0 In 2013, the Cluster Initiative Greenbook 2.0 was published. It followed the first Greenbook published ten years before. The new book is the result of a study of 256 cluster organizations from 50 countries.â&#x20AC;? In the Competitive Advantage of Nations, published in 1990, Michael Porter analyzes clusters and their role for regional competitiveness. This track raises the following questions: Do clusters really foster competitiveness? What are the differences between the cluster initiatives and public policies, compared to the original work of Michael Porter? What are the challenges for the cluster concept for the years to come? Room C

Moderator: Jaime Echeverri

Is cluster promotion an obvious or complex endeavor? Ulrich Harmes-Liedtke / Mesopartner

After a quarter of a century of research and practical experience with clusters and their promotion, the TCI community has accumulated broad knowledge about the economic advantages of agglomerations of enterprises and about the best way to promote these clusters. There are robust methodologies telling us how to sequence a cluster initiative from the kick-start to the challenges to maintain momentum, to reaching long time sustainability. We also know that a cluster initiative requires different forms of support depending on the phase of its life cycle it is in. And finally, especially policy makers are advised what they should not do, i.e. that they should not try to build clusters without having private initiative already there.

Despite of all these experiences, it is often the case that cluster promoters face situations in which they are confronted with several competing proposals on what is the best thing to do. When multiple possible interventions are plausible because multiple coherent hypotheses exist on how a problem can be solved, it seems not the appropriate way to follow the best practices of the handbook. Even conventional analysis does not really help to make sense of these situations, as it often finds data confirming more than one of the hypotheses. In this kind of situation it usually is impossible to reach a consensus among stakeholders, neither on the problem diagnosis nor the appropriate way to intervene. We call these situations complex. 77

Obviously, not all problems that need to be solved in a cluster initiative are complex. Therefore, it is vital for cluster facilitators and stakeholders to be able to distinguish between ordered and complex problems. In each case, different strategic decision models are needed. How do we differentiate between these and other problem configurations? In the presentation we will present a model developed by Cynthia F. Kurtz and David J. Snowden (2003) that helps us to make sense of the problems we face and find the right decision model. The so-called Cynefin framework differentiates between the five domains of simple, complicated, complex, chaotic, and disorder. The simple and complicated are ordered domains were cause-and-effect relationships are clearly visible or at least deducible through analysis. In the ordered domains, problems can be solved through comprehensive analysis and planning, but there might be more than one right solution. The complex and chaotic domains form the area of disorder, where cause-and-effect relationships are not accessible ex-ante. There can be multiple, even contradictory solutions. Here, categorization or analytic techniques are not of much use; we need different more explorative and action orientated intervention strategies. The authors see in the use of the Cynefin framework a practical contribution to demystify the challenge of complex situations and give cluster practitioners and policy -makers a practical tool to navigate and handle wicked problems. At the end, we want to contribute to make the cluster competitiveness approach more resilient and agile.

The evolution of cluster policies in Europe from regions to cluster organizations: The cluster trap Elisabet Juan Tresserra / Freelance

The European Comission and many authors (e.g. Martin and Sunley) point out the need of a cluster to be adaptative for survival. While in growth stages, cluster sinergies and knowledge spillovers lead to a better performance of companies in clusters than outside clusters, the contrary occurs in a mature and decline stage (Sรถrvell). It could be called the cluster trap. The evolution of cluster policies in Europe has led to a very different approach, generally led by the cluster itself and not the region. Supranational and national authorities have assumed an important defining, labelling and funding role. While this approach has advantages because it is market driven, there are limitations that should be pointed out, especially considering change management theories (e.g. Kotter). In my presentation, after an extensive research on literature of cluster programmes and a paper presented in ESADE Business School with a 9 out of 10 qualification, I would like to propose an ap78

proach to cluster policies, suggesting what I think is the role for each organisations (supranational or national, regional and the cluster itself). The author believes that a combination of top down and bottom up approaches could lead to a more impacting cluster based economic development policy. On top of that, regions or local authorities should again take the lead in proposing cluster policies that match and reinforce their other economic policies, with clear objectives on what to achieve. In the author’s opinion there is an excessive institutionalisation of clusters that, one one hand, cold lead to the clusters trap and have a negtive impact and on the other assumes a wrong definition and role of the cluster itself.

