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18th TCI Global Conference 3-6 November 2015 / EXCO, Daegu, Korea
18th TCI Global Conference 제18회 세계 클러스터 경쟁력 총회 CLUSTERS IN A CREATIVE ECONOMY: New Agendas for Companies and Policy Makers
3-6 November 2015 EXCO, Daegu, Korea
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Contents 18th TCI Global Conference (TCI 2015)
Nov. 4(Wednesday) ............................................................................................................... 3 - Opening Session - Parallel Session 1 - Special Plenary Session - Plenary Session 1 Nov. 5(Thursday) ...................................................................................................................... 53 - Plenary Session 2 - Cluster Labs - Parallel Session 2 - Parallel Session 3 - Plenary Session 3 Nov. 6(Friday) ................................................................................................................................ 131 - Early Session - Plenary Session 4
Nov. 4(Wednesday)
Nov. 4(Wednesday) - Opening Session - Parallel Session 1 - Special Plenary Session - Plenary Session 1
18th TCI Global Conference (TCI 2015)
Nov. 4(Wednesday) Opening Session
10:30-12:00 Room 325 [Opening Session] New Direction of Cluster Policy in a Creative Economy Moderator: Dr. Christian Ketels Harvard Business School, USA & TCI Network 10:30-11:00 [OP-1] Clusters for Competitiveness: Mobilizing the Power of Modern Cluster Policy Dr. Christian Ketels Harvard Business School, USA & TCI Network 11:00-11:30 [OP-2] Clusters as a Basic of Capitalism 5.0 Prof. Dong-Sung Cho Seoul National University, Korea & Cheung Kong Graduate School of Business, China 11:30-11:50 [OP-3] Cluster Policy in a Creative Economy in Germany/NRW Dr. G端nther Horzetzky Ministry of Economic Affairs, Energy and Industry of the State of North Rhine-Westphalia, Germany 11:50-12:00 Q&A
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OP-1
Clusters for Competitiveness: Mobilizing the Power of Modern Cluster Policy Chirstian Ketels Harvard Business School, USA & President of TCI Network
Cluster policy has evolved from an experimental instrument on the sidelines of government policy to an established element in the tool-kit of economic development professionals. But it in many countries it remains a new ‘silo’ of policy making, existing alongside other, often more traditional instruments. This presentation will draw on the recent research on clusters and cluster-based economic development to lay out a framework for a more integrated approach, where cluster programs are a key delivery channel across which a range of policy tools can be applied. This approach, the argument will be made, has also the potential to overcoming some of the traditional weaknesses of existing cluster programs
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OP-2
Clusters as a Basic of Capitalism 5.0 Dong-Sung Cho Seoul National University, Korea & Cheung Kong Graduate School of Business, China
※ This is brief biography of Prof. Dong-Sung Cho. This biography replaces his abstract. He is Professor of Strategy at Cheung Kong Graduate School of Business in Beijing, China. He was Professor of Strategy, International Business, Management Design, and Sustainability Management at Seoul National University in Korea during 1978-2014. He received a doctoral degree from Harvard Business School in 1976, and worked at Boston Consulting Group and Gulf Oil’s Planning Group before joining SNU in 1978. He was a visiting professor at Harvard Business School, INSEAD, Helsinki School of Economics, the University of Tokyo, Hitotsubashi University, University of Michigan, University of Sydney, Duke University, Peking University, Zhejiang University and Nankai University. He has actively researched into the issues of competitiveness and branding: Competitiveness of nations, competitiveness of cities, and nation brands. He has published annual reports on rankings of national competitiveness, city competitiveness, and nation brands. He has actively promoted start-ups of college students since 2000. Since then, approximately 30 students at Seoul National University started start-ups, of which at least 7 have successfully gone through either IPO or sell-out. Prof. Cho will present “Clusters as a Basic of Capitalism 5.0”.
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OP-3
Cluster Policy in a Creative Economy in Germany/NRW Günther Horzetzky Ministry of Economic Affairs, Energy and Industry of the State of North Rhine-Westphalia, Germany
North Rhine-Westphalia is Germany’s economically strongest State. It produces 21.5% of the German GDP and almost 16% of its export goods. North Rhine-Westphalia is characterized by a mix of large-scale enterprises and small and medium sized businesses. 16 of Germany’s top 50 enterprises are based in North Rhine-Westphalia (e.g. Bayer, Deutsche Telekom, Thyssen Krupp…), but it is the 755.000 small and medium sized businesses which are the region’s backbone and which represent 99.5% of the state’s enterprises. To keep and strengthen this top ranking position, North Rhine-Westphalia adapts to the new challenges of the global market and constantly strives for innovation in technology and digitalization. But major innovations cannot be achieved alone which is why North Rhine-Westphalia developed a strong network of clusters between businesses and institutions. The state government supports 16 state-clusters, seven of which are from the Ministry of Economic Affairs, Energy and Industry of the State of North RhineWestphalia (Production, Logistics, ICT, Automotive, Synthetics, Chemistry, Creative Industry). The main tasks of these clusters are: connecting suitable partners for cooperation on a national and international level, organization of events, exchange of information and experience, providing platforms, and promoting next generation technological niches. North Rhine-Westphalia aims to strengthen all sections of the value chain and to keep them within the state. This requires exchange across different branches and cooperation among the different actors from economy, science, culture, and politics.
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Parallel Session 1
13:30-15:00 Room 320 [1.1] Performance of Outstanding Enterprise Participating in the Cluster Program Moderator: Prof. Yong Hwan Kim Korean-German Institute of Technology, Korea [1.1-1] DAECHANG SOLUTION Co., Ltd. Ha Neul Ahn [1.1-2] SUNGMOON Co., Ltd. Kwang Woo Park [1.1-3] OKETEC Co., Ltd. Eui Seon Jo [1.1-4] FTLAB co., Ltd. Yong Soon Yu [1.1-5] KSB Co.,Ltd. Nam Young Lee [1.1-6] EVERNET Co., Ltd. Seung-Young Kim [1.1-7] LOU.T.S. Co., Ltd. Sang Hyuck Park
” This session is operated in Korean, and the simultaneous Korean-English interpretation service is provided.
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DAECHANG SOLUTION Co., Ltd. Ha Neul Ahn
CEO: Jeong Ho Park & Dae Sung Kim Website: www.dsol.co.kr Main Products: Apparatus for ship building, offshore plant parts Since the establishment in 1953, DAECHANG SOLUTION has been growing as a leading steel casting company of Korea and wholly by devoting ourselves to the casting industry. The NO.1 product of DAECHANG SOLUTION is occupying more than 60% of the global market share and approximately 25% of the gross product are exported to Japan, the super power of parts and materials industry, which proves high quality and strong global competitiveness of DAECHANG SOLUTION's products. Despite the serious and difficult crisises like oil price hikes and currency fluctuations over the last six decades. DAECHANG SOLUTION could have overcome such crisis without much difficulty and rather achieve growth because DAECHANG SOLUTION has been incessantly developing technologies and release new products.
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1.1-2
SUNGMOON Co., Ltd. Kwang Woo Park
CEO: Kyung-soon Yoon Website: www.sungmoon.co.kr Main Products: Parts of marine engine, class pipe, special gas pipe and piping module SUNGMOON is located at Dae-bul industrial complex in Jeollanam-do, We are producing the parts of marine engine, class pipe, special gas pipe, piping module, and parts of electric field In addition, as a result of the continuous process of research and development based on accurate and meticulous technology and experience, the best quality is the first promise what we have been keeping. Though the development of technology and creative innovation, Sungmoon has dream toward the world best advanced company. Furthermore, we are trying to be the company as the one part of development of nation ad region.
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OKETEC Co., Ltd. Eui Seon Jo
CEO: Dong-Geun Lee Website: www.oketec.com Main Products: Production automated system, fuel-saving automated clutch OKETEC, since establishment in 2000, has operated the business specialized in plant automation, production management and logistics systems, based on the technological know-how it has acquired. The company was certified as a venture SME and Inno-Biz and acquired an ISO certificate. The company expanded its plant and established a research institute in 2011, and was selected as an enterprise leading Jeollabuk Province. Major items include the robot-connected automation system, the measurement and testing equipment, the logistics return system and the auto clutch control system for fuel saving, and the company has registered related patents. In particular, the auto clutch is a system controlling the clutch of the manual transmission vehicle. It is ideal for securing carbon emission rights by reducing carbon emissions with the electronic control system, which saves fuels and improves drivers' conveniences.
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1.1-4
FTLAB co., Ltd. Yong Soon Yu
CEO: Jae Jun Ko Website: www.ftlab.co.kr Main Products: High precision controller, smart sensor & measurement FTLAB always think about the FUTURE. FTLAB always create a something NEW. Since 2001, we have developed new conceptual research and measurement devices, including displays that apply new technology in diverse basic and applied science research fields. Our primarhy objective is to make the world a better place by creating new technology by continuously accepting challenges and not being afraid of failure. From now on, out researchers will continue doing their utmost efforts to develop technology in order to make the world a better place as well as to manufacture products that are convenient and effective and can be used for general purposes.
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KSB Co.,Ltd. Nam Young Lee
CEO: Jong Bok Park Website: www.ksbsystem.co.kr Main Products: LED Street light & security light KSB was established on January 11, 1999, by launching the plant automation business. It developed materials of nano tubes, using the automation equipment, and also developed the heating and cooling system using nano tubes. It also developed the outdoor image display system and LED lamps using the heating and cooling system. Currently, it operates two major businesses, including the image display business and the LED street & security lighting systems business. Its key business is energy saving. It replaces existing lighting systems of enterprises with LED lighting systems in Korea, and replaces metal lamps, mercury lamps and natrium lamps for security and streets of three southern states of Brazil with LED lamps, in cooperation with the Brazilian government. For the business in Brazil, the company sends parts of street and security lighting systems to Brazil and produces products at a local plant. The company has technological excellence. It has registered 28 patents and applied for seven patents currently. The company is exporting products to Latin America including Brazil; North America including the US; and Southeast Asia including the Philippines, Myanmar, Vietnam and Japan, based on technological excellence. The company is making ceaseless
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1.1-6
EVERNET Co., Ltd. Seung-Young Kim
CEO: Geum Seok Kwak Website: www.everkey.co.kr Main Products: Digital door lock Since established in 2006, EVERNET has been fast growing company in this field as one of the top digital door lock manufacturer in Korea. We always do our best to develop the best products that can be installed any type of door. Our digital door lock with cutting-edge technology can help you enjoy more convenient and safy life. Try to experience the advanced locking system with EVERNET.
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LOU.T.S. Co., Ltd. Sang Hyuk Park
CEO: Sang Hyuck Park Main Products: LED Skincare Machine In the era of infinite competition, we consider the foundation of a company’s growth and development is the differentiated technology and marketing strategy. Recently, in order to overcome the difficulties LOU. T.S. encounter in the development of national economy, and to cultivate national competitiveness, it is crucial to emphasize on the venture companies that maintain their challenge spirit on developing new technology. With their restless efforts, we believe our nation will arise through increasing the export of these new products. Our company has combined all our employees’ effort and devoted it in the continuous research, production and technology development along with excellent marketing strategy. With enormous endeavor, we are aiming and will achieve the growth we set out for as both a manufacturer and exporter. In addition, on the basis of our president’s marketing planning ability and our business cooperation with Korea Institute of Science and Technology, Korea Industrial Complex Corporation and Korean Electronics Technology Institute etc, we have developed practical management method and research development ability. Moreover, due to extraordinary management infrastructure and marketing ability, we have obtained a stable sales growth and the business promotion ability to enter in a new business. Our company was first established on October, 2007 under the name of LOU.T.S. We have firstly focused on the production of optical communication accessories and development of software programs. Afterwards in the purpose of expanding our business, we have also included the production and sales of light adopted devices into our business during which we have considered to focus on the anti-aging market which has been a huge social issue. After research on the market potential, we have decided to develop a skin care device that adopt light and thus comes the famous BBMASK. We have focused on the marketing of this main item in domestic and oversea beauty device market and we have so far obtained so many excellent responses. On the foundation of this product, we will continuously develop the second and third cutting edge technology product which we believe will lead the activation of domestic venture company. We are very confident this will result in the second golden ages of Venture Company with new technology and stimulate the growth of export which will finally lead to the activation of national economy. We have considered this dream as our one and only purpose and we will devote our every effort in this quest.
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13:30-15:00 Room 321
[1.2] Analysis of Cluster Models and Cluster Ecosystem
Moderator: Prof. Young Jun Kim Graduate School of Management of Technology, Korea University, Korea [1.2-1] Industry Clusters and Entrepreneurial Ecosystems: Competing Agendas or Synchronised Policy? Allan O‘Connor The University of Adelaide, Australia [1.2-2] Ecosystem Impact in Start-up Firms: a Comparative Analysis between South Korea and Finland Matthias Deschryvere & Younghwan Kim VTT Technical Research Centre Finland & Science and Technology Policy Institute(STEPI), Korea [1.2-3] Creativity, Clusters, and the Competitive Advantage of Cities
Melissa M. Pogue Martin Prosperity Institute, Rotman School of Management, University of Toronto, Canada
[1.2-4] Exploring the Miracle: a Pragmatic Approach to Evaluating Collaborative Dynamics in Clusters Emily Wise Lund University and IEC, Sweden
[1.2-5] Cluster Evolutionary Trajectories and their Cases
Chulwoo Lee & Jihye Jeon Kyungpook National University, Korea
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Industry Clusters and Entrepreneurial Ecosystems: Competing Agendas or Synchronised Policy? Allan O’Connor The University of Adelaide, Australia E-mail: allan.oconnor@adelaide.edu.au Rowena Vnuk The University of Adelaide, Australia E-mail: rowena.vnuk@student.adelaide.edu.au
Australia faces the prospect of a sustained high-cost economy. Smaller and relatively isolated regions, once supported by the value chains of scale-based manufacturing firms, are vulnerable and face a challenging future unless transitions to a sustainable industrial base are made. Detroit in the USA is an example of an economy that has struggled with this transition. Adelaide, in South Australia is facing similar circumstances, as General Motors Holden (GMH) has announced closure of its production plant in the northern suburbs of Adelaide in 2017, nine years after Mitsubishi closed its local production operations in southern metropolitan Adelaide. The GMH departure leaves no major automotive manufacturing facilities in South Australia and, by 2018, no major domestic vehicle automotive manufacturer plants will remain in Australia. In response, the South Australian state government is turning attention to entrepreneurship as means to stimulate regional development through new economic activity. This response is consistent with the argument that a shift in the economic base toward knowledge requires a supportive context and policy environment [1]. However, creating a context and a supportive environment tends to limit the responsibility of government [2] and instead opens up a shared responsibility of many who nurture, encourage, support, fund, advise, facilitate and work for, or, with entrepreneurs and their ventures. In other words, the economic outcomes sought by governments, are a product of not only policy inputs but also socially embedded factors that underpin the creation, growth and flourishing of new firms and organizations that, if functioning well, can ultimately deliver desirable social and economic outcomes. These viewpoints draw attention to an emerging body of literature that engages in the examination of the interaction between entrepreneurs, their entrepreneurial firms and the influences of the context within which the entrepreneurs and firms operate. This literature describes this dynamic set of interactions as an entrepreneurial ecosystem [3]. While some suggest that an ecosystem embodies the interactions and interdependencies within industry value chains [4] others are defining the ecosystem beyond the value chain and instead place emphasis on the concepts of an interdependent set of actors, governance and the
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enabling of entrepreneurial action [2]. This presentation will discuss the implications of entrepreneurial ecosystems for industry clusters. One of the authors has been leading a study of the South Australia entrepreneurial ecosystems, the ecosystems that support and sustain new business start-up and growth, and the findings are instructive regarding the intersection between entrepreneurial ecosystems and industry clusters. References [1] D. Audretsch, and R. Thurik, International Journal of Entrepreneurship Education, 2004, 2(2), 143-166. [2] E. Stam, The Dutch Entrepreneurial Ecosystem, 2014, available at SSRN: http://ssrn.com/ abstract=2473475 or http://dx.doi.org/10.2139/ssrn.2473475 [3] V. W. Hwang, and G. Horowitt, The Rainforest – The Secret to Building the Next Silicon Valley, 2012, Regenwald, California, USA. [4] R. Adner, and R. Kapoor, Strategic Management Journal, 2010, 31, 306-333.
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Ecosystem Impact in Start-up Firms: a Comparative Analysis between South Korea and Finland Matthias Deschryvere VTT Technical Research Centre Finland and University of Jyv채skyl채 E-mail: matthias.deschryvere@vtt.fi Younghwan Kim Science and Technology Policy Institute(STEPI), Korea
Keywords: Ecosystems, start-ups, firm level impact The concept ecosystem has been increasingly used in policy circles and academic circles alike and is highly relevant for cluster research. While ecosystems have often been referred to from the perspective of the ecosystem leader and in the context of the ICT industry, relatively little is known for what the role of ecosystems is for start-up firms across the economy. In this analysis we contribute filling this knowledge gap by empirically exploring which factors are related to ecosystem impact in start-ups (Nambisan and Baron 2013). In terms of Iansiti and Levien (2004) the focus of this paper will be on niche firms rather than on keystone firms. Moreover, our empirical evidence can be useful for developing the scant theory currently available on ecosystems. Concerning the methodology of our research set-up we face two challenges. The first challenge relates to how to measure ecosystem impact. As it may take a long time before the benefits of ecosystem residence translate in objectively measurable performance changes (growth, sales, employment) there is a need to incorporate intermediate impact through perceptual measures (Falk, 2007). To measure the impact of ecosystem we use the additionality framwork of Falk that considers input additionality (e.g. more investments in R&D), output additionality (e.g. more products, increase in market share) and behavioural additionality (e.g. learning or network effects). The focus in this analysis is on the latter form of additionality. The second challenge concerns the selection bias that occurs by considering only firms where ecosystem impact can be known. Therefore the analysis will apply a Heckman 2 stage selection model to account for potential selection bias. In the equation explaining ecosystem impact will be included firm characteristics (firm stage, firm age, firm size), industry characteristics (industry codes), ecosystem characteristics (stage of ecosystem, size of ecosystem, number of ecosystems, category of ecosystems) and CEO characteristics (experience of CEO). A set of robustness test will be carried out to test the obtained associations from the base-line regressions. The comparative analysis is based on unique survey data obtained from 420 South-Korean and Finnish
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start-ups. The survey was carried out by phone in the autumn of 2014 and contains questions on firm development, ecosystem participation and impact and corporate governance. The survey data are merged to administrative firm-level data obtained via the ORBIS database. The focus on what drives ecosystem impact is relevant to policy. Indeed, although policy makers are discovering the potential of ecosystems, little is known on ecosystem impact (beyond some anecdotal evidence). In addition it can benefit expected that our results will be relevant for start-ups, in case they are interested on how they can benefit from ecosystems.
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Creativity, Clusters, and the Competitive Advantage of Cities Melissa Pogue Rotman School of Management, University of Toronto, Canada E-mail: Melissa.pogue@rotman.utoronto.ca Roger Martin Rotman School of Management, University of Toronto, Canada E-mail: martin@rotman.utoronto.ca Richard Florida Rotman School of Management, University of Toronto, Canada E-mail: florida@rotman.utoronto.ca Melissa Pogue Rotman School of Management, University of Toronto, Canada E-mail: melissa.pogue@rotman.utoronto.ca Charlotta Mellander Jönköping International Business School, Sweden E-mail: charlotta.mellander@jibs.hj.se
In The Competitive Advantage of Nations, Michael Porter called attention to the central role played by industrial clusters in the process of economic development.[1] But perhaps the most significant aspect of Porter’s work was his differentiation between two key types of clusters: (1) traded clusters composed of industries that sell to markets beyond their local region; and (2) local clusters that serve only their local market.[2] Building off of Porter’s work, Richard Florida came at clusters from the perspective of the clustering of people or talent as opposed to firms and industries.[3] He focused particularly on the clustering of a group of talented workers he dubbed the “creative class,” spanning science and technology, arts, culture, media and entertainment, business, management and the professions. These workers were defined by the creative content of their work which requires knowledge of field-specific information and pattern recognition as judgement and decision-making. The paper continues the work first conducted by Richard Florida and Roger Martin [4] in combining the Porter industry classifications and the Florida occupation classifications to classify four major industrialoccupational categories. A correlation analysis is employed to explore the relationship between the relative proportions of these four categories and metro level performance for 260 U.S. metros using the American Community Survey.
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This research shows that a metro with a high share of creative occupations in traded industries is positively related to greater economic performance, but also higher inequality. Areas that exhibit high shares of creative-in-traded employment are associated with higher wages for creative-in-traded workers on average, but after accounting for higher median housing costs routine workers are not associated with higher wages. In fact, routine-in-local workers are connected with lower wages in areas with high shares of creative-in-traded employment. This work points to the imperative for the U.S. government and businesses to increase the creative content of workers across all industries. References [1] M.E. Porter, The Competitive Advantage of Nations, The Free Press, 1990, New York, NY. [2] M.E. Porter, “The economic performance of regions”, Regional studies, Vol. 37 No. 6-7, 2003, pp. 545546. [3] R. Florida, The Rise of the Creative Class, Basic Books, 2002, New York, NY. [4] Martin Prosperity Institute, Ontario in the Creative Age, February, available at http://martinprosperity. org/media/pdfs/MPI%20Ontario%20Report%202009%20v3.pdf(accessed May 25, 2015).
