1. Module: Cluster Foundation and Fundamentals of Cluster Management
Gerd Meier zu Köcker
Institute for Innovation and Technology (iit)
April 2014

2. • Clusters are Individuals
• Cluster Mapping
• Analysing the demand of cluster actors
• Creating synergies
• Matching interests and expectations of cluster actors
• Developing a services spectrum
Lessons to Be Learned in this Modul
2

3. • Cluster
• Clusterinitiative
• Clustermanagement
Definitions
3

4. Prevailing Clusters Chemical Industry

5. Difference between Cluster and Cluster Initiatives

6. Framework conditions
(e.g. infrastructure, regulation, work force, level of
education, image, macro economy)
Cluster actors
(business, research, public agencies)
Cluster management organization
Utilizing clusters as tool for economic or industrial development
means developing industrial networks and value chains by means of
cluster management!
Three Dimension of a Cluster

7. Co-location ...little relevance in terms of competitive performance; firms do
not emphasise the local area, or firms within it as important vis-à-vis their
own competitiveness
Agglomeration ...co-location enhances firms’ competitive performance, but
does so for reasons that are- in essence- ‘passive’. The place / area is
regarded as important by firms, but for reasons other than active interaction
with other local firms
Clustering …co-location enhances firms’ performance because it facilitates
collaborative working relationships with a range of local suppliers,
customers, competitors, universities, research institutions, etc.
Source: thanks to dr. Philip Cooke
Networks and Collaborative Working Relationships
competitiveness

8. Clusters – What is Inside?
Clustering – How it is Working?
Leading
Firms
Key firms exporting
Goods and Services
Outside the Region
Network of Supplier Firms
Firms supplying inputs, raw materials,
components, parts and specialized services
Economic Foundations
Human Technology Access Physical
resources to Capital Infra-
structure
Collaboration
Networking
Competition
REGION
Products / Services
Resources
Working Together

9. Cluster Key Actors - Ideal Structure
 Thematic focus
 Reginonal concentration
 Vertical cluster
9
SMEs
Large
Enterprises
Research
Institutes
Service
Providers
Universities
Education
& Training
Cluster
governance
Manufacturer
Supplier
Partner (finance, marking, logistic)
Developer
Researcher

10. Clusters are Key to Economic Growth
Geographic concentrations of
industries
 Home of specialized local firms with
specialized buyer-supplier relationships
 Firms cooperate and compete
 Firms share similar
technologies,
skills,
financing mechanisms
Environment that enables
 Firms to develop technologies, skills to
service often distant or even global
markets
 Local actors to develop unique know-
how develops that distant rivals find
hard to imitate
• Concentration
• Networks and linkages
• Proximity

11. • Clusters are Individuals
• Cluster Mapping
• Analysing the demand of cluster actors
• Creating synergies
• Developing a demand oriented services spectrum
Lessons to Be Learned in this Modul
11

12. SME in clusters are performing better…..
….. than the sector-specific average
Cluster Monitor Germany, July 2012, 50 Cluster representing about 5000 company
Much better
Better
Similar
Slightly worse
Much worse

13. Higher intensity of iInvolvement leads to
higher monetary added-values
 Monetary added-value for SMEs in clusters
All actors Actors that cooperate more intensive
than others
Cluster Monitor Germany, July 2012, 50 Cluster representing about 5000 company
low similar high
low similar high

14. • 50% of the wind turbines around the world
being developed and produced by Danish
manufacturers along with many
component suppliers based in the country.
• Around 11,000 of the 25,000 employees in
the Danish wind industry work less than
one hour’s drive from Aarhus
• Wind power accounts for more than 20
percent of the total power consumption in
Denmark
• Intended to be increased to up to 50
percent by 2020.
North Jutland Denmark –
Global Production and Knowledge Center of Wind Energy

15. Singapore
620 km²
Pop: 3.2 million
GDP: US $85 billion
40% World Market Share in Hard Disks
(1995)
Singapore –
Hot Spot in Hard Disks Production in 1995