Clusters and innovation ecosystems – same-same, or different? Emily Wise / IEC/Research Policy Group at Lund University

Nearly 25 years after Michael Porter first published his seminal work on clusters and their role for regional competitiveness, the field of clusters has “blossomed” with a plethora of related terms (cluster or innovation ecosystems, innovation networks, innovation platforms, open innovation arenas, etc.) as well as policies to support clustering and the development of collaborative innovation processes. This situation leads one to question if all these different terms are referring to the same phenomena and field of practice. And if the cluster concept has evolved, do we also witness an evolution in the field of public policies to support clusters and their role in strengthening regional competitiveness? The Cluster Initiative Greenbook 2.0 (2013) highlighted a number of trends relevant to the activities undertaken and management structure of cluster initiatives – and how these have changed since the original publication in 2003. The Greenbook also included a section on cluster policy – discussing the changes in the conceptual thinking about cluster policy and how this is reflected in the practice of cluster programmes. Last year’s Greenbook provided an overview of cluster policy trends on the EU level, and highlighted a number of key characteristics and challenges of “modern day” cluster programmes. The aim of this paper is to add to this overview and provide a more detailed exploration of how (and why) cluster policies have changed over time, and highlight new focus areas for policy development. Based on a review of literature and a study of three cluster programme cases (the Centre of Expertise programme in Finland, the Arena/NCE/GCE cluster programmes in Norway; and the VINNVÄXT cluster programme in Sweden) that have each been running for more than a decade, this paper will explore how both the cluster concept and public policy action has evolved over the last decade. The paper will highlight similarities and differences in the cluster concept (relative to Porter’s original work), as well as explain how public policy has evolved over this period. Conclusions will identify areas for further research exploration and policy development. 79

The emergence of regional clusters and the role of innovation as a primary driver of economic growth Scott Dempwolf Dempwolf / University of Maryland

Industry clusters have been a useful concept in helping us understand what agglomeration is and what it looks like on the ground and in the data. The emergence of regional innovation clusters (RIC’s) signals the recognition that cluster concepts need to evolve to accommodate innovation as the primary driver of economic growth. The tools we use to model and measure clusters have limitations that make them less useful in detecting and describing emerging technologies, industries and entrepreneurial startup companies that are central to innovation‐driven growth. This paper describes these limitations and introduces new tools, models and metrics to extend the analysis of clusters using network analysis. Initial applications of these methods have validated cluster concepts but also reveal new complexities in the ways that people and firms interact simultaneously in both spatial agglomerations and global networks. There are at least five limitations to current cluster analysis methods when applied to an innovation driven economy. 1. Active networks are often not geographically bounded. They may be location‐centric but they are rarely location‐exclusive. 2. The presence of active networks is assumed based on iconic case studies (e.g. Silicon Valley). Industry cluster analysis does not model or measure specific networks in any systematic way. 3. Industry clusters are pre‐defined groupings of pre‐defined industry codes (e.g. NAICS). These tend to bias towards older, established industries and firms, and are not sensitive to emerging technologies, clusters or entrepreneurial startups. 4. Industry cluster analysis is based on employment or sales data, not on innovation data. It does not connect economic growth to innovation activities or events. 5. Industry cluster metrics reflect the state of innovation roughly 5 years ago or more. This paper introduces new methods for modeling the innovation networks that are central to the definition and functioning of RIC’s. These methods identify and measure established and emerging clusters based on actual interactions between actors in the network, and are based on what they are actually working on rather than predefined industry codes. Technology‐based ties may represent the kinds of collaborative, competitive or other value chain relationships that are presumed to be present in conventional cluster analysis. These “weak” ties also help identify local talent pools ‐ a presumed feature of RIC’s that current methods cannot model or measure. 80

Network models are built on data about research, development and earlyâ&#x20AC;? stage funding and are able to detect emerging technologies, firms and clusters much earlier than conventional methods based on production employment data. These new methods can provide actionable intelligence at least four years before the employment impacts begin to show up in conventional cluster analysis, providing economic developers with opportunities to engage specific firms much earlier in the process. This new method allows limited resources to be strategically targeted much sooner and with much greater precision than current cluster analysis methods. After introducing a few important concepts the paper presents several realâ&#x20AC;?world examples where network models and methods have been applied to the identification and measurement of clusters.

Key success factors on footwear agglomerations Armando PeĂąa Castro / Simon Bolivar University

This study explore how key success factors has been managed, in agglomerations that have become a cluster or industrial districts on the footwear industry. The sample of the survey is composed, by four relevant agglomerations, from 10th first countries on the footwear global market, two agglomerations in America, One in Europe and one in Australasia . Our approach through a qualitative and quantitative research method, applying the matrix competitive profile ( MCP ) is to compare and analyze competitiveness levels, finding patterns and particulars performances in agglomerations. It is important to pinpoint that implementation of initiatives to strength agglomerations on the footwear industry, must be accurately oriented, to impact most fundamental key success factors , otherwise would not achieve positive results , therefore any type of initiative would diminish their growth and will lose credibility. The study concludes that leadership, focused on global marketing, entrepreneurship and innovation in agglomerations, was found as the most fundamental key success factor to boost competitiveness on the footwear industry.

