STRATEGY FOR DENMARK S CLUSTER POLICY

Transcription

1 STRATEGY FOR DENMARK S CLUSTER POLICY 1

2 STRATEGY FOR DENMARK S CLUSTER POLICY PUBLISHED BY: The Danish Ministry of Science Innovation and Higher Education Bredgade 43 DK-1260 Copenhagen K Tel: Fax: fi@fi.dk DESIGN AND PRODUCTION: Formidabel CIRCULATION: 300 ISBN WEB: ISBN PRINT: April

3 STRATEGY FOR DENMARK S CLUSTER POLICY APRIL 2013

4 SUMMARY Clusters play an important role as drivers of growth and innovation locally, regionally and nationally. Cluster organisations can help enterprises create innovations and commercial successes faster, and they can establish innovative public-private collaborations that can contribute innovative solutions to society s challenges. The regional growth partnership agreements between the Danish government and the regional growth forums (May 2012) state that in 2012, a strategy is to be prepared on how to create a good framework for innovation, knowledge sharing and growth in innovation networks and clusters at a national, regional and loval level as a whole, including how to ensure strengthened collaboration and division of tasks between governmental, regional and local levels. With this document, eight ministries, the six regional growth forums and Local Government Denmark (LGDK) present a joint strategy on how Denmark, through an efficient cluster policy, can contribute to our creating tomorrow s strong competitive and innovative enterprises. The eight ministries are: The Ministry of Science, Innovation and Higher Education, the Ministry of Business and Growth, the Ministry of Foreign Affairs, the Ministry of Housing, Urban and Rural Affairs, the Ministry of Food, Agriculture and Fisheries, the Danish Ministry of Climate, Energy and Building, the Ministry of the Environment, the Ministry of Health. The strategy builds on the policy up until now, and at the same time it constitutes a gathering, focusing and strengthening of the area so as to ensure cohesion and synergy between the regional growth forums and the government s efforts within cluster development. The strategy has been prepared by an interministerial and cross-regional working group, which has included industry organisations and trade unions, research and educational institutions and other central innovation players. No other country has involved all relevant ministries, regions and municipalities in a partnership about cluster development in the same way. development in Denmark and ensure cohesion and synergy between local, regional, national and international cluster efforts. Secondly, an effort to qualify and professionalise the Danish cluster organisations will be carried out. This will be done by dividing the cluster organisations into three cluster leagues in accordance with European quality standards, offering targeted competence development at all three levels via a joint support function for Danish clusters. Thirdly, the international activities of the clusters will be strengthened, including in our neighbouring countries in the Nordic and Baltic regions, where there are still large unexploited market potential for Danish SMEs. This will happen partly through intensified collaboration with foreign clusters, the Danish innovation centres and other Danish representations abroad. Furthermore, joint matchmaking seminars will be organised for clusters in the Nordic countries, the Baltics and the rest of Northern Europe. The strategy has been prepared by an interministerial and cross-regional working group led by the Ministry of Science, Innovation and Higher Education. Appendix 2 contains an overview of the working group participants. Subsequently, LGDK, and the Ministry of Food, Agriculture and Fisheries, the Ministry of Climate, Energy and Building and the Ministry of Health have acceded to the strategy. The strategy creates a joint coordination of the cluster and network policy across municipalities, regions and ministries in relation to the establishment, development, internationalisation and professionalisation of clusters and networks. The strategy consists of three main initiatives: Firstly, a forum for the cluster and network policy in Denmark is to be established as a part of the government s growth partnership agreements with the regional growth forums; this will consist of the eight ministries and the six regional growth forums. The forum is to support cluster 4