16. China – Wenzhou Footwear Cluster
One of the seed beds of the Chinese private
shoe manufacturing industry - globally
competitive
 Over 4,000 footwear firms,
 Employ over 400,000 workers
 Home of 70% of the top 30 domestic
footwear firms
 Production:
– 1 billion pairs of shoes
– 25% of the gross domestic footwear output
– 12,5% of the global footwear production
Clustering plays a significant role in
helping rural industries overcome the
growth constraints of capital and
technology in the incipient stage of
industrialization

17. Clusters are Different in terms of Composition of Actors
www.cluster-analysis.org

18. Clusters are Different in terms of Size

19. Clusters are Different in terms of Public Funding Rate

21. Different Clusters – Different Objectives

22. Clusters are Different in terms of Industrial Fields Covered
BioTech vs. Chemistry Clusters

23. Clusters are Different in terms of Legal Forms
ICT vs. Chemistry Clusters

24. Clusters are Different

25. • Clusters are Individuals
• Cluster Mapping
• Analysing the demand of cluster actors
• Creating synergies
• Developing a demand oriented services spectrum
Lessons to Be Learned in this Modul
25

26. Massachusetts Medical Device Cluster

27. Government Regulators Development Institutions
(Governmental)
Universities, Technical
Schools and Institutes
Financial Services Trade Unions
Feed Production Suppliers
Equipment, Inputs and
Floating
Equipment and Instruments
Suppliers
FRESH WATER
Fish Eggs, pisciculture
Prefarming:
hatchery and smolts
SEAWATER
Sea cages;
Farming
PROCESSING PLANTS
DISTRIBUTION
Traders, Direct Channels,
Brokers
MARKETS
Waste handling
and by products (oil and fish
meal)
Transport
of smolts (trucks,
ships)
Harvest Transport
(Ships, trucks)
Pharmacy,
Biotech
Inputs and
Services
Transports and
Maintenance Suppliers
Packaging Suppliers
Transport and Logistics
N: Estimated No of companies or
institutions
Aquaculture Cluster

28. Commodity
Excange Market
Public Relations &
Marketing Services
Form Input Services
Collaborative R&D Services
Maintenance and Repair
Services
Palm Plantations
(Upstream)
Palm Industries
(Downstream)
Refinery – PPO
• Refined bleached deodorized
oil (RBD)
Milling CPO
• Crude Oil Palm
• Palm Kernel Oil
Foods
• Cooking oil
• Industrial margarine
• Health-based foods
Fractionation – PPO
• Palm oil – cleorin, stearin
• Kernel oil – oleorin, stearin
Non-food products
• Biodiesel
• Oleo chemical
• Nutraceutical
Recycling of Waste
• organic manure
• bio gas
Government
Agencies
• FELDA, NPOB
Educational
& Research
Institutions
Industry Groups
• Palm Oil
Association
Plant & Equipment
Manufacturing
Shipping & Logistics
Services
Financial Services
Packaging, Labeling
Service Companies
Distribution Network
Undeveloped
Competitive
To improve
Malaysian Palm Oil Cluster Map

29. Group Working
Government
Agencies
Educational
& Research
Institutions
Industry Groups
Competences of Industrial
cluster actors (inside cluster)
Industrial key actors outside
cluster providing input
Other key actors outside the
cluster actors depend of

30. Elements of Food Value Chain

31. • Clusters are Individuals
• Cluster Mapping
• Analysing the demand of cluster actors
• Creating synergies
• Developing a demand oriented services spectrum
Lessons to Be Learned in this Modul
31

32. Cluster Key Actors
SMEs
Large
Enterprises
Research
Institutes
Service
Providers
Universities
Education
& Training
Cluster
managment

33. SWEEP-NET – The Real Case
• Young network
• Expectation of member unknown
• No tailor-made services offered
• No synergies gained
• Need to increase share of private
financing

34. First Three Key Actions
Mapping of
members
Grouping of
members
Analysing
expectations
and
demands

35. 35
 Local authorities
 Regional goverments
 Private sector (service providers, technology providers, private consultants)
 International organisations / donors
 Non-Governmental Institutions
 Academia / educational institutes
Main Customers / Clients of SWEEP-Net
Mapping of
members
Grouping of
members
Analysing
expectations
and demands