Parallel Sessions 4 4.1 New cluster policies and cluster evaluation After a little over 20 years of cluster policies, it seems that there is still an important debate on what to consider an efficient cluster policy. There is ongoing criticism towards the cluster approach and its efficiency at fostering local development. A lot of resources have been invested on implementing cluster initiatives all around the world. What have we learned? How have cluster policies changed during the last years? And how should we evaluate the performance of cluster policies, programs and initiatives? This track presents useful experiences and insights on cluster policies and how to evaluate them. New approaches on policies, cluster programs and evaluation methods are discussed. Room A

Alberto Pezzi

Introducing the new Norwegian cluster program Hans Eirik Melandsø / Innovation Norway The aim of this presentation is to introduce: • The framework of the Norwegian Innovation Clusters program • The funding and service structure of the program • How the next generation of cluster programs more specifically target the needs of clusters and cluster organization After more than 10 years of running national cluster programs in Norway, Innovation Norway has spent the last two years developing and implementing a new cluster program. The aim of the program is to contribute to strengthening the innovativeness and capacity for renewal in regional innovation milieus. Increased interaction and collaboration in business and industry, as well as between the business community, knowledge communities and public development agencies, will increase the flow of ideas for innovation and restructuring, trigger and strengthen innovation processes and create a more attractive environment for enterprises, knowledge providers, talents and investors. This will give the cluster participants a better basis for increasing value creation and strengthen their position in relation to national and global value chains. The program is intended to be a catalyst for uniting partici82

pants in a shared effort and for increasing the dynamics of this collaboration. Experience shows that geographical concentrations of enterprises and knowledge communities in regional clusters can increase their innovativeness and competitiveness. The program’s target group is precisely such regional clusters, including clusters in an early phase of collaboration, clusters that have developed a more mature and well-functioning collaboration, clusters whose primary potential lies in a strengthened regional position, and clusters that have enough weight and capacity for growth to act as hubs in national and global innovation networks. The common denominator for all these clusters is that they have prerequisites for collaboration-based growth and the willingness and ability to participate in a joint strategic development process. The program will focus in particular on ensuring that the clusters renew their established competitive advantages through exploring new possibilities and finding new partners, across technologies and value chains and in new areas of application. Key elements in this respect will be to create an awareness of the globalization of markets and knowledge production and a strong focus on international partners. The program, named Norwegian Innovation Clusters, is a merger of the two previous national programs Arena and National Centre of Expertise (NCE). In addition we have introduced a third level for mature clusters with a global position called Global Centre of Expertise (GCE). In short the new program supports cluster at three different levels of development: • Arena – Regional cluster in an early phase (20-25 clusters nationwide) • NCE (National Centres of Expertise) - More mature clusters with a national position (8-10 clusters nationwide) • GCE (Global Centres of Expertise) – Mature clusters with a global position (4-5 clusters nationwide) The program is subject for an annual call, where clusters can apply to all three levels. Norwegian Innovation Clusters offers both funding and services to clusters and cluster organizations. In order to achieve the goals of the program the service structure the clusters is divided into four strategic areas for cluster support: 1. General cluster development 2. Knowledge collaboration 3. Innovation collaboration 4. Cluster-to-cluster collaboration 83

During the development stage the program was subject for a TCI peer review. The presentation may be useful for cluster practitioners, cluster program managers and policy makers engaging in the operating and developing cluster programs. Furthermore it can be handy for benchmarking and comparative analysis of cluster programs and cluster support services.

Cluster evaluation working group: Collating expertise and evidencing cluster value Madeline Smith / Institute of Design Innovation, Glasgow School of Art

One of the biggest challenges facing cluster practitioners and policy makers is how to truly capture the benefits of clustering. There are two driving forces behind this challenge. Firstly, with finance under ever increasing pressure the need to show a return on investment for clusters is ever more important. Secondly, it is now widely recognised that the learning generated from evaluation processes can have significant positive impacts on practice (socalled ‘policy learning’). As such the role of cluster evaluation is more important than ever. Over the last year TCI has established a very active Cluster Evaluation Working Group, to look at the challenge of evidencing the value of clusters and adequately building an evaluation approach that addresses the needs of multiple audiences. This group first met in Scotland in June 2013, and the Working Group has built a community of over fifty interested participants, sharing their experiences and working collectively to discuss and address some of these evaluation challenges. The most recent working group meeting brought together 25 participants from 11 different countries/regions, in Belfast, UK, hosted by TCI member Invest NI, and once again facilitated by Institute of Design Innovation (InDI) at Glasgow school of Art. The session involved an exhibition generated from participants contribution on their current practices and remaining challenges, further discussions around “What does success look like, what do we already know and what are still the gaps?”, and then generating solutions and collating knowledge and expertise through the “Cluster Evaluation Game”, designed by InDI to draw out collective knowledge and exploit the joint expertise from such an experienced and practiced group. This presentation will share the outputs from the Working Group, and feedback from the facilitator and participant perspectives, as well as exploring how the working group might best take this initiative forward. 84