5 1 INTRODUCTION Enterprises participate actively in cluster collaboration and innovative networks because this gives them access to new knowledge, new business partners and other advantages that can strengthen their innovation, sales and export. This is why the enterprises (especially the small and mediumsized) and their growth and development potentials are the focal point of the public cluster and network policy. Enterprises vary greatly and encounter many different challenges and needs in relation to their development and innovation. In Denmark, we have therefore established an efficient and cohesive innovation system consisting of a number of players and instruments that supplement and support each other (by some called the eco system for innovation ). Cluster organisations constitute an important piece in the overall innovation system. Not only are they independent players in the innovation system, they can also help strengthen the cohesion and the value of the system to the individual enterprise. This is due to a combination of three elements: 1) Cluster organisations work with enterprises over a long period of time, which gives them in-depth knowledge of the challenges and needs of the enterprises; 2) Cluster organisations consist of or collaborate closely with all the other players in the innovation system and can quickly involve these when the need arises; and 3) The cluster organisations have built up in-depth knowledge of the different innovation programmes to which the enterprises can apply. CENTRAL OBJECTIVES OF THE CLUSTER POLICY IN DENMARK Strengthen innovation, research and growth via increased public-private interaction, particularly within areas with growth and development potentials. Support the growth and innovation capacity of small and medium-sized enterprises. Support and accelerate the transition of Danish business to the knowledge-based economy and thereby contribute to ensuring tomorrow s competitive edge and jobs in Denmark. Establish efficient matchmaker functions that can provide enterprises with easy access to research, technology and knowledge. Support the enterprises internationalisation, access to foreign markets and matchmaking with foreign business partners. Contribute with innovative solutions to social problems. The cluster effort is coordinated with other innovation and business promotion efforts, which also work with the implementation of a number of the above objectives. 1.1 STRATEGY FOCUS The regional growth partnership agreements between the government and the regional growth forums from May 2012 state that in 2012, a strategy is to be prepared on how to create a good framework for innovation, knowledge sharing and growth in innovation networks and clusters at a national and regional level as a whole, including how to ensure strengthened collaboration and division of tasks between government and regional levels. The focus in this collaboration strategy is the public effort aimed at promoting the development of competent cluster organisations and strengthening collaboration activities in clusters that can create innovation, growth and competitive power in the enterprises. Cluster organisations can be sup- 5

6 ported by different players and authorities, including the cluster s enterprises and knowledge institutions as well as municipal, regional, national and international authorities. A central element in the strategy is to strengthen the collaboration and coordination between the different national, regional and municipal authorities that organise and carry out the public cluster policy. The cluster and network policy focuses on collectively addressing a large group of enterprises that are facing the same challenges. It promotes efficient tools for increasing the innovation capacity in many small and medium-sized enterprises in one go. The cluster effort aims to promote innovation and increase the knowledge and innovation capacity in enterprises with growth and development potentials, including, in particular, small and medium-sized enterprises innovation capacity as well as innovative collaboration and research collaboration between knowledge institutions, enterprises and public institutions. There are other types of informal enterprise clusters and business networks that are also important to the participating enterprises. They are supported by good, general macro and microeconomic framework conditions. Furthermore, a whole string of framework conditions are also of great significance to the growth and development conditions of clusters and their enterprises. Some framework conditions are determined by developments in the global economy, while others are determined by the policy and the regulations that concern other areas, such as research, education, health, environmental regulation etc. The present strategy does not focus directly on these framework conditions, but it does prepare the ground for the national collaboration forum that is going to be established to have a closer look at how in future the framework and the effort within a number of other fields can be organised so that they also support the development of clusters. In the following, the concept cluster organisation is taken to include organisations for enterprise clusters, innovative networks and governmental innovation networks alike CLUSTERS AND NETWORKS CREATE GROWTH Clusters and networks promote knowledge collaboration, competence development and thus innovation, development and research in all types of enterprises. Four times as many small and medium-sized enterprises become innovative when they participate in cluster and network activities as compared to enterprises that are not involved in cluster collaborations. Clusters and networks also contribute to four times as many enterprises starting collaboration projects on innovation and research with external knowledge partners as compared to corresponding enterprises outside cluster and network collaboration. 1 On average, this means a 9 percent higher productivity per employee for small and medium-sized enterprises that collaborate with knowledge institutions on concrete research and innovation projects. 2 Every year, more than 6,000 Danish enterprises participate in the activities that are launched by local, regional or national cluster and network organisations. More than 80 percent are small and medium-sized enterprises. 1.3 COMPETENT CLUSTER ORGANISATIONS CRE- ATE INCREASED VALUE Strong clusters are made up of different players with leading competences within their field. The players are private enterprises, private or independent organisations, universities, GTS institutes (Authorised Technological Service Institutes), educational institutions, other knowledge institutions and public institutions and authorities. Other types of ideal players would be the vaeksthus growth guides, innovation incubators, science parks etc., which can contribute their competences, resources and activities. The enterprises are the core of the clusters and the focus of the cluster organisation s activities. It is essential that there is a professional community of interests among the enterprises, but they also need to supplement each other as regards competences and positions in the value chain. Many enterprise clusters are established around entire value chains, incl. sub-suppliers, service suppliers and advisers. Competing enterprises often participate in the same cluster 6 1 The Danish Agency for Science, Technology and Innovation, Innovation: Analyse og evaluering (Innovation: Analysis and Evaluation) 18/2011, Impact Study: The Innovation Network Programme 2 The Danish Agency for Science, Technology and Innovation, Innovation: Analyse og evaluering (Innovation: Analysis and Evaluation) 02/2011, Økonomiske effekter af erhvervslivets forskningssamarbejde med offentlige videninstitutioner (Economic Effects of the Business Community s Research Collaboration with Public Knowledge Institutions)