36. Group Working
What are characteristic expectations of selected target groups?
 Local authorities
 Regional goverments
 SME
 Global firms
 International organisations / donors
 Non-Governmental Institutions
 Academia / educational institutes

37. 37
 Contribution to the fulfillment of political goals
 Demand oriented assistance
 Access to knowledge, information and key actors
 Capacity building
 Support in becoming prepared and eligible for entering international projects
 Project and financial management
Expectations of Governmental Authorities

38. 38
 Access to knowledge, information and market trends
 Capacity building
 Generation of new business / matchmaking
 Support in increasing innovation capabilities
 Increased visibility
 Support in internationalization
 Improved visibility towards policy and administration
 Access to local markets
Expectations of Private Sector

39. Fine Tuning of Cluster Actor‘s Expectations (I)

40. Fine Tuning of Cluster Actor‘s Expectations (II)

41. • Clusters are Individuals
• Cluster Mapping
• Analysing the demand of cluster actors
• Creating synergies
• Developing a demand oriented services spectrum
Lessons to Be Learned in this Modul
41

42. Added-values provided by the Cluster Management
 Bundling regional competences of industry and academia
 Increased visibility
 Marketing, public relations
 Networking with internal or external partners and political lobbying
 Community building
 Stimulation of innovations processes between different actors
 Project fund acquisition and access to public support programmes
 Information and experience exchange between the cluster actors / external
 Human resources / Recruiting
 Support regarding internationalisation
 Engaging in collaborative R&D development and transfer

43. 43
 Contribution to the fulfillment of political goals
SWEEP NET can be used by governmental authorities as an active tool to fulfill political objectives.
 Demand oriented assistance
Due to its knowledge, competence and international links, the SWEEP NET Secretary can actively
support governmental authorities in solving day-to-day issues as well as to support them to fulfill
long term political objectives.
 Access to knowledge, information and key actors
Local authorities are interested in having easy access to knowledge, information and key actors.
SWEEP-NET Secretary can satisfy this demand by providing information and experience exchange,
matchmaking etc
 Capacity building
In the MENA region there is still are strong need for capacity building and international
experience exchange on all levels. Governmental authorities are interested in
SWEEP NET Secretary to provide training schemes for capacity building
Turning Expectations into Synergies
Governmental Authorities (I)

44. 44
 Support in becoming prepared and eligible for entering international projects
Entering international projects or becoming eligible for getting funded is of increasing importance
for local authorities. SWEEP-Net Secretary can advice the candidate under which preconditions
they are eligible to apply for funding or enter international projects.
 Project and financial management
Governmental authorities are often interested in joining international projects for various reasons.
However, they do not like to be bothered with administrative or project management issues. This
can be covered by the SWEEP-NET Secretary
Turning Expectations into Synergies
Governmental Authorities (II)

45. 45
 Access to knowledge, information and market trends
The private sector has issues in getting access to knowledge and relevant market trends. SWEEP-
NET can satisfy this demand by providing information and experience exchange, matchmaking etc.
 Capacity building
In the MENA region there is still are strong need for capacity building and international experience
exchange on all levels. Private Sector is interested in SWEEP NET to provide training schemes.
 Generation of new business / matchmaking
By entering SWEEP-NET private actors expect getting better access to relevant partner or potential
clients in order to generate new business.
 Innovation
SWM often asks for new solutions or the application of new technologies. Entering the SWEEP-
NET community could facilitate the private actors to get in touch with the other partners to
become more innovative or to match complementary competences.
 Increased visibility
Joining the SWEEP NET could increase regional, national and international visibility of
private actors, especially those who are not known in the relevant markets.
Turning Expectations into Synergies
Private Sector (I)

46. 46
 Support in internationalization
Often relevant markets in certain MENA-countries are limited and private sector actors are
interested in getting access to foreign markets. SWEEP-NET is expected by private actors to offer
support in this respect.
 Improved visibility towards policy and administration
Private actors often expect SWEET-NET to support them in getting access to decision makers from
policy and administration. This also often contain lobbying and advocating in favour for the private
sector.