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Exploring the Miracle: a Pragmatic Approach to Evaluating Collaborative Dynamics in Clusters Emily Wise IEC and Dept. of Business Administration, Lund University, Lund Sweden Madeline Smith Institute of Design Innovation, The Glasgow School of Art, UK James Wilson Orkestra and Deusto Business School, University of Deusto, Spain
Keywords: Cluster evaluation, collaborative dynamics, social capital After years of experience implementing cluster programmes, there is an emerging “generally accepted effect logic” for these policy interventions on which cluster evaluation is based (see, for example, TACTICS 2012 [1], Giuliani and Pietrobelli 2014 [2]). In simplified form, cluster initiatives aim at building on various types of input factors (both the tangible “structural capital”, and the intangible “social/relational capital”) to upgrade the cluster/innovation environment. The direct results – experienced in the near(er) term – are in the form of strengthened linkages/interactive learning processes...and collaborative R&I projects. These direct results (a more efficient/coordinated innovation system) then enhance longer-term outcomes/ impacts on economic performance. Although we start to see a ”generally accepted” set of indicators and analytical approaches for evaluating longer-term outcomes and impacts on economic performance, there are no “generally accepted” set of indicators or analytical approaches for monitoring the development and evaluating the impacts of collaborative dynamics (a.k.a. social capital, system coordination, or the human element) in cluster initiatives. In an attempt to further explore the “human element” of cluster analysis, some authors (for example Saxenian 1994 [3] in her analysis of Silicon Valley and Route 128) have highlighted the importance of social behaviours, cooperation and collective learning in the successful growth of a cluster. This has led to the development of the social-network model of clusters (Gordon and McCann 2000 [4]), where firms engage in higher risk collaboration for common mutually beneficial goals. Other researchers have more recently suggested that social network constructs combined with those of open innovation can help gain further insight into measurement of the operation and interactions within clusters (Wegner and Padula 2010 [5]). Morever, social network factors that can interact within a network entity leading to innovation include
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structural, relational and cognitive dimensions (Aragón et al. 2014 [6]). In order to deliver a more usable and practical resource for exploring these aspects, members of the TCI Cluster evaluation working group have been developing a framework 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 [7]), the framework describes characteristics of engagement, collaboration, shared strategic orientation at different stages of development. The framework is designed to be a self-assessment tool for both firms and cluster managers, complementing existing reporting and evaluation processes. Results 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. This paper will outline the current stage of development, early testing of some of the question areas from Innovation Norway, and the current state of play for the framework, in order to invite discussion and potential partners for further testing and iteration. References [1] TACTICS, ‘Impact evaluation of cluster-based policies’ (available at: http://www.eca-tactics.eu/page/ tactics-final-reports), 2012. [2] E. Giuliani, C. Pietrobelli, ‘Social Network Analysis Methodologies for the Evaluation of Cluster Development Programmes’, Working Paper No. 2014/11, Circle, Lund University, 2014. [3] A. Saxenian, Regional Advantage: Culture and Competition in Silicon Valley and Route 128, Harvard University Press, 1994. [4] I. Gordon, P. McCann, ‘Industrial Clusters: Complexes, Agglomeration and/or Social Networks?’, Urban Studies, 2000, 37 (3), 513–532. [5] D. Wegner, A. Padula, ‘Governance and management of horizontal business networks: an analysis of retail networks in Germany’, International Journal of Business and Management, 2010, 5, 74–88. [6] C. Aragón, M.J. Aranguren, C. Iturrioz, J. Wilson, ‘A social capital approach for network policy learning: the case of an established cluster initiative’, European Urban and Regional Studies, 2014, 21(2), 128-145. [7] M. Smith, R. Brown, ‘Exploratory Techniques for Examining Cluster Dynamics: A Systems Thinking Approach’, Local Economy, 2009, 4, 283-298.
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Cluster Evolutionary Trajectories and their Cases Chulwoo Lee Institute of Regional Development, and Dept. of Geography, Kyungpook National University, Email: cwlee@knu.ac.kr Jihye Jeon Dept. of Geography, Kyungpook National University, Email: hanamotomika@naver.com
Keywords: Cluster evolution, complex adaptive systems, adaptive cycle model In recent years, there has been a growing interest in theory of cluster evolution among economic geographers. The focus is on understanding how and why the economic landscape, including clusters, evolves over time through a series of historical processes such as emergence, mature, and renewal(Boschma and Frenken, 2006; Martin and Sunley, 2006; Boschma and Martin, 2010). Since clusters are characterized by non-linear dynamics, emergence, self-organization, and the like, clusters can represent complex adaptive systems, and produce multiple possible evolutionary trajectories and unpredictable courses of change. In this respect, the adaptive cycle model, attaching significance to the resilience as well as possibility of renewal and replacement of complex system, seems to be a welldefined and well-supported idea to explore cluster evolution. However, for being more appropriate for conceptualizing the evolution of cluster and other types of local economic system, the model needs to be adjusted and revised. Martin and Sunley(2011) have modified and extended the model, and suggest six possible alternative evolutionary trajectories. Detailed characteristics and the cases of each trajectory are as below. Firstly, according to cluster full adaptive cycle, the classic ecological cycle, the cluster follows ‘emergence, growth, maturation, decline and replacement’ phase, and the cluster replaced by a new cluster draws upon resources and capabilities from the old cluster. Some cases such as the Seoul Digital Industrial Complex(Koo, 2012) have newly specialized on the basis of released resources. Secondly, in constant mutation trajectory, the cluster may remain ‘exploitation and growth’ phase with structural and technological change, and the nature of the industrial specialism is a critical element in this path. For example, the Daegu Seongseo Industrial Complex might be flexible and adaptable, so that have been able to exploit new knowledges and develop new products. Thirdly, according to cluster stabilization, the cluster follows ‘emergence, growth, maturation and stabilization’ phase, but survives in a reduced form for decades rather than declines and disappears. Some cases such as the Machine Industrial Cluster of Changwon have stabilized but not radically rejuvenated or launched related trajectories. Forth trajectory is
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cluster re-orientation in which a mature cluster moves from a stable period to a new phase of emergence and renewal before the process of decline gets underway. The Gumi National Industrial Complex is typical examples for this path. Lastly, there are two phases in cluster trajectories when they fail to innovate or reorganize themselves out of decline. One is cluster disappearance in which there is no reorganization into a new emergent pattern and the industrial district may just progressively decline. There are some examples including Sheffield steel, Dundee jute, and Como silk where clusters are vulnerable to terminal decline. The other one is emergent cluster failure where clusters might fail to become established during the emergent phase due to dominant policy initiatives, the decisions taken by large anchor firms, and the like. A representative example is Daebul National Industrial Complex for this path. The modified model retains some of the useful stylized regularities highlighted by the archetypal adaptive cycle model whilst at the same time allowing greater scope for the critical influence of contingent agency and firm response to pressures. Nevertheless, since any such universal model doesn’t exist, future research needs to examine and conceptualize carefully how the complex adaptive system including clusters may give rise to various evolutionary trajectories, taking into account of region-specific internal and external factors as well as their interaction.
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13:30-15:00 Room 322
[1.3] Shaping Creative Economies through Clusters
Moderator: Mr. Gavin Artz Department of State Development, South Australia, Australia [1.3-1] Investing for a Creative Region Madeline Smith The Glasgow School of Art, UK [1.3-2] Incentives and Support Policies for the Video Game Industry and Clusters in Different Countries Ulrich Harmes-Liedtke & Nadine Barthel Mesopartner PartG, Germany [1.3-3] MTNS-MADE: How the Blue Mountains Creative Industries Cluster is Driving Jobs and Growth in Screen Production in Regional Australia Kelly Blainey Blue Mountains Economic Enterprise, Australia [1.3-4] How Strategic use of Design Connect Business with People Thit Juul Madsen D2i - Design to innovate, Denmark [1.3-5] Uncovering the Characteristics of Business Model in Open Data Companies and Their Relational Positions Using Webometrics Analysis - Focusing on Geospatial Companies in United States Ji-Young Park Yeungnam University, Korea
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Investing for a Creative Region Madeline Smith The Glasgow School of Art, UK E-mail: m.smith@gsa.ac.uk
The Glasgow School of Art and Highlands & Islands Enterprise have established a strategic Creative Futures Partnership as a transformational activity for the region. Our ambition is to combine the challenges and opportunities of social and economic development through innovative methods of design-led research and teaching, developing practices for C21st regional development. A central aim is to develop an international reputation as a creative region, involving research and teaching programmes tackling the key themes of Creative Futures, Creative Communities and Creative Industries. Clusters and building productive complex collaborations (“extreme collaborations”) are essential for the success of this ambitious investment. Our work focuses on stimulating qualities for a flourishing ‘Creative Region’: including enabling clusters of businesses to link nationally and globally. Key practice based research projects are being developed across these themes including: • Innovation from the Edge: economic and community growth linked to Creative Industries and social/ community enterprise • Distributed City: Exploring the opportunity of ubiquitous broadband to connect innovative communities across dispersed geographies, exploring key issues around addresses gender, digital and youth. • Innovation from Tradition: a design-research platform, which takes a collaborative, cross-generational approach to support the development of the cultural, digital and economic infrastructure of the design and craft networks. • Design Services Network: Understanding the ‘spill-over’ effect of the Creative Industries into other key sectors in the Highlands and Islands, including how can Design capabilities in the region support the growth of other sectors (cross sectoral working) This paper will describe the development of these ‘extreme collaborations’ and how strong partnership working has helped build the ambitions for increased regional competitiveness, anchored in exploiting the creative economy. Practical examples of new approaches to cluster development, exploiting cross cluster working and both stimulating demand and supporting supply capability will be described.
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1.3-2
Incentives and Support Policies for the Video Game Industry and Clusters in Different Countries Ulrich Harmes-Liedtke Mesopartner PartG, Germany E-mail: uhl@mesopartner.com
Keywords: Creative clusters, trade in services and developing countries The video game industry is one of the fastest growing sectors in the global economy. According to market research, the global video games industry will see revenues grow by around 9.4 percent and will hit $91.5 billion in 2015. That 9.4 percent increase is year-over-year. The leading "Global Games Market Report" predicts that worldwide revenues from gaming will reach $107 billion in 2017. In the United States, the video game sector is already bigger in terms of turnover than the traditional Hollywood film industry. The extraordinary growth of the gaming industry requires appropriate incentives and promotion schemes. Several governments in developed and developing countries are competing to develop the best policies to foster this emerging sector as part of the promotion of their creative industries. The presentation will summarize the findings of an international comparison of incentives and policies to promote the digital animation and video game industry in 9 countries (Argentina, Brazil, Canada, Colombia, Costa Rica, Germany, Guatemala, Korea and Spain). The study is part of a mayor project to promote the digital animation and video game industry in Central America. This project is co-financed by the German Development Cooperation (GIZ) and executed by the consultancy firm Mesopartner. There are different country strategies for participating successfully in the emerging video game industry. It is a matter of identifying suitable ways to best promote the video game industry and balance the approach with the specific needs of the individual business ecosystem. The study concludes with appropriate promotion strategies for creating sustainable competitive advantages in the video game industry. The example illustrates the opportunities and challenges for developing countries in particular when it comes to benefitting from the global trend of emerging creative industries. The mayor challenges here are overcoming the dependent position as factory producers and creating genuine competitive advantages based on local identity and creativity.
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MTNS-MADE: How the Blue Mountains Creative Industries Cluster is Driving Jobs and Growth in Screen Production in Regional Australia Kelly Blainey Blue Mountains Economic Enterprise, Australia E-mail: kelly@bmee.org.au
The first half of this presentation is a case study on how the Blue Mountains Creative Industries Cluster is facilitating local growth and job creation in the field of screen production (film, television, commercials, animation and web content). The Cluster has been in operation for less than two years, and is an initiative of Blue Mountains Economic Enterprise, the peak regional economic development agency. A range of early grassroots initiatives allowed the Cluster Manager to identify screen production as a potential area of competitive advantage, due to the skill sets, experience and resources of people living in the region. Strategic interventions, in response to industry demand – including holding public meetings, facilitating investor meetings, developing an industry directory, producing an industry conference and commissioning a regional brand to showcase the creative talent of the Blue Mountains – have resulted in the production of at least two feature films in the region that otherwise would have been produced in Sydney or overseas, in addition to many smaller screen productions. The second half of the presentation will examine how the Cluster will continue to be a key driver for the creative economy in the Blue Mountains as it moves from the embryonic to emergent stage of cluster development. Nearing the end of its second year, the Cluster is examining business models for service provision which are designed to boost the competitiveness of screen production in the region as well as provide operational funding for the Cluster; while continuing to facilitate the smart specialization of new and existing local firms that support and/or complement the burgeoning screen production industry.
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1.3-4
How Strategic use of Design Connect Business with People Thit Juul Madsen D2i - Design to innovate, Denmark E-mail: thit@d2i.dk
Keywords: Design thinking, business development, creative communities Arne Jacobsen chairs, PH lamps and blue fluted china. These are classic examples of Danish design. But design is so much more. Design includes – when used strategically – top executives going on observation trips far from vision statements and Excel charts. It entails employees bringing practical knowledge from the production lines all the way to the company’s top strategic planning board. And it allows customers to take part in the development of products, enabling them to spring from specific needs and lived lives. In short, strategic use of design is a path to growth and job creation in Denmark because it helps companies optimize and improve everything from production to product, from strategy to process. But even though large companies such as the LEGO Group, Mærsk and Novo Nordisk already have acknowledged the potential in using design strategically, several studies show that small and medium sized companies still do not utilize the potential. This is a shame because design is a growth factor for all kinds of companies in the business community, no matter their size. In the presentation at TCI, I would like zoom in on the concept of strategic use of design, and discuss the potentials in supporting more design in the business world. Most importantly, also present cases about companies who have created growth, jobs, and development by utilizing design strategically. These companies confirm the experts; design rhymes with business development. D2i – design to innovate is design cluster, where we create growth and prosperity through design and design driven innovation. We forster creative communities where design users and design creators are brought together, to solve business and societal challenges. We bring design research and practices to businesses, public authorities and other knowledge-based institutions that are already working with or wish to work with design thinking and design-driven innovation.
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Uncovering the Characteristics of Business Model in Open data Companies and Their Relational Positions Using Webometrics Analysis - Focusing on Geospatial Companies in United States Ji-Young Park Doctoral Student, Interdisciplinary Program of East Asian Cultural Studies, YeungNam University, Korea E-mail: heytreee@gmail.com Han Woo Park Full Professor, Department of Media and Communication, Interdisciplinary Program of East Asian Cultural Studies, Interdisciplinary Program of Digital Convergence Business, YeungNam University, Korea E-mail: han.woo.park.korea@gmail.com
Keywords: Open Data, business model, geospatial data, webometrics This study investigates business opportunities arising from Open Data. Open Data provides an increased availability for private industries for new product and service developments. However, few studies have explored its business models. First of all, current study intends to examine relevant literature to uncover Open Data business models. Next, it characterizes the business models of the thirty Open Data companies in geospatial filed. Those companies were selected from the Open Data 500 database in USA (http://www. opendata500.com). Lastly, Webometrics analysis was employed to identify the relational positions of Open Data companies in geospatial field. In other words, this study examines the way in which geospatial Open Data companies make an online relation with other companies (e.g, lifestyle, transportation, education, etc.).
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13:30-15:00 Room 323 [1.4] New Direction in Cluster Policy for Sustainable and Inclusive Competitiveness Moderator: Mr. Alberto Pezzi ACCIĂ“-Catalan Government, Spain & TCI Network [1.4-1] New Approaches to Cluster-led Economic Development: a Comparative Analysis of Federal Policies and Metro Level Strategies in the USA Kathleen Lee Greater Phoenix Economic Council, U.S.A [1.4-2] The Dynamic Interaction between Clusters, Cities and Internationalization: New Competitiveness Policies with the City of Porto as a Hub Ana Teresa Tavares-Lehmann InvestPorto, Portugal [1.4-3] Ontario's Cluster Performance and Policy Evolvement Weiru Shi Institute for Competitiveness & Prosperity, Canada [1.4-4] The Danish Cluster Strategy - Status and New Areas for Improvement Morten Solgaard Thomsen Danish Agency for Science, Technology and Innovation, Denmark [1.4-5] The Evolutionary Dimension in Cluster Policy: Emerging Industries and the Role of Clusters in Sustainable Competitiveness David Fernandez Terreros SPRI Basque Country Business Development Agency, Spain
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New Approaches to Cluster-Led Economic Development: A Comparative Analysis of Federal Policies and Metro Level Strategies in the USA Kathleen Lee Greater Phoenix Economic Council E-mail: klee@gpec.org
Keywords: U.S. Manufacturing competitiveness, industry consortiums, regional economic development In the United States, two new approaches to cluster development are being implemented and tested. These approaches focus on developing technology-driven industry clusters as a means of revitalizing the manufacturing sector and stimulating regional economic development. At the federal level, the national manufacturing innovation institutes represent a new form of industrial policy designed to accelerate the commercialization of emerging technologies and solidify U.S. competitiveness in advanced manufacturing. To date, five such institutes have been funded under intense competition and located at strategic regions throughout the country. At the regional level, another form of cluster development is taking place. In contrast to the top-down and funded federal effort, regional strategies rely on mobilization of local resources and self-organizing by industry. These regional efforts operate on pre-competitive collaboration and longer time frames to realize results. The presentation will explore both of these models in-depth in order to advance the understanding of competitiveness in today’s global economy and highlight the continuing role of industry clusters as catalysts for national and regional economic development. The presentation will raise questions regarding efficacy and policy implications associated with both federal and regional models by discussing their key features such as sustainability, university-industry collaboration, intellectual property sharing, funding mechanisms, governance, economic impact and workforce development. The case study of sensor technology industry consortium currently being organized in metro Phoenix, Arizona will further explore the process by which new forms of cluster development are pursued. Finally, the presentation will conclude by arguing that new paradigm has evolved to generate and accelerate the cluster effect through pre-competitive collaboration around research and commercialization. This evolution fundamentally changes the pathways for cluster development and presents new opportunities for shaping competitiveness.
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1.4-2
The Dynamic Interaction between Clusters, Cities and Internationalization: New Competitiveness Policies with the City of Porto as a Hub Ana Teresa Tavares-Lehmann InvestPorto, Câmara Municipal do Porto, Portugal (Professor of Economics, FEP-U.Porto; Head of International Business, Porto Business School) E-mail: ana.lehmann@cm-porto.pt
Clusters, cities and internationalization are themes vastly studied on their own. However, their interaction has been less researched. The mechanisms through which clusters impact on their members’ internationalization has been scarcely documented ([1] Lopes, 2014; [2] zu Köcker et al., 2011). On the other hand, the city/metropolitan dimension of cluster policies has been rarely developed, as most studies on clusters adopt the region as the territorial unit of analysis. Yet, ([3] Ketels, 2015) has recently called the attention to the relevance of cities fin the context of economic development and competitiveness upgrading. According to Ketels (2015), “the central city in a region is often the natural driver to orchestrate a regional strategy for competitiveness upgrading. Against this background, this presentation has two objectives: 1) Develop a novel framework clarifying the mechanisms in which (a) cluster-driven development contributes to the competitiveness of cities; (b) cities promote the internationalization of clusters, e.g. helping to access global knowledge pipelines and value chains, using different city-/metropolitan-led policies and through territorial brand-building; (c) cities may drive regional/national competitiveness. 2) Explain these mechanisms based in the recent experience led by the city of Porto, in which an ambitious alliance has been forged between the city’s leadership (a businessman Mayor and InvestPorto) and a considerable number of entities at the cluster, regional, national and international levels. In 2) the actions supporting this unprecedented public-private collaboration will be detailed, including the institutionalization of links with numerous entities; the leveraging of the city’s new award-winning brand and of several missions abroad to promote the internationalization of regional clusters, most of which headquartered in the city; the development of business intelligence and other tools; the strategies/ actions to attract flagship investors/partners/international talent to relevant clusters; the promotion of entrepreneurship, innovation and interindustry convergence, among a host of other specific measures. References [1] Lopes, S., Clusters and internationalization: How does belonging to a cluster influences the process of internationalization and the strategies of its members?, 2014, M.Sc. dissertation, University of Porto. [2] zu Köcker, G. M., Müller, L. and Zombori, Z., "European Clusters Go International - Networks and clusters as instruments for the initiation of international business cooperation", 2011, http://www.tci-network. org/news/card/314. [3] Ketels, C., Cities – a (not so) new arena for competitiveness upgrading, 22nd May 2015, http://www.tcinetwork.org/news/927.
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Ontario’s Cluster Performance and Policy Evolvement Weiru Shi Institute for Competitiveness and Prosperity, Canada E-mail: w.shi@competeprosper.ca
The Institute for Competitiveness & Prosperity is an independent, not-for-profit organization that deepens public understanding of macro and microeconomic factors behind Ontario’s economic progress. It is funded by the Government of Ontario. Weiru Shi is a policy analyst at the Institute. This presentation will first introduce the Institute’s latest research on Ontario’s cluster performance compared to 15 US peer states, followed by an in-depth discussion on the evolvement of Ontario’s cluster policy. This research uses within-and-between analysis approach and a longitudinal dataset between 1991 and 2013, aligned with Michael Porter’s latest definition of clusters. The results show that Ontario has a worrisome trend in traded clusters. The average annual wage gap between US peers and Ontario for traded clusters steadily climbed from $13,900 per worker in 1991 to $32,900 in 2013, in real terms. Besides, cluster mix, measured by the share of highly productive clusters within regional economy, has had a limited impact on the wage gap, compared to cluster effectiveness, measured by the wage difference between US peers and Ontario in a given cluster (Exhibit 1). Ontario is much less productive in traded clusters than local clusters. Ontario’s clusters underperformance is mainly attributable to the productivity gap within each cluster. In other words, creating more employment in certain clusters, namely only changing the cluster composition of Ontario, wouldn’t help address the problem effectively. Unfortunately, Ontario’s cluster policy before 2014, targeted at creating new jobs in desirable clusters, such as biotechnology and ICT, instead of supporting its strong and fast-growing clusters. These policies haven’t enhanced Ontario’s cluster performance in the last two decades. Ontario is now shifting its focus towards a new regional cluster strategy. Exhibit 1:
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1.4-4
The Danish Cluster strategy - Status and New Areas for Improvement Morten Solgaard Thomsen Danish Agency for Science, Technology and Innovation, Denmark E-mail: mst@fi.dk
In 2013, Denmark presented its first Cluster Strategy 2013-2015. The strategy is a joint effort of eight ministries, the five regions of Denmark and three large municipalities. The strategy creates a joint coordination of the cluster and network policy across municipalities, regions and ministries in relation to the establishment, development, internationaÂŹlisation and professionalisation of clusters and networks. The strategy consists of three main initiatives: Firstly, a forum for the cluster and network policy in DenÂŹmark will be established to support cluster development in Denmark and ensure cohesion and synergy between local, regional, national and international cluster efforts. Secondly, an effort to qualify and professionalise the Danish cluster organisations will be carried out. This will be done by offering benchmarking tools in accordance with European quality standards and targeted competence development via a joint support function for Danish clusters. Thirdly, the international activities of the clusters will be strengthened, including in our neighbouring countries in the Nordic and Baltic regions, where there are still large unexploited market potential for Danish SMEs. This will happen through intensified collaboration with foreign clusters, the Danish innovation centres and other Danish representations abroad. A process of updating and renewing the Danish Cluster Strategy for the period 2016-2018 is taking place this year. The presentation will present the results so far as well as new areas for improvement that is expected to be addressed in the new Cluster Strategy.
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The Evolutionary Dimension in Cluster Policy: Emerging Industries and the Role of Clusters in Sustainable Competitiveness David Fernandez Terreros SPRI Basque Country Business Development Agency, Spain E-mail: dfernandez@spri.eus
From the stakeholder point of view and at a microeconomics level, clusters are primarily a lever for business competitiveness, in particular of SMEs. But for policy makers, cluster policy is a long term instrument for enhancing the territory’s overall competitiveness and economic performance. As long as economics is the science of making choice, implementing a cluster policy implies first to choose which sectors to focus and foster within the given territory. Critical mass is the prevailing criteria in cluster mapping and decision making regarding public support to relevant clusters, what frequently leads to focus on traditionally strong clusters. However, the evolutionary dimension and life cycle of clusters, together with the challenges and opportunities created by a rapidly transforming technology scenario and global economy, and the priorities set in smart specialization strategies lead to the emerging of cross-cutting technologies, related diversification and new industries in potentially emerging clusters. The challenge of industrial policy makers is to address cluster policy considering this double perspective in order to achieve a sustainable globally competitive economy.