7 and benefit from the collaboration. The fact that both large, leading companies and small and medium-sized enterprises within a field participate ensures dynamic collaboration. The large enterprises serve as a magnet that attracts the smaller entities and may contribute to increasing the focus of small and medium-sized enterprises on research and innovation. In the course of the last 15 years, a whole string of cluster organisations have been established in Denmark, typically based on a combination of private and public funds. The need for a cluster organisation emerges because the cluster s enterprises and other players may benefit greatly from the cluster collaboration being set in a strategic and professional framework. This makes it possible to come together with a joint strategy and joint development activities, which create greater value than the players would have been able to create individually. Cluster organisations have gradually become an important part of the business and knowledge-related infrastructure for innovation and knowledge transfer that is aimed specifically at small and medium-sized enterprises. Focus has been directed at gathering all relevant players within the individual cluster in organisational collaboration. The cluster organisation serves as a forum for development of new collaboration relations between private and public players and for dialogue about future research and educational needs. The cluster and network policy may therefore also constitute an efficient tool that will facilitate faster development of innovative solutions to great societal challenges. Cluster organisations constitute a gathering point or a triple helix structure, in which all relevant public and private stakeholders meet and develop joint strategies and solutions to the problems that face the public and private sectors. Many Danish cluster organisations are already focusing on areas with significant social challenges, for instance within climate, energy, environment, welfare, health, transport, housing and foods. 1.4 ACTIVITIES AND STRUCTURE OF CLUSTER ORGANISATIONS The cluster organisation specifically helps enterprises find business partners in Denmark and abroad, identify challenges and necessary knowledge, upstart of new projects and general knowledge dissemination and knowledge sharing. All in all, the central activities of the cluster organisations are as follows: Helping to launch and conduct concrete innovation and collaboration projects for enterprises and knowledge institutions. Promoting matchmaking where two or more parties are brought together to establish new collaboration activities. Promoting international collaboration, matchmaking and investigation of new market and export opportunities in collaboration with relevant partners such as The Danish Trade Council and the Enterprise Europe Network. Sparring, ideas development and competence development, e.g. via enterprise groups, workshops and courses. Knowledge dissemination that keeps enterprises updated on the latest knowledge and research. Being a focal point and a bridge-builder for the participation of enterprises in the innovation system. Supporting the collaboration of enterprises with other enterprises, e.g. on access to markets in Denmark and abroad, joint business development, increased commercialisation of research, development and innovation etc. Contributing to picking up on enterprises need for education and thus serving as a fine-mesh advisory board for the educational institutions. Cluster organisations typically consist of a secretariat with a cluster manager heading the day-to-day work and a board that is responsible for the strategic direction. The board should include businesses and knowledge institutions as well as other central players/organisations within the relevant area. On average, the large cluster organisations have 4-6 employees. The largest have as many as employees. The many small and minor cluster secretariats have ½-1½ employee. The secretariats are located at universities, industry associations, GTS institutes, science parks or other non-profit organisations. Industry organisations should be able to play a dominant role in the cluster organisation, e.g. on its board, and support its work through the communication of services to the industry organisation s member enterprises. Industry organisations will also be able to contribute to identifying needs for new, emerging enterprise clusters and to communicate the enterprisees needs for quality and relevant services. In addition to representing the enterprises interests in the cluster organisation, the industry associations can also serve as ambassadors and help the cluster organisations create good contacts and reach more enterprises. 7