Turning Expectations into Synergies
Private Sector (II)

47. • Clusters are Individuals
• Cluster Mapping
• Analysing the demand of cluster actors
• Creating synergies
• Developing a demand oriented services spectrum
Lessons to Be Learned in this Modul
47

48. From Synergies to Demand Oriented Services for Public
Sector
(1) Working Groups
(2) Coaching „Good SWM Policy“
(3) Networking, Matchmaking
(4) AWARDs
(5) Technical / Policy Papers
(6) Access to Information
(7) Advice Materplanning issues „Marakesh Declaration“
(8) Accessing International Projects
(9) Access to Key Actors
(10) Access to External Workshops
(11) SWEEP-Net Workshops

49. Priorisation of Services for Public SectorLowmoderatehigh
Visibility
Degree of difficulty / time needed for implementing
Difficult / long moderate easy / short
11
10
9
8
7
65
4
3
2
1

50. a. SWM-Benchmarking
b. Labelling „Green Location“
c. Fitness Test „International Projects“
d. Support in Getting Access to International Projects
e. Cost / Benefit calculations SWM
f. Tech-Transfer
g. Services to Increase Visibility of Companies
h. Support in Internationalisation
i. Training and education
j. Services related to International Projects
From Synergies to Demand Oriented Services for Private
Sector

51. Lowmoderatehigh
Impactonrecognition/reputation
Degree of difficulty / velocity to implement
Difficult / slow moderate easy / fast
j
i
h
g
a
b
d
f
e
c
Priorisation of Services for Private Sector

52. Priorised Service Spectrum for Public Sector
(1) Working Groups
(2) Coaching „Good SWM Policy“
(3) Networking, Matchmaking
(4) AWARDs
(5) Technical / Policy Papers
(6) Access to Information
(7) Advice Materplanning issues „Marakesh Declaration“
(8) Accessing International Projects
(9) Access to Key Actors
(10) Access to External Workshops
(11) SWEEP-Net Workshops

53. a. SWM-Benchmarking
b. Labelling „Green Location“
c. Fitness Test „International Projects“
d. Support in Getting Access to International Projects
e. Cost / Benefit calculations SWM
f. Tech-Transfer
g. Services to Increase Visibility of Companies
h. Support in Internationalisation
i. Training and education
j. Services related to International Projects
Priorised Service Spectrum for Private Sector

54. Standard Service Spectrums Provided by Cluster
Managers
2. Training and Qualification
• Analysis of branch related educational
requirements
• Activities for qualification of company staff
• Regular special events
- workshops and seminars
- study trips for employees
Typical fields of
activities of a cluster
management
1. Information and Communication
• detailed database
• frequent customer interviews
• Internet/homepage
• Newsletter
• Supplier and service catalogue
• Regular events, company tours
3. Internationalisation
• Access to international events, congresses,
topics, customers and trends
• Support of international co-operation
• Support of companies during internationalisation
• Set-up of network activities between comparable/
complementary international clusters
• Attract foreign visits in the cluster
4. Initiating Co-operations
• Initiation and support of co-operation projects
• Establishment of contacts between potential
project partners
• Co-operations with R&D, educational
institutions and special service provider
• Set-up of special support providers
• Facilitate higher innovativeness
5. Marketing and PR
• Information and marketing materials
• Generation of regional identity
• National and international PR
• Organisation of trade fairs, company visits,
presentations for major customers
• Lobbying

55. Cluster Management Services in Detail (I)
Marketing / Branding
 Representation of company
 Support in public affairs activities /
communication strategy
 Representing company on trade fair
 Regional branding
 Organisation of events and fairs to
promote cluster actors
 Regional or cross-regional networking of
cluster actorsl
Lobbying
 Policy lobbying
 Lobbying for associations
Networking among cluster actors
 Information and experience exchange
 Initiating working groups / tasks forces
 Business creation among cluster actors
Entrepreneurial support
 Support of start-ups
 Coaching of business plans
 Fund raising / Venture Capital raising

56. Cluster Management Services in Detail (II)
Innovation and Cooperation
 Brainstorming / creation of ideas
 Identifcation and matching of right cluster actors
 Support in proposal writing
 Acquisition of third party funding
 Project management
 Creating of new business for initiating innovation among cluster actors
Internationalisation
 Support in the definition of an internationalisation strategy for cluster
actors or for the entire cluster
 Technology scouting / Trend scouting (Markets, technologies, competitors)
 Initiiating international R&D consortia
 Organisation of delegation missions
 Participation in international trade fairs
 Targeting / beauty contests for getting access to international key actors