15 years of Clusters and Pole de Compétitivité in France: Evaluation of a bottom-up and top-down approach Frederic Miribel / Invest in Lyon

Following 5 years of regional experiences with clusters in France, the government launched a national cluster policy in 2005. Mixing top-down and bottom-up approach, clusters in France have had a positive effect on jobs, R&D expenditure and global competitiveness of actors. Evaluation also shows that SMEs in clusters have more international connections, and many foreign companies are members of clusters in France. Favoring innovation through collaborative platforms, the Poles de competitivité are moving from a “project factory” to a “new product factory”. Still, more business interactions need to occur, and the weight of the national government in cluster policy should decrease to let the virtuous ecosystem become self-sustainable. Concrete feedbacks from clusters in the region of Lyon, France are presented, in the field of Energy, Environment or Green Chemistry.

Approaches to cluster policies and evaluation: Evidence from EU initiatives in the last 10 years Lorena Rivera Leon / Technopolis Group

The presentation will provide insight on different approaches to the design, assessment and evaluation of cluster policies at EU, national and regional levels. It will be based on practical examples of a number of completed and ongoing assignments led by Technopolis Group: the evaluation of Cluster Initiatives of the European Commission; the country-wide evaluation of the French competitiveness clusters and of the business-driven grappes d’entreprises; and the regional evaluation of the Walloon competitiveness clusters in Belgium. First, we will discuss challenges related to evaluation design (methods) of cluster policies and programmes. We argue a “one evaluation approach does not fit all”, mainly because the way clusters are evaluated depend very much on who is commissioning the evaluation (policy-led or management-led) and for what purpose; what is the interest of the evaluation (criteria); and most importantly, on the very nature of each cluster, which directly influences the evaluation design (type of cluster, maturity, activities, geographical scope). Second, we will showcase policy lessons derived from these evaluations, regarding the impact of cluster policies on innovation performance, and economic and employment growth. We show that at national and regional levels public support has allowed clusters to become 85

key actors within their innovation systems; and that cluster support tends to focus primarily on upstream stages of innovation, while neglecting support for market introduction of innovations. The business model of cluster organisations seems to be crucial for their success. Finally, at the EU level we argue that cluster policy has to address a new complex range of issues in order to become a powerful tool for fostering European competitiveness. Third, we will close the presentation with an insight on new methods for identifying future global developments in industrial transformation and cross-sectoral clustering trends as part of the work of the European Cluster Observatory II.

Visualisation of Linkages in Networked Clusters (V-LINC): Analysis of the Biopharma Cluster Ecosystem in Cork, Ireland John Hobbs / Cork Institute of Technology

This paper applies V-LINC, a methodology which identifies records and analyses the linkages that firms in clusters engage in, to the Biopharma sector in Cork, Ireland. V-LINC was developed in the Department of Management and Enterprise, Cork Institute of Technology to enrich the academic literature on clusters as it provides visual information on the geographic footprint of industry clusters, and measures the perceived business significance of cluster linkages. PCI (2010, p1) notes that the global biopharmaceutical industry faces a challenging decade ahead. “Major ‘blockbuster’ drugs are due to come off patent, and this will lead to a significant fall in revenues. As the sector opens up to generic competition, some commentators have estimated that this fall could be as much as €100 billion. Compounding the problem is the fact that new high-profile replacement products are not emerging from research in the same numbers as those that are going off patent.” This has major implications for the industry in Ireland as many of these blockbuster drugs are produced in the country. Ireland is heavily dependent on the pharmaceuticals, in 2012 the sector generated over 50% of Irish exports, worth some €55 billion, in 2012 (Perry, 2012). Responding to the challenges facing the sector must be a national priority. In challenging times it is important that industry players, support organisations and policy makers understand the detail of how the Biopharma ecosystem operates in Ireland, and its relationships beyond the island.

