Cluster basics: Clusters, Innovation, Competitiveness and Policy
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This document discusses clusters, which are groups of geographically proximate firms in related industries and institutions. Clusters arise naturally from things like resources, demand, and entrepreneurship, and evolve over time rather than being constructed. They benefit firms through mechanisms like knowledge spillovers, specialized inputs, and skilled labor pools. This increases innovation and competitiveness. However, clusters experience inefficiencies like knowledge and network failures that can inhibit innovation, so there is a need for policy support to address gaps between different entities within clusters.
Cluster basics: Clusters, Innovation, Competitiveness and Policy
- 2. Clusters, innovation, competitiveness and policy TCI Global Conference, Auckland, 29 November 2011 Göran Lindqvist CSC, Stockholm School of Economics
- 3. Four questions What are clusters? How do clusters arise? What are the benefits of clusters? What need is there to support clusters? Lindqvist, TCI Global Conference, 29 Nov 20113
- 4. Lindqvist, TCI Global Conference, 29 Nov 20114 1 What are clusters?
- 5. Lindqvist, TCI Global Conference, 29 Nov 20115 Alfred Marshall Principles of Economics, 1890
- 6. Lindqvist, TCI Global Conference, 29 Nov 20116 Staffordshire pottery Buckinghamshire chairs Bedfordshire straw plaiting Sheffield cultery
- 7. Lindqvist, TCI Global Conference, 29 Nov 20117 Giacomo Becattini Paul Krugman Michael Porter 1990
- 8. What are clusters? Clusters are groups of geographically proximate firms in related industries and related institutions Lindqvist, TCI Global Conference, 29 Nov 20118
- 9. Lindqvist, TCI Global Conference, 29 Nov 201110
- 10. Lindqvist, TCI Global Conference, 29 Nov 201111 Surfboard makers Surf clothing Surf shops Foam & fiberglass Wax Chemicals Local university Other local education Competitions Festivals Surf Clubs Surf Schools Manu- facturing Association Lobby Groups MuseumsSkateboards and Snowboards Local surf heroes Media Source: HBS MOC student team
- 11. Lindqvist, TCI Global Conference, 29 Nov 201112 Firms Research organisation s Education organisations Governmen t Capital providers
- 12. Lindqvist, TCI Global Conference, 29 Nov 201113 2 How do clusters arise?
- 13. How do clusters arise? Clusters are naturally occurring phenomena The grow out of seeds such as: o natural resources o particular local demand o acts of entrepreneurship Evolution versus construction o Most clusters have evolved spontaneously o Some clusters are built as acts of policy Lindqvist, TCI Global Conference, 29 Nov 201114
- 14. Lindqvist, TCI Global Conference, 29 Nov 201115 3 What are the benefits of clusters?
- 15. 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 Lindqvist, TCI Global Conference, 29 Nov 201116
- 16. What are the benefits of clusters? Competitiveness Increased innovation Increased entrepreneurship Lindqvist, TCI Global Conference, 29 Nov 201117
- 17. Lindqvist, TCI Global Conference, 29 Nov 201118 4 What need is there to support clusters?
- 18. A cluster… 19 Government Research organisations Education organsiations Capital providers Companies G. Lindqvist, 2011SSE MOC
- 19. 20 Government Research organisations Education organsiations Capital providers Companies G. Lindqvist, 2011SSE MOC A cluster… or isolated islands?
- 20. SSE MOC 2011 - Session 621G. Lindqvist, 2011 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
- 21. Reality is inefficiencies + Knowledge failures + Network failures + Collaboration failures + Coordination failures = Innovation failures 22 G. Lindqvist, 2011SSE MOC
- 22. The seven gaps of innovation 23 1 23 4 5 The research gap The education gapThe capital gap Government gap The company-to- company gap G. Lindqvist, 2011SSE MOC
- 24. 7 G. Lindqvist, 2011 25 SSE MOC Global market gap
- 25. Contact Göran Lindqvist, PhD Center for Strategy and Competitiveness Stocholm School of Economics www.sse.edu/csc goran.lindqvist@hhs.se +46 8 7369524 26 Lindqvist, TCI Global Conference, 29 Nov 2011