clusters - what they are, how they work, and what to do with them
DESCRIPTION
Keynote lecture at the 7th CLAC conference in Monterrey, Mexico, 30 May 2012.TRANSCRIPT
Clusters – what they are, how they work,
and what to do with them
CLAC7, Monterrey, 30 May 2012
Göran LindqvistStockholm School of Economics
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What are clusters?
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Alfred MarshallPrinciples of Economics, 1890
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Staffordshirepottery
Buckinghamshirechairs
Bedfordshirestraw plaiting
Sheffieldcultery
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Giacomo Becattini Paul Krugman Michael Porter
1990
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What are clusters?
Clusters are groups of geographically proximate firms in related industries and related institutions
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Surfboard makers
Surf clothing
Surf shops
Foam &fiberglass
Wax
Chemicals
Local university
Other local
education
CompetitionsFestivals
Surf ClubsSurf Schools
Manu-facturing
Association
Lobby Groups
MuseumsSkateboardsand
Snowboards
Local surf
heroes
Media
Source: HBS MOC student team8
Firms
Research organisations
Education organisations
Government
Capital providers
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How do they work?
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How do clusters arise?
Clusters are naturally occurring phenomena
The grow out of seeds such as:o natural resourceso particular local demando acts of entrepreneurship
Evolution versus constructiono Most clusters have evolved spontaneouslyo Some clusters are built as acts of policy
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What are the benefits of clusters? Mechanisms
Externalities: when firms benefit from the presence of other firms in ways they don’t have to pay for
Access to highly specialised inputs
Knowledge spill-overs
Local labour pool
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What are the benefits of clusters?Competitiveness
Increased entrepreneurship
Increased innovation
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3What to do with them?
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Government
Research organisations
Education organsiations
Capital providers
Companies
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A cluster…
Government Research organisations
Education organsiations
Capital providers
Companies
A cluster… or isolated islands?
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Strong interaction
Weak interaktion
Good knowledge
Dense networks
Common “language”
Similar norms and attitudes
Shared vision
High trust
Positive incentives
Poor knowledge
Sparse networks
Different “languages”
Different norms and attitudes
Different visions
Low trust
Negative incentives
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Reality is inefficiencies
+ Knowledge failures+ Network failures+ Collaboration failures+ Coordination failures= Innovation failures
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The seven gaps of innovation
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4
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The research gap
The education gapThe capital gap
Government gap
The company-to-company gap
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6
Cluster-to-cluster gap
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67
Global market gap
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Are you a cluster manager?
• We need Latin American participants in the Global Cluster Initiative Survey
• An online survey, in English• About your cluster organisation
• Interested? Contact me!
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What are clusters? They are groups of geographically
proximate firms in related industries and related institutions
How do they work? They improve competitiveness by
fostering entrepreneurship and innovation
What to do with them? They need cluster initiatives to help
improve collaboration in the cluster
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Contact
Göran Lindqvist, PhD
Center for Strategy and Competitiveness
Stocholm School of Economics
www.sse.edu/csc
+46 8 7369524
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