Bornholm Cluster Conference

Cluster Navigators’ Clients

 Cluster  development  in  prac2ce:  
Europe: Latvia

An  interna2onal  perspec2ve             Czech

Denmark
Estonia
Lithuania
Norway
Poland
  Asia: Americas: Finland Spain
Bangladesh Malaysia Bahamas Georgia Sweden
  Cambodia Pakistan
Canada Germany Switzerland UAE
China Singapore Iceland Turkey
Dominican
India Thailand Ireland UK Saudi
  Korea Vietnam
Republic
Trinidad
Arabia

  USA Africa:
Bornholm  Cluster  Conference   Australia
Botswana
Ethiopia
Mozambique
Rwanda
1-­‐2  November,  2011   New Zealand
Kenya
Libya
Tanzania
Uganda
  Mauritius South Africa
Ifor  Ffowcs-­‐Williams  
Cluster  Navigators  Ltd  
New  Zealand     World Bank
UNIDO
  Advisors
to:

New Zealand
The world’s most remote country Clustering…a natural occurence

Clusters … start naturally Torquay, Australia

Population: 7,000

Scone, Australia
Population: 5,000

Accounts for 80% of

Australia’s
thoroughbred horse
exports

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 Bornholm Cluster Conference

Cluster  development  across  

desert  Australia  

 
Three  mining  services  firms  
Broken  Hill,  Australia  

International research
The evidence on clusters is clear

•  Firms in clusters are more competitive than

similar firms located outside clusters.

Clusters generate:
•  More employment
•  Higher economic growth
•  Higher wages
•  Better productivity
•  Higher levels of innovation
•  More entrepreneurship
•  More start-ups, and
•  Attract more investment.

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 Bornholm Cluster Conference

Innova2ve,  high  performance  clusters       Business  is  War  &  Peace  

Common  characteris2cs  

Specialised  core  and  support  firms,  deep   You  have  to  compete    
competencies  
and  cooperate    
•  Geographic  and  social  proximity  
•  Strong  inter  firm  collabora9on,  interac9on  
at  the  same  2me  
–  Compe99on  yet  coopera9on;  culture  of  co-­‐ope22on   Ray  Noorda  
–  Sub-­‐contrac9ng,  out-­‐sourcing  amongst  local  firms   Novell  Inc.  
–  Formal  and  informal  B2B  networks    
 
•  New  firms  being  established,  spin-­‐offs,  new  investment  
•  Not  isolated  firms,  not  clumps                    Co-­‐ope22on  

    The  
Compe99ve  
fundamental   advantage  now  oKen  
unit  of   comes  from  
compe99on  has   leveraging  the  
discoveries  of  
changed  –  from   others  
the  individual    
firm  to  the   Not  all  the  smart  
extended   people  work  in  your  
company  
enterprise  

Core  competency   Collabora2on  between  firms  

Porous  boundaries,  out  sourcing  
The  key  to  a  firms  profitability   Networks,  co-­‐ope22on  
 
•  Central  to  the  way  the  business  works,  differen9a9ng  it  
from  compe9tors    
–  Providing  customer  benefits  
–  Not  easy  for  compe9tors  to  imitate  
–  Leveraged  widely  to  many  products  and  markets  
•  Can  include  know-­‐how,  a  reliable  process  and/or  close  
rela9onships  with  customers,  suppliers  
•  The  part  of  the  business  that  is  never  shared  with  other  
firms  

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 Bornholm Cluster Conference

Collaborative Ladder
Commitment

Mental  trap  
Trust

Phase 3
Resource Creating/
Integrating Assets

Formal alliances
e.g. Co-production,
Phase 2 Export office, Joint brand
Believing  that  success    
More Formal
e.g. Sharing
must  come    
Exchanging Assets
Resource Sharing/

Phase 1 equipment, key staff

Informal alliances at  the  expense  of  others  

Low Hanging fruit
e.g. Joint
purchasing,
information sharing
Time
Minor: More Major: More
Tactical Strategic

Alliances  are  for  the  strong,    

Think  
not  the  weak!  

BIG
 
 
 

 
 
There  is  always  
a  larger  game  

Cluster Development:
Cooperation through twelve steps
Coopera9on    
creates  growth   1. Introducing a process for
starting a clustering
initiative, or
2. For renewal,
revitalisation of a
current clustering initiative

© Cluster Navigators Ltd

Bornholm Cluster Conference

Positioning cluster development

A centre stage strategy for Bornholm,
rather than ‘another project’

A comprehensive framework for a range of

economic development agendas, including:
•  Skills, training; workforce development
•  SME development; New business start-ups
•  Investment attraction; migrant attraction
•  Export development, internationalisation
•  Rural, community development;
•  Incubators; Industry/Technology Parks …

Step 2 Identifying, prioritising

clusters
Segmenting the local economy

•  The majority of jobs and businesses in

every local economy are the same:
•  Restaurants, retail, health care, house
building, vehicle repair…
•  About a third differ:
•  The traded sector
•  Firms in this sector drive the local economy,
pull in the wealth

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 Bornholm Cluster Conference

Establish the Baseline Data

What’s on the cluster’s
dashboard to measure progress?

Establishing the performance indicators

•  Number of firms? Employees?
•  Total sales?
•  % local, % national, % international?
•  Number of students in local training
directed at the cluster’s needs?
•  % workforce with higher education?
•  Increased competitiveness?
•  Measured by market share? Productivity?

Example: Board of Directors

Steel & Engineering Cluster
Värmland, Sweden

•  Gert Nilson Uddeholm Tooling ordförande

•  Ulf Eliasson Rolls-Royce
•  Lars Blomgren Permec Group
•  Kjell Edholm PartnerTech
•  Anders Gustafsson CTF/Karlstads universitet
•  Kjell-Åke Lindqvist Metso Paper
•  Bengt Lundström Volvo Construction Equipment
•  Per Eiritz ”Metso Paper”
•  Ingemar Olson CCI Valve Technology
•  Leif Rosén Outokumpu Stainless Steel
•  Monica Schagerholm Karlstads universitet

The preferred future

The Vision

Building on the cluster’s current

competitive position … with a challenge,
a s t r e t c h factor

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 Bornholm Cluster Conference

Standing in the future

Identifying the stepping stones

•  Looking back from

the future:
Back casting

•  Not a continuation of
the present …
Forecasting

Congratulations Bornholm!

© Cluster Navigators Ltd