By Emiliano Duch, The World Bank, presented at the 16th TCI Global Conference, Kolding 2013.

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Cluster initiatives to promote competitiveness now
Emiliano Duch
Cluster Development in Times of Change
5 September 2013

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Cluster Initiatives to Promote
Competitiveness Now
TCI Conference – Kolding, DK
Emiliano Duch
Competitive Industries Global Practice
September 5, 2013

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• The World Bank new goals
• Shared value, clusters and cluster initiatives
• Managing cluster initiatives professionally
• The role of the World Bank

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• The World Bank new goals
• Shared value, clusters and cluster initiatives
• Managing cluster initiatives professionally
• The role of the World Bank

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• The World Bank Group has two ambitious
goals: end extreme poverty within a
generation and boost shared prosperity.
– Reduce extreme poverty at 3% in 2030
– Foster income growth of the bottom 40%
• Focusing on enriching livelihoods through
economic growth, inclusion, and
sustainability
The World Bank new goals

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• The World Bank new goals
• Shared value, clusters and cluster initiatives
• Managing cluster initiatives professionally
• The role of multilaterals

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• Companies can create shared value by:
–Re-conceiving products and markets
–Redefining productivity in the value chain
–Building supportive industry clusters at the
company's locations
M.E.Porter, HBR, January 2011
Shared value, clusters and cluster initiatives

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• Clusters: What were they supposed to be
–Geographic concentrations of
interconnected companies and institutions
in a particular field. Clusters encompass and
array of linked industries and other entities
important for competition.
M.E. Porter, HBR,1998
Shared value, clusters and cluster initiatives

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• Clusters: What they have ended up being
– « Le regroupement sur un même territoire
d'entreprises, d'établissements d'enseignement
supérieur et d'organismes de recherche publics
ou privés qui ont vocation à travailler en
synergie pour mettre en œuvre des projets de
développement économique pour
l'innovation. »
DGCIS-DATAR, 2011
Shared value, clusters and cluster initiatives

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• Clusters: What they have ended up being
– « The grouping in a territory of
companies, universities and research
institutions, public or private, that have a
vocation to work in sinergy to perform
economic development projects on
innovation».
DGCIS-DATAR, 2011
Shared value, clusters and cluster initiatives

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• “People of the same trade seldom meet
together, even for merriment and
diversion, but the conversation ends in a
conspiracy against the public, or in some
contrivance to raise prices…”
Adam Smith, The Wealth Of Nations, 1776
Shared value, clusters and cluster initiatives

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• After almost twenty years of experience …, the
results are mixed, ... While there have been
many examples of value creation in clusters
that have brought productivity increases and
prosperity to their regions, there are also
many instances of publicly funded structures
that have not created any value.
Public-Private Dialogue for Sector Competitiveness and Local
Economic Development, World Bank, 2011
Shared value, clusters and cluster initiatives

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“Cluster initiatives are organized efforts to
increase the growth and competitiveness of
clusters within a region, involving cluster
firms, governments and/or the research
community.”
The Cluster Initiative Greenbook, 2003
Shared value, clusters and cluster initiatives

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• Companies can create shared value by:
–Re-conceiving products and markets
–Redefining productivity in the value chain
–Building supportive industry clusters at the
company's locations
M.E.Porter, HBR, January 2011
Shared value, clusters and cluster initiatives

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“As more and more resources are devoted to
efforts to foster cluster development, the need
to understand best practice has become urgent”.
M.E. Porter foreword to Greenbook, 2003
Shared value, clusters and cluster initiatives

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• The World Bank new goals
• Shared value, clusters and cluster initiatives
• Managing cluster initiatives professionally
• The role of the World Bank

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Collective efforts to improve cluster initiatives:
• 2003 TCI conference Greenbook and “learning
sessions”.
• 2003 Cluster Competitiveness Report
• 2004 USAID Evaluation report
• 2007 EU Cluster Mapping Case Studies
• 2007 Barcelona/Washington Clusters Summer
School
• 2009 USAID Case studies
• 2009-12 European Cluster Excellence Initiative
Managing cluster initiatives professionally

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Managing cluster initiatives professionally

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Managing cluster initiatives professionally

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Managing cluster initiatives professionally

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Managing cluster initiatives professionally

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• The World Bank new goals
• Shared value, clusters and cluster initiatives
• Managing cluster initiatives professionally
• The role of the World Bank

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• Dialogue and action on ongoing and emerging
development challenges, bringing the
perspective of developing countries to global
issues.
• Support clients in delivering customized
development solutions by packaging
finance, knowledge, and convening services.
• Help advance knowledge about what works.
The role of the World Bank

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One example of “what does not work”
Link to Groupe de Travail Sur la Competitivite in Haiti
http://www.nytimes.com/slideshow/2012/07/05/world/americas/20120706-HAITI.html

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Thank you for your attention!
For slides contact:
Emiliano Duc
educh@worldbank.org