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2.5. Regional Cluster PolicyDG REGIO - RIS for Smart Specialisation in Greece1. 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 concentrationDG REGIO - RIS for Smart Specialisation in Greece1. 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 Greece1. 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, rjan Svell, Gran Lindqvist, Christian Ketels, DG REGIO - RIS for Smart Specialisation in Greece1. Cluster Definition Cluster Actors NationalMedia

InternationalMedia

Chambers ofCommerce

Banks

ProfessionalSocieties

Startups

European Agencies

Formal Networks

National Agencies

Regional Agencies

IPR, Legal Support

NGOs

Innovation Centers

TechnologyParks

Universities

Research Centers

Industrial Associations

National Markets

Global Markets

Large Firms

SMEs

BusinessAngels

VentureCapital

Suppliersof goods

Consulting Services

Public Actors

Financial Institutions

InfrastructureProviders

Academia ResearchActors

Organizations forCollaboration

Industry

Suppliers

Buyers

Corallia

Media

Incubators

Strategic Customers

Industry-ledInnovation focusUser-drivenDedicated &SpecializedCluster FacilitatorSource: CoralliaDG REGIO - RIS for Smart Specialisation in Greece1. 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 Greece1. 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 (Slvell et al, 2003) and sometimes network policies and cluster policies are used interchangeably. DG REGIO - RIS for Smart Specialisation in Greece2. Clusters and Competitiveness Clusters Increase Productivity / EfficiencyEfficient 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 Greece2. Clusters and Competitiveness

DG REGIO - RIS for Smart Specialisation in Greece2. Clusters and Competitiveness

DG REGIO - RIS for Smart Specialisation in Greece2. 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 Greece3. Clusters Development Phases, Steps

DG REGIO - RIS for Smart Specialisation in Greece3. Clusters Development Phases, Steps

Source: Corallia3. Clusters Development Example Phase-1Source: Corallia

3. Clusters Development Example Phase-2Source: Corallia

3. Clusters Development Example Phase-3Source: Corallia

DG REGIO - RIS for Smart Specialisation in Greece3. Clusters Development Regional Economies

DG REGIO - RIS for Smart Specialisation in Greece6. Clusters Development Regional Economies

DG REGIO - RIS for Smart Specialisation in Greece3. Clusters Development Regional Economies

DG REGIO - RIS for Smart Specialisation in Greece3. Clusters Development Triple Helix

DG REGIO - RIS for Smart Specialisation in Greece3. Clusters Development Value Chains

DG REGIO - RIS for Smart Specialisation in Greece3. Clusters Development Value Chains

DG REGIO - RIS for Smart Specialisation in Greece4. Cluster Policy in Greece1997: First wave of CfPs for cluster development by GSISMEs and IndustryThe initial interest from the business side entailed to no worth mentioning cluster

2003: Second wave of CfPs for cluster development by GSISMEs, Environment, TourismThe response was very poorThe intervention was unable neither to build on successes nor to exploit the strengths sectors

2005: First holistic study on clusters

2006: New cluster development model rolled-out: Corallia

2007: Regional Innovation Poles, Thessaloniki Innovation Zone

2008: Phase-2 of cluster development programme: Corallia

2011: Wide scale adoption and implementation of cluster development policies

DG REGIO - RIS for Smart Specialisation in Greece4. Cluster Policy in Greece Failure up to 2005The design followed an authoritarian top-down approach; The calls did not differ significantly from a traditional state aid call, as