2. What role is the Virtual What role is the Virtual
Cluster Initiative playing Cluster Initiative playing
in enhancing these in enhancing these
conditions of conditions of
Competitiveness? Competitiveness?
Factor Input Demand conditions
1. Wide availability of 1. We are enhancing the
Information – an business environment which
infrastructure that is supports and encourages
centralized, allows quicker competition
access to the information
Related and supporting
2. By participating in a industries
virtual environment and
leveraging negative 1. With the upload of the
influential factors in the majority of the companies
supply chain it is possible to in a given area competitors
acquire the required and suppliers are easily
resources at a more accessible
competitive price
2. We are artificially
creating a cluster
Context for Firm Strategy and Rivalry environment.
1. Open and vigorous local competition – located on a centralized platform the ability
to compete regionally, nationally and international is given. This allows companies to
broaden their customer base. The amount of new customers or request for quotation
could be one metric of KPI.
2
3. What role is the Virtual What role is the Virtual
Cluster Initiative playing Cluster Initiative playing
in enhancing these in enhancing these
conditions of conditions of
Competitiveness? Competitiveness?
Factor Driven Economy Innovation Driven
Economy
1. For the location of business,
company and university research 1. With the use of VOIP
activities, and of manufacturing, collaboration globally and
distribution, and marketing the open innovation is much
dependency to physical place is
easier
reduced via increasingly cheaper
ICT. Researches work together
over the Internet, regardless of 2. Since these strategies are
where they are. For companies, global then they should be
each activity may take place in a globally positioned
different location: R&D, design,
raw material sourcing,
manufacturing, assembly,
distribution, and marketing.
2. By increasing the visibility of
the Value Chain within an
organization and reducing
the physical dependency of
Place we increase the roles What role is the Virtual Cluster Initiative playing in enhancing these
that companies have in their
own value chains.
conditions of Competitiveness?
3. This allows them to be more
competitive in price. Investment Driven Economy
4. When the economy that you 1. By efficiently implementing human resources by taking advantage of cross-border
compete in is on a down turn collaboration and reducing input cost competitive pricing is possible
the opportunity to explore
new channels are easily 2. Clusters do research on products which in the end need to be marketed. Having this visible
given. in the development phase attracts investors and allows a quicker time to market
3
4. What role is the Virtual What role is the Virtual
Cluster Initiative playing Cluster Initiative playing
in enhancing these in enhancing these
conditions of conditions of
Competitiveness? Competitiveness?
Factor Driven Economy Innovation Driven
Input Cost Economy
Unique Value
1. By creating a mega-
cluster the critical mass
is even greater
leveraging negative
influential factors in the
supply chain it is
possible to acquire the
required resources at a
more competitive price
2.
What role is the Virtual Cluster Initiative playing in enhancing these
conditions of Competitiveness?
Investment Driven Economy
Efficiency
1. The VCI is using the strength of numbers by centralizing as many
companies as possible creating critical mass
2. Where the local competition is high, broaden the customer base
4
5. What role is the Virtual
Cluster Initiative playing in
enhancing these conditions of
Competitiveness?
Enhancing the composition of
Regional Economies
Where a negative composition of
regional characteristics like high
wages, dependency on a few
companies, lack of qualified
personnel, we attempt through
cross-border collaboration to
eliminate these deficiencies.
5
8. What role is the Virtual
Cluster Initiative
playing in enhancing
these conditions of
Competitiveness?
With one Project
Manager in a
strategically located
countries around the
world,
Selling What role is the Virtual
Locating and Cluster Initiative playing
coordinating activities in enhancing these
are ensured for conditions of
participants. Creating Competitiveness?
real value
It is setting the framework
around the world for SMEs
Once the critical mass is to easily access new
reached Purchasing co Markets. For each
operations will be Exhibition one Project
formed. Creating real Manager is appointed as a
value direct contact for that
country.
They are responsible for
assisting participants in
entering that market.