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13:30-15:00 Room 324A [1.5] Accelerating Cluster Growth in Asian Countries Moderator: Dr. Jong Woo Kang Asian Development Bank [1.5-1] Korean Technoparks’ Clustering Role and Development Direction Byungho Seong Daegu Technopark, Korea [1.5-2] What We Could Learn from Asia? The Comparison of European and Asian Model of Cluster Policy Martina Sopoligova Tomas Bata University in Zlin, Czech Republic [1.5-3] Industrial Cluster Development in Lao PDR: Opportunities and Challenges Byoungki Kim Shiga University, Japan [1.5-4] Configuration of Alliance Portfolio for Firm’s Innovation in Eco-friendly Car Industry: Hyundai Motor and Toyota Hyeonjoo Jeong Korea Research Institute of Chemical Technology, Korea
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1.5-1 Korean Technoparks’ Clustering Role and Development Direction Byungho Seong Director general of Policy Planning Dept., Daegu Technopark, Korea E-mail: byungho.seong@ttp.org
A breakdown of Korea’s industrial complex development policies shows that in the 1960s, the government attempted to develop and plan clusters according to geographical conditions. As such, it created exporting industrial complexes based on light industries such as the development of the Guro Industrial complex. In the 1970s, free export zones and large industrial complexes in the southeastern region based on heavy chemical industries were developed with the goal of creating large industrial complexes and suppressing the growth of metropolitan areas. In the 1980s, as regional imbalance exacerbated, large industrial complexes in the southwestern region were developed and apartment-type factories, together with agricultural and industrial complexes, were built to reinforce the region. In the 1990s, the government alleviated regulations on local requirements for creating industrial complexes, thus paving the way for the creation of individual industrial lots to increase and diversify. Lots were supplied for cutting-edge industries and technoparks began to be created. In the 2000s, the creation of industrial complexes, which have the ability to lead new future growth, such as cutting-edge urban industrial complexes, software development promoting complexes, cultural complexes, and cluster pilot complexes, began in order to build knowledge-based industries and enhance the competitiveness of existing complexes. In general, clusters could be said to be complexes built by horizontally and vertically connecting related companies, universities, research centers, central/local governments, and supporting organizations, for the pursuit of common goals. Industrial zones, development zones, capacity zones, integrated/local industrial clusters, industrial clusters, industrial complexes, resource regions, and technology systems/networks are complexes of a similar concept or form. Korea developed mainly based on national industrial complexes, private industrial complexes, cutting-edge urban industrial complexes, agricultural and industrial complexes, and other industrial complexes. Then, from the 1990s, mini cluster projects were pursued, even reaching the point wherein it made “cluster a popular terminology. Over 70 clusters, such as mechatronics, digital contents, shaping processing, and other clusters, began to be created in cities and provinces. The construction of technoparks was also initiated with the purpose of developing and spreading technology and supporting companies, akin to technology system clusters. At the early stage, technoparks were managed by complex to create technological complexes, construct centers, and build the necessary equipment. During the second stage of their development, they pursued comprehensive support expanded to incubating business start-ups, joint development of technologies, building local innovation systems, joint use of equipment, training, sharing information, pilot production,
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and technological support. During their third stage of development, they played the role of clustering technological systems as local industrial development footholds and corporate technology hubs for local industrial planning, bolstering a creative economy and building a comprehensive support system for creating jobs. As globalization continued to spread and the life span of industries shortened, borders between industries became less clear, eventually becoming converged. At present, as low growth, low birth rate, and aging are continuously changing the business environment, a method surpassing clustering has become necessary. As a result, policies that specialize in smart industries have emerged in Europe, wherein entrepreneurial economic entities change the corporate ecosystem through diversification in consideration of local advantages and disadvantages. Here, trials and errors and pilot testing are allowed for entrepreneurial discovery to take place focused on prioritized competitive fields. Korean technoparks should, therefore, lead Korea’s economic development and local policies in the future by fully understanding smart specialization and creating Korea-type smart specialization so that individual entities may improve their capacity, cultivate an entrepreneurial spirit, and connect their infrastructure with the latest knowledge flow.
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What We Could Learn from Asia? The Comparison of European and Asian Model of Cluster Policy. Martina Sopoligova Faculty of Management and Economics, Tomas Bata University in Zlin, Czech Republic E-mail: martina.sopoligova@gmail.com
Keywords: Cluster, cluster policy, Europe, Asia There is a widespread agreement in academic literature that knowledge, learning and innovation are key to economic development and competitiveness for firms, regions and nations. Governments and policy makers have increasingly looked to examples of good practice in order to create and implement the successfull cluster approach. The trend of globalisation has created interdependency between cluster policies. This state increases learning accross regions. Our current research represents the necessary first step in that process – gathering relevant examples of industrial clustering. We have studied examples from the European regions and from the key regions of Asia (Vietnam, China, Malaysia and India). How cluster policies and strategies can help in economic growth? If cluster policy is successful, it can contribute to new jobs creation and to economic growth in regions. This paper will also cover the role of clusters as the key drivers for economy. By comparing European and Asian clusters, we highlight significant differences in the cluster infrastructure. There are also identified the local specificities, the different influence of regional policies and the role of government in the article. This paper presents main facts and trends of several examples from our current research. The problem is, however, that these good examples are ofted used in an undifferentiated manner for all kinds of regions. The strengths and weaknesses of regions in terms of their industries, knowledge institutions, innovation potential and problems are frequently not sufficiently taken into account (Tödtling and Trippl, 2005). „One size fits all“ approach is not appropriate; each region must further develop and adapt these strategies to its own circumstances. The success of clusters depends on infrastructure (highways, ports, electricity supply, etc.); institutional framework (legal systems, participatory actors, coordination among actors, etc.); and government support in terms of laws, taxation and finance. As shown in this paper, the role of government is essential, particularly in setting the priorities and dividing the resources. Author is thankful to the Internal Grant Agency of FaME TBU No. IGA/FaME/2015/0036 “The impact of the concept of cluster policy on the establishment and the viability of cluster companies” for financial support to carry out this research.
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Industrial Cluster Development in Lao PDR: Opportunities and Challenges Byoungki Kim Shiga University, Japan E-mail: kim_byoungki@hanmail.net
A lot of industrial clusters have been formed on the base of government supports in many East Asian countries. This has attracted many multinational companies with support of venture business, well educated labor force, and a network of industry, university and government. These industrial clusters have made a great success in innovation as a result of support for venture business and it has brought local revitalization. A lot of special economic zones specializing in specific industries and export produced goods have created in developing countries recently. Bangalore in India is a good example has succeeded as an industrial cluster. Some special economic zones have been constructed in the border area with China and Thailand in Laos which is a landlocked country in Indochina. These economic zones have been developed by the private capital of Laos, China, Vietnam and Malaysia as well as by the Laotian government. Conditions such as young labor power, research institutes and universities, infrastructures, stable and cheap electric power supply have been completed in the special economic zones. The feasibility of industrial cluster formation will become higher by elimination of tariff, liberalization of production factors movement and building of a logistic network and transportation network when regional economic integration (ASEAN Economic Community) start this December. We will analyze whether special economic zones will succeed as industrial clusters referring to the model of competition advantage of a cluster by Porter. References [1] Yusuf. S, Nabeshima. K, Yamashita. S, Growing Industrial Clusters in Asia, The World Bank, 2008, pp. 1-30. [2] Web Site, Ministry of Planning and Investment of Lao.
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Configuration of Alliance Portfolio for Firm’s Innovation in Eco-friendly Car Industry: Hyundai Motor and Toyota Hyeonjoo Jeong University of Science & Technology(UST), Korea Research Institute of Chemical Technology(KRICT) E-mail: hjjeong@krict.re.kr
Keywords: Hyundai Motor, Toyota, alliance portfolio In Eco-friendly auto industry, firms engaged in multiple simultaneous strategic alliances to gain competitive advantages and to improve outcomes [1]. Especially, bioplastics that used material of ecofriendly car need fusion of bio-technology and chemical-technology [2, 3]. Hyundai Motor and Toyota are the global top auto firms. Recently these firms are concentrating on production of eco-friendly cars are made of bioplastic [4]. Especially, Toyota produced hybrid car is made of bioplastic in 2009 and gained a success in Eco-friendly auto market. This study examines which technological alliance portfolio configuration is better for focal firm innovation through comparison between Hyundai Motor and Toyota. Taking advantage of longitudinal patent data from the Thomson Innovation DB between 1994 and 2014, the configuration of alliance portfolio of Hyundai Motor and Toyota is investigated. The result show that; 1) the alliance portfolio size of Toyota are characterized by a large number of partners and alliance ties, while Hyundai Motor gradually increases the number of partners and the number of ties; 2) Toyota periodically changes the structure of alliance portfolio by making strong ties and weak ties with partner, but Hyundai Motor forms strong ties with one partner in their network; 3) Toyota collaborates with bioplastic firms and small-medium firms, research institutes, universities, while Hyundai Motor most collaborates with auto firms and large firms, universities. These factors make differences in firm’s performance of Hyundai Motor and Toyota. The main contribution of this study is that I showed the three factors that alliance portfolio size, structural dimension, partner dimension are the key elements which effect on firm performance, and the meaning of the three factors should be divided. References [1] Pornpun Theinsathid, Achara Chandrachal, Suwlmon Keeratipibul, Journal of Technology Management & Innovation, 2009, 4, 82-93. [2] Clara Rosalía Álvarez-Chávez, Sally Edwards, Rafael Moure-Eraso, Kenneth Geiser, Journal of Cleaner Production, 2012, 23, 47-56. [3] Alastair Iles, Journal of Cleaner Production, 2013, 45, 38-49. [4] Jonggeon Jegal, Kwang Myung Cho, Bong Keun Song, Polymer Science and Technology, 2008, 19, 307-317.
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Special Plenary Session
15:00-16:15 Room 325 Clusters in Korea: Development Process and Achievement Moderator: Prof. Eui Young Lee Kunsan National University, Korea 15:00-15:25 [SP-1] Evaluating Korean Innovative Cluster Policies: Emerging a New Type of Asian Clusters? Prof. Kee-Bom Nahm University of Seoul, Korea 15:25-15:50 [SP-2] Future Agenda of Cluster Policy in Korea: Toward global Collaborative Cluster Program in KICOX Prof. Jun Yeop Kim Kyunghee University, Korea 15:50-16:15 [SP-3] Boosting Cluster and Mini-Cluster-based Programs in Korea Prof. Beom Cheol Cin & Prof. Eui Young Lee Kyonggi University, Korea & Kunsan Nationl University, Korea
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Evaluating Korean Innovative Cluster Policies: Emerging a New Type of Asian Clusters? Kee-Bom Nahm Department of Urban Sociology, University of Seoul, Korea E-mail: nahm@uos.ac.kr
This paper explores the innovative industrial cluster policies in Korea, from compact industrialization period (the 1960s ~ the 1970s) to deepening regional industrial development period (2008-2012). Most of the cluster policy specialists have theorized and case-studied that indigenous and spontaneous innovative industrial clusters can survive and evolve in the long-run, however, the Korean case showed that state's proactive role as a cluster creator, but that they have promoted innovative industrial clusters in different ways. Although Korea has unique ideological, political, and institutional configurations as a developmental state, its innovative industrial cluster policies have interacted with the market, local governments, and citizen groups. In the context of state restructuring, Korea has taken an endogenous approach by nurturing local talent and promoting local firms and institutions in cluster creation as well as state as cluster locators. This paper concludes that Korean innovative industrial cluster policies can be classified as a new type of clusters and the lessons of Korean case would be a good exemplar for designing innovative clusters in the developing countries as well as regional development strategies in the industrialized ones.
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SP-2
Future Agenda of Cluster Policy in Korea: Toward global Collaborative Cluster Program in KICOX Jun Yeup Kim Kyung Hee University E-mail: junyeup@khu.ac.kr
Keywords: Knowledge-based and creative economy, global partnership, industrial cluster policy, innovation The paper reviews implications of recent research on performance of cluster policy in Korea. The cluster policy in Korea has contributed to not only toward a balanced national development but also toward the provision of job creation and a new growth engine for creative economy. In order to achieve this, the role of Korea Industrial Complex Corporation (KICOX) is essential. The vision of the Industrial Complex Cluster Program in KICOX is to build ‘globally competitive innovation clusters to lead Korean economy. Since the program launched in 2005, the global innovation clusters will be promoted with special emphasis on building pan regional networks of industries, universities and research institutes, fostering open innovation and creating healthy industrial ecosystem. In order to reinforce inter-regional and interfirm network within the framework of pan regional policies, industrial complex with creativity, multi-scalar clusters and a mixture of local and global perspectives should be matched regional and industrial policies in Korea. Hence, the knowledge spillover from the firms enhances regional competitiveness from open innovation platform in knowledge-based and creative economy. Furthermore, each cluster attempts to expand innovative capacity by reinforcing competition and collaboration with global clusters. It can also develop collaborative R&DB program with both developed and developing countries’ regional development agencies. By integrating global collaborative cluster program, the paper argues that the tremendous opportunities and various channels to knowledge and innovation spillover will be created by KICOX. These different types of linkages formation are key determinant factors for establishing cluster through contributing to local economic development in Korea.
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SP-3
Boosting Cluster and Mini-Cluster-based Programs in Korea Beom Cheol Cin Department of Economics, Kyonggi University, Korea E-Mail: bccin@kyonggi.ac.kr Eui Young Lee Department of Economics, Kunsan National University, Korea E-Mail: eylee@kunsan.ac.kr
This paper addresses the issues about Korean cluster policies focusing on Mini-cluster programs mainly operated by the KICOX. For more than a decade, Korean government has taken the top-down approach to clustering to enhance R&D activities and innovation, and thus to stimulate firm growth and regional development. In general, the top-down approach may have many beneficial aspects, including enhancement of innovation and productivity and improvement of employment opportunities. In earlier stage, however, it could also have some risk factors, in particular a weak entrepreneurial culture, difficulty in integrating SMEs, barriers to cross-sectional collaboration, and insufficient supply of innovation finance. To mitigate the problems associated with the clustering, both Korean government and the KICOX have been implementing diverse Mini-cluster programs. The Mini-cluster programs are various types of a small group alliance which usually composes of firms, universities, research institutes, the KICOX, and local government. Then, we will describe the role and performance of the Mini-cluster programs. After explaining typical Mini-cluster cases in Korea, we will discuss potential success of those programs.
TCI 2015
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3-6 November 2015 / EXCO, Daegu, Korea
Plenary Session 1
16:30-18:00 Room 325 Asian Cluster Model: New Perspective and Trends Moderator: Dr. Chong In Lim Korea Industrial Complex Cooperation(KICOX), Korea & TCI Network 16:30-16:45 [PL1-1] Development Hi-tech and Achieve Industrialization: the Exploration and Perspective of the Development Chinese Science & Technology Industry Parks Mr. Yang Yuecheng Torch High Technology Industry Development Centre, China 16:45-17:00 [PL1-2] Innovation Clusters – a National Strategy to Build Technology Capabilities in Singapore Dr. Pauline Tay National Research Foundation, Singapore 17:00-17:15 [PL1-3] Building Economic Zones and Cross-regional Cluster Ecologies in Emerging Asia Dr. Jong Woo Kang Regional Cooperation and Integration Division, Asian Development Bank 17:15-17:45 [Panel Discussion] How to Leverage Clusters to Unlock Growth Potential 17:45-18:00 Q&A
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PL1-1
Develop Hi-tech and Achieve Industrialization: the Exploration and Perspective of the Development of Chinese Science & Technology Industry Parks Yang Yuecheng Torch High Technology Industry Development Centre, China
In the 80s of last century, in order to embrace the challenge of the new technology revolution, Chinese government made the strategic decision that conduct the National Science & Technology Industry Parks as the vital carrier and key platform to implement “Develop Hi-tech and achieve Industrialization”. Through more than 20 years, The National S&T Industry Parks come up with a way of hi-tech industry development with Chinese characteristics. Many industry clusters with worldwide competitiveness sprang up like the new-era information technology of Z-park, the optoelectronic technology of Donghu, Wuhan, the ICT industry of Shenzhen, and etc. These clusters have become the vital carrier of cohering the national competitiveness strength. This speech will focus on the main experience of how Chinese government push ahead the development of S&T Industry Parks and reveal how they further advance the reform of science and technology system, and build the management innovation of the service-oriented government, integrate into globalization deeply, explore the inner growth mechanism and the industry organization innovation which core is “Entrepreneurship-Incubation-Cluster”. The National S&T Industry Parks enhance the combination of technology and economy to the utmost, and radially drive the development of regional economy and society. This speech hopes to provide some experience for the industry clusters’ innovative development in Asia and even the world. The speech will also actively discuss about the future development of Chinese S&T Industry Parks and how they play their role as the platform in China’s innovation-driven development and lead the new normality of Chinese economy. Especially under the strategy of “One Belt and One Road”, how S&T Industry Parks enhance the ability of integrating and radiating the innovation resources of worldwide, strengthen the international radiation of capacity output, technology spillover and mature models. Chinese S&T Industry Parks will endeavor to build some innovation and entrepreneurship centers and hubs, and produce more comprehensive efforts in the economy and technology cooperation in Asia and around the world.
TCI 2015
50
3-6 November 2015 / EXCO, Daegu, Korea
PL1-2
Innovation Clusters – a National Strategy to Build Technology Capabilities in Singapore Pauline Tay Innovation and Enterprise Division, National Research Foundation (NRF), Singapore
To face the challenges of a constantly evolving global landscape, it is necessary for countries to continually innovate to remain relevant and competitive. Particularly in Singapore, where land and natural resources are scarce, the need to innovate, create and build new capabilities becomes even more important. In Singapore, we have Innovation Clusters and Challenges to address some of the growing technological and developmental needs of our society. The Innovation Cluster Programme encourages technology organisations and economic agencies to work with industry to form innovation clusters of strategic importance. It seeks to strengthen partnerships across companies, universities, research institutes and government to bring ideas quickly to market, raise productivity, create jobs and grow industry sectors. Each innovation cluster is jointly led by an economic and technology agency. The economic agency identifies market opportunities for growing the cluster while the technology agency strengthens translational competencies and activities of organisations within each cluster. Cluster development plans encompass funding for collaborative projects, shared infrastructure, capacity building and bridging gaps in the value chain. Focus areas for Innovation Clusters should drive the translation of research outcomes in sectors such as Advanced Manufacturing and Engineering, Health and Biomedical Sciences, Services and Digital Economy and Urban Solutions and Sustainability. The National Innovation Challenge (NIC) is Singapore’s answer to large and complex problems facing the country. The NIC seeks to harness Singapore’s formidable multi-disciplinary research capabilities to develop practical, impactful solutions to national challenges in such areas as energy resilience, environmental sustainability and urban systems. In addition to improving the lives of Singaporeans, these solutions also carry the potential of commercial spin-offs, both at home and abroad. Singapore is committed to global efforts to combat climate changes, hence we are dedicated to developing cost-competitive energy solutions within the next 20 years to improve Singapore’s energy efficiency, reduce its carbon emissions and broaden its energy options. Under the Energy NIC, key agencies will embark on the development of technology roadmaps in areas such as smart grids, carbon capture, energy storage and utilisation, green buildings and renewables. The vision of the Land and Liveability National Innovation Challenge (L2NIC) is to support an economically vibrant, highly-liveable and resilient city of the future with land capacity for sustained growth. L2NIC is a multi-agency effort that recognises land as a precious resource to Singapore, and seeks to leverage on R&D to develop innovative technological solutions to increase Singapore’s land capacity for our long term development needs and provide options for future generations.
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PL1-3
Building Economic Zones and Cross-regional Cluster Ecologies in Emerging Asia Jong Woo Kang Regional Cooperation and Integration Division, Asian Development Bank, Philippines
Cluster ecologies’ emerge when groups of related industries co-locate within a region and integrate along the network of infrastructures. According to Delgado et al. (2014), “Policies that enhance complementarities across jurisdictions, such as supporting infrastructure and institutions that facilitate access to demand, skills, or suppliers in neighboring clusters, may be important tools for[cross-] regional development. “ The development of zones and cluster ecologies empirically does go through stages. In Asia, late starting economies, eager to industrialize, have alighted upon special economic zones as a means of initiating or expanding export oriented manufacturing activities, and of promoting structural change more broadly through linkages and demonstration effects. They are taking their cues mainly from East Asian economies that entered into virtuous growth spirals starting in the late 1960s and early 1970s and in a matter of three decades had joined the club of upper middle or high-income economies. The onset of intensifying linkages among firms and an increasing number of firms of different sizes, domestic and foreign, in the production network and in the local zone, leads to growth of clusters and related economies of scale. With the increasing density of interactions, the absorptive capacity of such domestic firms increases, leading to more technology transfer and technology imitation (learning). This in turn requires cross-border movement of higher skilled labor to complement increasing innovation and capital investment. Backward and forward linkages within a region can intensify, spurring the development of cross-border clusters. Strong clusters are more effective if embedded in regional value chains and in regional cooperation. This combined with government policies supporting investment in labor market and skill development, regional connectivity and accessibility can lead to knowledge linkages and exchange of resources among a set of regional clusters. This requires regional policy mechanisms for coordination and setting of common knowledge platforms
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Nov. 5(Thursday)
Nov. 5(Thursday) - Plenary Session 2 - Cluster Labs - Parallel Session 2 - Parallel Session 3
18th TCI Global Conference (TCI 2015)
Nov. 5(Thursday) Plenary Session 2
09:30-10:45 Room 325 An Infinite Opportunity: Creativity and Innovation Moderator: Ms. Madeline Smith The Glasgow School of Art, UK & TCI Network 09:30-09:50 [PL2-1] Promotion of Clusters in a Creative Economy: Korea’s Voluntary Collaborations between Big Firms and SMEs Dr. Choong Yong Ahn The Korean Commission for Corporate Partnership, Korea 09:50-10:10 [PL2-2] POSCO Innovation through Creativity Dr. Duk-Rak Lee Corporate Project Management Department, POSCO, Korea 10:10-10:35 [PL2-3] The Creative Economy: Growth, Trade, Innovation and Business Opportunities Dr. Edna dos Santos-Duisenberg United Nations Institute for Training and Research(UNITAR) 10:35~10:45 Q&A
TCI 2015
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3-6 November 2015 / EXCO, Daegu, Korea
PL2-1
Promotion of Clusters in a Creative Economy: Korea’s Voluntary Collaborations Between Big Firms and SMEs Choong Yong Ahn The Korean Commission for Corporate Partnership, Korea
The industrial clustering strategy of Korea played a critical role during its modern industrial growth spurt. Korea’s industrial complexes have taken maximum advantage of economies of scale and scope to result in agglomeration effects. Korea’s successful export-led development has been intertwined with the effective clustering strategies of industrial complexes. In a “new normal” era of slow growth and underemployment, Korea’s current Park Geun-hye administration has initiated a “creative economy” strategy to shift to a knowledge-intensive and innovative economy. This strategy involves the commercialization of new ideas and new technologies to generate new growth momentum. At the core is a set of knowledge-intensive economic activities that could be nurtured through effective private and public R&D, innovation, and extensive networking among industries, government, academia and research institutes. It also involves the fusion, convergence and integration of industries amalgamated by ICT, venture startup promotion, active venture financing and cultural activities, which generate new commercial values and high-quality jobs. Each of them must also use IoT as well as big data. For this purpose, the Korean government has designated a total of 18 localities nationwide as regional innovation centers by assigning one anchor conglomerate on the basis of a firm’s specialty area and local factor endowments, to nurture their collaborations with local SMEs and encourage venture startups. Following a severe economic downturn and the great demise of Korea’s SMEs after the global financial crisis in 1998, the Korea Commission for Corporate Partnership (KCCP) was established five years ago to encourage voluntary private collaborations between big businesses and SMEs in generating tangible winwin business results. In the pursuit of a creative economy, the KCCP strives, in a win-win framework, to combine the relative strengths of big firms as a technological leader and with their overseas networks, and SMEs and venture startups with great flexibility and new ideas. Korea is likely to find a new growth engine with the spirit of “inclusive growth.” This spirit of win-win cooperation infuses Korea’s regional innovation centers. The KCCP attempts to create positive-sum synergies for the firms involved through consensusbuilding processes among the representatives of big businesses, SMEs and independent public entities. In a larger sense, Korea’s efforts are geared to the concept of CSV, which has been recently emphasized as a new business discipline at Harvard Business School.