57. Cluster Management Services in Detail (III)
Human development / training / education
 Recruting
 Development of platform of job vacancies
 Development of vocational training schemes
 Development of practical training schemes
 Participation in recruiting events
Additional Services
 Foundation of buying associations

58. • How to gather the right members in a cluster
Lessons to Be Learned in this Modul
58

59. • Group Working
What are suitable tools to identify “right” cluster actors
Lessons to Be Learned in this Modul
59

60. Tool for Acquiring Cluster Actors
60
Emerging Growth Maturity Tranformation
Time
Gradeofnetworking
Data
base
Other
tools
Data
From
CoC
Actors
analysis
Value
Chain
Analysis
Networ-
king
analysis
Visual
Raod-
mapping

61. Tool 1: Actor Analysis
 Demand profile – Actor mapping – Actors analysis
 What are key objectives
 What competences, products, proccesses are already available
 Who is missing, what competences are missing
 Who can significantly contribute to cluster objectives
 Are strategic partners missing
 Is there a good balance between SME, global player and R&D
institutions
61

62. Tool 2: Networking Analysis
Networking analysis
 Who already cooperates with whom
 Which key actors / lead partnern have to be involved einbeziehen
 Who cooperated with partners in the region, but not involved in cluster
activities
62

63. 63
Tool 2: Networking Analysis

64. Instrument 3: Wertschöpfungsketten-Analyse (1)
Methode (Staccato Taxonomie)
 zwei Varianten: akteursgruppenbezogen bzw. einzelnen Akteure
analysieren und den Stufen der Wertschöpfungs-kette / zuordnen
 branchenbezogene Wertschöpfungskette vollständig versus
Anknüpfungspunkte für Cross-Clustering identifizieren
 fehlende Akteure / Kompetenzen werden sichtbar
 welche Wertschöpfungsstufen sind minimalistisch / gar nicht abgedeckt
 was sind die Gründe dafür / wer könnte geeignet sein
 qualitativer Analyseansatz  Fokus: alle Wertschöpfungsstufen sollten
abgedeckt werden
64

65. Tool 3: Value Chain Analysis
65

66. 66
Tool 3: Value Chain Analysis
Regional coverage of Biogas value chain

67. 67
Tool 3: Value Chain Analysis

68. Tool 4: Visual-Roadmapping-Methode
68

69. 69
Tool 4: Visual-Roadmapping-Methode

70. 70
Fee-based services
 SWM Benchmarking (comparison of status of development of local SWM system)
 Labelling „green location“
 Fitness test to confirm eligibility for access to finance / international projects
 Cost-benefits-calculations
 Tailor-made trainings / workshop
Local authorities
Service spectrum
Services included in membership fee
 Access to information (trends, market reports, technical papers, standards, etc.)
 Networking, matchmaking, working groups
 Access to technical / political papers (incl. comments how to deal with them)
 Access to external trainings / workshops
 Best practice missions
 Access to key actors on national or international level
 Support in accessing international projects
 Best SWM-solution Award / SWM Manager of the Year

71. 71
Fee-based services
 Adcanced training / workshops
 Increasing company visibility (website, sponsorship, company presentation measures, meeting
high level policy makers, ….)
 Measures to generate new business (specific matchmaking, user-supplier-clubs, beauty
contests, etc…..)
 Market access measures (delegation mission abroad and in MENA region, specific market
information, etc.) – intended both for MENA-companies and non-MENA-companies
 Technology transfer (working groups to specific technical issues)
 Additional measures (to be decided)
Private sector
Service spectrum
Services included in membership fee
 Access to information (trends, market reports, technical papers, standards, etc.)
 Networking, matchmaking (standard), working groups
 Access to technical / political papers (incl. comments how to deal with them)
 Access to external trainings / workshops
 Access to key actors on national or international level

72. Registered Association is Prevailing Logal Form for
Cluster Initiatives