Creating real value
8
9. What role is the Virtual What role is the Virtual
Cluster Initiative playing in Cluster Initiative playing in
enhancing these conditions of enhancing these conditions of
Competitiveness? Competitiveness?
We are setting the framework The geographical
to leverage activities in the Influences on Competitiveness
value chain across borders are eliminated
The dependency to physical
place is reduced
For the location of business,
company and university
research activities, and of
manufacturing, distribution, and
marketing the dependency to
physical place is reduced via
increasingly cheaper ICT.
Researches work together over
the Internet, regardless of where
they are. For companies, each
activity may take place in a
different location: R&D, design,
raw material sourcing,
manufacturing, assembly,
distribution, and marketing.
9
10. What role is the Virtual
Cluster Initiative playing in
enhancing these conditions of
Competitiveness?
We are setting the framework
to leverage activities in the
value chain across borders
For the location of business,
company and university
research activities, and of
manufacturing, distribution, and
marketing the dependency to
physical place is reduced via
increasingly cheaper ICT.
Researches work together over
the Internet, regardless of where
they are. For companies, each
activity may take place in a
different location: R&D,
design, raw material sourcing,
manufacturing, assembly,
distribution, and marketing.
10
11. What role is the Virtual Cluster
Clusters and Competitiveness Initiative playing in enhancing these
conditions of Competitiveness?
Clusters Increase Productivity
Efficient access to specialized inputs, services, employees, information, institutions, and public
goods(e.g. training programs)
Ease of coordination and transactions across firms
Rapid diffusion of best practices
Ongoing, visible performance comparisons and strong incentives to improve vs. local rivals
Clusters Stimulate and Enable Innovations
Enhanced ability to perceive innovation opportunities
Presence of multiple entities involved in specialized knowledge creation
Ease of experimentation given locally available resources
Clusters Facilitate Commercialization and New Business Formation
Opportunities for new companies and new lines of established business are more apparent
Commercializing new products and starting new companies is easier because of available skills,
suppliers, financing, etc.
Clusters reflect the fundamental influence in competition of linkages and
spill-overs across firms and associated institutions
11
12. What role is the Virtual Cluster
Initiative playing in enhancing these
Sources of Prosperity conditions of Competitiveness?
The Virtual Cluster Initiative
Prosperity is constrained by the limited amount of resources available allows companies to leverage
these constraints.
Prosperity is derived from creating valuable products and services The Virtual Cluster Initiative
is considered to be a valuable
product and service. Properly
Creating the conditions for productivity and innovation is the central used it is innovative and
policy challenge for government capable of leveraging segments
in the supply chain.
Companies are the central actors in the economy It is questionable if the
government needs to create the
Governments role is to create the enabling conditions to foster private conditions to foster private
sector development or if we
sector development can influence or leverage the
conditions using the power of
numbers.
12
14. Downes Three new drivers
Larry Downes, co-author of "Unleashing the Killer App: Digital Strategies for Market Dominance" is in his celebrated article "Beyond Porter"
believes that these assumptions are no longer valid. Downes identified three new drivers that require an entirely new strategic approach:
digitization, globalization and deregulation.
Digitization: With increasing efficiency of information technology all market participants have equal access to more comprehensive
information. On this basis, in addition to entirely new business models are designed to change by even non-industry players, the basis of
competition in the old economy sustainable. Downes leads to, for example, that the creation of virtual shopping malls, e.g. by
telecommunications or credit card company, from a traditional competitive analysis by Porter and its focus on existing industry structures
cannot be detected.