Evaluating the human element in clusters Emily Wise / Lund University

After years of experience implementing cluster programmes, the area of cluster evaluation continues to have many unanswered questions. There is a general acceptance that social capital and trust is critical for effective cluster development, “building bridges” between different actor groups in the innovation ecosystem – mobilizing engagement and developing linkages that lead to new knowledge, strengthened capacity and collaborative innovation projects to deliver concrete economic advantages. Thus the main differentiator between cluster programmes and other innovation and business development is the relationship building, and internal/external behaviours allowing the group to do together what they could not do alone. These activities necessitate skilled leaders, strong backing from home regions, and actor groups that are both engaged and open to collaborative innovation practices. This is a very important part of clustering, but one that is poorly captured in evaluation. It’s difficult to measure trust, or evidence changing behaviours, but it has value alongside economic indicators. Resulting from the TCI working group meeting in Belfast, a framework is being developed for assessing aspects of the “human element” in cluster development. Building on existing cluster programme effect logics and more than a decade of implementation experience (in Norway, Scotland and Sweden), and using elements of the cluster dynamics model (Smith and Brown 2009), the framework describes characteristics of leadership, regional backing, engagement and collaboration at different stages of development. The framework is designed to be a self-assessment tool, complementing existing reporting and evaluation processes, and can also be mapped relative to other performance measures (evidencing how the human element affects other elements of cluster development), helping to inform strategy development, guide capacity building and target support efforts. The aim of this presentation is to present the framework, results from initial tests, and recommendations for its further development and future use.

4.2 Topics on new cluster trends The cluster approach had proven useful for promoting regional economic growth and collaboration between companies, government agencies and academic centers. In the recent years, new approaches for the cluster concept have appeared as a tool to promote innovation and entrepreneurship, to foster Foreign Direct Investment and to create more effective and sustainable economic ecosystems, in order to collaborate between regions. In this track we will share new cluster approaches from different regions. Room B

Carlos Tarrasón

Industrial trends, innovation and cluster ecosystems Zbigniew Bochniarz / University of Wahington

The Aviation Valley Cluster (AVC) is one of the first and fastest-growing clusters in Poland. It has been operating for over ten years and brings together 120 members from the industry. The origins of the AVC can be traced to the Central Industrial District (COP), an industry built around aviation in the 1930s in then-central Poland (what is now the Podkarpackie Region in the southeastern part of the country). The AVC association was establish to reintegrate the aerospace industry after the collapse of centrally planned economies that depended on the markets of the Soviet Union and Warsaw Pact countries. The Aerospace Cluster in Washington State is the world’s largest natural cluster, with threestatewide formal cluster organizations – the Washington Aerospace Partnership (WAP), the Pacific Northwest Aerospace Alliance (PNAA), and the Aerospace Futures Alliance of Washington (AFA) – in addition to two sub-regional organizations – the Inland Northwest Aerospace Consortium (INWAC) and the King County Aerospace Alliance (KCAA). There are approximately 1,200 companies, organizations and institutions cooperating within the cluster along its supply and value chains. This paper presents the results of a comparative research project conducted between these two clusters by an international team from Europe and the United States. The research seeks to expound the similarities and differences between the clusters in their development, business practices, and regional environments and to inform on lessons learned from each clusters’ leaders, policy makers and other stakeholders.

David meets Goliath: Collaboration between entrepreneurs and large corporations in clusters Lotte Langkilde / Louise Fenger / Danish Cluster Academy

Collaboration between entrepreneurs and large firms is essential for new business development and innovation in clusters. But establishing the right set-up for collaboration is not easy. Entrepreneurs’ challenges with large corporations: • “The large firms don’t realize that we could develop a better product for half the cost and half the time.” • “I cannot get a clear decision from anyone in the large firm.”  • “Working with large firms takes a lot of bureaucracy.” • “They ignore the fact that we have IP to protect.” Corporations’ challenges with entrepreneurs: • “They waste our time before they are ready to partner. They need a better understanding of to work with a firm like ours” • “Many entrepreneurs do not respect our internal processes of screening for ideas.” • “They ignore that we have IP to protect.” • “We have external regulations and internal policies to follow” Cluster organisations can play an important role in facilitating the match between entrepreneurs and large corporations. But before a good match can take place, both David, Goliath and the cluster organization need to get the right mindset and framework in place. In this session Mrs. Langkilde presents a road-map for collaboration between large corporations and entrepreneurs in the Danish Food Cluster. The roadmap is a hands-on guide that addresses the different factors to take address for a successful partnership between David and Goliath. The roadmap is developed in collaboration between University of Southern Denmark, Danish Food Cluster, IDEA Entrepreneurship Center and Future Food Innovation and is funded by the Danish Industrial Fund. The roadmap is currently being tested on large corporations and entrepreneurs in the Danish Food Cluster. Participants will be introduced to the preliminary results of the roadmap and we discuss the applicability of the model to cluster organisations. 89

Getting long-term sustainable clusters through cluster incubatorsâ&#x20AC;&#x2122; support Antonio Ruiz / TASO

