Success Factors for Internationalisation of Clusters
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1 Success Factors for Internationalisation of Clusters Dr. Gerd Meier zu Köcker Berlin, 18 th September
2 Reasons Not to Internationalise If policy makers insist If it is a mandatory part of funding rules Only because of funding If products or technologies are not competitive If cluster participants do not have capacities to internationalise If the cluster management does not have the mandate to internationalise If the cluster does not have any idea or strategy where and why to internationalise 2
3 Reasons Why to Internationalise To increase growth and profit of cluster participants If transnational cooperation provides more added value than regional cooperation To enter new markets or acquiring new customers To tackle new value chains To acquire knowledge or competences not available among cluster participants To share risks (R&D, projects, investments etc.) To reduce costs (e. g. production is cheaper abroad) To increase visibility and become more attractive 3
4 Internationalisation of Clusters is more than business trips and trade fairs is more than only export promotions is a tool, not a target takes a long time to success varies significantly between clusters 4
5 Kinds of Internationalisation of Clusters Trend scouting Products, technologies Markets, consumer behaviour etc. Export promotion R&D cooperation Joint product development Incl. adaptive development Acquisition of know-how, technologies Strategic partnerships Joint venture Foreign branch Foreign production facilities 5
6 Geographical Priorities of Activities of Clusters from Selected Countries Regional 60 % 50 % 40 % 30 % 20 % 10 % 0 % International National Spain France Germany Norway Denmark ESCA 2013, data from
7 Success Factors for Making Business in Korea VDI/VDE-IT, 2011, Survey among 150 German SMEs 7
8 Some Success Factors Higher impact on business activities of cluster participants when cluster management is responsible for internationalisation Transnational, cross-sectoral co-operation is still a challenge Meier zu Köcker et al., 2011, 8
9 Failure Factors Meier zu Köcker et al., 2011, 9
10 10 Key Success Factors Internationalisation strategy developed with cluster participants Cluster management is responsible for internationalisation Competitive products, technologies (and companies) Cluster actors are willing and able to invest Innovative services offered by the cluster management International experience of cluster management team Good knowledge of international cluster landscape Public support schemes (e. g. funding schemes) Involvement of other key actors (export promotion agencies, Foreign Chamber of Commerce etc.) Patience 10
11 10 Steps Towards an Internationalisation Strategy Communication of the upcoming strategy process among the cluster participants Selection of stakeholders and cluster actors to be involved SWOT analysis/analysis of the current demand status and future expectations Creativity workshops with cluster actors and stakeholders Additional interviews with selected cluster actors Deduction of strategic objectives and operational targets Identification of main action fields Prioritisation of actions and services Discussion of approach with cluster actors and stakeholders Agreement on action plan for development and implementation of services 11
12 Cross-Sectoral Cooperation is Still an Issue Technologies and industries are more and more converging; Key driver: industrial transformation processes Cluster and cluster management must cope with this challenge 12
13 Prevailing Services of Cluster Organisations in the Context of Internationalisation Other services/activities Availability of print/web information in foreign languages Participation of the cluster management in trade fairs / conferences abroad with own booth to present the cluster and its participants Acquisition of international R&D projects that were mainly initiated by the cluster management 0 Offices or other permanent representations of the cluster abroad Other activities by the cluster management for intensifying international contacts and cooperations with foreign partners or clusters Spain France Germany Norway Denmark ESCA 2013, data from
14 Current Trends 14
15 Internationalisation The Ideal Case Sustainable strategic partnerships Looking for external partners Among cluster actors 15
16 Internationalisation The Ideal Case Sources: gerber and Limmatdruck Zeiler 16
17 From International Networking Towards Strategic Partnerships International Cleantech Network (ICN) is a global strategic cluster partnership Alliance of 16 cluster organisations from Africa, Asia, Europe and North America Initiated and managed by Clean Connecting Danish Cleantech Based on a joint strategy to enhance knowledge-sharing between businesses, knowledge institutions and local authorities, to improve collaboration between the regions in which the clusters are located, to increase visibility to attract talents, to facilitate identifying of partners for R&D projects or business, and to provide market insights and assistance for internationalisation. 17
18 Summary Traditional approaches and key success factors for cluster internationalisation are not sufficient to address upcoming industrial needs for internationalisation. 18
19 Contact Dr. Gerd Meier zu Köcker VDI/VDE Innovation + Technik GmbH Steinplatz Berlin mzk@vdivde-it.de Tel.: Fax:
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