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PL2-2
POSCO Innovation through Creativity Duk-Rak Lee Corporate Project Management Department, POSCO, Korea
POSCO has been relentlessly reinventing itself through creative innovation. In addition to the routine business activities performed by functional organizations, there are numerous projects being carried out by matrix organizations at POSCO. POSCO has adopted the Project-based Working System to step up to the daunting challenges and new mandates in the face of global steel supply glut, and to grasp a decisive competitive edge by generating new values through projects with differentiating ideas. This differentiating idea is the most important element of the new project geared towards creating the competitive edge. Generating new ideas that precedes projectization is of the utmost importance in the project-driven innovation. POSCO has instituted a formal ideation process encompassing problem framing where ideation themes are defined and communicated, idea generation and idea development or ‘idea-rolling’, an idea expansion process analogous to snowballing ideas. The filtered pool of good ideas obtained during the ideation process are further refined, and ultimately instantiated into, what we call, ‘right projects.’ In addition, ‘right project management’ and ‘right rewards’ are also indispensable to obtain fruitful results at projects. In the broader context of innovation, POSCO has been actively involved in setting up and running the center for creative economy and innovation, and the Idea Market Place to incubate startups with creative ideas. Ongoing, purposeful efforts have been expended on creating an engaging working environment to promote creativity across all levels of the organization. This speech will focus on the main experience of how Chinese government push ahead the development of S&T Industry Parks and reveal how they further advance the reform of science and technology system, and build the management innovation of the service-oriented government, integrate into globalization deeply, explore the inner growth mechanism and the industry organization innovation which core is “Entrepreneurship-Incubation-Cluster”. The National S&T Industry Parks enhance the combination of technology and economy to the utmost, and radially drive the development of regional economy and society. This speech hopes to provide some experience for the industry clusters’ innovative development in Asia and even the world. The speech will also actively discuss about the future development of Chinese S&T Industry Parks and how they play their role as the platform in China’s innovation-driven development and lead the new normality of Chinese economy. Especially under the strategy of “One Belt and One Road”, how S&T Industry Parks enhance the ability of integrating and radiating the innovation resources of worldwide, strengthen the international radiation of capacity output, technology spillover and mature models. Chinese S&T Industry Parks will endeavor to build some innovation and entrepreneurship centers and hubs, and produce more comprehensive efforts in the economy and technology cooperation in Asia and around the world.
TCI 2015
56
3-6 November 2015 / EXCO, Daegu, Korea
PL2-3
The Creative Economy: Growth, Trade, Innovation and Business Opportunities Edna dos Santos-Duisenberg Policy Advisor, United Nations Institute for Training and Research (UNITAR) Founder, Former Chief, Creative Economy Programme, UNCTAD
Despite the turmoil of the global economy, the creative economy became one of the most dynamic sectors and world demand for creative products continues to grow. Global trade of creative goods and services more than doubled in a decade, with an annual growth of nearly 10% in the period 2002-2012. The lifestyle of the contemporary society is increasingly associated with creativity, innovation, connectivity, as well as with cultural and social experiences embedded around the creative economy. Collaboration, cocreations, social networks are guiding our daily attitudes. Diversity, flexibility, autonomy, differentiation became pre-requisites for jobs in a more creative and competitive world. The youth should be able to transform ideas into marketable creative products and seize the new opportunities of the knowledgebased era. The strength of the new generation will be measured by its ability to think, create, act and innovate.
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Cluster Lab
11:00-12:30 Room 320~324A
The Cluster Labs will cover new and alternative topics and tools related to cluster development. Participants may expect stimulating thinking through hands-on experiences and highly interactive discussion leaded by cluster lab directors who will facilitate the sessions. [CL1] Learning about lntercultural Collaboration in a Networked World (Room 320) Director: Mr. Klaus Haasis, ask klaus! & Combine Innovation GmbH [CL2] Generating Cluster Policy Learning through Evaluation (Room 321) Director: Ms. Madeline Smith, The Glasgow School of Art & Dr. James Wilson, Orkestra & Dr. Emily Wise, Lund University and IEC [CL3] Green Lights & Red lights. The Practicalities of Cluster Development (Room 322) Director: Mr. Ifor Ffowcs-Williams, Cluster Navigators Limited [CL4] Cluster Management and Globalized Value Chains (Room 323) Director: Mr. Reza Zadeh & Ms. Gloria Ferrer, European Foundation for Cluster Excellence [CL5] Introduction to TCI Network, How to Take out the Most of This Global Practitioners Network (Room 324A) Director: Mr. Ulrich Harmes-Liedtke, Mesopartner PartG
TCI 2015
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3-6 November 2015 / EXCO, Daegu, Korea
CL1
Learning about lntercultural Collaboration in a Networked World Director: Klaus Haasis
Collaboration is the process where innovation happens and where cluster theory meets reality. Internationalization is a popular task in cluster management but in practice frustration olten grows. Intercultural collaboration is a learning process. Building intercultural competencies requires significant attention to individual and group learning. Cluster Managers should be specialists for embedding learning into organizational processes - also internationally.
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CL2
Generating Cluster Policy Learning through Evaluation Director: Madeline Smith & James Wilson & Emily Wise
Building on the work from the Cluster Evaluation Working Group, this cluster lab will bring together an understanding of the academic state-of-art and state-of-use of evaluation of cluster policy practice, focusing on four areas that demand specific attention: capturing the human element or cooperative dynamic; the development of pragmatic indicators and approaches; the selection and combination of techniques and tools; and the ability to deal with complexity derived from interactions across different policy levels, instruments and initiatives
TCI 2015
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3-6 November 2015 / EXCO, Daegu, Korea
CL3
Green Lights & Red lights. The Practicalities of Cluster Development Director: Ifor Ffowcs-Williams
In this very interactive workshop, participants will have the chance to learn more about experiences on what works and what doesn’t work with regards to the practicalities of cluster development and to listen first-hand on experiences from Europe, Korea, Latin America, Africa. Learning-by-doing, enlisting cooperation, defining agendas and the role of cluster facilitation and good governance will be some of the ideas that participants will explore.
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CL4
Cluster Management and Globalized Value Chains Director: Reza Zadeh & Gloria Ferrer
Against a backdrop of increasing fragmentation of production processes across different countries and continents, leading to greater prevalence of globalized value chains, this interactive lab will explore cluster management skills needed to help firms thrive. Simply facilitating and brokering local co-operative actions alone, with little strategic input from the cluster managers is no longer an adequate response to deal with such fragmentation. The Lab introduces the Cluster Excellence Management programme and its methodology and approach via an interactive workshop. It sets out the structured approach to developing strategic cluster initiatives and interventions. Through a combination of video links and clips as well as personal presentations, the Lab provides a platform for the Foundation’s alumni from Europe and beyond, to share their experience of developing cluster initiatives in their regions based on the methodology.
TCI 2015
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3-6 November 2015 / EXCO, Daegu, Korea
Parallel Session 2
13:30-14:45 Room 320 [2.1] Cluster Models Worldwide. Unique Features, Common Challenges Moderator: Ms. Tracy Scott-Rimington SEQ Regional Development, Australia [2.1-1] MSMEs Clusters Generation based on Digital Business Ecosystems Bogar Garcia Martinez Universidad Autónoma de Aguascalientes, Mexico [2.1-2] Local Government's Supportive Policies according to the Growth Stages of Startup Business in case of Seoul, Korea Seowoo Chung Sungkyunkwan University, Korea [2.1-3] The Construction of the Cluster of Information Technology and Communication in Baja California, México Carlos Alberto Flores Universidad Autonoma de Ba Ja California, Mexico [2.1-4] What Do Links Mean in Innovation Clusters?: A‘Relational Dialectics’ Jang Hyun Kim Sungkyunkwan University, Korea [2.1-5] Promoting Competitive Territorial Living Spaces and the Need To Overcome Simplistic “Urban-Rural” as well as“Social and Economic Innovation” Divide Frank Waeltring Mesopartner PartG, Germany [2.1-6] A Logistics and Transportation Cluster Initiative: a Theoretical Framework Maria Teresa Verduzco-Garza Universidad de Monterrey, Mexico
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18th TCI Global Conference (TCI 2015)
2.1-1
MSMEs Clusters Generation based on Digital Business Ecosystems Bogar García-Martínez Universidad Autónoma de Aguascalientes, Aguascalientes, Ags. Mexico Felipe Leal-Medina Universidad Autónoma de Aguascalientes, Aguascalientes, Ags. Mexico Roberto González-Acolt Universidad Autónoma de Aguascalientes, Aguascalientes, Ags. Mexico Manuel Díaz-Flores Universidad Autónoma de Aguascalientes, Aguascalientes, Ags. Mexico
Keywords: Cluster, MSMEs Cluster, Digital business ecosystems. This Project-research involved, the Universidad Autónoma de Aguascalientes (UAA), the, Instituto de Capacitación de los Trabajadores del Estado de Aguascalientes (ICTEA), the Secretaria de desarrollo económico del estado de Aguascalientes (SEDECO), the alumni from ICTEA, established as entrepreneurs; micro, small and medium size. (MSMEs). Traditional policies aimed at MSMEs incubation and consulting, have not yielded the expected results. As an option the Secretaria de Economía (SE) from México, creates an institutional figure, linkage - space, allowing the implementation of new methodologies, such as those directed to generate clusters of MSMEs based on digital business ecosystems. (Nachira, 2007). The overall objective: Generate MSMEs clusters based on competitive and sustainable digital business ecosystems in different occupations from ICTEA´s training programs. Specific Objectives: 1) Describe and explain the local development problems to integrate clusters. 1A) Propose and implement the problems solutions, based on digital business ecosystems 2) Describe and explain the ecosystem sustainability problem in MSMEs cluster development. 2A) Propose and implement problem´s solutions 3) Describe and explain the public policies problems to generate clusters based on business ecosystems 3A) Propose problems solutions 4) Describe and explain the digital business ecosystem gender problem (83% ICTEAs entrepreneurs are female). 4A) Propose problem´s solutions 5) Describe and explain the digital business ecosystem ITCs (information and communication technologies) integration problems. 5A) Propose and implement problems solutions. 6) Describe and explain financial problems in generating digital business ecosystems to form MSMEs clusters 6A) Propose problems solutions.
TCI 2015
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3-6 November 2015 / EXCO, Daegu, Korea
Methodology: Action-research with a mixed qualitative and quantitative approach, data collection instruments, interviews, questionnaires. A multidisciplinary team covers the different areas (local development, sustainability, public policy, gender studies, information technologies, financial resources to support the cluster). For generating a digital business ecosystem to form clusters. The Project-Research is conducted in three phases: 1) First phase: Design and construct the business models base of MSMEs digital business ecosystems (Prototypes are built). 2) Second Phase: business model Implementation by ICTEA´s entrepreneurs to form a micro digital business ecosystem for research. 3) Phase Three: Multiply digital business ecosystem to form SMMEs cluster In all ICTEA´s training programs occupations PHASE 1 partial results are reported in this paper. The beauty salon business model designed, includes the following modules:1) The technical architecture, 2)The social arquitechture,3)The perception architecture, 4) Value proposition, 5) Market segment, 6) key resourses,7) key activities,8)Source of incomes, 9)Source of cost, 10) Distribution channels, 11) Customer relationship 12) Key partners 13) Strategic alliances 14) Competitive Advantage. The prototypes were designed by students of Systems engineering, Industrial design, Architecture, Business Management. Funds research to build prototypes were requested to Fondo Nacional Emprendedor, so far we are waiting for the funding. The conclusions for partial results: The methodology approach applied has been so far successful: Design as basis for a real tangible business, the entrepreneur observes a real business. Methodology implies a relation with the entrepreneur in a simple non-technical language. Separation Between front office and back office, allows the design of competitive, sustainable, business models.
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2.1-2
Local Government's Supportive Policies according to the Growth Stages of Startup Business in case of Seoul, Korea Seowoo Chung Sungkyunkwan University, Korea E-mail: seowoo07@gmail.com Jun young Oh Sungkyunkwan University, Korea E-mail: hollisjy@gmail.com Kyung-Hwan Kim Sungkyunkwan University, Korea E-mail: khkim61@skku.edu
The support policy of startup has begun from late ’90s when ‘Venture Boom’ had started, with aggressive leading by the government. But after the ‘Venture Boom’ has been lost interest by the people in early 2000s, there was a negative perception of venture and startup. In presidency of Geun-hye Park in 2013, slow growth period and high youth unemployment rate has renewed the interest of venture and startup. Creative Economy and the foundation of the Ministry of Science, ICT and Future Planning, Small and Medium Business Administration, and local government have intensified the range and effect on policies of venture and startup. However, there are still many inefficient problems needed to improve in the policies and organizations such as, repetition of policies from different department or ministry of government, limitations of supports in marketing, funds, and consulting in business, redundancy benefit and deficiency of policies in failures. In this context, this presentation analyzes the status and problems of the policies of venture and startup by period of the startup growth, and provides some suggestions in order to make effective policies of startup in case of local government especially Seoul. Measures of improvement of the policies could be considered as, unification of structure or organization of startup support, constructing system of an information of startup policies, post management and supervision of ventures in an initiative step, and collaboration with local government and industry-academic cooperation. Even though there exists many repetition and overlap among the policies of startup support, the role of the local government is important to develop ventures and small and medium-sized enterprises.
TCI 2015
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3-6 November 2015 / EXCO, Daegu, Korea
2.1-3
The Construction of the Cluster of Information Technology and Communication in Baja California, México Flores Sánchez Carlos Alberto, Mungaray Lagarda Alejandro, Lobo Rodríguez Martha Ofelia 1 Universidad Autónoma de Baja California, México E-mail: cflores@uabc.edu.mx
The economic literature on clusters has made clear its benefits in terms of achieving an innovative joint context and accelerates the growth of the industry. The search for effective strategies for creating clusters remains an elusive goal, so the study of experiences on building a cluster is important. In this presentation the construction of the cluster of Information Technology and Communication in Baja California, México, is analyzed; agglomerations are identified in the state's cities through maps from the National Statistics Directory of Economic Units; the interaction between government and industry is established through props Incentives Program for Innovation; and it delves into the relationships between ICT companies, higher education institutions and government, through the analysis of previous experiences in building cluster initiatives, to the BIT Center is the initiative that now looks like the model more robust features for consolidation. It is that there are agglomerations of firms atomized in 5 cities of the state where highlight Tijuana, Mexicali and Ensenada; and the ICT cluster of Baja California operates under the scheme of regional innovation system promoted by the Law on Science, Technology and Innovation for the state of Baja California through the program System Innovation and Technological Development of Baja California, which seeks to consolidate different clusters that help articulate the regional economy. The BIT Center emerges as a strategy of triple helix with an organization led by a civil partnership with a strong influence of the private sector through the National Chamber of the Electronics Industry of Telecommunications and Information Technology. While the IT@Baja initiative comes from a small group of businessmen with no business relationships in ICT, the CENI2T initiative arises between entrepreneurs and without academics, Softtek initiative comes from a company in a promising university networks and linkages of which only benefited her. View all these cluster initiatives before the BIT Center, a constant government involvement of local character with state and federal public resources, besides the presence of academia in a collaborative work that frames the triple helix is observed. One can say that in the long term this allows institutional gradually building a cluster is achieved based on successes and failures observed in previous initiatives. Figure 1. Location of BIT Center Source: National Statistics Directory of Economic Units in National Institute of Statistics and Geography, http://www3.inegi.org.mx/ sistemas/mapa/denue/default.aspx, 2015
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2.1-4
What Do Links Mean in Innovation Clusters?: A ‘Relational Dialectics’ Jang Hyun Kim Sungkyunkwan University, Korea
Links include interpersonal networks, intra-organizational networks, inter-organizational networks, and similarity/discrepancy in or between social actors. Innovation clusters such as industry cluster, UniversityIndustry-Government coalitions, and others enhance multilateral information exchange, understanding, social contacts, and interdependency. Among these, interdependency has dual sides: conflict/competition and pacification/cooperation. This paper introduces metaphysical implications in a context of innovation clusters and presents examples of online cluster networks and their meaning. Using Korean cluster cases, this presentation should provide its audiences with an opportunity to think about what links mean.
TCI 2015
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3-6 November 2015 / EXCO, Daegu, Korea
2.1-5
Promoting Competitive Territorial Living Spaces and the Need to Overcome Simplistic “Urban-Rural” as well as “Social and Economic Innovation” Divide Frank Waeltring Mesopartner PartG, Germany E-mail: fw@mesopartner.com
The cluster approach very much focuses on territorial development and has the objective to promote creative spaces in regard to its economic advantages. What gets more importance in many OECD countries is the perspective of defining territories rather as living spaces in which cluster promotion has also to react on the diverse innovation potentials and -requirements in urban and linked rural areas. To be an attractive territory it is increasingly important to search and combine innovative environmental, economic as well as social solutions that also link urban and rural spaces. The presentation input will focus on the perspective of a dynamic medium-sized town in Germany that is surrounded by other medium-sized towns and rural villages. Each town started to promote clusters but with a weak critical mass due to a very diverse business structure. To overcome structural change issues and to identify additional specialisation and cluster potentials the medium-sized town started to promote an innovative approach, promoting itself as a future-oriented city that cooperates with neighbouring medium-sized towns, trying to identify economic as well as social synergies within the larger space. To promote the competitiveness and attractiveness of this area in the longer run, it will become increasingly important to promote, apart from intermunicipal cluster cooperation, also more innovative development efforts that increase economic and social potentials in the surrounding rural areas related to different business activities. Although rural villages close to urban areas face different social and economic challenges, there are many synergies and learning processes that can be highly useful to develop and promote the space as a larger eco- and innovation system. The presentation of the case will provide insights about a city that started a search process to combine a cluster with a living space approach in which traditional urban boundaries get less relevant and the space itself moves into the centre of attention.
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2.1-6
A Logistics and Transportation Cluster Initiative: a Theoretical Framework Teresa Verduzco-Garza Universidad de Monterrey, México E-mail: Teresa.verduzco@udem.edu
Through the supply chain, goods transportation has represented an important link in order to increase competitiveness for organizations, both manufacturing and services. In fact, is mainly important to develop strategies to intensify the service level for being competitive in a specific location. A cluster initiative is a kind of strategy based in develops strategic industrial sectors and emerging sectors in a particular region, involving the private initiative, the government and the universities working as one entity to mature processes and synergies in specific activity sector for increase competitiveness. Based on different research frameworks in a wide spectrum of countries about clusters for competitiveness and specifically logistic clusters development, a literature review is presented in this work, mainly used to begin the construction of a Logistic Cluster in N. L. region in Mexico. N.L. is an intensive international commerce region with the U.S.A., and a manufacturing area. The logistic cluster is the 11th in the area and the first one based on logistics and transportation operations. Based on Marshall’s agglomeration studies [1] and Porter’s [2] clusters theory literature, the initiative for a collaboration centered on a Triple Helix model [3] integrating academics, government and industries was founded with a logistics and transportation orientation, looking forward to increase competitiveness in the activity sector, and make the transformation from an industrial district to a real cluster [4] based on logistic intensive operations as the central axis. [5] The attractor enterprises and the sophisticated suppliers’ complimentary services are some of the different activities that should be involved for a logistic cluster develop. Nowadays, the small and middle size road truck carriers are the most of the companies involved by now. According to Ketels, Lindqvist & Sölvel [6], clusters evoke the companies operates more efficiently and with better response to markets. Also, the innovation development is faster, as well as the new business associations between suppliers and cluster’ participants. But, related to logistic cluster, Sheffi [7] defines the logistic cluster as one of the more promising and selfsufficient cluster, some of them born naturally and some others as a cluster initiative built for an economic pole of development. Logistic cluster attracts foreign investment and creates new and better paid jobs faster, because of the agglomeration of labor and operations, and the integration of the suppliers and customers in the same region, increasing trust, specialization and sophistication [7] [8]. Most of the studied logistic clusters in the world are intensive in one of these three modal orientations: Airplane, ports or railroad [7]. In N.L. region, the most intensive transportation mode is road truck, so it makes also interesting the cluster initiative formed a year ago in this area. The integration of the very
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small road carriers is a challenge for the cluster, because of the need to run “the last mile [9], which is the most expensive one. Another important challenge is the development of horizontal integration [10] [11] between some other activity industries and also between other clusters in the region based on sophisticated manufacturing operations. To accelerate the development of the transportation and logistics cluster initiative in N.L. is the next main concern to resolve. References [1] (Book) A. Marshall, Principles of Economics, London: Macillan, 1890 [2] (Journal) M. E. Porter, Harvard Business Review, 1998, 77-90 [3] (Journal) H. Etzkowitz, W. Hillerbrand, D. Messner and J. Meyer-Stamer, Research Policy, 2000, 29, 109132 [4] (Journal) L. Lazzeretti, Economía Industrial, 2006, 59-72 [5] (Document) A. M. Celis, D. Martinez and J. Felix, Identificación de clusters económicos de la ciudad de México, 2012, retrieved from http://www.izt.uam.mx/sotraem/Documentos/AMET2011/REC/ TEXTO/11-13/11_04.pdf [6] (Conference) C. Ketels, G. Lindqvist and Ö. Sölvell, Cluster initiaties in developing and transition economies, Center of strategy and competitiveness, Stockholm, 2006. [7] (Book) Y. Sheffi, Handbook of Global Logistics, 1st ed. Springer, chapter 19, 463-500 [8] (Journal) L. Rivera, Y. Sheffi and R. Welsch, Transportation Journal Research Part A, 2014, 59, 222-238 [9] (Journal) Y. Chai and F. Yang, The international Journal of interdisciplinary social sciences, 2011, 29-39 [10] (Journal) C. Schmoltzi and C. M. Wallenburg, International Journal of Physical Distribution and Logistics Management, 2011, 552-576 [11] (Journal) F.. Cruijssen, W. Dullaert and H. Fleuren, Transportation journal, 2007, 22-39
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13:30-14:45 Room 321 [2.2] New Role of Clusters in the Broader Economic Context Moderator: Mr. Ning Wang Nationl Research Foundation, Singapore [2.2-1] Precincts and Clusters: Linking Innovation Districts into the Broader Global Economy Megan Antcliff Department of State Development South Australia, Australia [2.2-2] Climate Smart Clusters Christian Schoen Mesopartner PartG, Germany [2.2-3] An Analysis of Activation Plans of Decrepit Industrial Cluster for Urban Regeneration Geun-Woo Ryu & Jung-Soo Seo & In-Hye Yoo Keimyung University, Korea [2.2-4] Revitalizing SME agenda Ganesh Rasagam World Bank [2.2-5] Excellence in Cluster Policy Making for Fragmented and Globalised Value Chains Reza Zadeh European Foundation for Cluster Excellence, Spain
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2.2-1
Precincts and Clusters: Linking Innovation Districts into the Broader Global Economy. Megan Antcliff Department of State Development (South Australia), Australia E-mail: Megan.Antcliff@sa.gov.au Gavin Artz Department of State Development (South Australia), Australia
Contemporary clusters are moving beyond strict regional geographies to encompass capabilities at the national and international scale. The impact of a globalised economy, greater access to cost effective global transportation, and ubiquitous and cheap communication technologies has meant that clusters need to be inclusive of a broader geographical catchment if they are to remain competitive in the long run [1]. Coinciding with this globalisation of clusters is a more significant innovation approach being taken with precincts. Innovation Districts is one approach that takes a familiar clustering type methodology and applies it to a constrained geographical location. Innovation Districts are a combination of economic assets, physical assets and network assets. These combine to create geographic areas that deliver collaborations between incumbent industries and start-ups through entrepreneurial infrastructure such as incubators and accelerators. Innovation Districts are also compact and easy to travel through while having significant digital communication capabilities [2]. By linking Innovation Districts with clustering activity, a very geographically constrained precinct can reach out to capabilities and collaborations at a global scale while maintaining the benefits of physically co-located businesses. Capabilities at the firm level are directly linked at the regional, national and international level through structured collaboration and agreed strategies across the cluster. In economies made up of mostly small businesses, this approach allows small businesses to take advantage of the scalability these combinations offer, potentially improving international trade and investment opportunities. This paper examines the case of Tonsley in Adelaide, South Australia, Australia. Tonsley is an innovation precinct that has taken an Innovation Districts approach to redeveloping an industrial site where Mitsubishi previously manufactured cars in Australia. This development has occurred within the context of a State Government cluster program. References [1] European Union (2015) “Cluster Internationalization” European Union, Enterprise and Industry, http:// ec.europa.eu/enterprise/initiatives/cluster/internationalisation/index_en.htm - viewed 25/05/2015 [2] Katz, B. and Wagner, J. ( 2014)“The Rise of Innovation Districts” Brookings Institute, Massachusetts.