8 Recent international surveys indicate that cluster organisations with a large number of enterprises have a greater effect for the participating enterprises than a cluster organisation for a small number of enterprises. 3 This is because the diversity of competences and the amount of collaboration opportunities increase, and the critical mass of the cluster organisation increase the offer of specialised activities and services. Finally, large cluster organisations will be better equipped to sustain the loss of enterprises within the cluster. The requirements on the cluster management grow in step with the number of players. A competent cluster management is necessary in order to ensure that several hundred enterprises with different needs achieve value from the collaboration in the cluster organisation. The best organisations in Europe including in Denmark have shown how to do this. One of the elements is to subdivide large cluster member enterprises of organisations into smaller communities of interest but with a focus on preserving cross-disciplinary synergies. Enterprises should continually give feedback to the cluster organisation about needs, and they should actively influence the content of the activities so that quality and relevant services are provided. At the same time, it is important that the enterprises contribute with their own funding of the cluster activities in order to ensure adequate involvement and commitment from the enterprises. 3 The Danish Agency for Science, Technology and Innovation, Innovation: Analyse og evaluering (Innovation, Analysis and Evaluation) 17/2011, Clusters Are Individuals: Creating Economic Growth through Cluster Policies for Cluster Management Excellence Nordic-German-Polish Cluster Policy Benchmarking Project 8

9 2. THE CLUSTER POLICY IN DENMARK 2.1. DEVELOPMENT IN THE CLUSTER POLICY IN DENMARK There are cluster organisations located in every part of Denmark. The Danish regions are working on second generation development strategies, focusing on growth and job creation through the use of cluster organisations. The regions are now giving priority to the most significant regional clusters of which many have main activities that go beyond the regional borders. In 2008, a number of government/regional cluster and network programmes (e.g. Regional Technology Centres, High-tech Networks, ICT Competence Centres, Cross Road Copenhagen, Øresund Initiatives etc.) were gathered into one national programme, Innovation Network Denmark under The Danish Council for Technology and Innovation, and the number of supported cluster organisations was reduced by about 50 percent to around 20. Those 20 focus on significant Danish business and research-related positions of strength and collaborate internationally with around 35 similar foreign cluster organisations. Via coordination between government and regions, a critical mass of competences and activities aimed at enterprises has been established in the cluster organisations. In terms of enterprise participation and geographical distribution, the Danish cluster organisations in the Innovation Network Denmark programme correspond to similar cluster organisations in e.g. Germany, France, Finland and Austria, where on average some active enterprises are associated with each cluster organisation, and where 80 percent of the players are located within a radius of 150 km from the cluster core. 4 Germany, Austria, France and Finland have worked strategically and systematically with cluster and network policy for 10 years more than we have in Denmark. We still have a lot to learn. This is why ministries collaborate closely across the countries, preparing joint analyses and policy papers. The EU has increased its focus on cluster and network policy. The European Commission is developing a European Cluster Excellence Initiative (ECEI) and introducing a quality label for cluster organisations, which is only to be awarded to the elite among cluster organisations in Europe. In addition to getting greater exposure the expectation is that cluster organisations which achieve the ECEI quality label will gain easier access to certain types of EU-funded collaboration activities under the future research programme Horizon Furthermore, the European Commission recently set up a special unit for cluster and network policy, which is to promote efficient eco systems for innovation, smart specialisation, internationalisation of cluster organisations just as it is to promote excellent cluster organisations etc. 2.2 DURABLE CLUSTER ORGANISATIONS The quality and the size of the cluster organisations are of great importance to the efficiency of the enterprises, but they vary greatly. New international surveys show that it is crucial to success and durability of the cluster organisations that they are competently managed and efficiently organised, and that they offer services that are tailor-made to suit the needs of the enterprises. In future, it will be necessary to increase focus on the development of efficient cluster organisations, including good management, good competences and offers and activities that are aimed directly at enterprises. This will contribute to increasing the effect of the growth, export and innovation of the cluster organisations services and activities. This can be done by improving the coordination of the policy across local, regional and national levels and by collaborating on increasing the competences and quality of the services in the cluster organisations. Analyses show that the cluster organisations that create the greatest effects for the enterprises have existed for a number of years, have managed to gather the relevant and most competent players nationally, and have developed via strong and competent cluster and network management. 5 Thus, the cluster policy is most efficient in the medium and long term. The policy must promote the good enterprise clusters development possibilities while at the same time ensuring that room is created for future clusters and growth enterprises within new and promising business areas. The policy must also be able to find and develop tomorrow s growth industries the so-called emerging clusters. 4 The Danish Agency for Science, Technology and Innovation, Innovation: Analyse og evaluering (Innovation: Analysis and Evaluation) 16/2012, Clusters Are Individuals II: Creating Economic Growth through Cluster Policies for Cluster Management Excellence Pan European Cluster Policy Benchmarking Project, forthcoming 5 The Danish Agency for Science, Technology and Innovation, Innovation: Analyse og evaluering (Innovation: Analysis, Evaluation) 17/2011, Clusters Are Individuals: Creating Economic Growth through Cluster Policies for Cluster Management Excellence Nordic-German-Polish Cluster Policy Benchmarking Project 9