The Track 3.2 New cluster policies and cluster evaluation, of the 17th TCI GLOBAL CONFERENCE, point out a very essential thinking: After a little more than 20 years of cluster policies, it seems that there is still an important debate in what to consider an efficient cluster policy. There are ongoing criticisms to the cluster approach and its efficiency to foster local development. A lot of resources have been invested to implement cluster initiatives all around the world. What have we learned?. There is no doubt about that the return of the investment in promoting cluster initiatives along the world is very poor. ÂżHow many cluster initiatives survive more than 5 years?.ÂżHow may cluster organizations are successful providing add value services to their companies?. Only few cluster organizations reach the critical size to maintain a high performance. Cluster managers have a difficult task to do. They are long-distance runners and they cannot afford it alone. A very common tool in industrial policy is to have incubators or accelerators platforms to provide support on business creation and development. It is very common in individual business. These organizations provide entrepreneurs with support along all the evolution process, starting from the idea and reaching company consolidation, and include services such as business opportunities, technical assistance, coaching or market development. In a similar way, cluster incubators should support cluster initiatives along all its life cycle: starting, development and maturity, providing them with support services for each stage. In an optimal Add Value Chain for the cluster organization services, cluster incubators should develop all the Support Activities in the Value Chain, cluster managers the Value Activities closer to the clients and specialized consultants the Value Activities more innovation oriented. Can Upper Austria or Medellin be two different examples of this paradigm?.

Cross innovation: How collaboration with creative clusters boosts other business Nadine Barthel / Project Future | Berlinâ&#x20AC;&#x2122;s Senate Department for Economics, Technology and Research What is Cross Innovation? Cross Innovation (â&#x20AC;&#x153;Promoting Cross-Innovation in European Cities and Regionsâ&#x20AC;? www.cross-innovation.eu) is a European project exploring collaborative and user-driven industrial partnerships that occur across industrial sectors, organisational, technological and geographic boundaries. The focus of the project is on the creative and cultural industries in particular and concerns policies, practices and support measures that enable cross innovation. Along four themes such as Smart Incentives, Brokerage, Spatial Cross-Collaboration and Culture-based Innovation, the mechanisms of their best practices are examined and recommendations for policy makers are developed. A toolkit for policy makers was developed aiming to spread the learnings from the project amongst administrative bodies, thus increasing awareness and competences on how to best foster cross innovation in their local ecosystems and/ or clusters whose potential to act as partners for innovation were only acknowledged in recent years. Creative businesses represent a huge economic opportunity for regions as, rather like ICT, they are also a horizontal enabler, with the ability to help any business from any industry improve its competitiveness and innovate new products and services. CCI clusters are particularly capable of moderating diverse partners and facilitating communication and cooperation processes. Protagonists of creative industries have developed methods and instruments that can easily be transferred to other working processes and thus help to explore new potential. The presentation is closely linked to the topics addressed in the track 3.3 on cross-sectorial and cross-regional cluster collaboration, aiming not only to present more in detail the findings of the project (good practices, challenges encountered, analyses made) related to the interaction between creative industries as emerging industries and other (traditional) sectors as a source for innovation, but also to discuss with the other participants various approaches. The feedback and outcome of these discussions will be shared with the whole partnership. 91

Attraction, retention and professionalization of cluster managers Joan Martí Estévez / ACCIÓ-Catalonia Government

It is well known that the performance of a cluster initiative is directly correlated to the skills and motivation of the cluster managers. Catalonia was a pioneer country in the cluster phenomena, starting at 1993. Since then cluster policy has evolved to the current model which strongly promotes the professionalization of cluster organizations. The presentation will focus on the strategy and instruments that the Catalonia Government has to foster cluster management, from the recruitment of managers, to coaching activities, intercluster meetings, international missions of cluster managers to strategic training.

4.3 Topics on new cluster trends The cluster approach had proven useful for promoting regional economic growth and collaboration between companies, government agencies and academic centers. In the recent years, new approaches for the cluster concept have appeared as a tool to promote innovation and entrepreneurship, to foster Foreign Direct Investment and to create more effective and sustainable economic ecosystems, in order to collaborate between regions. In this track we will share new cluster approaches from different regions. Room C

Ted Lyman

Hungarian best way: From the cluster definition to the world class cluster. Sectors. What is cross innovation? Éva Skultéti / Pharmapolis Debrecen Innovative Pharmaceutical Cluster

The vision of the Pharmapolis pole clusters are to establish a remarkably outstanding health clusters even by international standards that considerably contributes to the intesification of economic achievements as well as to the further improvement in the field of employment. With its positive foreign effects the cluster has a favourable impact on Hungarian economy, too. The cluster activities generate common solutions to problems and are a helpful tool to gain market access for companies, altogether creating shared value for its members. The statements laid down in the strategic and activity plan of the Pharmapolis Innovative 92

Health Clusters are largely in line with the overall purposes of the cluster program in Hungary. • the promotion of the establishments of internationally competitive clusters • specialization in high value-added, innovative activities • strong cooperation between the enterprises in the interest of holding competitiveness on the long run, and additionally, between city councils and universities • strengthening the regional central roles of pole cities thus supporting the development of their business environments and their general competitiveness in a broader sense The most progressive, unrivalled characteristic feature of the Debrecen cluster that it has created a networking process of propulsive industry of national importance based on the pharmaceautical-biotechnological innovative axis – apparent in the cluster - connecting Szeged and Debrecen (and later Balatonfured). As a remarkable endeavor, among other Hungarian clusters it uniquely combines the industrydeveloping efforts of universities, city councils, chambers, innovative university spinoff and start-up enterprises and middle and large enterprises of considerable means. Since our country is small, collaboration is of basic necessity on all areas including clusters as well; consequently, making use of the power of triple helix, we have formed the National Strategic Union of Health Industry Clusters.

