1. Cluster Excellence Conference –
Cluster 2.0
Izmir 28th of November 2013
Thorvald Finnbjörnsson
Icelandic Center for Research

2. History of cluster development in
Iceland
• Confederation of Icelandic Industries
– Fisheries and industries
– Health related industries and health organisations
• Growth agreements
– Large number of cluster in rural areas
• Research intensive cluster programme
– Geothermal, ICT and humanities
• Industry initiated clusters
– Icelandic Geothermal
– Ocean Cluster

3. The new government of
Iceland has issued a
statement for support of
Clusters in Iceland. The
policy has not yet been
published.

4. Policy Statement of the Coalition Government
„Stimulate cooperation in order to support development in
various industries by developing cluster strategy“
„Support the ocean-cluster by ensuring favourable operating
conditions/environment, improving regulation, innovation and
export“
The ministry will transform these statements into actions with
the help of industry and cluster experts.

5. Industry has taken initiative
• Icelandic Geothermal
– Cluster initiative, all major players in the industry
– International Cluster Conferences in Iceland
– Internationally recognized cluster experts
• Ocean Cluster with major players of fisheries
and processing
• Smaller initiative, but promising

6. Small country, large country
• Small countries lack critical mass
• Small countries tend to cooperate more
• Comparison between Turkey and Iceland
could be difficult, but…….
– Regional comparison is not out of order
– Sector related activities in regions could be similar
in large and small countries

7. Iceland
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
STRUCTURE OF THE CLUSTER
Committed cluster participation
62%
38%
Composition of the cluster participants
46%
46%
8%
Number of committed cluster participants in total
23%
46%
31%
Geographical concentration of the cluster participants 8%
92%
TYPOLOGY, GOVERNANCE, COOPERATION
Maturity of the cluster management
23%
23%
54%
Human resources available for cluster management 8%
23%
69%
Lifelong learning aspects for the cluster management team
58%
17%
25%
Stability and continuity of human resources of the cluster … 8%
92%
Stability of cluster participation
100%
Clarity of roles – involvement of stakeholders in decision …
23%
31%
46%
Direct personal contacts between the cluster …
33%
67%
Degree of cooperation within the cluster participants
22%
78%
Integration of the cluster organisation in the innovation …
33%
33%
33%
FINANCING
Share of financial resources from private sources
STRATEGY, OBJECTIVES, SERVICES
Documentation of the cluster strategy
Review of the cluster strategy and implementation plan
Degree of fulfilment of the implementation plan
Financial controlling system
Activities and services of the cluster management
Working groups
Cluster organisation’s web presence
ACHIEVEMENTS, RECOGNITION
Recognition of the cluster in publications, press, media
Success stories
Cluster participants’ satisfaction surveys
23%
31%
15%
11%
11%
77%
69%
85%
89%
22%
56%
56%
25%
8%
11%
22%
38%
46%
56%
67%
44%
44%
67%
67%
46%
15%
54%
11%
33%
1

8. Iceland
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
STRUCTURE OF THE CLUSTER
Committed cluster participation
62%
38%
Composition of the cluster participants
46%
46%
8%
Number of committed cluster participants in total
23%
46%
31%
Geographical concentration of the cluster participants 8%
92%
TYPOLOGY, GOVERNANCE, COOPERATION
Maturity of the cluster management
23%
23%
54%
Human resources available for cluster management 8%
23%
69%
Lifelong learning aspects for the cluster management team
58%
17%
25%
Stability and continuity of human resources of the cluster … 8%
92%
Stability of cluster participation
100%
Clarity of roles – involvement of stakeholders in decision …
23%
31%
46%
Direct personal contacts between the cluster …
33%
67%
Degree of cooperation within the cluster participants
22%
78%
Integration of the cluster organisation in the innovation …
33%
33%
33%
FINANCING
Share of financial resources from private sources
STRATEGY, OBJECTIVES, SERVICES
Documentation of the cluster strategy
Review of the cluster strategy and implementation plan
Degree of fulfilment of the implementation plan
Financial controlling system
Activities and services of the cluster management
Working groups
Cluster organisation’s web presence
ACHIEVEMENTS, RECOGNITION
Recognition of the cluster in publications, press, media
Success stories
Cluster participants’ satisfaction surveys
23%
31%
15%
11%
11%
77%
69%
85%
89%
22%
56%
56%
25%
8%
11%
22%
38%
46%
56%
67%
44%
44%
67%
67%
46%
15%
54%
11%
33%
1
Geography
Capacity building
Human resources
Participation

9. Nine Clusters with Bronze label
Air 66, Tourism
Edda, Equality
Georg, Geothermal research
Icelandic Institute for intelligent machines, ICT
Ocean Cluster, Fisheries and food processing
Icelandic association of Aluminium producers cluster, Aluminium
Katla Geopark, Tourism
Vatnajökull region, Regional industry and culture development Icelandic Geothermal Cluster cooperation, Geothermal renewable energy -

10. The government
has a role...
* Source: Örjan Sölvell (2009)

11. Why should government support clusters?
•
„Companies are more like competitive
•
„Companies are more likely to enter into R&D collaboration“
•
“Clusters are critical drivers of ‘open innovation’, a key source of competitive
advantages in the global economy”
•
“Clusters are powerful tools in promoting internationalization of enterprises”
•
”Cluster policies are a vital element of building strong innovations system”
Reference: Various sources, DK impact study, EU documents etc.

12. Vision – 2020 (draft)
Vision
Growth is based on stronghold industries and expertise
Knowledge and innovation is the basis of increased value creation
Icelandic companies are competitive in global markets
Iceland is attractive for people and businesses

13. Main objectives (draft)
Exemplary business environment and economic stability
Main objectives
Efficient administration and institutions
World–class Innovation and R&D
Knowledge and skill base which suits the economy
Successful cooperation between businesses and institutions
Internationalisation and increased exports
Access to finance
Sustainable utilization of resources
Contribute to solving grand challanges

14. Challenges and questions in public policy
Preparing a cluster policy:
• What is the cluster policy aiming for?
– Innovation, internationalisation etc
• How do cluster policies differ from other innovation policy
instruments?
• Where to focus?
– Immature clusters, national champions, world-class clusters,
clusters in transition or combination of these?
– Sectors, regions etc?
• Key issue: Privately lead – government supported!

15. Source: Runólfur Smári Steinþórsson
Thank you