By Alberto Pezzi presented at the 12th TCI Global Conference, Jyväskylä 2009

1. Clusters 101
Jyväskylä, 13 October 2009

2. Clusters 101: an introduction to cluster basics
Alberto Pezzi
Head of Analysis and Foresight Unit
Observatory for Industrial Foresight Department of Innovation,
Universities and Enterprise - Generalitat de Catalunya
Secretary and member of the Board of Directors – TCI-network

3. Index
An introduction to cluster concept
Clusters and cluster-based competitiveness
reinforcement initiatives
Basics of cluster-based reinforcement initiatives

4. Index
An introduction to cluster concept

5. Bologna, XV century
Jewelry street
Shoe-makers street
Silk-makers street

6. Main industrial districts in Emilia-Romagna (Italy)
> 1.000 mil.
500-1.000 mil.
< 500 mil
oltre 1000
100-1000
fino a 100
BOLOGNA
MotocicletasCARPI
Genero de punto
FUSIGNANO
calzado
FORLÌ
Mueble tapizado
SAN MAURO P.
calzado
MIRANDOLA
Biomédica
REGGIO EMILIA
Maquinaria agrícola
SASSUOLO
Azulejos
PARMA
Agroalimentario
PIACENZA
Maquina herramienta
RIMINI
Maquinaria para
la madera
BOLOGNA
Maquinaria packaging
FAENZA-IMOLA
Cerámica
PARMA
Carnica
RIMINI-RICCIONE
Turismo playa
RAVENNA
química
CESENA
Agroalimentario
FAENZA-LUGO
Conservas de fruta
RAVENNA
Plantas off-shore
Facturación del
distrito
(‘000 €)
Numero de empresas
> 1.000
500-1.000
< 500
> 1000
100-1000
< 100
Fuentes: CENSIS, 1998, CLUB DEI DISTRETTI INDUSTRIALI, CLUSTER COMPETITIVENESS, análisis propia

7. Cluster-based competitiveness reinforcement initiatives
Leather tanning workshops in Igualada (Barcelona) begin XVIII century
Source: J. Nadal, Atlas de la Industrialización en España 1750-2000, Barcelona 2003

8. Cluster-based competitiveness reinforcement initiatives
Leather tanning workshops in Igualada: XVIII century and today
Source: J. Nadal, Atlas de la Industrialización en España
1750-2000, Barcelona 2003
Source: Googlemap.
T. Megia, Infforme situació sector cluster pell a Igualada
Informe intern del OPI-SIE
Internal report – not published

9. Geographic concentration / localized systems of enterprises
“concentration of many small factories specializing in the different phases of the same production
process, which and operated at in one location or at in a cluster of locations” (A. Marshall, 1890)
“entità socio-territoriale caratterizzata dalla compresenza attiva, in un’area territoriale circoscritta,
naturalisticamente e storicamente determinata, di una comunità di persone e di una popolazione di
imprese industriali” (G. Becattini, 2000)
“A cluster is a geographically proximate group of interconnected companies and associated institutions
in a particular field, linked by commonalities and complementarities” (M. E. Porter, On Competition,
1998)
Footwear industry
Raw materials
(recolectors)
Leather tanners
Fontanellas i Marti
Vidal Bosch
Curtidos Badia
Apparel industry
Goes SA
Torras SA
(...)
Chemical
products
Cleaning and
tanning
Adovinbe
Warehouse
Buyers
Associations
Unió d’adobadors
CEC-FECUR
Gremi de Blanquers
Technological
Centres
AIICA
S
L
A
U
G
H
T
E
R
H
O
U
S
E
S
Other end-users
• Proximity
• Networking
• Specialization

10. Index
An introduction to cluster concept
Clusters and cluster-based competitiveness
reinforcement initiatives

11. Clusters
“Clusters are geographic concentrations of interconnected companies, specialized
suppliers, service providers, firms in related industries, and associated institutions in
particular fields that compete but also cooperate”
Michael E. Porter in On Competition (1998).
Cluster Initiatives
“Cluster initiatives are organised efforts to increase the growth and competitiveness of
clusters within a region, involving cluster firms, government and/or the research
community”
Örjan Sölvell, Göran Lindqvist & Christian Ketels in The Cluster Initiative Greenbook (2003).
“Cluster Policy”
Policies directed at creating, mobilizing or strenghening a particular cluster Policies
directed to use clusters to increase the efficiency of other specific instruments
Microeconomics policies directed to improve business environment
Adpated from Oxford Research, (2008) Cluster Policy in Europe, Brussels.

