2.5. Regional Cluster Policy

DG REGIO - RIS for Smart Specialisation in Greece

1. Cluster Definition

Porter (1998) defines a cluster as “geographical concentrations of interconnected independent companies and institutions in a particular field, linked by commonalities and complementarities, where enough resources and competences amass and reach a critical threshold, giving it a key position in a given economic branch or activity, with a decisive sustainable competitive advantage over other places, or even a world supremacy in that field”

Rosenfeld (2002) suggests that a cluster is “a geographically bounded concentration of similar, related or complementary businesses, with active channels for business transactions, communications and dialogue, that share specialized infrastructure, labour markets and services, and that are faced with common opportunities and threats”

According to Schwartz (2004) a cluster is “a regional concentration of industries or firms that gain advantages through such concentration”

DG REGIO - RIS for Smart Specialisation in Greece

1. Cluster Definition – Innovation Clusters

The EC Communication SEC(2008) 2637 defines broadly a cluster as “a group of firms, related economic actors, and institutions that are located near each other and have reached a sufficient scale to develop specialised expertise, services, resources, suppliers and skills”

The Community Framework for State Aid for Research and Development and Innovation defines innovation clusters as “groupings of independent undertakings, operating in a particular sector and region and designed to stimulate innovative activity by promoting intensive interactions, sharing of facilities and exchange of knowledge & expertise and by contributing effectively to technology transfer, networking and information dissemination among the undertakings in the cluster”

DG REGIO - RIS for Smart Specialisation in Greece

1. Cluster Definition – Cluster Initiative

Organized efforts to increase growth and competitiveness of clusters within a region, involving cluster firms, government and/or the research community

Source Cluster Initiative Greenbook, Örjan Sövell, Göran Lindqvist, Christian Ketels,

DG REGIO - RIS for Smart Specialisation in Greece

1. Cluster Definition – Cluster Actors

Industry-led

Innovation focus

User-driven

Dedicated &Specialized

Cluster Facilitator

Source: Corallia

DG REGIO - RIS for Smart Specialisation in Greece

1. Cluster Definition – Clusters and RIS3The cluster theory is closely related to the theory of smart specialisation and could even be said that, to some extent, the latter is derived from the first, because they share many of their basic conceptual aspects.

DG REGIO - RIS for Smart Specialisation in Greece

1. Cluster Definition - PolicyCluster policy is a multi-dimensional, multi-faceted and multi-instrument policy, informed by a mix of rationales and thus requires deep understanding of the instrument and experience in cluster dynamics. Differences in cluster initiatives are a product of not only different objectives, instrument choice and implementation styles, but also context specific institutional configurations and different types of government intervention (Uyarra & Ramlogan, 2012).Clusters themselves can be related to various conceptual and theoretical meanings. However, most definitions include: 1) a degree of specialisation in a particular industry, 2) co-location of the specialised industry, universities, research centres, governmental institutions, associations and other economic actors in the sector, 3) the presence of a developed value chain of industry and actors and 4) a critical mass in the cluster. Clusters vary also in size, breadth and state of development (Porter, 1998) and evolve in a sort of life cycle consisting of embryonic, growth, maturity and decay stages (Rosenfeld, 2002). The economic importance of clusters entails mainly from the advantages arising from geographical proximity that have been associated with: 1) specialised, high productivity employees with lower search and training costs, 2) suppliers with local access to specialised materials and components, finance, marketing and business services that benefit from reduced transport costs and 3) technological information and knowledge spillovers, all giving rise to innovation and productivity benefits. Other kinds of advantages associated with clusters derive from more favourable market conditions, namely the presence of demanding customers, greater rivalry and complementarities in products and technologies (Uyarra & Ramlogan, 2012).The promotion of clusters can mean very different things in different contexts. Sometimes they may not even be labelled as such, but as local production systems, competitiveness poles, centres of expertise, industrial and technology districts (Nauwelaers & Wintjes (2008). Traditional policy measures are sometimes relabelled as clusters (Sölvell et al, 2003) and sometimes network policies and cluster policies are used interchangeably.

DG REGIO - RIS for Smart Specialisation in Greece

2. Clusters and Competitiveness Clusters Increase Productivity / Efficiency

Efficient access to specialized inputs, services, employees, information, institutions, training programs, and other “public goods”(local outsourcing)Ease of coordinationand transactions across firmsRapid diffusionof best practicesOngoing, visible performance comparisonsand strong incentives to improve vs. local rivalsProximity of rivals encourages strategic differentiation

Clusters Stimulate and Enable InnovationsGreater likelihood of perceiving innovation opportunities (e.g., unmet needs, sophisticated customers, combinations of services or technologies)Presence of multiple suppliers and institutions to assist in knowledge creationEase of experimentation given locally available resources

Clusters Facilitate Commercialization and New Business FormationOpportunities for new companies and new lines of established business are more apparentSpinoffs and startups are encouraged by the presence of other companies, commercial relationships, and concentrated demandCommercializing new products and starting new companies is easier because of available skills, suppliers, etc.

A tool for economic developmentCan improve short-term industry attraction efforts through identification of industry gaps and definition of specific advantagesCan help define medium-term strategies for retaining, establishing, and growing a regionCan aid the devising of long-term strategies including research and innovation to sustain industrial growth within a region

DG REGIO - RIS for Smart Specialisation in Greece

2. Clusters and Competitiveness

DG REGIO - RIS for Smart Specialisation in Greece

2. Clusters and Competitiveness

DG REGIO - RIS for Smart Specialisation in Greece

2. Clusters and Competitiveness Greece holds a very low rank with respect to cluster dynamics and competitiveness among European clusters

DG REGIO - RIS for Smart Specialisation in Greece

3. Clusters Development – Phases, Steps

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3. Clusters Development – Phases, Steps

Source: Corallia

3. Clusters Development – Example Phase-1

Source: Corallia

3. Clusters Development – Example Phase-2

Source: Corallia

3. Clusters Development – Example Phase-3

Source: Corallia

DG REGIO - RIS for Smart Specialisation in Greece

3. Clusters Development – Regional Economies

DG REGIO - RIS for Smart Specialisation in Greece

6. Clusters Development – Regional Economies

DG REGIO - RIS for Smart Specialisation in Greece

3. Clusters Development – Regional Economies

DG REGIO - RIS for Smart Specialisation in Greece

3. Clusters Development – Triple Helix

DG REGIO - RIS for Smart Specialisation in Greece

3. Clusters Development – Value Chains

DG REGIO - RIS for Smart Specialisation in Greece

3. Clusters Development – Value Chains