World-class cluster born on reindustrialization of the settlement of Olivetti Ilaria Massari / Politecnico di Milano University - CESVIN Innovation Center

In the 60’s the famous entrepreneur Olivetti, established in Ivrea in 1908, bought a company (Serio) in Crema and settled itself in the city: it built a factory (184.723sqm of covered area in a district measuring about 364.000sqm) where it produced the first electric typewriters in the world. At its better days more than 3.000 people worked in its industrial pole and the surrounding area became a housing, recreational and productive zone. In the mid 60’s Olivetti began to decline because of different market situations, and in the 80’s it began to produce Personal Computers. More and more attacked by competitors, in 1992 Olivetti chose to close its firm in Crema. At that time Crema territory had to face the regeneration of ex-Olivetti industrial area and the promotion of new business ventures, especially from SMEs, collecting territory requests among which there were: the creation of new job opportunities, the development of indus93

trial activities and of services centers for enterprises and the settlement of University. In 1994 an agreement between Lombardy Region, Cremona Province Administration and Crema Municipality, supported by Italian Ministry of Labour, founded Reindustria (www. reindustria.com), an Area Agency with the aim of converting the productive abandoned district. Reindustria managed public funds, coordinated the different players involved in the project, promoted local economic and bank systems and worked for the urbanization of part of the area. Nowadays Reindustria has been transformed in an Agency for Local Development working for the entire Cremona territory; its partners are public and private players, among which there are Cremona Province Administration and Cremona Chamber of Commerce, Municipalities of main cities (Crema, Cremona and Casalmaggiore), local banks, labor unions and fourteen professional associations. Its mission is promoting local economic development and investments on Cremona territory through marketing activities and technical support to present projects for public bans and through socio-economic reports. Reindustria is also working to encourage companies networks to develop competitiveness and is supporting their internationalization. In 2005, Reindustria started to question and identifying main locally based sectors and made a deep analysis on the cosmetic chain, present with high concentration of enterprises in and around the city of Crema. The study showed that high level competences in cosmetic value chain were core based: 92 entreprise with 2.350 employees in 2005, chain activities included. Cosmetic industry generates in Lombardy 60% of Italian total turnover of the sector and 51% of employees. As an open cluster approach in developing local strengths, Reindustria set instruments and collaboration to start a cluster idea, which then became the â&#x20AC;&#x153;Polo Tecnologico della Cosmesiâ&#x20AC;? (Technological Cosmetic Pole www.polocosmesi.com), today worldwide recognized as one of the main driver of the sector, connected with Cosmetic Valley in France and reaching all the main rising market. Thanks to supporting activities, scale economies, concrete innovative services, product and process innovation Reindustria led Polo Cosmesi to have, as of today 150 companies involved in Lombardy Region, with 90% of export activity. Critical success factor is the strategy of having strong industrial district positive atmosphere, with its embedded capabilities in creating shared value, but in an internationally opened way and keeping excellent human capital connected with local Italian values and creative life. Nowadays Reindustra Is strongly increasing soft services together with Milan University: big data management, cloud services, traceability, security evaluation service, shared technical direction and a lot of social purpose actions, directly planned by enterprises. Today and for next future, Reindustria is going to process strategies for metal-mechanical cluster (recognized in 2010) and agrofood clusters, both deeply rooted in Italian industrial production. 94

Cluster ecosystem, innovation and sustainability: The case of Medellin Tomas Mejia / Jaime Echeverri

