Clusters & Innovation
     Ecosystems
      July 5th, Utrecht
        Frans Nauta
Clusters & Innovation
     Ecosystems
      July 5th, Utrecht   @fnauta
        Frans Nauta
1. Clusters
2. Innovation Ecosystems
3. Lessons learned
1 Clusters
Clusters

• Enough resources and competences amass
  and reach a critical threshold;
• Giving it a key position in a given economic
  branch of activity;
• With a decisive sustainable competitive
  advantage over other places, or even a
  world supremacy in that field.
Clusters

• Enough resources and competences amass
  and reach a critical threshold;
• Giving it a key position in a given economic
  branch of activity;
• With a decisive sustainable competitive
  advantage over other places, or even a
  world supremacy in that field.

"There are no low-tech industries,
       only low-tech firms"
20110705 clusters & innovation ecosystems
Fred Terman @ Stanford
20110705 clusters & innovation ecosystems
20110705 clusters & innovation ecosystems
20110705 clusters & innovation ecosystems
20110705 clusters & innovation ecosystems
A secret history of Silicon Valley:
     www.steveblank.com
20110705 clusters & innovation ecosystems
20110705 clusters & innovation ecosystems
20110705 clusters & innovation ecosystems
20110705 clusters & innovation ecosystems
SCUOLA INTERNAZIONALE DI
  LIUTERIA A. STRADIVARI

• 1938 founded
• 1950: 6 students
• 2008: 150 students
 - 30 South-Korea
 - 26 Japan
 - 6 China
 - 3 Taiwan
20110705 clusters & innovation ecosystems
20110705 clusters & innovation ecosystems
HortResearch
HortResearch
20110705 clusters & innovation ecosystems
2 Innovation Ecosystems
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange
                     1
    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors
                      2                                     national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange
                     1
    research                     education                other regions
regional socio-economic & cultural context
                                                          (inter)national
               knowledge usage
                                                              context

 customers                          suppliers
                                                               national
                                                          innovation system
                    industry

  partners                         competitors
                      2                                       national
                                                               policy



             exchange knowledge &
                                                 policy
                    people                                    European
                               3                                Union



             knowledge development
                                                            international
                                                            organisations
   knowledge
                               labour market
    exchange
                     1
    research                       education                other regions
regional socio-economic & cultural context
                                                          (inter)national
               knowledge usage
                                                              context

 customers                          suppliers
                                                               national
                                                          innovation system
                    industry

  partners                         competitors
                      2                                       national
                                                               policy

                                                      4
             exchange knowledge &
                                                 policy
                    people                                    European
                               3                                Union



             knowledge development
                                                            international
                                                            organisations
   knowledge
                               labour market
    exchange
                     1
    research                       education                other regions
regional socio-economic & cultural context
                                                                              5
                                                          (inter)national
               knowledge usage
                                                              context

 customers                          suppliers
                                                               national
                                                          innovation system
                    industry

  partners                         competitors
                      2                                       national
                                                               policy

                                                      4
             exchange knowledge &
                                                 policy
                    people                                    European
                               3                                Union



             knowledge development
                                                            international
                                                            organisations
   knowledge
                               labour market
    exchange
                     1
    research                       education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development



     ✓                              ✓
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research
                                    ✓
                                 education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development



     ✓                              ✓
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development



     ✓                              ✓
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
regional socio-economic & cultural context
                                                        (inter)national
               knowledge usage
                                                            context

 customers                        suppliers
                                                             national
                                                        innovation system
                    industry

  partners                       competitors

                                                            national
                                                             policy



             exchange knowledge &
                                               policy
                    people                                  European
                                                              Union



             knowledge development



     ✓                              ✓
                                                          international
                                                          organisations
   knowledge
                               labour market
    exchange



    research                     education                other regions
20110705 clusters & innovation ecosystems
3 Some lessons
    learned
"All happy families are alike;
each unhappy family is unhappy
       in its own way."
"All happy clusters are alike;
            families
each unhappy family is unhappy
       in its own way."
"All happy clusters are alike;
            families
each unhappy cluster is unhappy
             family
       in its own way."
Ingredients
          happy cluster
• Constant high talent-flow
• Highly specialized knowledge
• Rising tide
• 30 minutes travel time
• Policy commitment
• Sophisticated demand
• Lunch instead of lawyers
• Bias for Action
Europe is lagging
• Very late to the game (1951!)
• Tenure 12 months pay to comfortable
• National instead of EU science competition
• Funding fundamental research dominates
• Innovation arena dominated by big players
  - To many subsidies
  - To much red tape
• Flawed regulatory framework
  - Bankruptcy laws
  - VC tax incentives (SBIC)
In general, knowledge is the
  under-utilized resource in
   innovation ecosystems
It's the people,
       stupid!




