By Christian Ketels, given during the 2nd TCI Australasian Cluster Conference, Sydney, 16-17 April 2015.

1. Internationalization and Global Value
Chains: The Agenda for Cluster Initiatives
Christian Ketels
17 April 2015

2. 2nd Australasian Cluster Conference
Internationalization and Global Value Chains:
The Agenda for Cluster Initiatives
Dr Christian H. M. Ketels
Institute for Strategy and Competitiveness, Harvard Business School
President, TCI Network
rafmozart@terra.com.br

3. 3 Copyright 2014 © Christian Ketels
Some Facts About Internationalization
Overall trade
• Dramatic increase in trade volumes in prior to the global crisis;
significantly lower export growth since then
• Trade remains dominated by goods, but service exports are growing
much faster
Locations
• Significant increase in the number of locations engaged in global trade
• Exports largely take place among neighboring countries
• There is a significant relationship between a country’s stage of
economic development and the profile of its exports

4. 4 Copyright 2014 © Christian Ketels
Some Facts About Internationalization
The Firm Perspective
• Exporting is for high-performers; exporting companies rate stronger on
a range of quality indicators that non-exporting peers
• Exporting is risky; a large number of export attempts to new markets is
discontinued after a short amount of time
• Trade is dominated by large companies; there is a strong relationship
between MNC presence and exports
• The growth in global trade has been driven by trade of intermediate
goods within related companies, i.e. international trade between
subsidiaries of an MNC

5. 5 Copyright 2014 © Christian Ketels
Some Facts About Internationalization
Global Value Chains
• The growth in global trade has been driven by trade of intermediate
goods, i.e. trade of components and intermediate inputs
• This trade is a reflection of value chains being stretched out across
different locations (‘un-bundeling’) to take advantage of activity-specific
location benefits
• While economic activity has become much more dispersed along these
global value chains, value added has moved to a much smaller degree
• Clusters are an important instrument for locations that are part of global
value chains to increase their share of value added

6. 6 Copyright 2014 © Christian Ketels
Source: OECD (2013)
The OECD GVC Participation Index
2009
• Location
• Industry mix
• Size
• Stage of Economic Development
DRIVERS

7. 7 Copyright 2014 © Christian Ketels
Global Value Chains and Value Capture
One Finnish Bicycle Company: Three Production Sites
Source: ETLA (2013)
Who
captures
the value?
Where is
the value
captured?

8. 8 Copyright 2014 © Christian Ketels
Clusters and Global Value Chains
Local Buzz Global Pipelines&
More attractive for
international partners
Better able to benefit from
international partnerships

9. 9 Copyright 2014 © Christian Ketels
Evolution of Cluster Initiatives’
Internationalization Activities
Export
Promotion
Policy
Learning
Commercial
Collaboration

10. 10 Copyright 2014 © Christian Ketels
Types of Linkages between Clusters
Cluster participants Cluster participants
Cluster
initiative
Cluster
initiative
Commercial
collaboration
Policy
learning
Joint services

11. 11 Copyright 2014 © Christian Ketels
Internationalization Strategy
of your Cluster Organization (1)
• What are the objectives of your internationalization activities?
– Open additional markets for your firms
– Strengthen access to critical knowledge or technologies
– Collaborate with other locations to provide an integrate offering
– Attract activities to strengthen your local cluster
– …
Tools to use for a fact-driven definition of objectives
• Performance diagnostics
• Cluster mapping
• … Critical to engage cluster
initiative stakeholders in
this process; needs to
reflect their needs

12. 12 Copyright 2014 © Christian Ketels
Cluster Diagnostics
Performance
Patterns
Profile of the
Cluster
Quality of Cluster
Participants

13. 13 Copyright 2014 © Christian Ketels
Internationalization Strategy
of your Clusters Organization (2)
• What services should you offer to whom in order to achieve your
objectives?
– Needs-based segmentation of your market
• Within the cluster/outside of the cluster
• SMEs/large companies
• …
– Definition of your product/service portfolio
• Information services
• Joint activities
• …
Explore and leverage the
offerings of the
national/regional agencies
supporting trade and FDI

14. 14 Copyright 2014 © Christian Ketels
Internationalization Strategy
of your Clusters Organization (3)
• Which locations should you target in your activities?
– Identify geographies based on you objectives
– Look for intermediaries, often cluster organizations, in this location
Tools to use for an identification of target locations
• Company interviews
• Mapping of current international linkages of your cluster
• Cluster mapping
• Networks of cluster organizations
• …

15. 15 Copyright 2014 © Christian Ketels
Clusters and Cluster Organizations
International Sources of Information
www.
tci-network.org
www.
clustermapping.us
www.
clusterobservatory.eu
www.
ec.europa.eu/growth/
smes/cluster/
index_en.htm

16. 16 Copyright 2014 © Christian Ketels
Your Partner for Effective Cluster Efforts
www.tci-network.org

17. 17 Copyright 2014 © Christian Ketels
The TCI Network
• Who are we?
• What do we do?
• What’s in it for you?
The leading global network
of professionals and organizations
active in cluster-based economic
development
GLOBAL
PRACTITIONERS
CLUSTER-BASED
ECONOMIC DEVELOPMENT
www.tci-network.org

18. 18 Copyright 2014 © Christian Ketels
The TCI Network: Activities
• Who are we?
• What do we do?
• What’s in it for you?
Support the effective use
of cluster-based economic development
approaches to raise
the competitiveness and innovative capacity
of firms, cities, regions and countries
ENABLE COLLABORATION
SHARE KNOWLEDGE
CREATE KNOWLEDGE
www.tci-network.org

19. 19 Copyright 2014 © Christian Ketels
The TCI Network: Becoming a Member
• Who are we?
• What do we do?
• What’s in it for you?
Up-to-date information
from the global cluster community
Reduced fees for TCI Conferences
Access to high-quality contacts
and organizations around the world
Access to and inclusion in databases on
clusters, cluster programs, and experts
Specific member activities like
mentoring, peer reviews, interest groups
Exposure and global visibility
on TCI communication channels
Ability to draw on TCI support
in funding applications
www.tci-network.org

20. 20 Copyright 2014 © Christian Ketels
www.tci2015.org
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