12. Cluster reinforcement initiatives worldwide
2001199719921980
Selected
regions and
countries with
cluster-based
development
initiatives
+
-
Emilia-Romagna
Toscana
(industrial-districts
based policies) ....
Euskadi
Scotland
Chihuahua
Arizona
Catalunya
Massachussets New Zealand
Costa Rica
California
....
Sweden
Turkey
Lithuania
Austria
Jordan
México
South Africa
....
France
Estonia
Denmark
Slovenia
UK
Minas Gerais (BR)
...
1990 2003 2006
Pakistan
Kazakhstan
Poland
….
Paraguay
Rio Negro (AR)
….
2009
ILLUSTRATIVE
NOT EXHAUSTIVE
Approx. more than 1.400
initiatives from countries
and regions all over the
world (*)
Over 1.100
cluster
organizations
only in Europ
(**)

13. Index
An introduction to cluster concept
Clusters and cluster-based competitiveness
reinforcement initiatives
Basics of cluster-based reinforcement initiatives

14. Innovation policies, clusters and regional competitiveness
COMPETITIVENESS
CLUSTER
BUSINESS
STRATEGY
• Focus on business segments and not on
statistical sectors
Strategy of the future for the
cluster
BUSINESS SEGMENT
Some key-concepts
• Final goal
• Tool: place on which thinking and talking about
strategy, strategic challenges and implementing related
actionsSource: L. Ramis, 2008

15. Innovation policies, clusters and regional competitiveness
Some key-concepts
Final goal
Competitiveness
(Productivity)
Innovative Capacity
Prosperity
Source; Michael E. Porter
COMPETITIVENESS

16. Source: The Economist, Dec. 23rd, 1999 from A. Maddison, IMF,

17. Innovation policies, clusters and regional competitiveness
Focus on business segments and not on
statistical sectors
BUSINESS
SEGMENT
Some key-concepts
Source: OPI - Hernández et al., 2005

18. Innovation policies, clusters and regional competitiveness
CLUSTER
Some key-concepts
Tool: place on which thinking and talking about strategy,
strategic challenges and implementing related actions
Footwear industry
Raw materials
(recolectors)
Leather tanners
Fontanellas i Marti
Vidal Bosch
Curtidos Badia
Apparel industry
Goes SA
Torras SA
(...)
Chemical
products
Cleaning and
tanning
Adovinbe
Warehouse
Buyers
Associations
Unió d’adobadors
CEC-FECUR
Gremi de Blanquers
Technological
Centres
AIICA
Other end-usersLeather
tanning
SLAUGHTER
HOUSES
Source: L. Ramis, 2008

19. Benefit of clusters for enterprises
Economic prosperity is linked to the degree of cluster strength (European
Cluster Observatory)
Cluster firms benefit from knowledge sharing and skilled labour
85% of cluster firms state that a cluster initiative has improved their
competitiveness. (Cluster Initiative Greenbook, 2003)
Cluster firms are more innovative than non-cluster firms. (2006
Innobarometer)
Cluster firms register more trademarks (29% vs. 14%) and
apply for more patents (29% vs. 12%). (2006 Innobarometer)
Cluster firms contract out more research (41% vs. 20%) and carry out less
research in-house (44% vs. 53%). (Source: 2006 Innobarometer)
Cluster firms expect improved support services. (2006 Innobarometer)
Source: DG Industry and Enterprise, 2008

20. Innovation policies, clusters and regional competitiveness
BUSINESS
STRATEGY
Strategy of the future for the
cluster
Some key-concepts
Hide
Collectio
n and
traetmen
t
Manufacturing
Initial
phases
Cost leader
business
Manufacturing
and finishing
Flexibility
Reposition
Initial
orders
Non-
manufacturing
business
Luxury
production
Produ
ction
manag
ers
Source: adapted from Libro Blanco de la Piel en España, 2005

21. REASONS FOR CHOOSING CLUSTERS TO
WORK AT A REGIONAL POLICY LEVELS IN
CATALONIA
They already presents in the territory and
they allow economies of scale to:
 understand business and its strategy
 to act within a homogeneous group of
firms to promote change
MONTSIÀ
Home furniture
Olive oil
BARCELONA
Farmacia
Taps
Cosmética
Urban tourism
Business schools
Medical devices
PIRINEU
Milky products
ANOIA
Leather tanning
Knitwear
MARESME
KnitwearVALLÈS
Consumer electronics
Automotive
Motorcycle
Packaging
LLEIDA
Farm machinery
Building materiials
Fresh fruit
GIRONA
Meat processing
Mineral water
PENEDES
Wine
PALLARS
Tourism
LA GARRIGA
Home furniture
COSTA DAURADA
Seaside tourism
Cluster policy in Catalonia
LA BISBAL
Pottery
COSTA BRAVA
NORD
Seaside tourism
A CLUSTER IS THE REFERENCE
UNIT TO DESIGN AND IMPLEMENT
COMPETITIVENESS
REINFORCEMENT INITIATIVES
Source: adapted from Competitiveness

22. Business
environment
Business strategy
at company level
+
 Different strategic options at
company level
 Iniciatives according to strategy
 Horizontal cooperation activities
among companies
 Strategic change at company level
 Ad hoc training
 Workshops on Innovation,
internationalization
 Change in rules
 Competitiveness horizontal policy
reinforcement: innovation,
internationalization, etc.
Innovation policies, clusters and regional competitiveness
Source: adapted from Competitiveness

23. • To define the cluster and its business
• To understand the industry, its insignt,
trends and key competitiveness
elements
• To analysis profitability of the industry
• To analyze competitors
• Business Environment analysis
(Diamond)
• To define strategic options for the
cluster ...
Strategic analysis Change process
• To involve companies and other actors
in strategic change
• To break conventional wisdom
• To motivate companies to participate
in the project
• To create leadership ...
Source: adapted from Competitiveness
Cluster-based competitiveness reinforcement initiatives

24. For comments please contact:
apezzi@tci-network.org