10 An efficient cluster policy and competent cluster organisations can help ensure that enterprise clusters and industries go through a successful transition process into knowledgebased, internationally competitive production. One example of this is the cluster organisation The Innovation Network Lifestyle, which has played a central role in the transformation of the crisis-stricken timber and furniture industry in the Central Denmark Region into a successful lifestyle cluster that sells design and lifestyle products of high value. The cluster policy therefore focuses not only on what we are to live on tomorrow, but also on what we are to live on in years time. A modern policy needs to have a long-term perspective. contributing actively to knowledge exchange. The Ministry of Science, Innovation and Higher Education also wants to create incentives for formalised collaborations between cluster organisations and other central players in the innovation system, including GTS institutes. The Ministry s performance contracts with GTS institutes already include stipulations that the institutes must collaborate on knowledge dissemination with relevant networks and clusters. 2.3 COHESION BETWEEN CLUSTER ORGANISA- TIONS AND EDUCATIONAL INSTITUTIONS AND GTS INSTITUTES It is important that the different players in the innovation system, including the universities, GTS institutes and educational institutions etc., focus on using the cluster organisations as a tool for reaching the enterprises with their knowledge and for finding enterprisees for collaboration and research projects. The cluster organisations can handle a greater degree of matchmaking and transfer of knowledge between their member enterprises needs for education, learning and competences and the educational environments at all levels. This could, among other things, involve communicating knowledge about concrete bottlenecks, which the member enterprises experience in the labour market within the given cluster area, so that the educational environments can pick up the glove and develop new educational programmes, improve the existing ones and introduce new supplementary training offers. It should also include coordination with the municipal labour market policy effort, the job centres and the employment regions that have monitoring tasks in relation to identifying bottlenecks in the labour market. The Ministry of Science, Innovation and Higher Education wants to enter into dialogue with the knowledge institutions to work towards a more prominent position for the cluster organisations in the institutions strategies for knowledge dissemination. A knowledge institution should be an active participant in a cluster, receive knowledge from the other institutions and enterprises and commit itself to 10

