Ifor Ffowcs-Williams, Presentation TCI2018 European Conference Sofia

2. Ten Building Blocks to Successful Clustering Initiatives
TCI Sofia March 2018
.
Ten Building Blocks for
Managing a Successful Cluster
Ifor Ffowcs-Williams
New Zealand
.
.
Canada’s
$950m Superclusters Programme
.
The clustering process
But what can go wrong?
• Cluster definition
• Too broad … common agendas with limited impact;
• Or too narrow
… lack of critical mass
… over reliance on a few key anchor firms.
.
The clustering process
But what can go wrong?
• Cluster definition
• Removed from private sector culture
• Institutional talk fest;
• Exhaustion by analysis;
• Chasing politician’s dreams;
• Confinement within the cluster;
• Confinement within political borders.
.
The clustering process
But what can go wrong?
• Cluster definition
• Removed from private sector culture
• Clustering initiative fails to capture attention
• Too slow in delivering benefits;
• Too quiet, below the horizon.
© Cluster Navigators Ltd 2018
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3. Ten Building Blocks to Successful Clustering Initiatives
TCI Sofia March 2018
.
The clustering process
But what can go wrong?
• Cluster definition
• Removed from private sector culture
• Clustering initiative fails to capture attention
• Capture by narrow interest groups
• Closed group … entry of new actors blocked;
• Old-Boy’s-Club inertia;
• Collective myopia, short-sighted.
.
The clustering process
But what can go wrong?
• Cluster definition
• Removed from private sector culture
• Clustering initiative fails to capture attention
• Capture by narrow interest groups
• Clustering initiative unable to find it’s space
• Unable to substantively add value;
• Competing with established associations;
• Competing with businesses.
.
The clustering process
But what can go wrong?
• Cluster definition
• Removed from private sector culture
• Clustering initiative fails to capture attention
• Capture by narrow interest groups
• Clustering initiative unable to find it’s space
• Clumps of stand-alone, vertically integrated firms
• Little trust, outsourcing;
• Little co-specialisation;
• Price-based rivalry;
• No culture of co-opetition = collaboration + competition.
.
The clustering process
But what can go wrong?
• Cluster definition
• Removed from private sector culture
• Clustering initiative fails to capture attention
• Capture by narrow interest groups
• Clustering initiative unable to find space
• Clumps of stand-alone, vertically integrated firms
• Clutter of support organisations
• Unaligned;
• Different, even conflicting agendas;
• Inconsistent support from public agencies;
• Remote academic infrastructure.
.
Successful Clustering
Initiatives
Four key principles
1. Business in the lead
2. Public Agencies in support
3. Knowledge underpinning
4. Teamwork, co-opetition
.
Building Blocks to
Successful Clusters
© Cluster Navigators Ltd 2018
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4. Ten Building Blocks to Successful Clustering Initiatives
TCI Sofia March 2018
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“Focus on one,
or just a few,
particular
disciplines or
activities”
#1 Careful cluster selection
.
Long-term resourcing
AND
High-level endorsement
.
#2. Broad development portfolio
Must include:
 Internationalisation
• Cluster branding; Export development; Knowledge links;
• Cluster-to-cluster links; Talent & Investment attraction …
 Skills development
• Technical & Management training; Tertiary course development;
School Partnerships …
• Technology & SME related
• R&D centers; Centers of Excellence; Incubation facility
• Precinct; Technology Park; University links; Technology mapping …
• Finance
• Equity and debt funding, venture capital, angels, seed funding …
• Cost reduction Joint purchasing …
• One-Stop Service Centre
.
Cluster strategy development …
open, participative
Strategy workshop, Papua New Guinea ICT cluster
.
Cluster strategy development
Drawing on both sides of the brain
Logic
Facts
Safe
Relationships
Big picture
Risk taking
.
Cluster infrastructures
Technology Parks, Incubators, Innovation
Centers … physical spaces that accelerate
interactions.
Caution, cluster development needs:
1. Specialised physical
infrastructure
Relatively quick fix
2. Specialised knowledge
infrastructure
Takes time
Essential
3. Social infrastructure,
the connections
Co-opetition culture
Takes even more time
Absolutely essential!
© Cluster Navigators Ltd 2018
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5. Ten Building Blocks to Successful Clustering Initiatives
TCI Sofia March 2018
.
Co-purchasing
Co-marketing
Co-specialisation
Co-creation of value
#3. From clumps of firms
A culture shift … solo to co-opetition
.
David meeting Goliath
Small firms
need scale
Large firms
need
innovation
Collaboration accelerates innovation.
And benefits from neutral facilitation.
.
• Open to all
• Can be large groups
• Flexible structure
• Special Interest
Groups e.g.
• Emerging technology
• Export marketing
• Private
• Small groups
• Formalised, e.g.
• Consortia
• Joint-ventures …
Clustering … Building Bridges
A co-opetition culture
.
#4. From support agency clutter
A culture shift … to alignment
“Public–public coordination …
the most difficult of all
forms of coordination”
Cluster development…Centre Stage
Not just ‘another project’
.