About seven years ago, a cluster-based competitiveness strategy was formalized in Medellin in the framework of a public policy on economic development and innovation, which has contributed to greater economic dynamics of the city: in the past eight years, Medellin grew at an average annual rate of 6% and multiplied by 2.5 times its per capita income reaching close to USD 11,000; the creation of businesses in cluster-related activities grew at an average annual rate of 18% compared to 11.3% for the rest of the activities; the private investment in cluster-related enterprises grew by an average annual rate of 59% compared to 33% of the total investment; 70% of FDI went into cluster activities; and exports of goods of cluster-related enterprises have been growing at average annual rates of 8.4% vs. 4.4 % for the rest of the manufacturing industry. This lecture will be about to present how the city is towards positioning itself as â&#x20AC;&#x153;knowledge, smart and sustainable economyâ&#x20AC;?, using different tools, among those a cluster strategy. It has been supported by a cluster ecosystem model which stands out for its strong public-private institutional framework which is focused on creating value and fostering economic growth based on a deep understanding of business dynamics; assuring a consistent and effective systemic interaction between partners within clusters and thus generating relevant interventions and interactions. An open cluster ecosystem requires business platforms and methodologies to connect people, public policies contributing to effective business frameworks, entrepreneurs creating innovation, relevant knowledge providers, venture investors and service providers who can support companies in their development and innovation projects, among others. Topics such as public safety, e-health, energy efficiency, sustainable construction, e-government, e-learning, high-impact entrepreneurship are being addressed by enterprises through this economic dynamics. MedellinÂ´s presentation will share how this ecosystem is working, what are the institutions to support it, how the entrepreneurs are generating value in this context, and how the public sector becomes a strategic allied maximizing consistently the levers of action, interaction and resources.

An effort to strengthen national growth through cross-clustering Cecilia Johansson / Vinnova

The purpose with the effort is following: • Stimulate collaborations across borders between constellations in different regions and nations • Support projects which will stimulate development and renewal of Swedish areas of strengths • Complete ongoing national and regional efforts with new knowledge and experience Within the next programme period in EU and in relation to the structural funds smart Specialisation is very central. Also in Sweden we will have this approach. The purpose with Smart specialization is in general to point out cutting edge experiences in different regions and to found complementary experiences in other regions or countries. The goal is to make regions more competitive in the future. In Sweden however we do not want to point out specific areas of strengths in advance (as they do in many other EU-countries) – we would like to have a more “bottom-up approach”. We would like constellations in Swedish regions to apply to a future call (start 2015) and in relation to specific criteria we will – from the government side – select the projects that we believe are best suited to represent the Swedish main areas of strengths and also have the best opportunity to become international competitive in the future. One criteria for the applicants is that they have to be represented by at least three constellations, in different regions, (Triple –Helix-based) and should targeting specific areas of strength. Another criterion is to complete ongoing national and regional efforts which for example could be the SIO-program or the Vinnväxt-program. The idea of the SIO-program is that industry, the public sector and academia in different regions to collaborate for common prioritisations in terms of investments in research, development and innovation, thus strengthening one another. The Vinnväxt-program is a national cluster program and is financing 12 selected clusters in Sweden for a 10-year period. Vinnväxt also stimulate cross-cluster collaboration around specific areas of strengths. We can show results from already carried out cross cluster projects - both national and international - and all these experiences will be used for future efforts.

Clustering small IT companies to attend a big market Jose Martinez / IT@Baja

IT@Baja was created in 2004 in the State of Baja California with a core of 55 small to mid-size IT companies mainly focused in Software Development, IT Outsourcing Services, BPO Services, Design Services and Video Game and 3D Animation development. These core companies are supported by 250+ smaller IT and NON IT Companies that provide services that range from Business related Consulting to highly specialized design and prototyping services as part of the IT Value Chain in Baja. Due to their size, these core IT Companies had limited capabilities when it came to their efforts to expand to new markets even do they are located across the Border to one of the most economically prosperous states in the United States of America, the state of California. It is for this main reason that IT@Baja was founded, with 4 additional strategic goals in mind: 1) Access to New Markets (National and International). 2) Develop IT Companies Capabilities. 3) Develop Better Human Resources for IT Industry. 4) Improve the processes to Access Capital, Funding and Grants. 5) Develop State Sponsored Projects (Sophisticated demand). As mentioned above, the main reason IT@Baja was created, was to look for ways to help companies have access to bigger markets nationally and to the North. Therefor several initiatives were developed to accomplish this: • External Communication Strategy: IT@Baja Web Site Development, IT@Baja Website SEO, IT@Baja in Social Networks, IT@Baja Blog. • Institutionalization: Create and Office for Internal Communication, Create office for Technology Transfer, Create office of Public Relations. • National Positioning: Position IT@Baja as a HUB of strategic alliances with other Clusters within Mexico, Establish Alliances with other Clusters that offer economies of scale, Take a leadership role in the development of High Tech Business Point. • International Positioning: Participate in MexicoIT’s promotional efforts Internationally, Participate in a Benchmarking Initiative from the European Secretariat of Cluster Analysis, Participate in the Cluster Mapping develop by MUSEIC, Participate in the Creation of the CaliBaja Mega Region. All of the above Strategies and/or Initiatives with their different levels of development have already started to bring results to the IT Companies in Baja and allowed them to see higher profile projects come their way in Markets they had never had access to. 97