'Every cluster has it's Terman'
Thank you for your
    attention

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20110705 clusters & innovation ecosystems

  • 1. Clusters & Innovation Ecosystems July 5th, Utrecht Frans Nauta
  • 2. Clusters & Innovation Ecosystems July 5th, Utrecht @fnauta Frans Nauta
  • 3. 1. Clusters 2. Innovation Ecosystems 3. Lessons learned
  • 5. Clusters • Enough resources and competences amass and reach a critical threshold; • Giving it a key position in a given economic branch of activity; • With a decisive sustainable competitive advantage over other places, or even a world supremacy in that field.
  • 6. Clusters • Enough resources and competences amass and reach a critical threshold; • Giving it a key position in a given economic branch of activity; • With a decisive sustainable competitive advantage over other places, or even a world supremacy in that field. "There are no low-tech industries, only low-tech firms"
  • 8. Fred Terman @ Stanford
  • 13. A secret history of Silicon Valley: www.steveblank.com
  • 18. SCUOLA INTERNAZIONALE DI LIUTERIA A. STRADIVARI • 1938 founded • 1950: 6 students • 2008: 150 students - 30 South-Korea - 26 Japan - 6 China - 3 Taiwan
  • 25. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange research education other regions
  • 26. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange 1 research education other regions
  • 27. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors 2 national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange 1 research education other regions
  • 28. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors 2 national policy exchange knowledge & policy people European 3 Union knowledge development international organisations knowledge labour market exchange 1 research education other regions
  • 29. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors 2 national policy 4 exchange knowledge & policy people European 3 Union knowledge development international organisations knowledge labour market exchange 1 research education other regions
  • 30. regional socio-economic & cultural context 5 (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors 2 national policy 4 exchange knowledge & policy people European 3 Union knowledge development international organisations knowledge labour market exchange 1 research education other regions
  • 31. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange research education other regions
  • 32. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange research education other regions
  • 33. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange research education other regions
  • 34. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange research education other regions
  • 35. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange research education other regions
  • 36. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange research education other regions
  • 37. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange research education other regions
  • 38. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange research education other regions
  • 39. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development ✓ ✓ international organisations knowledge labour market exchange research ✓ education other regions
  • 40. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange research education other regions
  • 41. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange research education other regions
  • 42. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange research education other regions
  • 43. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange research education other regions
  • 44. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange research education other regions
  • 45. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange research education other regions
  • 46. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange research education other regions
  • 47. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange research education other regions
  • 48. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development international organisations knowledge labour market exchange research education other regions
  • 49. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development ✓ ✓ international organisations knowledge labour market exchange research education other regions
  • 50. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development ✓ ✓ international organisations knowledge labour market exchange research education other regions
  • 51. regional socio-economic & cultural context (inter)national knowledge usage context customers suppliers national innovation system industry partners competitors national policy exchange knowledge & policy people European Union knowledge development ✓ ✓ international organisations knowledge labour market exchange research education other regions
  • 53. 3 Some lessons learned
  • 54. "All happy families are alike; each unhappy family is unhappy in its own way."
  • 55. "All happy clusters are alike; families each unhappy family is unhappy in its own way."
  • 56. "All happy clusters are alike; families each unhappy cluster is unhappy family in its own way."
  • 57. Ingredients happy cluster • Constant high talent-flow • Highly specialized knowledge • Rising tide • 30 minutes travel time • Policy commitment • Sophisticated demand • Lunch instead of lawyers • Bias for Action
  • 58. Europe is lagging • Very late to the game (1951!) • Tenure 12 months pay to comfortable • National instead of EU science competition • Funding fundamental research dominates • Innovation arena dominated by big players - To many subsidies - To much red tape • Flawed regulatory framework - Bankruptcy laws - VC tax incentives (SBIC)
  • 59. In general, knowledge is the under-utilized resource in innovation ecosystems
  • 60. It's the people, stupid! 'Every cluster has it's Terman'
  • 61. Thank you for your attention

Editor's Notes