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2.2-2
Climate Smart Clusters Christian Schoen Mesopartner PartG, Germany
Climate change and its response requirements in the form of adaptation and mitigation measures create urgent pressure at sub-national level in those regions – often developing countries – that are the most strongly affected. Here the greening of clusters follows a systemic approach linked to innovation, industrial development and the promotion of sustainable competitiveness. The presentation will discuss risk assessment and risk management of clusters to address current concerns related to emerging topics of green economic development, low carbon growth and climate resilience. Green cluster development goes beyond strengthening cluster enterprises in their purely economic dimension of competitiveness, as it includes the wider definition of sustainability. The four most important interfaces between cluster development and climate change are elaborated: Cluster development primarily targets enterprises that are potentially related to climate change and environmental degradation in three different ways: either they contribute to it, or their operation is affected by it, or they are using it for developing new business opportunities. Many clusters are “greened” nowadays or focus on green products, but they are located in certain territories which need to offer the right policy, regulatory framework conditions and infrastructure for ecofriendliness and climate resilience. National top-down regulations and campaigns to stimulate climate-resilient and eco-friendly behaviour of enterprises are often enforced and implemented at a sub-national cluster level. In both developed and less developed countries, local actor networks and clusters have started to promote decentralised approaches to increase their climate resilience, such as striving for local energy supply autonomy combined with investment into the renewable energy sector. The presentation is based on conceptual work of GIZ and Mesopartner in the Philippines at the level of territories and value chains. The climate smart cluster approach will further develop the results and insights of this work and particularly relate it to cluster development.
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2.2-3 An Analysis of Activation Plans of Decrepit Industrial Cluster for Urban Regeneration Geun-Woo Ryu School of Economics and International Commerce, Keimyung University, Korea E-mail: ryuwoo@kmu.ac.kr Jung-Soo Seo School of Economics and International Commerce, Keimyung University, Korea E-mail: jsseo07@kmu.ac.kr In-Hye Yoo School of Economics and International Commerce, Keimyung University, Korea E-mail: liurh0921@kmu.ac.kr
Many cluster studies have focused on growth regions and industries covering only the early phases of cluster development. Little attention, however, has been paid to the renewal of clusters in old industrial regions. Recently, Urban and Industrial area regeneration became an issue as the area have depreciated and unfit for today’s need, also have suggested alternative scenarios of urban development. In the literature, we find contrasting views regarding the questions raised. The cluster cycle theory, for example, argues that many features of old industrial regions result from the fact that they are ‘overspecialized’ in mature industries and clusters. There is stagnating demand for their products, fierce competition from low-cost locations, a high degree of concentration in the industry and a low potential for networking and innovation. The underlying problems are a too strong specialization in formerly successful industries, a too-strong role of dominant companies and too much reliance on old economic and political networks (Grabher, 1991). The aim of the paper is to address the question of how clusters renew themselves successfully in such regions and how they adjust to changes in their environment. After identifying relevant factors from the literature, a comparison is made of the renewal of the clusters in the old industrial regions of Daejeon and Daegu in Korea. Now, Korea initiated three kinds of decrepit industrial cluster regenerating plan – Industrial Complex Regeneration(ICR), Industrial Urban Area Regeneration(IUR), Industrial Structural Regeneration(ISR). We attempt comparative analysis ICR and ISR, according to characteristic of location what kind of regeneration projects is progress successfully in Daejeon and Daegu. Then, as a planning and implementation process, collaboration with incumbent firms and entrepreneurs is desirable in order for the sake of regeneration. Critical factors of cluster renewal turn out to be a well-developed regional innovation system, the establishment of new innovation networks and new and more indirect forms of policy approach.
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2.2-4 Revitalizing the SME Agenda Ganesh Rasagam World Bank, USA
The Sustainable Development Goals highlight the prominence of growth in productivity and incomes and especially the role of SMEs that engage in industrial processing and manufacturing which are the most critical for early stages of industrialization and are typically the largest job creators. SMEs make up over 90% of business worldwide and account for 50-60% of employment.1) A high density of SMEs in developing countries is positively associated with successful and growing economies2), and SMEs help drive overall economic diversification, spur innovation, increase competition, enhance consumer choice for the “last mile�, serve as connectors between micro-enterprises and the larger economy, and provide opportunities and essential goods and services to women, youth, and unskilled workers.3) Financial and institutional support for SME development programs is a priority for all countries and features prominently in multilateral and bilateral development assistance. Over the 2006-2012 period, just World Bank Group commitments included $10.5 billion in IFC investments, $4.9 billion in World Bank investments, and $2.3 billion in gross exposure of MIGA guarantees. Nevertheless, the efficacy of public spending on SME programs is mixed and identifying and nurturing high potential SMEs remains a significant challenge. Revitalizing the SME agenda requires new diagnostic tools and knowledge on differentiating the needs and instruments and delivery mechanisms for support to enterprises at various stages of growth. Targeting support for firm-level innovation and spurring entrepreneurship have become the cornerstone of new national SME policies. Innovative delivery mechanisms are required for the traditional SME support programs to strengthen firms’ internal capabilities, access to finance and markets while improving the enabling policy, regulatory and institutional environment. Finally, programs need to be tailored towards emerging thematic areas including fostering high-growth entrepreneurs, integrating SMEs into global value chains, empowering women-led SMEs and harnessing technology and digital innovation.
1) UN SDG Time for Global Action, 2015 2) Beck et al., 2005; Mirmulstein et al., 2010. 3) SEAF, 2007; Desktop Study, 2009.
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2.2-5
Excellence in Cluster Policy Making for Fragmented and Globalised Value Chains. Reza Zadeh European Foundation for Cluster Excellence, Barcelona, Spain E-mail: reza.zadeh@clusterexcellence.org
Keywords: Cluster Policy Excellence, Global Value Chains, Training for Policy Makers The presentation is based on the European Foundation for Cluster Excellence’s (EFCE) proven methodology for changing the paradigm in competitiveness policy making – from one that addresses locally concentrated value chains to today’s fragmented and globalised value chains. Since 1990s the concept of cluster based economic development became increasingly widespread as a policy framework for regional and economic development. Policies to help develop cluster initiatives and competitive value chains focused on industries where significant proportion of the firms’ value chains, manufacturing or service-based, was concentrated in a geographic area where many element of each industry’s value chain could be observed and analysed. Early cluster policies addressed gaps in provision and dealt with market failures. These policies typically led to initiative that would help improve the industry’s competitiveness locally either through sharing parts of value chains (research, logistics…) or even more commonly by developing common services (training facilities or technology centre…). Over the past two decades the value chains in large, economically important industries have increasingly spread across multiple countries if not continents. And the trend continues. As a result, it is globalisation that is optimising the value chains at global level, leaving less room for collaborative initiatives at local, regional and national levels. Recent token re-shoring initiatives have not significantly changed this trend. Developed economies have to respond strategically by developing policies that support firms redefine their businesses models particularly through a) incorporation of advanced technology or b) adding advanced services. Today, however, overwhelming number of cluster policies across the globe, still address competitiveness as if value chains were contiguous and concentrated locally. Supported and funded by the European Commission, the European Cluster Excellence Initiative (ECEI) developed a comprehensive set of training material aimed at cluster policy actors and practitioners. The module topics range from strategy tools for industry structure analysis, value chain analysis and innovation and international value chain benchmarking though to practical modules on competitiveness policy formulation, implementation and evaluation. Over the past 3 years The European Foundation for Cluster Excellence has trained some 90 policy actors and practitioners from across Europe, North Africa and Middle East in the methodology who are able to act as trainers in their countries and regions.
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13:30-14:45 Room 322 [2.3] Cross-Sectoral Innovation Moderator: Mr. Jaime Echeverri Medellin & Antioquia Cluster Community, Colombia & TCI Network [2.3-1] Smart Specialization through Cross-clustering Cecilia Johansson & Ewa Andersson Swedish Agency for Economic and Regional Growth, Sweden [2.3-2] Regional Cross-Cluster Innovation Simone Hagenauer ecoplus. The Business Agency of Lower Austria, Austria [2.3-3] Towards a Hybrid Future: Intercluster Approach Joan MartĂ EstĂŠvez ACCIO-Catalonia Government, Spain [2.3-4] Cross Sectorial Mapping to Enhance cross Sectorial Innovation Vincent Dugre Quebec Ground Transportation Cluster, Canada
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2.3-1
Smart Specialization through Cross-clustering Cecilia Johansson and Ewa Andersson Swedish Agency for Economic and Regional Growth, Sweden
In Sweden we are going to develop a national cross-cluster clustering programme/call and we are targeting constellations, as for instance clusters, in different regions for collaboration around different areas of strengths. Since renewal and future competitiveness are very important we are welcoming new kinds of cross-sectorial collaboration-projects. The purpose is to prioritize some main areas within the frame of Smart Specialization. In this call we are not going to select the sectors (or cross sectors) in advance – the submitted applications have to motivate why their projects will be international competitive. In November in Daegu, Korea we will be able to present the submitted applications from the first step of this call. The background (and learning) for this new program we have become from a case study done in 2008. In that study we let two clusters within two different sectors, collaborate for one year. We wanted to find out which aspects that was critical if such collaboration would be successful. Some crucial issues were the importance of an active industry and that the clusters involved should be complementary and not just competitors. The case was quite successful because of the presence of the companies and that they were able to explain their needs. Requirements for this new cross-sectorial call which will start in autumn 2015 are that the projects should be national and regional anchored and – the industry has to have a big role in the project. Since the programme will use funding from the Structural Funds a requirement is also to show the activity and cofunding from the private sector. One reason for this is that Europe needs to be better in commercialization of research results.
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2.3-2
Regional Cross-Cluster Innovation Simone Hagenauer ecoplus. The Business Agency of Lower Austria, Austria E-mail: s.hagenauer@ecoplus.at
Keywords: Cross-sector innovation, issue driven open innovation, tools of cluster management and evaluation Rapidly changing market conditions force companies to find new markets, which often implies identifying new potential applications of their know-how, collaborating with partners in other sectors and disciplines and integrating into new value chains (inter-industrial convergence). How can policy makers create the right framework conditions and foster cross-sector / cross-cluster collaboration? Important ingredients are: flexibility to test and take risks combined with constant monitoring and evaluation (“you get what you measure); cross-department collaboration; transparency and involvement of relevant stakeholders (business, research, education, civil society, etc.). How can cluster managers help companies to find new path sand speed up in developing new crossindustry solutions? Their main role lies in taking leadership in regional innovation processes (“from strategy to implementation). They can help increasing companies’ understanding for new models of innovation (open innovation, issue driven innovation, competence based innovation, strategic design thinking etc.). With their wide network they can connect them also to other sectors and technological disciplines. Representing n regional development agency with 15 years of experience in managing clusters at the interface of regional policy makers, businesses and science I would like to show hands-on examples of cluster policy and management tools from Lower Austria. Some examples for cross-cluster R&D projects in Lower Austria: Advanced packaging (plastics+mechatronics+food), Re-use of construction material (construction+mechatronics+food+logisti cs), drinking water quality (health tech, construction, mechatronics).
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2.3-3
Towards a Hybrid Future: Intercluster Approach Joan Martí Estévez ACCIO-Catalonia Government, Spain
Catalonia was a pioneer country to start with cluster policy, back at 1993. Not much later than Professor Michael Porter coined the cluster concept. After two decades of cluster development the basis of our policy have indeed evolved. Some key aspects are still at the core of our approach, such as fostering existing capabilities (not fashionable clusters), promoting strategic change after a robust strategic analysis, and changing the dialogue between the private sector and the Government. Nevertheless, the speed of change in the business environment pushes the public sector to reposition its policies. Otherwise we’d be out of the game. In our case, some new concepts have arised, such as the intercluster approach. Our ecosystem is nowadays based on 25 cluster initiatives with more than 1.200 companies and institutions being involved. 4 years ago we start to “mix” the cluster initiatives in order to strengthen their ambidextrous capabilities: exploit and explore. We have an intercluster methodology to detect and implement new business opportunities as the result of working with companies from different clusters. We have around 15 intercluster initiatives ongoing, some between clusters easy to connect (gourmet with packaging), but also others between clusters that at first may seem they don’t have common ground (railway and kid’s cluster). My presentation will cover: - why intercluster activities are valuable for members - Our intercluster methodology - Training activities for cluster managers - Examples of intercluster projects
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2.3-4
Cross Sectorial Mapping to Enhance cross Sectorial Innovation Vincent DugrĂŠ Vice-president operations, Quebec ground transportation Cluste, Canada E-mail: vdugre@polet2.com
Using projects based facts and available mapping system developed by the Quebec Ground Transportation Cluster and its technological partners to demonstrate the importance of managing the cross sectorial innovation trough cross sectorial mapping data to facilitate the development of collaborative projects and the selection of participating companies. Highlight the added-value of cross sectorial innovation with example in the Defense sector, Public transportation, Energy sector and transportation electrification. keywords derived from your work for the delegates: Mapping system, advance asset management system and cross sectorial ecosystem
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13:30-14:45 Room 323 [2.4] Successful Internationalization Strategies (Part 1) Moderator: Mr. Manuel Montoya Ortega Automotive Cluster of Nuevo Leon, Mexico & TCI Network [2.4-1] The Challenges of Building an Internationalization Strategy of Knowledge based Institution: the Case of Orkestra Ibon Gil de San Vicente Orkestra - University of Deusto, Spain [2.4-2] Business Roaming Agreement as Appropriate Tool for Cluster Internationalization Tamara Hรถgler CyberForum e.V., Germany [2.4-3] Go International - 10 Year Experience on Practical Work Christoph Beer mundi consulting ag / ICT Cluster Bern, Switzerland [2.4-4] Small Business, Clusters, and Exports: a Case Study of South Australia Cluster Integration Into Government Facilitated Export Opportunities Gavin Artz Department of State Development, South Australia, Australia
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2.4-1
The Challenges of Building an Internationalization Strategy of a Knowledge based Institution: the case of Orkestra Ibon Gil de San Vicente Orkestra - University of Deusto, Spain
Orkestra, the Basque Institute of Competitiveness, was created in 2006 by the University of Deusto, with the mission to develop reflection and change processes within the context of the competitiveness challenges facing the Basque Country (an autonomous region located in Spain), and consequently contribute to the well-being of its citizens and generate academic knowledge in the field of regional competitiveness. The mission of the institute needed to innovate in the usual way of doing research in the university; thus the unique value proposition of Orkestra combines two key issues in its research: what (knowledge) and how (learning processes and training). The challenges of competitiveness that Orkestra tries to answer are local, but the knowledge to answer to those challenges is global. Therefore the Institute must work in collaboration with persons and research centres in other parts of the world around the topics that are critical for the competitiveness of the Basque Country. For this reason Orkestra has developed a strategy of internationalization coherent with its mission and uniqueness. The presentation will explain the strategy of internationalization of Orkestra, and will try to identify its key success factors and ongoing challenges (facts orientation): Access to knowledge on the competitiveness policies implemented in other regions of the world learning for the practitioners of the Basque Country. Know the economic reality and ecosystems of other parts of the world node and knowledge for the companies of the Basque Country. Increase international recognition, such as with the European Union or Multilateral Institutions interlocution and relations for the Basque Government. Identify projects and financing sources increases Orkestra´s financial viability. This strategy must serve also to increase the Orkestra recognition that facilitates the attraction of knowledge and talent of researchers out of the walls of the organization (open innovation approach).
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2.4-2
Business Roaming Agreement as Appropriate Tool for Cluster Internationalisation Tamara Hรถgler CyberForum e.V., Germany E-mail: hoegler@cyberforum.de
Clusters being recognized as effective tools for regional economic development. Internationalization plays an important role as firms seek to access the global marketplace to improve their competitiveness. An appropriate internationalization support for clustered firms, particularly SMEs, is the Business Roaming Agreement (BRA)1. It was initially developed by Cluster 55 during the ClusteriX project2 and officially taken over by CyberForum on the completion of ClusteriX in October 2014. The BRA connects >60 clusters across the globe, as it offers cluster members soft-landing access when seeking to create collaborative (trading or research) linkages. Visiting cluster firms will have access to the infrastructure of partnering clusters, and the opportunity to experience the same conditions, and services as local cluster members have. The advantages of the BRA are multifaceted: companies that wish to develop internationally get priority access to foreign markets through direct local contacts who have knowledge of the market and ecosystem. Hosting clusters offering the workspaces benefit, too: they do not only get new customers for their own members but can create further linkages to other contacts from abroad and thus enable new business. The BRA can enable clusters to bring innovation to traditional sectors and accelerate their transformation towards more added value activities. Such cross-sectoral collaboration can be of key importance particularly to emerging industries as they can lead to turning disruptive ideas/opportunities into new products/services with higher added value3. Emerging industries require fresh perspectives, which are developed through cross-sectoral cooperation and experience exchange. Utilizing a tool like the BRA can aid clusters to better respond to global competitiveness challenges. In the framework of the project UPSIDE4, funded by the European Union, the BRA is constantly expanded. Not only in terms of partnering institutions, but also in terms of new cooperation possibilities between clusters, e.g. by offering common services or events. References [1] www.businessroamingagreement.com [2] www.clusterix.info [3] www.emergingindustries.eu [4] www.upside-project.eu
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2.4-3
Go International - 10 Year Experience on Practical Work Christoph Beer mundi consulting ag / ICT Cluster Bern, Switzerland
Clusters have to be in the driver seat for internationalisation. This influences SME’s as well as regions. A clear strategy for the cluster work is a key success factor. Since more than 10 years the ICT Cluster Bern, Switzerland is successful active in internationalisation. The strategy of the cluster shows the three pillar concept for Go International. It is based on a strong home market with the internationalisation of the cluster (Pillar 1), the internationalisation of the cluster management (Pillar 2) and the internationalisation of the cluster members (Pillar 3). The holistic strategy emphasise a model for all type of clusters and point out the key drivers for success. The proposed presentation will rise up on one hand the internationalisation story of the cluster and on the other hand it will address the following challenges: • Key drivers for successful internationalisation of a cluster and its sector. • How can you motivate cluster members for international business? • How can a cluster profit from the international activities? • How can a region profit? • How can we improve competitiveness? • Why do we need a clear and focussed strategy? Some examples of concrete services and actions of the cluster will complete the presentation. This includes for example the support of business opportunities as well as the integration of the cluster in international networks like TCI or the Business Roaming Agreement.
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2.4-4
Small Business, Clusters, and Exports: A Case Study of South Australia Cluster Integration Into Government Facilitated Export Opportunities. Gavin Artz Department of State Development (South Australia), Australia E-mail: gavin.artz@sa.gov.au
While there are many definitions of innovation, most outline three components, that of the new idea, or creativity, applied, to create value [1]. All three components of the definition need to be present for innovation to be said to be occurring. In the context of economic development, there is a mainstream consensus, as promoted by the World Economic Forum, that Innovation maximises global competitiveness and productivity [2]. This economic consensus is occurring in the context of a growing trend toward greater innovation emerging from small and micro business [3] and, therefore, a greater potential economic development impact of these types of businesses. The networked nature of open innovation [4], the capacity for small and micro business to be a sustainable competitor to medium and large business [5], and the growth of innovation outside of institutions and traditional industrial processes [6] means that reconciling the innovation opportunities of small business with the scale and scope needed to be actively involved in international markets will need to be addressed. When considering innovation in micro and small business, collaborative environments are of particular benefit [7]. For small businesses to be successful innovators in the market, these collaborative environments need to exist at every stage of innovation development and require access to broader regional innovation networks, such as institutional research [8]. Clustering is an economic development tool that can facilitate the necessary collaborative environments for successful micro and small business innovation [9]. Importantly for micro and small businesses, clustering provides a mechanism to achieve the scale and scope to participate meaningfully in international markets [10]. This capacity is amplified when a cluster of clusters is formed. These larger clustering structures enable micro and small businesses to have the impact of a large corporation while maintaining the innovation benefits that come from being small in size. This paper examines the case of the 2015 South Australian Government Delegation to its sister state, Shandong in China and the crucial role clustering played in being able to develop a value proposition for the export of services. What was developed was a cluster of clusters approach that enabled the mostly micro and small businesses, which make up the South Australia’s economy, to scale capabilities and to better match the size of demand in Shandong.