Cluster Development
Centre Stage
An integrated framework for:
Skills, training
R&D; Technology transfer
SME development; Start-ups
Talent & Investment attraction
Precincts/Incubators/Technology Parks
Export development; Internationalisation
.
Response to support agency clutter
An informal team, led by the Cluster Manager:
1. Integrating support organisations around
the cluster’s strategic agenda
2. Drawing on their resources & knowledge
3. Inviting their participation in specific task
forces & projects
© Cluster Navigators Ltd 2018
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6. Ten Building Blocks to Successful Clustering Initiatives
TCI Sofia March 2018
.
#5. Leveraging through a
Strategic Agenda
A strategic plan identifies the priority activities
to be undertaken within available resources.
A Strategic Agenda is not constrained by
the current availability of resources.
• Highlights the priority activities;
• Identifies partners to resource implementation
.
#6. Linking clusters
• With specialisation, linking is critical
1. Within the region
2. Within the country
3. Within the Danube, Europe
4. And increasingly, globally
C2C Cluster to Cluster
B2B Business to Business
A2A Academia to Academia
Drawing in relevant knowledge
.
#7. Measurement & Evaluation
1. Hard numbers, but change cannot be just
attributed to the clustering intervention
2. Evidence of behaviour changes
1. From clumps of firms to co-opetition
2. From support agency clutter to alignment
3. Improving the intervention
.
Reviewing the cluster organisation
Improving the intervention
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#8. A Cluster’s Board
• A coalition of preferred leaders who
understand and care about the big picture
• A group with a balance of skills, able to
aggressively work as a team
• Active governance
• The players … not the spectators
.
Constructing a cluster’s Board
Triple helix in practice
From the private sector … 3-5 people?, E.g.
• 2-3 CEOs from core firms: a large, a medium and an innovative
SME; one as Chair
• 1-2 CEOs from support firms, e.g. packaging, design.
From the public sector … 2-3 people? E.g.
• A politician with strong community/school connections;
• A representative from e.g. an export/investment agency;
• The CEO of the region’s economic development agency.
From academia … 2 people? E.g.
• An academic with links to international knowledge centers;
• A technical specialist from a public R&D institute, or head of a
vocational training institute.
© Cluster Navigators Ltd 2018
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7. Ten Building Blocks to Successful Clustering Initiatives
TCI Sofia March 2018
.
A Board dominated by:
• The cluster’s largest/loudest organisations …
or an ‘Old Boy’s Club’;
• Second level line managers … not CEOs;
• Public & industry association officials;
• Same university, same technical background;
• One gender.
Board danger signs
.
Maria Engholm,
Cluster Manager
#9. Cluster organisations…connecting
“Triple Steelix
acts as a junction box
and a port for projects”
.
“Find the
BIG
QUESTIONS
that are common”
Mats Williams
Karlstad, Sweden
.
Lars Albaek
Bornholm, Denmark
“It is easier to
cooperate in
smaller
groups of firms”
#10. The Cluster Manager
A cornerstone role
• A change agent, catalyst
• Connector, relationship builder
• From solo players to collaborative action
• Significant 1-on-1 contact…the building block
• A boundary crosser
• Builds Coalitions of the Willing
• Ideally not ‘Project Manager’ for everything
. .
Listens!
• Listens cluster’s stakeholder needs, visits.
• Identifies common agendas, the cross-
cutting themes.
• Responds with demand driven services,
collaborative projects.
© Cluster Navigators Ltd 2018
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8. Ten Building Blocks to Successful Clustering Initiatives
TCI Sofia March 2018
.
Builds the bridges
Makes the connections
• Removes the isolation.
• Market driven signals to universities, R&D …
• Lubricates the system:
• Joint projects, Special Interest Groups, seminars,
workshops, cluster study tours, First Tuesday
meetings …
Blows the Trumpet!
Builds the cluster’s brand
• Within the cluster … the social glue
• Core firms, banks, suppliers, professional
services …
• Public agencies, politicians …
• Universities, high schools, …
• Beyond the cluster … attracting attention
• Customers, investors, talent, support agencies,
related clusters …
.
.
Acts as a disrupting
Change Agent
• Cluster Manager not in place to maintain
status quo.
• Results come through persuasion
… build your soft power
• Prepare for stakeholders infuriated with
your activities.
• Setbacks … a source of learning.
.
Explores at the
cluster’s periphery
• Generate multiple options at the edges.
• Learning-by-doing, not paralysis-by-
analysis.
• If there are no failures
… taking it too easy!
.
Building blocks for
clustering success
• Cluster selection
• Broad development
portfolio
• From clumps of firms
• From support agency
clutter
• From a strategic plan
to a Strategic Agenda
What’s missing?
• Cluster linking
• Measurement &
Evaluation
• Cluster Board, triple
helix
• Cluster organisation
• Cluster Manager…
connector & catalyst
.
Ifor Ffowcs-Williams
CEO, Cluster Navigators Ltd
22 Examiner St, Nelson 7010
New Zealand
E4@clusternavigators.com
Author,
Cluster Development Handbook
www.clusternavigators.com
www.linkedin.com/in/clusterdevelopment
Twitter: @e4clusterguy
Skype: ‘clusterguy’
© Cluster Navigators Ltd 2018
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