Globalization, technological progress in the field of logistics / distribution and communication today allows almost any company to purchase
on a global level, to sell and to collaborate with partners. Equally true that consumers have the opportunity to buy, to make global price
comparisons and affordable products. This must also formerly regionally oriented midsize companies classified in a global environment, even
if they themselves do not export or import. That summary is Downes' added that the globalized and networked market activity is also changing
demands on the strategic direction of the company. It no longer suffices to position themselves according to Porter as price or quality leaders
(Generic Strategies) but rather a competitive edge and stable market positions are now out of the ability to bind to become mobile customers
and make far-reaching networks of partners for mutual benefit and to manage
Deregulation: In the past decade in particular documents the U.S. and Europe many industries including aerospace, telecommunications,
energy and finance a reduction of the influence of government regulation. This and promoted by the new possibilities of information technology
in these sectors have traditional and new companies whose activities again. This development led to a far-reaching restructuring of traditional
business through outsourcing, rejection and receiving operations, reorganization of business relationships and alliances, etc.
Downes concludes that the main difference between strategies in Porter'schen sense and in the climate of the new drivers of the world is in
the assessment of the role of information technology. In the old economy, technology was seen primarily as a tool for the implementation of
strategies and changes. Today, however, the technology itself is the major driving force for change.
14
15. Out of the box thinking
is a metaphor that means to think differently, unconventionally, or from a new perspective.
Virtual Cluster Initiative
For the location of business, company and university research activities, and of manufacturing, distribution, and marketing the dependency to physical place
is reduced via increasingly cheaper ICT. Researches work together over the Internet, regardless of where they are. For companies, each activity may take
place in a different location: R&D, design, raw material sourcing, manufacturing, assembly, distribution, and marketing.
The idea of a park or incubator as a "real estate" enterprise should give way to that of a "knowledge-based" enterprise. There is no fully virtualized firm
and no fully digitalized industry. Even the most advanced information industries, such as finance, are installed only partly in electronic space.
On the other hand local linkages and face-to-face interactions have been always seen as vital components for the creation and development of a business
environment. It can be assumed that virtual linkages cannot be seen as substitutes for person-to-person contacts, which will continue to have a crucial role.
But the two processes, the personal contact and the virtual connection, can complement each other.
15
16. Networked coordination is becoming increasingly dominant in informational global economy today. We cannot deny the reinforcing effects of
Virtual Cluster Initiative
on existing industrial complexes. Actually there are few projects in the general area of virtual Virtual Cluster Initiative development such as Virtual
Science Park (led by University of Leeds). There are some benefits of networking for all branches of industrial firms, universities, research institutions and
as well as governments:
Small firms and start-ups may provide great benefits, because they generally have limited access to technology networks and to international events
such as trade fairs; in less developed regions, they tend to feel isolated.
For regional development agencies, networking would be extremely useful to lessen regional deficiencies, to improve focus and to reduce duplication
of efforts.
Universities and research centers also benefit greatly. Usually, they already have a high level of interaction with similar organizations, but their
linkages with the private sector tend to be limited, and are often concentrated on large firms and state-owned enterprises.
For large firms, the benefits would be smaller, because they tend to have well-developed internal network systems, and also linkages with their
suppliers. In a cluster, they tend to be more self-contained than the other agents, with fewer ties with local firms and research institutions.
Governments would benefit from increased efficiency, reduced duplication, and optimization of infrastructure. A Virtual Cluster Initiative could be a tool
to encourage development and overcome isolation in certain regions.
Discussions have indicated three points of struggle: to survive in global competition, to enhance knowledge and therefore create innovative milieu,
and to use physical and human resources efficiently.
“…most of the world’s actual high-technology production and innovation still comes from areas that are not usually heralded as innovative
milieu, and indeed may have few of their physical features: the great metropolitan areas of the industrialized world.”
Findings on the rise existing metropolitan centers as command points for the new global economy I can say that whether real or virtual industrial activities
are still need the services and facilities (trained human resources, face-to-face interaction in close proximity, intellectual and social services and as well as
physical infrastructure etc.) that existing major cities offered.
We should know that today there is no single type of industrial production and workplace and all production types and production sites are becoming
more complement each other. The common denominator among all economic activities is globalization and strong believes in technology. Technoparks are
presented to most industrializing nations, including Turkey, as the magic formula of industrial production and progress. Developing countries, therefore,
should determine the priorities of their strategic investment decisions; technopoles is the only one among others.
16