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The cases study highlights a significant facilitation, coordination and value proposition development role for government in presenting a cohesive, export ready set of capabilities. References [1] Baregheh, A., Rowley, J., & Sambrook, S. (2009). Towards a multidisciplinary definition of innovation. [Article]. Management Decision, 47(8), 1323-1339. doi: 10.1108/00251740910984578 [2] Dutta, S., Gurry, F. and Lanvin, B. (2014) “The Global Innovation Index 2014” World Economic Forum. [3] Marion, T, Dunlap, D, & Friar, J. (2012). Instilling the entrepreneurial spirit in your R&D team: What large firms can learn from successful start-ups. IEEE Transactions on Engineering Management, 59(2), 32337. doi: 10.1109/ tem.2011.2147792 [4] Muhdi, L, & Boutellier, R. (2011). Motivational factors affecting participation and contribution of members in two different Swiss innovation communities. International Journal of Innovation Management, 15(3), 543-62. [5] Kleer, R, & Wagner, M. (2013). Acquisition through innovation tournaments in high-tech industries: A comparative perspective. Economics of Innovation & New Technology, 22(1), 73-97. doi: 10.1080/10438599.2012.703487. [6] Hippel, EV. (2013). Open user innovation. In M Soegaard, & RF Dam (Eds.), The encyclopedia of humancomputer interaction (2nd ed.). Aarhus, Denmark: The Interaction Design Foundation. Retrieved from http://www.interactiondesign.org/encyclopedia/open_user_innovation.html [7] Nieto, MJ, & Santamaría, L. (2010). Technological collaboration: Bridging the innovation gap between small and large firms. Journal of Small Business Management, 48(1), 44-69. doi: 10.1111/j.1540627X.2009.00286.x [8] Fukugawa, N. (2006). Determining factors in innovation of small firm networks: A case of cross industry groups in Japan. Small Business Economics, 27(2,3), 181-93. doi: 10.1007/s11187-006-0010-2. [9] Kuah, A.T.H. (2002) “Cluster Theory and Practice: Advantages for the Small Business Locating in a Vibrant Cluster” Journal of Research in Marketing and Entrepreneurship: Volume Four, Issue 3, pp. 206228 [10] Chatterji, A., Glaeser, E. and Kerr, W. (2013) “Clusters of Entrepreneurship and Innovation” Harvard Business School Working Paper, No. 13-090.
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13:30-14:45 Room 324A [2.5] Developing Skills for Professional Cluster Management Moderator: Mr. Richard Walker ShireBiz, Australia & TCI Network [2.5-1] The Construction Cluster Initiative in Bucaramanga, Colombia. The Importance of Knowledge based Value Chains and Cluster Management Andres Guimon Competitiveness, Mexico [2.5-2] The Balkan Cluster – Key Puzzle for Creativity of Cluster Managers in the Balkans Danka Sokolovic Milojkovic Cluster House Ltd., Serbia [2.5-3] Key Skills for Cluster Managers to Turn Strategic Smart Collaborations into a Reality Gloria Ferrer European Foundation for Cluster Excellence, Spain [2.5-4] The TCI Mentoring Program. Improving the Skills and Competences in Management of cluster Initiatives and Programs Klaus Haasis ask klaus! & Combine Innovation GmbH & TCI Network
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2.5-1
The Construction Cluster Initiative in Bucaramanga, Colombia. The Importance of Knowledge based Value Chains and Cluster Management Andres Guimon Competitiveness, Mexico
In 2013, the Chamber of Commerce of Bucaramanga (Colombia) started a Competitiveness Reinforcement Initiative for local companies competing in the construction business. The initiative’s objective was twofold: to generate a common strategic vision for the cluster towards value based construction, and to define and implement strategic projects that would help local companies transition from traditional to more profitable and sustainable business models. The TCI presentation will build on the Bucaramanga case to answer two fundamental questions: - How has this initiative promoted innovation and sectorial partnerships towards value based construction? One of the key conclusions of the strategic analysis was that advanced buyers were signalling significant changes in the way buildings were being bought. They were increasingly looking at lifecycle value for their buildings rather than just at present value. As a consequence, they were putting pressure on suppliers to deliver user centric buildings that minimised maintenance, energy and environmental costs over the building lifecycle (60 to 80 years). The presentation will argue that the cluster initiative was a useful tool to help local companies and institutions understand these changes and take action towards the development of new innovation models based on knowledge and strong partnerships with research centers and companies in the energy and software industries to ensure lifecycle value. - How has adequate cluster management helped ensure change and project implementation among companies and institutions in the cluster? The presentation will also highlight the leading role of Bucaramanga’s Chamber of Commerce and it’s cluster management team in keeping local companies motivated towards change and guaranteeing sufficient funding for specific project implementation.
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The Balkan Cluster – Key Puzzle for Creativity of Cluster Managers in the Balkans Danka Milojkovic Cluster House, Nis, Serbia E-mail: danka@clusterhouse.rs
The Balkan Peninsula is a bridge between Europe and Asia with the following biggest cities in the region: Athens, Istanbul, Sofia and Belgrade. The region is recognized for its agriculture such land cultivation, fruit production, farming and fishery; forestry, mining and industry sectors. Ethnic and cultural variety, various political influences and turbulent history resulted in that the majority of the Balkan countries are in the state of transition reconstruction. The cluster based economic development has been recognized in the Balkans as a tool for achievement of the greater entrepreneurial initiative, innovativeness, competitiveness and employment. The cluster managers play an extremely important role in the cluster development and they act as agents of change; emphasize the need for change and promote innovative cooperation among cluster partners; accumulate knowledge on clusters and global changes clusters are encountering; use data and facts gathered from the cluster members as inputs in their strategic approach; build bridges to connect clusters at the regional, national and international level through continual promotion of new cooperation and innovative alliances among cluster members. The Balkan Cluster represents a proactive collaboration platform for cluster managers/clusters and support institutions in the Balkans in order to develop transnational projects, to approach development funds and to appear on new markets. It fosters collaboration through networks, matchmaking events, advisory services and trainings. It helps spur innovation by facilitating engagement between companies and research institutions. It contributes to promotion and internationalization of the Balkan clusters and SMEs and connection with European and global SME and cluster development institutions and organizations. The Balkan Cluster platform is applying the following operational strategy: field work and interactive daily communication with beneficiaries; transparent and timely information; demand driven cluster projects preparation and implementation; and cluster lessons learned and cluster good practice examples promotion. "When you only have a hammer, all problems look like nails" /old saying/. The Balkan Cluster creators learn from the past, live in the present and look forward to the future, they know that "everyone thinks of changing the world, but no one thinks of changing himself” /Leo Tolstoy/ and they are guided by Aristotle’s saying "excellence is not an act....but a habit". References [1] M. Danka, International Scientific Conference THE ECONOMIC CRISIS AND THE FUTURE OF EUROPEAN INTEGRATION” Nis University, 2013, ISBN 978-86-6139-085-2, p. 223-236 [2] M. Danka, S. Nebojsa, International Scientific Conference Regional Development and Demographic Trends of Southeast European countries Nis University, 2013, UDK 658.114.5, p. 663-678 [3] M. Danka, S. Nebojsa, Thematic monograph New Challenges in Changing Labor Markets Economics Institute Belgrade, 2012, ISBN 978-8680315-93-5, p. 327-336
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Key Skills for Cluster Managers to Turn Strategic Smart Collaborations into a Reality Gloria Ferrer European Foundation for Cluster Excellence, Spain E-mail: gloria.ferrer@clusterexcellence.org
Keywords: Cluster Manager Skills, Smart Collaboration, Redefining strategies Closing the gap between strategy and execution is a perennial challenge in management judging by the number of articles regularly appearing in the press1. This is important in cluster management as excellent cluster managers strive to help the companies to formulate competitive strategies and turn themselves into more attractive businesses. How can a cluster manager make strategies turn into reality? How can he/she help cluster companies to achieve more attractive and sustainable margins? What areas in business environment will he/she need to improve? From whom can he/she learn? When is collaboration needed and in what? All these are questions the cluster manager should think before starting any collaboration. In the past companies reacted to increased global competition with collaborative initiatives: sharing parts of value chains (research, logistics,..) or developing common services (training,…). But now globalization is optimising value chains at global level, leaving less room for collaborative initiatives at regional and national levels. Besides we see disappearance of all kinds of activities (incl. R+D) of value chains in developed world that are moved to lower cost countries. Therefore, economies must respond strategically: by incorporating leading technology and adding advanced services. Basically redefining business strategies. Collaboration must be not an objective but a tool to improve companies’ competitiveness. The job of being an Excellent Cluster Manager is not easy. Actually, since adopting cluster based economic development, knowledge transmission about cluster management and policy making have been akin to a “craft”, with skills being transferred from experienced practitioners to the “apprentice” or new comers through knowledge sharing and working together with some degree of academic underpinning. In nowadays context of clusters, which have some value chain parts in one continent and buyers in the other, the Cluster Manager has a crucial role and needs comprehensive skills to meet challenges faced ahead.
1 Recent examples appearing in management press include: “Closing the Chasm Between Strategy and Execution, Doug Sundheim, HBR, August 2013”, “Defining Strategy, Implementation, and Execution, Ken Favaro, HBR, March, 2015, The Secrets to Successful Strategy Execution, Gary L. Neilson, Karla L. Martin, Elizabeth Powers, HBR June 2008”, “Turning Great Strategy into Great Performance, Michael C. Mankins, Richard Steele, HBR, July–August 2005”, “Closing the Gap Between Strategy and Execution, Donald N. Sull, MIT Sloan Management Review, July 2007
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The TCI Mentoring Program. Improving the skills and competences in management of cluster initiatives and programs. Klaus Haasis ask klaus! & Combine Innovation GmbH & TCI Network
The Mentoring Program of TCI Network is aimed at improving the skills and competences in management of cluster initiatives and programs of our members. The program seeks to match experienced cluster managers within the TCI network (mentors) with cluster newcomers in an early stage of their careers (mentees). On a regular monthly basis and through online dialogue, mentors will offer support to mentees looking for guidance in their learning journey to become professional cluster managers. The mentoring relationship between the mentor and mentee is built around a 6-month individual “mentoring agreement� that will state the agreed conditions and expectations. Following a first open call, TCI has gathered a group of very experienced mentors from all over the world having worked in many different industry areas. The first mentorships started in Spring 2015. The TCI Mentoring Program is open, always open for new mentee applications.
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Parallel Session 3
14:45-16:00 Room 320 [3.1] Cluster Dynamic Research. Implicatons on Cluster Perfomance and Business Competitiveness Moderator: Prof. Sungjae Choo Kyunghee Univerity, Korea [3.1-1] Cluster Management: A Strategic Knowledge Centered Perspective Alwin Gerritsen Wageningen UR, The Netherlands [3.1-2] The Influence of International Research Interaction Networks on the Innovation Performance of Medical Biotechnology Clusters Pieter Ellerd Stek Delft university of Technology, The Netherlands [3.1-3] Cluster Mapping Project in Russia: Methodology and First Results in 2015 Evgeniy Kutsenko Higher School of Economics, Russia [3.1-4] Structure and Functions of Social Capital in the Regional Innovation Clusters: Korean Cases Mi-Ae Jung Science and Technology Policy Institute, Korea [3.1-5] Cluster Mapping: Pattern in Irish National and Regional Economic Activity Sean O’Connor University College Cork, Ireland
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Cluster Management: a Strategic Knowledge Centred Perspective Alwin Gerritsen Co-authors: Remco Kranendonk, Mirte Cofino and Arnoud Lagendijk, The Netherlands E-mail: alwin.gerritsen@wur.nl
This paper proposes and explores a strategic knowledge centred perspective on cluster management. It starts with the observation that conventional approaches in cluster thinking and economic geography in general tend to attribute fixed effects to proximity, social interaction, and spatial embedding, as well as more specific and knowledge centred attributes as ‘absorptive capacity’, and ‘knowledge spill overs’. The paper argues that, rather than being theoretically given, and while recognizing the importance of path dependencies, the mentioned attributes are primarily strategically determined and are developed in knowledge intensive and collaborative processes. The paper elaborates on Sölvell’s (2009) conclusion that the collaboration between cluster domains and cluster actors, including the transference of knowledge, to a certain extent can be managed. In the paper, three concepts from economic geography and management sciences are explored: ‘Territorial knowledge dynamics’ (Crevoisier & Jeannerat, 2009), ‘Strategic Intelligence’ (Ebbekink & Lagendijk, 2013), and ‘Knowledge governance’ (Gerritsen et al., 2013). With these concepts cases are analysed and compared to provide insights in the functioning of a strategic knowledge centred cluster management. The cases are food clusters in The Netherlands, Mexico and India in which cluster actors aim at reorganizing their food clusters and their connections with global production, trade, logistics and knowledge networks in order to improve their competitiveness, sustainability and ability to feed metropolitan consumers. The cases provide information on the role of activities as knowledge transference, coupling of local and global knowledge networks, alignment between tacit and explicit knowledge, and the conceiving and sensitising of multi actor co-creation trajectories, in cluster management. The results of the study show that knowledge processes between cluster actors can to a large extent shape cluster management and its impact on the development of food clusters. The actor collaboration mainly involved imagining and sensitising of the needs of the cluster and its actors, and what policies should be adjusted to optimally support cluster development. The strategic aspect of cluster management lays not so much in strategic choice beforehand, as in a continuous process of strategic decision making, collaborative intelligence and policy adjustments. Major challenges for cluster management are: the adjustment of existing knowledge and policy systems, alignment between (inside and outside) actors and their knowledge, perceptions and capabilities, and achieving reflexivity in
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collaborative intelligence activities. References [1] O. Crevoisier, H. Jeannerat , Territorial Knowledge Dynamics: From the Proximity Paradigm to Multilocation Milieus, European Planning Studies, 2009,17(8), 1223-1241, [2] M. Ebbekink, A. Lagendijk, What's Next in Researching Cluster Policy: Place-Based Governance for Effective Cluster Policy, European Planning Studies, 2012, 21(5), 735-753, [3] A.L. Gerritsen, M. Stuiver, C.J.A.M. Termeer, Knowledge governance: An exploration of principles, impact, and barriers, Science and Public Policy, 40, 2013, 604–615. [4] Ö. Sölvell, Clusters – Balancing Evolutionary and Constructive Forces, Ivory Tower Publishers, 2009.
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The Influence of International Research Interaction Networks on the Innovation Performance of Medical Biotechnology Clusters Pieter E. Stek Faculty of Technology, Policy and Management, Delft University of Technology, The Netherlands E-mail: p.e.stek@tudelft.nl
Spatial proximity has traditionally been placed at the center of theories aimed at understanding cluster innovation performance [1,2]. However increasingly other forms of proximity [3,4], especially relational proximity [5,6], are also being recognized as a significant factor in innovation performance. Relational proximity increasingly manifests itself in actors' participation in global knowledge networks. This participation can encompass a broad set of international research interactions, including research collaboration, both formalized institutional and informal personal collaboration, and collaboration with universities and public research institutions in foreign countries. In addition to growing international collaboration, the knowledge creation activities of multinational corporations are increasingly globally distributed, and recently, universities and public research institutions too have opened branches in foreign countries. This increase in international participation at the spatial level of individual clusters provides institutional channels that facilitate international knowledge transfers, both into and out of clusters. This research explores the impact of international research interaction networks on the innovation performance of medial biotechnology clusters during the past decade. In addition to showing the rapid growth of such interactions and growing output and participation from Asian clusters, the study also develops and estimates a regression model which is used to demonstrate the impact of international research interactions on innovation performance. The model is estimated using bibliographic data extracted from patent and scientific publication databases. Various bibliometric methods are combined to map clusters, measure innovation performance and extract inter-cluster networks of individual research collaboration, institutional research collaboration, Triple Helix (university, industry and government) collaboration and knowledge appropriation relationships – by which an organization headquartered in one cluster gains ownership over research performed in another cluster. The research aims to contribute both to a theoretical understanding of cluster innovation performance, but it is also directly relevant for cluster managers who are often in a position to directly or indirectly encourage international research interactions. Understanding the potential impact of these interactions in the context of a cluster's development can help policy makers optimize international research interactions to maximize clusters' innovation performance.
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References [1] Z. Acs, D. Audretsch & M. Feldman (1994) “R&D spillovers and innovative activity”, Managerial and Decision Economics 15:2, 131-138. [2] D. Audretsch & M. Feldman (1996) “R&D spillovers and the geography of innovation and production”, The American economic review 86:3, 630-640. [3] S. Breschi and F. Lissoni (2001) “Localised knowledge spillovers vs. innovative milieux: Knowledge 'tacitness' reconsidered”, Papers in Regional Science 80:2, 255-273. [4] R. Boschma (2005) “Proximity and Innovation: A Critical Assessment”, Regional Studies 39, 61-74. [5] B. Asheim and A. Isaksen (2002) “Regional innovation systems: the integration of local 'Sticky' and global 'Ubiquitous' knowledge”, Journal of Technology Transfer 27, 77-86. [6] H. Bathelt, A. Malmberg and P. Maskell (2004), “Clusters and knowledge: local buzz, global pipelines and the process of knowledge creation”, Progress in Human geography 28:1, 31-56.
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Cluster Mapping Project in Russia: Methodology and First Results in 2015 Evgeniy Kutsenko National Research University Higher School of Economics, Moscow, Russia ekutsenko@hse.ru
Creation of regional infrastructure to support SME clusters has become a visible trend in Russia since 2010. In 2012, the Russian Ministry for Economic Development selected 25 pilot innovative clusters to receive state budget and non-budget support to implement respective programs of their development. At the same time over the last few years there emerged hundreds of cluster initiatives in a wide range of activities, having no less weight in the economy and the prospects for development than the pilot innovative clusters. Moreover, the cluster policy in Russia covers more and more federal ministries. In the nearest future there will appear industrial cluster initiatives under the supervision of the Russian Ministry for Industry and Trade. The respective programs are likely to be started by the Russian Ministry for Agriculture. However the relevant information about Russian clusters (e.g. brochures, websites, presentations, international visibility) almost always concerns 25 pilot innovative clusters. In response to this challenge the HSE Russian Cluster Observatory launches "Cluster Map of Russia" web project in 2015. Any cluster corresponding to minimum requirements may be registered in the system which contains 5 blocks of indicators: "General information", "Cluster Priorities", "Management", "Members", "Partners" and "Projects". The information provided is neither of statistical nor of reporting manner, and is aimed at encouraging inter-cluster communication, internationalization, informing potential participants, investors, entrepreneurs, authorities about the existing cluster initiatives. The system is designed with positive incentives for participation. i.e. provision of new information means acknowledgement of the cluster`s extra features, which leads to promotion within the system. The report will describe the cluster mapping methodology, as well as the first results of the project. There will be compiled data on Russian clusters: the number of participants, sectors of activity, location, number of cluster members` employees, priorities and services of CMOs.
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Structure and Functions of Social Capital in the Regional Innovation Clusters: Korean Cases Mi-Ae Jung Science and Technology Policy Institute, Korea E-mail: miaejung@stepi.re.kr
Social capital is the intangible asset embedded in the social relations, which has a productive role in wellbeing and wealth by facilitating the flow of resources and information from an actor to another [1][2]. Social capital is expected to have a critical role in the development and growth of regional innovation cluster [3][4]. As social capital has the multi-attributes [5] and exists in the multi level [6][7], the approaches to the social capital for cluster policy has not been sufficiently developed yet. This study is to find and define the structure and functions of social capital for the regional innovation cluster. This study reviews the researches and discussions regarding the social capital and its role in the regional development and cluster. It structuralizes regional social capital in terms of the relations of social capital attributes and innovation cluster, in the macro and micro-level perspective. In this study, the cases of Korean innovation clusters are analyzed and discussed for providing the direction of cluster policy. References [1] J. S. Coleman, Social capital in the creation of human capital, American Journal of Sociology, 1988, 94, S95-S120. [2] R. D. Putnam,. Making democracy work: Civic traditions in modern Italy, Princeton university press, 1994. [3] C. Aragón, M. J. Aranguren, C. Iturrioz & J. R. Wilson, A social capital approach for network policy learning: the case of an established cluster initiative, European Urban and Regional Studies, 2014, 21(2), 128-145. [4] K. Laursen, F. Masciarelli, & A. Prencipe, Regions matter: how localized social capital affects innovation and external knowledge acquisition, Organization science, 2012, 23(1), 177-193. [5] C. Grootaert & T. Van Bastelaer,. Understanding and measuring social capital: A multidisciplinary tool for practitioners (Vol. 1), World Bank Publications, 2002. [6] F. Huber, Social capital of economic clusters: towards a network-based conception of social resoures, Tijdschrift voor economische en sociale geografie, 2009, 100(2), 160-170. [7] G. T. Payne, C. B. Moore, S. E. Griffis & C. W. Autry, Multilevel challenges and opportunities in social capital research, Journal of management, 2011, 37(2), 491-520.
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Cluster Mapping: Pattern in Irish National and Regional Economic Activity Stephen Brosnan, Eleanor Doyle, and Sean O’Connor School of Economics, National University of Ireland - University College Cork, Western Road, Cork, Ireland E-mail: e.doyle@ucc.ie
Keywords: Regional Development, Clusters, Irish Competitiveness Clusters have been used in policy reports and in various Irish business support programmes as a method to improve productivity [1]. In Ireland, interest in clusters of industrial activity and their role in increasing regional productivity, innovation and competitiveness dates back to the ‘Culliton Report’ which created awareness around the importance of a competitive business environment for the development of enterprise and recommended the promotion of industrial clusters focused on niches of national competitive advantage [2]. However, research finds little evidence of Porterian ‘clustering’ within Ireland [3], [4], and moreover, insisted that in certain cases high levels of concentration has been attributed to the operation of agglomeration advantages when in fact they are more likely the result of government interventions and factors based on earlier theory. [5] However, two issues raise concern over the results of previous cluster studies in Ireland [1]. Firstly, many of the industries used in case studies cannot be regarded as competitive in the Porterian sense and the selection of non-competitive industries implies the odds were stacked against finding cluster impacts. Also, much of the analysis of Porterian ‘clustering’ has been limited due to a lack of granular data and agreed definitions of what constitutes a ‘cluster’. This paper addresses this gap in applied research on the Irish economy. Furthermore, most studies relating to industrial specialisation or ‘clustering’ in Ireland concentrate either on one location in Ireland or on highly aggregated levels of data, e.g. [6] [7]. Research into the Irish marine sector at the small area level (Electoral Division (ED)) was conducted using a spatial micro-simulation model, however, it was limited to eight industrial sectors [8]. Within this context, this paper utilises recently re-defined cluster classifications [9] [10]. This permits for the first time the assembly of 4-digit (NACE) industry level data organized initially into 51 separate cluster categories for the Irish economy. In addition to the organisation of data into clusters and sub-clusters, a granular geographical focus is also provided. Both NUTS 3 and county level data are used to offer a comprehensive analysis of clusters and clustering for Ireland. Our main variables of interest include employment, salaries, exports and turnover analysis covers the period 2009 to 2012. Our initial data analysis explores the variation across regions of our main economic features of interest to consider patterns in wage, employment and export growth, for example. We also explore the attributes
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and distribution of clusters across the Irish economy relative to national performance. The role of clusters in performance across economic regions is examined with reference to trends in NACE categories and we consider the extent to which cluster strength, performance and mix are related to regional performance. This research forms part of a larger project focusing on the role of clusters for productivity enhancement, new-business development and increasing innovation. Given the nature of Ireland as a small open economy, related issues of interest include whether and how small economies may exploit clusters and the role of foreign-owned plants within clusters of related economic activities. References [1] E. Doyle and C. Fanning, ‘The Role for Clusters in Irish Economic Development Policy’. In Aylward, C. and O‟Toole, R, ‘Perspectives on Irish Productivity: A Selection of Essays by Irish Economists’, Forfás, 2007, pp.267-281 [2] J. Culliton, ‘A Time for Change: Industrial Policy for the 1990s; Report of the Industrial Policy Review Group, Stationery Office; Dublin, 1992. [3] P. Clancy, E. O’Malley, L. O’ Connell, and C. Van Egeraat, ‘Industry Clusters in Ireland: An application of Porter’s Model of National Competitive Advantage’, European Planning Studies, 2001, 9(1), 7-28. [4] E. O’Malley and C. Van Egeraat, ‘Industry Clusters and Irish Indigenous Manufacturing: Limits of the Porter View’, Economic and Social Review, 2000, 31(1), 55-79. [5] C. Van Egeraat, 'Spatial Concentration in the Irish Pharmaceutical Industry: The Role of Government Intervention and Agglomeration Economies', NIRSA Working Paper Series, 2006, 28 – February. [6] K Morrissey, ‘A location quotient approach to producing regional production multipliers for the Irish economy’, Papers in Regional Science, 2014, 1-16. [7] S. MacFeely, R. Moloney and M. Kenneally, ‘A study of the NUTS 2 administrative regions using inputoutput analysis’, Journal of the Statistical and Social Inquiry Society of Ireland, 60, 60-115. [8] K. Morrissey, C. O’Donoghue and N. Farrell, ‘The Local Impact of the Marine Sector in Ireland: A Spatial Microsimulation Analysis’, Spatial Economic Analysis, 9(1), 31-50. [9] C. Ketels and S. Protsiv, ‘Methodology and Findings Report for a Cluster Mapping of Related Sectors’, Report for the European Cluster Observatory, 2014 – October. [10] M. Delgado, M.E. Porter, S. Stern, ‘Defining Clusters of Related Industries’, NBER Working Paper No. 20375, 2014 – August.
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14:45-16:00 Room 321
[3.2] Clusters Promoting Cooperation and Effective Convergence between Industries Moderator: Dr. Danka Milojkovic Cluster House Ltd, Serbia & TCI Network [3.2-1] Reimagining the Future of an Industry David Grice Musitec Ltd, Australia [3.2-2] The Role of IT Clusters in Adding Value to Traditional Industries: IT in Parana, Brazil Ines Sagrario Competitiveness, U.S.A [3.2-3] Cross-overs between Agro and High Tech: Technical Innovations Enabling Spatial Quality Mirte Cofino Wageningen UR, The Netherlands [3.2-4] Mixing the Worlds of Clustering and Agrofood, Experiences from the Netherlands Frank Eetgerink Blue River Concepts, The Netherlands
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3.2-1
Reimagining the Future of an Industry David Grice Managing Director Musitec Ltd, Australia E-mail: david@musitec.co
The music industry worldwide has suffered significant disruption through technological advancement, arguably more than any other industry. Artists must now redefine business models and create new revenue streams. In the absence of available high value contracts within the music industry, cluster models need to be adapted to develop the creation of opportunity rather than collaboratively pitching for existing and new high value contracts. As the music industry is globally focused, any opportunity created within the cluster must be viewed with a global lens. From inception, Musitec, the South Australian music industry cluster organisation, recognised that if we are to assist the local industry, we must be globally relevant. We further recognised that while music is the heart of the industry, technology is the substance of music business. The direct result of this, beyond artist development, is the construction of programs designed to attract and help grow technology based, music related companies. This is critical as future work within the industry will be greatly enhanced by thinking beyond the creative aspects of music, and towards participation in developing the business of music. The Musitec cluster places a spotlight on South Australia as a significant leader within the global music industry. Already industry leaders from the USA, Canada, the UK, Poland and Sweden, have recognised that Musitec currently leads thinking within music industry, and music business development globally. This session will unpack the strategy that was developed to deliberately and tactically bring together people and organisations from tech, health, building, film and music industries, to form collaborations that build new global business opportunities for South Australia. Additionally David will highlight Musitec’s work to date, including program development, Musitec’s own projects, and the Musitec vision designed to reimagine the global music industry and move it into the next decade.
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3.2-2
The Role of IT Clusters in Adding Value to Traditional Industries: IT in Parana, Brazil Ines Sagrario Competitiveness, USA ines.sagrario@competitiveness.com
Key words: Value added and innovation, New business model, Cross-sector collaboration Brazil has had a long tradition of working with institutionalized clusters called Arranjos Produtivos Locais (APLs). In the state of Parana, in Southern Brazil, there is a strong IT industry that has been organized in 6 APLs, in different concentrations throughout the state. Over the past decade SEBRAE-Parana, a local enterprise support organization, has been working with these APLs to help them in operational issues that affect their companies, providing general training and assistance to travel abroad. In spite of this support, many IT companies were facing difficult times. In 2014, SEBRAE decided to take a more strategic approach and carried out a Strategic Plan for the sector that aimed at identifying opportunities for local IT companies to add value to other industries. Crossing current areas of expertise of the IT companies with strongholds of advanced demand in the State, the existence of leading companies, barriers to entry and the strength of growth and innovation drivers, a number of strategic segments were identified to be pursued. This effort, with strong participation from industry leaders, brought about a new focus for support actions towards the IT sector, which included not only cross-cutting recommendations to improve specific skills, but also the identification of five new and very attractive value chains where IT companies from Parana could add significant value and be more competitive. One such area was agriculture, one of the strongholds of Parana, where growing demand for food and scarce productive resources are calling on technology to bring about technological solutions that can increase efficiency, productivity, traceability, and sustainability. The result of this effort has been a paradigm shift in the public-private dialogue around the development of the IT sector, with a significant potential to contribute to general value added in many of the other leading economic sectors in the region.
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3.2-3
Cross-overs between Agro and High Tech: Technical Innovations Enabling Spatial Quality Mirte Cofino Wageningen UR, Wageningen, The Netherlands Email: mirte.cofino@wur.nl
Keywords: agrifood cluster, cross-over, spatial quality In today’s increasingly knowledge-based creative economy, facilitating the development of successful clusters requires attracting and maintaining a highly skilled labor force. To this end, cities try to ensure an attractive living environment for top talent. Simultaneously, rapid urbanization has caused these very metropolises to become the main concentrations of demand for high-quality, year-round available food. As such, metropolitan areas have become the main stage for change in the agrosector: heavy industries, including the new global players in agrifood, are increasingly scrutinized in the newly organized spatial fabric of the metropolitan landscape, yet they are responsible for the feeding of its citizens. In addressing the challenge of adapting to its new spatial environment without losing its competitiveness, cross-overs with other industries seem to yield the most promising solutions so far. Present innovations in the agrosector embody the cross-over between agro and high-tech: innovations are virtually all high-tech or ICT-driven, including for example advanced technologies enabling improved productivity, reduction of smells, capturing of greenhouse emissions and exchange of rest- and by products. Application of the aforementioned technologies is a strong driver of physical concentration of agrofunctions and even attracts co-location of other industries. As such, physical clustering of production, processing and logistics has repeatedly been suggested as a potential development path for the sector in view of its current challenges (e.g. Gálvez-Nogales, 2010; Smeets, 2011). Conversely, such physical clustering would also enable the application of technologies which better enable the sector to co-exist with urban functions, improving the quality of life of metropolitan citizens. The South-East of the Netherlands, including the Brainport Eindhoven region, is home to both one of the most successful high-tech clusters in Europe and one of the most innovative and productive agricultural ‘hinterlands’ of the world. Entrepreneurs in the area have already acknowledged this presence and take advantage of both worlds, culminating in world leadership in food processing industries, primary production systems and food production technologies. The implications for its success as an attractive cluster region will be explored in this presentation. References Smeets, P.J.A.M. (2011). Expedition Agroparks. Research by design into sustainable development and agriculture in the network society. Wageningen Academic Publishers: Wageningen. 320pp. Gálvez-Nogales, E. (2010). Agro-based clusters in developing countries: staying competitive in a globalized economy. FAO, Rome.
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3.2-4
Mixing the Worlds of Clustering and Agrofood, Experiences from the Netherlands Frank Eetgerink Blue River Concepts, The Netherlands E-mail: Frank@Eetgerink.com
What can the world of Agrofood learn from the world of clustering? Agro-production in the Netherlands has traditionally been largely the domain of family farms with or without some personnel. Nowadays increase of productivity requires a larger scale and farmers, more and more are able to compete without subsidies in a free market. Collaboration in some sectors takes the form of cooperatives of farmers formed around shared facilities for feed production (ForFarmers), processing (SuikerUnie), sales and distribution (FloraHolland), or some of these integrated (FrieslandCampina). Another form of collaboration is the farmers association, with activities like exchange of knowledge, representing common interests and lobby politics. In the production of greenhouse vegetables, some enterprises have grown to such a size that they directly deliver to the retailers without any intermediates. There is a lot of experience with collaboration, but clustering, as seen from the perspective of the TCI Network, is something relatively new and has only take shape in greenhouse farming. As in other industries the dynamics in the value chains are constantly shifting by introduction of new technologies and changing market and societal demands. Sectors like high tech industries (mechatronics, robotics, ICT), stable and greenhouse building, renewable energy, genetics, are heavily involved in agrofood production and sometimes in the lead in new developments. Creating (cross sectoral) clusters can meet some of these challenges. One innovative concept of collaboration is the Metropolitan Food Cluster, a combination of several different entrepreneurial activities in close cooperation. This interdependency is a delicate issue in collaboration and requires a high level of trust. The cluster concept can be an answer for creating this shared space of trust. But there are also differences with ‘normal’ clustering. Agro-production needs space, often in or close to densely populated areas. By concentrating activities in agroparks spatial quality can increase. This is using advantages of proximity, including raising the quality of the physical space. This requires a quadruple helix approach, to have all relevant stakeholders involved in the development. Agrofood clusters can take advantage of the body of knowledge of the world of clusters and cluster management, but because of the societal and spatial dimensions the world of clusters can also learn from agrofood.
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14:45-16:00 Room 322
[3.3] Articulating Collaboration among Cluster Actors
Moderator: Dr. Yasin Naku Ziraba Makerere University, Uganda & TCI Network [3.3-1] Cluster Governance in North West of the Netherlands Remco Kranendonk Wageningen UR, The Netherlands [3.3-2] Boost Your Competitiveness through Collaboration and Innovation, the PST-FR Example Jacques P. Bersier P么le scientifique et technologique du canton de Fribourg, Switzerland [3.3-3] Introduction of Sharing Economy Platform for Economic Cooperation among Cluster Companies Ki Beom Kim Korea Industrial Complex Shared Service, Korea [3.3-4] Increasing Competiveness through Non-conventional Partnerships Jean-Manuel Mas Axelera Cluster, France
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3.3-1
Cluster Governance in North West of the Netherlands R.Kranendonk, I. Coninx, R. Fontein, A. Gerritsen Cluster governance in North West of the Netherlands, Wageningen UR Alterra, The Netherlands
Many Dutch cities and regions have recently raised Economic Boards as triple helix governance structures in order to manage the regional clusters. These are new phenomenons, who are searching for the best ways of ‘’managing’’ collaboration, dynamics and activities to strengthen economic activities and innovation within the region. In the region North West of the Netherlands the following boards have been set up: Amsterdam, Almere, Amersfoort, Utrecht (2), Noord-Holland Noord, Gooi- en Vechtstreek. They do differ in size, ambitions and professionalism. It’s clear that the Amsterdam Economic Board is dominant and powerfull and much more focussed on international profiling. But other boards are certainly performing well on other aspects. In order to support the boards and to come to optimal collaboration and alignment between the boards, the Ministry of Economic Affairs has started a boards network, as a learning and exchange platform for board managers. Alterra Wageningen UR researchers and knowledge brokers on regional development and clusters, prepare the meetings with information, analyses and inspirations. This has been done by using and introducing concepts and methodologies which are offered from the knowledge and experiences in the domain of clusters: (1) 7 gap analysis (Solvell, 2013), (2) Borrowed size, (3) Innovation Ecosystems and (4) clusters as drivers for beyond-gdp outcome (Ketels, 2015). The inputs and discussions leads to insights how to improve the board performance, but it leads also to perspectives to utilise the board network on the level of North West Netherlands and to optimize the relations between boards. In the meetings opportunities for common trajectories have been explored. The topic of circulaire economy has been chosen for common elaboration, as well conceptually as practically, in order to use the clusters to develop new innovative and sustainable solutions.
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Boost Your Competitiveness through Collaboration and Innovation, the PST-FR Example Jacques P. Bersier Vice president Pôle scientifique et technologique du canton de Fribourg (PST-FR), Switzerland E-mail: jacques.bersier@hefr.ch
For height years, the Science and Technology Centre (PST-FR) of the canton of Fribourg (Switzerland) aims to be a driver for both productivity and creation of high-value-added employment. It is a result of the “innovation support” component of the 2008-2015 New Regional Policy and has the mission to create and sustain thematic clusters in regional economic centres. Four clusters flourished in this context, the Swiss Plastics Cluster (created in 2005), the IT Valley Cluster (created in 2007), the Energy and Construction Cluster (created in 2009) and the brand new Food & Nutrition Cluster (created in 2015). The overall objectives of the PST-FR are to foster and intensify collaborations among key players of the economy, research and education, as well as public authorities – to strengthen cluster’s partners competitiveness by stimulating and reinforcing their capacity for innovation – to support the economic development strategy of cluster’s functional region. The PST-FR service offer is based on four pillars: funding of collaborative innovating projects in the frame of intra- and inter clusters collaborations, to date, 30 projects were supported within the centre – technology watch in the relevant business sectors – organisation of conferences and networking activities – national and international positioning of the clusters and PST-FR. The presentation will show how the creation and development of the PST-FR’s clusters were possible despite the lack of cluster’s policy at national and regional levels in Switzerland. It will develop the collaborative models established within and between clusters. It will focus more specifically on the barriers and key success factors of cluster’s development on one side and on the activities/projects carried out within the clusters on the other side. Finally, particular attention will be devoted to the impact of the professional collaborative structures established within the centre, which are key to the PST-FR’s success. 3 keywords derived from my work for the delegates: PST-FR: a cluster initiative developed with IN NOVATION as a driving force, with DETERMINATION and with a COLLABORATIVE mind-set from the stakeholders.
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3.3-3
Introduction of Sharing Economy Platform for Economic Cooperation among Cluster Companies Ki-Beom Kim Korea Industrial Complex Shared Service, Korea
It has lacked critical driver and economic benefit to maintain existing model for cooperation among cluster companies. To make synergy effect among companies, we forge a platform that combines concept and model of Sharing Economy, which is a major interest around the globe. Especially, firms that are occupied in the industrial complex afford Sharing Economy Education-Service-Platform to every single step of business (Move in → Ready for foundation of production → Production → Sale/Offer → Move out) for companies near them. For education sector, we give an orientation for new move-in companies for 6 months and hold a CEO forum for 1 year (total 4 times, quarterly). For service sector, we offer letters for CEOs of move-in companies. ( Rate of visit and click is currently almost 35% for 9 months with 3,000 people. ) We also introduce specialized services only for the industrial complex such as group purchase, joint delivery service, car-sharing and sharing of expert. We provide mobile catalog PR platform about each company, and it helps information sharing activate. With help from this situation, sharing of purchasing, service and sales quantitatively and qualitatively improves cooperation for sales and purchasing power among cluster companies. We are developing matching platforms for cluster firms and for outside buyers (domestic and foreign). Platform is also enhanced to make cluster manufacturing firm survive. It began with 3,000 companies in Seongnam Industrial Complex. Currently we have expanded our business to Gyeonggi-do(15,000 firms), Busan(2,000 fims) and Changwon(1500 firms). On the basis of cooperation with manufacturing firm, we produce various progresses.
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Increasing Competiveness through Non-conventional Partnerships Jean-Manuel Mas Axelera Cluster, France
Within its two mainambitions concerning Innovation and Business development AXELERA has set up diffe rent internaltools/processes for enhancing collective strength toward emergence of innovative collaborat ive projects andbusiness seeding between incompatible partners.
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14:45-16:00 Room 323 [3.4] Successful Internationalization Strategies (Part 2) Moderator: Mr. Manuel Montoya Ortega Automotive Cluster of Nuevo Leon, Mexico & TCI Network [3.4-1] Internationalisation in Clusters - from a Blind Angle to Strategic Internationalisation of SME’s Merete Daniel Nielsen Cluster Excellence Denmark, Denmark [3.4-2] Internationalisation Support for Cluster Organizations John Hobbs Cork Institute of Technology, Ireland [3.4-3] Creative Business Cup - Working with Clusters for a Global Approach to Creative Entrepreneurship Lucia Seel Lucia Seel International Consulting, Austria
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Internationalisation in clusters - from a Blind Angle to Strategic Internationalisation of SME’s Merete Daniel Nielsen Director, Cluster Excellence, Denmark E-mail: mdn@clusterexcellencedenmark.dk
Building on years of supporting international activities in Danish and European clusters, Cluster Excellence Denmark has developed a new tool for internationalization of clusters to strengthen the strategic approach on internationalisation. International activities in clusters aren’t normally the most integrated or visible part of clusters. Why is this the case? How do clusters actually work with internationalisation? And where could they strengthen their approach? Come and join for this world premiere presenting the new tool for cluster internationalisation. Over the last 15 years, cluster development has gained increased political interest from Danish policymakers searching for the right kind of policy scheme and funding for cluster development. This has lead to the establishment of a Cluster Forum in Denmark representing ministries, regions and some municipalities. The Cluster Forum has developed a national cluster strategy underlining the political development towards seeing clusters as having a more important role in internationalisation. The core services for Danish clusters are matchmaking, collaborations projects, competence development, knowledge dissemination. While internationalisation has been seen as an additional service or has been addressed in terms of ad hoc and/or more random activities with a less strategic approach, both from the cluster management and at regional and national policy level. This has changed considerably over the last five to ten years, so now international activities are defined as one of the core activities for clusters and are supported in a systematic manner at both regional and national policy level.
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3.4-2
Internationalisation Support for Cluster Organizations John Hobbs Cork Institute of Technology, Ireland E-mail: john.hobbs@cit.ie Tamara HĂśgler CyberForum e.V., Germany E-mail: hoegler@cyberforum.de
Clusters are recognized as effective tools for regional and economic development, particularly as they can provide access to horizontal and open networks. Cluster organizations can support the co-operation of different regional sectors to reinforce innovation capabilities and competitiveness at a regional level. Cross-cluster connectivity is a significant first step towards market success, however, internationalization has a significant role to play as firms seek to access the global marketplace in order to improve their competitiveness. Trans-national cluster collaboration offers opportunities for clustered firms in terms of promoting access to new knowledge, technology and markets. An appropriate analytical tool for evaluating cross-cluster and trans-national cluster cooperation is Visualisation of Linkages in Networked Clusters (V-LINC). V-LINC is a methodology which maps, visualizes and analyzes the key relationships within cluster ecosystems. V-LINC provides business and clusters with the opportunity to optimize how they work together, through providing insights in trans-national cooperation opportunities which can lead to significant business gains and thus enhance cross-border and cross-sectoral collaboration. When combined with the Business Roaming Agreement1 (BRA), V-LINC offers multifaceted advantages to: companies that wish to develop internationally are provided with an overview on existing connections to clusters and companies abroad. Cluster management are provided with an evaluation of its internationalization efforts and value to their members. Applied regularly, V-LINC presents a visual representation of the development of international cooperation at a cluster and individual firm level. The BRA connects >60 clusters across the globe, as it offers cluster members softlanding access when seeking to create collaborative (trading or research) linkages. V-LINC has been applied to seven ICT clusters within the Be Wiser project2 (funded by the European Union), to examine the organization and technical research challenges in some of Europe’s best known RTD regions. References 1 www.businessroamingagreement.com 2 www.be-wiser.eu
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3.4-3
Creative Business Cup - Working with Clusters for a Global Approach to Creative Entrepreneurship Lucia Seel Lucia Seel International Consulting, Austria
Creative Business Cup (CBC) is a unique entrepreneurial platform as a global marketplace allowing the most creative entrepreneurs to scale their business, connect with investors and boost their potential through the training, matchmaking and mentoring provided by the network. CBC is a global initiative supported by investors, media, organizations including clusters, policymakers and creative businesses worldwide with 60 participating countries in 2014. CBC creates a flamboyant-platform for creative start-ups with economic impact and growth potential through innovation. CBC supports them to grow their business, providing capacity building, access to finance, new market access, innovation challenges, international networking. CBC is not the goal, but the trigger in unlocking the opportunities related to the challenges that each entrepreneur in creative industries faces. CBC represents an ecosystem of all-year round activities: 1. CBC National Competition Each participating country selects the representative for the Finals. These partners are also cluster organisations or even cluster programme owners. 2. CBC Regionals Are meta-regional boot-camps, where the national winners/finalists jointly prepare for the Finals. 3. CBC Start-up Days (International Finals) CBC culminates in a 3-days event in Copenhagen during Global Entrepreneurship Week with workshops, jury & investor pitching, social events and the finals. 4. CBC Innovation Challenges Following global open innovation movement, CBC launches challenges with sector-specific or company focus (e.g. Arla launches a CBC Food Prize). 5. CBC Investor CBC Investor offers investment opportunities through the large pool of start-ups. 6. CBC Academy CBC Academy offers learning opportunities for start-ups, executives and policy-makers. The launch of CBC Nordic Academy will be in spring 2016. 7. CBC Stay CBC Stay is an acceleration program offering start-ups selected by international juries a conducive environment to grow the business for 3-months. 8. CBC Connect CBC Connect is an online platform serving past/present participants to network, be promoted and learn.
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14:45-16:00 Room 324A [3.5] Tools and Methodologies for Effective Cluster Management and Cluster Performance Improvement Moderator: Mr. Vincent Dugré Quebec Ground Transportation Cluster, Canada [3.5-1] Measuring Cluster Performance: a Method from the Corporate World Graham Kenny Strategic Factors, Australia [3.5-2] Cluster Structure and Effectiveness from a Network Perspective Jasmijn Rompa Brainport Development, The Netherlands [3.5-3] Innovative Methods for Cluster Management Micke Kedback FPX, Sweden [3.5-4] Indexfokus: A cluster’s Competitiveness as Perceived by Stakeholders Enrique Díaz Moreno Businessfokus, Spain [3.5-5] Assisting Supporting Institutions to Respond to Emergent Clusters Shawn Cunningham Mesopartner, South Africa [3.5-6] A Cluster Management Assessment Tool: a Roadmap for Collaboration and Clusterization Evelyn Solis Leon UPAEP University, Mexico
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3.5-1
Measuring Cluster Performance: A Method from the Corporate World Graham Kenny Strategic Factors, Australia
There’s been much discussion in previous TCI conferences around measuring the performance of clusters. Techniques have been sought for doing so. Yet it must be asked: Do clusters require special methods? Can the techniques used to assess other entities be applied equally to clusters? As an entity a cluster has properties in common with others such an organization, department, program or project. These properties include that: each has stakeholders; not all stakeholders are key; stakeholders have to be grouped in some way for simplicity; each has relationships with these stakeholder groups; and the strength of these relationships is the measure of performance. The question becomes how to put this into practice. This presentation concentrates on demonstrating how a method developed over a decade ago and which has been employed and rigorously tested by organizations and business units can be applied to clusters. It will show the key difference between outcomes and activities; why performance measurement is a twoway street; how a simple nomenclature can help sort measures from non-measures; and how mapping can assist in target-setting and performance assessment. The presentation will also describe how a software product called Strategy Scorecard can be readily applied to cluster evaluation.
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3.5-2
Cluster Structure and Effectiveness from a Network Perspective Jasmijn Rompa Programme Manager Cluster Development, Brainport Development, The Netherlands
In the Brainport Eindhoven Region more and more clusters arise bottom-up. Companies feel the need to cooperate, form long term partnerships and invest their time and effort. This route has proven to be successful shown by several mature, self-sustaining clusters. Still, these clusters are very diverse in their structure and degree of cooperation. A topic that has not received very much attention up until now. From a network perspective, a Master-research is devoted to ten clusters in the region. This research puts relational data at the centre. The focus is on relationships between cluster members and how the structure of these relationships impacts upon organizational and cluster outcomes. Companies in ten clusters have reported their communication linkages and -frequency with others and their exchange of resources. Hereby cluster structures are mapped on cluster- and organizational level. This shows that the ten regional clusters each have a unique configuration of cooperation, structure and management. For individual clusters the results show the core players: those playing a pivotal role in diffusing knowledge. And also the connections between different kind of members (business/ knowledge) and possible gaps in the network. Moreover, companies have expressed the value the cluster has for them in terms of satisfaction. Combining this with cluster characteristics as age, geographical spread, type of members, goals, etc. we find what makes an effective network. As presenter I will show the structure of several clusters in the Brainport Eindhoven Region and the insights we gained (research finished June 2015). These could help clusters improve their success by gaining knowledge (lessons learned) from successful clusters; by setting other entry requirements when the cluster is too much dependent on certain (type of) players or by organizing cluster meetings in another way (frequency, topics, set up) in order to encourage interaction and exchange among members.
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Innovative Methods for Cluster Management Johan P. Bång CEO. Future Position X., Sweden. johanpb@fpx.se Prem C. Sundaram CEO. Sundaram Applied Technologies. USA. prem@sundaramapptech.com
Future Position X, (FPX), Gävle, Sweden helps companies and organizations to develop new Geo Spatial products and services, and to expand into new markets. The Cluster organization was formed in 2006, a nonprofit organization that serves as an independent venue for research and innovation in Geographic information technology. Over 200 companies and organisations work today within the cluster. Gävle region has the highest concentration of expertise in GIS in the whole of Europe and is mentioned as the capital of Europe's GIS. Future Position X headquarters and incubator is based on the technology park in Gävle, but has a strong international presence with partners in over 20 countries around the world. We offer an expansive internationalization programs for our member companies to efficiently find new partners and customers in the global market. We also have a project office in Beijing and Wuhan, and a Marketing Office with incubator in Zhuhai, China. FPX currently leads innovation in the area of Geo Health and has created the Geo Life Region for innovation and entrepreneurship, a long term program for improving health and wellness through Geo Spatial Technology. Future Position X is one of Europe's most award-winning cluster companies and received, among other things, Gold certification from European Cluster Excellence Initiative (ECEI) for the years 2012-2014 for a successful work. Cluster Director Johan P. Bång to European Cluster Manager of the Year 2010-2011. FPX develops and utilizes leading cluster management theories and works in collaboration with local universities and clusters across Europe and World Wide. Over the last 2 years FPX has led leading cluster management analysis within its organization incorporating theories from Professor Örjan Sölvell of Stockholm Business School. Using the 6 Bridges method, FPX analyzed its email and identified the volume and frequency of communication against different ‘bridges’ (categories) within the cluster network. This work has provided insights into how the organization communicates and the next steps are to do cross-cluster comparisons. *This paper will be presented by Micke Kedback.
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3.5-4
Indexfokus: A cluster’s Competitiveness as Perceived by Stakeholders Enrique Díaz Moreno CEO Businessfokus. Associate professor at Public University of Navarra. Pamplona, Navarra. Spain. E-mail: edm@businessfokus.net
Indexfokus provides an opportunity for stakeholders to participate in the evaluation of the competitiveness of a cluster. As [stakeholder theory] [1] suggests, managing and taking into account stakeholders’ interests in the design of a strategy is the best way to obtain and defend competitive advantage and to create value for organizations. The perceptions of those who observe the cluster from different perspectives thus contain a considerable amount of information valuable for a cluster’s survival and collective development as can be inferred from the findings of the [gestalt] [2]. Working on perceptions, Indexfokus avoids using figures and statistics that hinder and slow down the evaluation of competitiveness and management processes. In responding to the Indexfokus items, the evaluators deepen their understanding of the concepts of competitiveness and align their knowledge with that of other members of the cluster regarding the best practices and attitudes that are applied by their best competitors. The evaluation method uses an ordered script of propositions related to competitiveness to which the evaluator has to assign a weight. First, the evaluator must ‘weigh’ the importance of the ‘competitiveness factors’ involved in the market. Second, the evaluator should ‘calibrate’ the degree to which a set of good practices and attitudes that distinguish the best competitors in each of the competitiveness factors is successfully applied in the cluster. The Indexfokus methodology allows a cluster’s leaders to obtain a general perception of its competitiveness and contrast the different perceptions of various stakeholders, helping them to elaborate the best competitive strategy on the basis of consensus. If the stakeholders are associated with the value chain cluster, Indexfokus provides information about the strength of their links. Indexfokus has been developed as a management tool in cloud computing and has been used by clusters and territories in Spain since 2014. References [1] (Stakeholder theory: The state of the art.). Freeman, R. E., Harrison, J. S., Wicks, A. C., Parmar, B. L. & de Colle, S. Cambridge: Cambridge University Press. 2010. [2] (La definición del concepto de percepción en Psicología con base en la teoría Gestalt). Autor: Gilberto Leonardo Oviedo. Editores invitados. Agosto 2004, p.p. 89-96. Universidad de los Andes. Colombia.
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3.5-5
Assisting Supporting Institutions to Respond to Emergent Clusters Shawn Cunningham Mesopartner, SouthAfrica
Over the last four years Mesopartner has experimented with complexity thinking and its uses in economic development. One area of application is about fostering small experiments by firms to introduce variety in complex or uncertain environments. We have assisted institutions like cluster brokers, universities and other institutions to try new services and technological capabilities to foster the emergence of competitive clusters. This presentation will show how an instrument such as the Product Space (developed by Harvard and MIT) can be used to identify areas where clusters may be emergent. The instrument is rooted in complexity thinking and uses export data to identify product groups where countries have relative comparative advantage. As the probability that different products are co-produced competitively increases, so does the chances that the technological capabilities behind these product competencies are related. A question is what the role of formal and informal supporting institutions (and other institutions that address market failures) are that enables countries to be competitive in certain products. One answer is that it is about technological spillovers. Secondly, it is about business networks and technological interdependencies. Both of these phenomena are central to the functioning of clusters and therefore the conclusion that these product groups that are competitive could be symptoms or evidence of an early emergent cluster that might have been overlooked both by policy makers and by industry itself. The Product Space approach can be used to identify policy intervention points that does not require lobyying from industry. It is thus non-consensus based, the data reveals where to search for clusters to support. Many developing countries governments are cautious and distrustful of the private sector when they approach government for support. The presentation will show how to assess the technological capability to reveal which industries to support in order to build clusters or networks of firms, institutions and markets.
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3.5-6
A Cluster Management Assessment Tool: a Roadmap for Collaboration and Clusterization Evelyn Solís León UPAEP University, México E-mail: evelyn.solis@upaep.mx Sofía Elba Vázquez Herrera UPAEP University, México E-mail: sofiaelba.vazquez@upaep.mx José Pablo Nuño de la Parra UPAEP University, México E-mail: pablo.nuno@upaep.mx
Keywords: Cluster, management, assessment A cluster evaluation is a challenge, but it is needed in order to enhance collaboration among clusters. This proposal focuses on the identification and evaluation of a different instrument for a cluster based approach. To use a tool that aim to assess the level of clusterization using a roadmap through three specific cycles: strategic cycle, planning cycle, and execution cycle. Each of them uses a maturity level in specific sections. The roadmap describes particular actions or elements in specific objectives in order to foster a holistic approach for cluster management. Strategic cycle seeks to determine strategic imperative for clusterization and engage leadership in the whole process. Meanwhile, the planning cycle considers four objectives: understand the current state, envision and design future clusterization, align structure and behavior and to create a plan to clusterization. Finally, the execution cycle considers the implementation of a new plan to improve cluster state and continually nurture the idea to collaborate within and between clusters [1]. The levels used to evaluate each cycle go from 1 being, showing some awareness of clusterization to level 5 indicating an exceptional state and sometimes recognized as the best practice. Leadership commitment is necessary during the process as well as internal participation of all cluster members to improve the quality of thinking and awareness of clusterization. In this aspects, it will This tool will provide managers an opportunity to easily identify barriers and opportunities, determine challenges among current and future states of cluster development, and prioritize actions to improve cluster´s environment, productivity and collaboration. This tools was develop for lean processes in order to achieve enterprise transformation and it is identified as a self-assessment tool. Even though this tool was designed for a different environment and industries, it has proved to be useful during a transformation experience and it supports as-is analysis and to-be vision [2]
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The suggest methodology to use the tool consider five steps: a meeting to introduce to toll, cluster managers and main staff take the assessment, leadership convene again to determine the maturity level, and develop an action plan for the cluster. The goal of this paper is to link the current state with strategy and put into action a real improvement for clusters and collaboration. It is multi-sectorial, it can be applied at a local, national, regional and cross-border level regardless of the clusters length of their creation and operations. It has a graphic guide in order to evaluate each cycle with a general guideline to evaluate the current state of the cluster in a specific topic taking into consideration the maturity level. One of the reason to implement this tool in a cluster based approach is to provide an efficient easy-to-use guide to assess process, increase communication at all organizational levels, mainly, to the staff and share the culture of collaboration understanding what it means to work with a cluster philosophy. Also, the tool helps to create a common vocabulary and to identify opportunities to foster new ways of work and collaboration. References [1] ‌ (Book) D. Nightingale and J. Srinivasan, Beyond the Lean Revolution: Achieving successful and Sustainable Enterprise Transformation, 1st ed., AMACON, 2011, pp. 29-46. [2] ‌ (Seminar) D. Nightingale, Enterprise Transformation Seminar, Puebla, Mexico, October 1-2, pp 1-34, 2014.
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Plenary Session 3
16:15-17:30 Room 325 Global Cooperation and Cluster Internationalization Moderator: Dr. Frédéric Miribel Invest in Lyon – ADERLY, France & TCI Network 16:15-16:40 [PL3-1] Developing Clusters in Cultural and Creative Industry: a Tool for Development and Partnership. Dr. Gerardo Patacconi Clusters and Business Linkages Unit, UNIDO 16:40-16:55 [PL3-2] Global Strategy of Hyundai Motor and Efforts for Mutual Growth Mr. Bo Sung Lee Automotive Industry Research Group, Hyundai Motor Group, Korea 16:55-17:10 [PL3-3] Global Cooperation and Company’s Internationalization Strategy: Samsung Electronics’ Manufacturing Complex in Vietnam Mr. Hansoo Kang Samsung Economic Research Institute, Korea 17:10-17:35 [PL3-4] Expanding Market Opportunity and Enabling Private Initiative for Dynamic Economies : The World Bank Group’s Trade and Competitiveness Global Practice Dr. Navin Girishankar Trade and Competitiveness Global Practice, World Bank 17:35-17:45 Q&A
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PL3-1
Developing Clusters in Cultural and Creative Industry: a Tool for Development and Partnership. Gerardo Patacconi Chief, Clusters and Business Linkages, UNIDO - Vienna
Cultural heritage, creativity and people’s talent are abundant raw materials for creating jobs, generating income, contributing to sustainable economic development. However, cultural and creative production is generally fruit of individual talent and takes the form of individual and isolated, often small-scale, businesses. To ensure access to profitable markets and integration into local and global production and retail value chains requires reaching a critical mass and sufficient economy of scale. Therefore, the cluster approach represents a great opportunity to link together cultural and creative producers and resources. By nurturing creativity and fostering innovation that are rooted in each country’s respective cultural heritage and creativity talents, SMEs can be strengthened and their economic performance enhanced. Examples will be shared of how fostering entrepreneurial cooperation in cultural and creative industries, making SMEs to benefit from collective efficiency gains through the promotion of promising cluster initiatives, can contribute to achieve higher level of competitiveness and inclusive and sustainable growth.
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PL3-2
Global Strategy of Hyundai Motor Group and Efforts for Mutual Growth Bo Sung Lee Executive Director, Automotive Industry Research Group, Hyundai Motor Company
Mutual growth is very important issues in the automotive industry. Quality management is critical for the 2nd and 3rd suppliers who produce the small parts in cars. Hyundai Motor Group supports their quality control processes and quality management for preventive quality activities and to increase awareness of the quality of the supplier. Hyundai Motor Group have expanded production volume at the overseas plant, which will get 2nd and 3rd suppliers to increase their exports. By sharing performance and achievements in overseas markets with domestic small and medium suppliers, Hyundai Motor Group help them to increase revenue and to become globalized as strong small and medium-sized firms that are self-sustainable. We promote mutual growth with suppliers and are committed to connecting our competitiveness as a corporation with the competitiveness of the industry and the nation. There are three main program as follows: Reinforcing Global Competitiveness; Fundamentals for Sustainable Growth; System for Mutual Growth. This presentation will be talked about the global strategies and the efforts for mutual growth of Hyundai Motor Group.
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PL3-3
Global Cooperation and Company’s Internationalization Strategis: Samsung Electronics’ Manufaturing Complex in Vietnam Han Soo Kang Samsung Economic Research Institute
A business cannot be successful unless it creates prosperity and opportunity for others. Samsung Electroncis stays true to its core value of ‘co-prosperity’ by building trust with its suppliers through responsible purchasing and shared growth programs. Most electronics companies today choose to outsource production and set up global supply chains to save money. Despite the current trend, Samsung has kept most of its production ‘inhouse’ and operates global production sites in 17 countries. To make this work, Samsung strives to become localized by embracing local employees and strengthening parterships with the local communities. This presenation will be talked about the Samsung’s global cooperation and Internationalization strategies. The Vietnam manufacturing complex is a good example. Indeed, Samsung strives to create a caring work environment for employees at the Vietnam manufacturing complex. While Samsung is busy improving workplace environment for its own plants and suppliers, the true measure of its success of localization is to make meaningful contributions to local communities in Vietnam by establisheing various social contribution programs such as providing vocational training programs and scholarships. The Samsung’s efforts contirubute the enhacement of the national and regional capacity, the development of the technology amd human resource, the creation of innovative cluster in Vietnnam. From this presenataion, I would to express the importance of gloabal copperation and the role of large firms for sutainable future in the globalized world living together.
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PL3-4
Expanding Market Opportunity and Enabling Private Initiative for Dynamic Economies The World Bank Group’s Trade and Competitiveness Global Practice Navin Girishankar Trade and Competitiveness Global Practice, World Bank
For the past three decades, economic growth with strong contributions from the private sector has been the main driver of poverty reduction around the world. The experience of China, Vietnam, and other high-growth countries dramatically demonstrates how integration with global markets and enhanced competitiveness can develop dynamic and resilient economies. These economies improve the earnings of the less well-off by creating more, better-paying jobs. They also converge with advanced economies by achieving productivity gains. Achieving the World Bank Group’s Twin Goals of ending extreme poverty and boosting shared prosperity requires unprecedented efforts by developing countries to unleash private sector-led growth and job creation. Governments and the private sector around the world are actively seeking more effective ways of boosting the volume and value of trade, enhancing the investment climate, improving competitiveness in sectors, and fostering innovation and entrepreneurship—all elements of successful growth strategies. The establishment of the Trade and Competitiveness Global Practice signals the World Bank Group’s commitment to systematically strengthen its engagement on these issues. T&C brings together a joint World Bank-IFC team with world-class expertise, extensive operational experience, and an expansive global footprint. We offer our clients cutting-edge analytics and integrated delivery of advisory, financial, and convening services. Our work is supported by adaptive operational design, continuous learning, partnering within the Bank Group and with the international community and the private sector, as well as a results-focus. This presentation of T&C’s roadmap will focus on key contours of T&C’s country, regional, and global efforts. Our hope is that the ideas and commitments underpinning the roadmap will challenge the Bank Group, clients, and partners to push the boundaries of contemporary development practice. Their real value lies in innovating and animating the trade and competitiveness agenda, and thereby contributing to prosperity and poverty reduction in developing countries.
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Nov. 6(Friday)
Nov. 6(Friday) - Early Session - Plenary Session 4
18th TCI Global Conference (TCI 2015)
Nov. 6(Friday) Early Session
08:30-09:00 Room 325 Competitiveness in the Era of Globalization (Video Link) Moderator: Dr. Christian Ketels Harvard Business School, USA & TCI Network [ES-1] Innovation Strategies in a Slow World Economic Growth Prof. Dan Breznitz The Munk School of Global Affairs, University of Toronto, Canada
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3-6 November 2015 / EXCO, Daegu, Korea
Early Session
Innovation Strategies in a Slow World Economic Growth Prof. Dan Breznitz The Munk School of Global Affairs, University of Toronto, Canada
Based on his work for his award winning books, Dan Breznitz will contend that contrary to popular belief, under the current conditions of intensified Globalization, emerging economies have more options for developing their high technology industries, then at any time since WWII. His research, based on extensive fieldwork, shows how state actions shaped the structure of their ICT industries. Building on theories from political science, economic geography, evolutionary economics, and global production decomposition his work provides a basis to advance a theoretical framework for analyzing how different choices lead to longterm consequences and to the development of successful, and radically different industrial systems.
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18th TCI Global Conference (TCI 2015)
Plenary Session 4
09:45-10:45 Room 325 Facing the Challenges of a Creative Economy Moderator: Mr. Joep Brouwers Brainport Development NV, The Netherlands 09:45-10:00 [PL4-1] Danish Clusters and the Creative Industries - Development, Growth and Cross Sectorial Cooperation Ms. Betina Simonsen Innonet Lifestyle, Denmark 10:00-10:15 [PL4-2] Winning in the Knowledge-Innovative-Creative Economy Prof. Michael Enright School of Business, The University of Hong Kong, Hong Kong
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3-6 November 2015 / EXCO, Daegu, Korea
PL4-1
Danish Clusters and the Creative Industries - Development, Growth and Cross Sectorial Cooperation Betina Simonsen Innonet Lifestyle- Interior and Clothing, Denmark
The report ” European Cluster Panorama 2014 written by European Cluster Observatory is mentioning the creative, experience- and digital industries as emerging growing industries. In addition, those industries have shown large increase during the years of the financial crises from 2007 to 2012. Collectively those industries have shown and still have large growth potential. In Demark the government has made a growth plan in 2014 for the creative industries from the outlay that those industries in 2010 had 6-7% of the total revenue and employment in Denmark and thereby an important part of the Danish industry. Denmark is working on maintaining this position but also ensuring use of the large potential for growth in strengthening the creative company’s competitiveness. Innonet Lifestyle- Interior & Clothing is a Danish national cluster, that has been awarded the EU benchmarking gold label is working on analyzing the challenges and opportunities for the creative industry in Denmark and is putting together a variety of activities in order to promote growth and prosperity in the creative companies. The activities do not only focus on professionalizing the creative companies themselves but also cross sectorial matchmaking as we believe there is large potential for many industries working closer together with creative companies. Betina Simonsen will talk about how the Cluster ensures that they focus on the right activities and will give an insight to some cases resulting in success and failures working with the creative companies and cross sectorial cooperation.
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PL4-2
Winning in the Knowledge-Innovation-Creative Economy Michael J. Enright Professor, University of Hong Kong Director, Competitiveness Programs, Hong Kong Institute for Economics and Business Strategy Advisory Board Member, The Competitiveness Institute
The Global Financial Crisis and its aftermath have created a new normal with slower growth, disruptions to trade, and financial difficulties. As more and more nations and regions chase stagnant markets, competition is becoming tougher, and competitiveness has become even more important than before. To improve competitiveness, many nations and regions are turning to what they call the “knowledge economy.” Unfortunately, the “knowledge economy” is often ill-defined and poorly understood. As a result, we prefer to focus on the “knowledge-innovation-creative economy,“ or “KIC economy TM.”1) The KIC economy generates value by developing and leveraging intellectual property and intangible assets. This includes technology-based business, innovative service sectors; creative and cultural industries; use of new technologies in traditional industries; brand development; improved processes; new business models; and new marketing, distribution, and management systems. All of these can create intellectual property and intangible assets that can drive prosperity. Although the KIC economy seems diverse, the various parts are remarkably similar in terms of their requirements. Winning in the KIC economy requires the development of strong clusters of firms, industries, and activities. This in turn requires attention to both the “hard and soft” sides of competitiveness and what we call the “Eleven Cs” of successful KIC economies. In this talk, Professor Enright will outline the features of the KIC economy and what nations and regions can do to win in the KIC economy.
1) “KIC Economy” is a trademark of Michael J. Enright
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http://www.tci2015.org
18th TCI Global Conference 3-6 November 2015 / EXCO, Daegu, Korea
18th TCI Global Conference 제18회 세계 클러스터 경쟁력 총회 CLUSTERS IN A CREATIVE ECONOMY: New Agendas for Companies and Policy Makers
3-6 November 2015 EXCO, Daegu, Korea
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