11 3. THE STRATEGY S OVERALL OBJECTIVE AND INDICATORS The following overall objective is laid down for the cluster policy: Cluster establishment and cluster development must, via innovation, innovative solutions to society s problems, and research and competence development, promote the enterprises competitiveness, export growth, investment promotion, employment and productivity in Danish business. In order to achieve this, a central tool is the establishment and development of excellent cluster organisations. The objective is to be achieved by means of a number of concrete initiatives and measures that strengthen the entire cluster and network effort through to The 2020 indicators will be as follows: INDICATORS FOR THE CLUSTER POLICY THROUGH TO 2020 INDICATORS FOR THE DANISH CLUSTER LANDSCAPE AND THE QUALITY OF THE CLUSTER ORGANISATIONS: Denmark has 10 regional or national cluster organisations that achieve the ECEI Gold Label. Denmark has at least a further 10 regional or national cluster organisations that achieve the ECEI Silver Label. Denmark has an appropriate flora of demand-driven small local or minor regionally located cluster organisations that are easily found by the enterprises and trade council management consultants, and which support the enterprises need for development, knowledge and innovation, regardless of the enterprises development level or geographical location. INDICATORS FOR THE EFFECT OF THE CLUSTER POLICY: At least 10,000 enterprises participate actively in the regions and the governments cluster activities. At least 2,000 enterprises initiate collaboration projects with knowledge institutions each year based on participation in the regions and the government s cluster organisations activities. New innovations are created in at least 1,000 enterprises per year as a result of the cluster activities. Significant growth and employment effects can be documented for the enterprises that participate in the cluster activities. 11

12 4. FORUM FOR THE CLUSTER AND NETWORK EFFORT IN DENMARK As an element in the government s innovation strategy and growth partnership agreement with the regional growth forums, a forum on the cluster and network policy in Denmark is being established between the Ministry of Science, Innovation and Higher Education (chairman), the Ministry of Business and Growth, the Ministry of Foreign Affairs, the Ministry of Housing, Urban and Rural Affairs and the Ministry of Food, Agriculture and Fisheries, the Danish Ministry of Climate, Energy and Building, the Danish Ministry of the Environment, The Ministry of Health, the six regional growth forums and LGDK. The forum is to support cluster development in Denmark and ensure cohesion between local, regional, national and international cluster efforts. The forum will support and monitor that the objectives and indicators that have been laid down for the cluster effort are achieved, including that the regional-national cluster and network infrastructure together covers significant business areas in Denmark, that a sufficient critical mass is ensured in clusters with strong development potentials, and that no inexpedient overlaps are established in the cluster structure. The partners will ensure the internationalisation of Danish clusters and use of the new European ECEI quality system. The partners will also build bridges to European and international initiatives within cluster and network policy, including e.g. the cluster organisations participation in Horizon 2020 and in initiatives in the Baltic region or in other European regions. The forum will work towards ensuring that the cluster policy becomes useful both in the large urban areas and in the rural districts. To this end, particular focus is directed at ensuring balance in the development of regionally, nationally and internationally strong cluster organisations and the support of cluster creation locally and regionally. As an element in this, the local, regional and national effects of the cluster and network effort will be studied and mapped. THE FORUM S TASK: THE FORUM S TASK IS TO MONITOR, COORDINATE AND DEVELOP THE CLUSTER EFFORT, INCLUDING: Promoting collaboration and coordination of the cluster effort across municipal, regional, governmental and international bodies. Creating an overview of the Danish cluster landscape for enterprises and other players. Exchanging and establishing joint data, cluster analyses and advanced analyses of positions of strength within private research, development, innovation and competences in order to facilitate an implementation of the strategy and strengthen the regional-national dialogue on positions of strength, specialisation etc. Discussing and coordinating regional strategies for smart specialisation and ensuring cohesion with the overall strategy for the cluster and network policy. Dividing existing or new cluster organisations into three cluster leagues and in future placing the cluster organisations in the leagues (based on the ECEI quality system). Coordinating national and regional offers about cluster development and conducting joint hearings of applications within the group of partners. Clarifying and discussing the possibilities of standardising, harmonising and simplifying requirements posed on grant recipients, e.g. requirements about co-funding and reporting. 12

13 Supporting the development of excellent cluster organisations, inter alia competence development and knowledge sharing between clusters, international benchmarking and achieving the EU s Cluster Gold and Silver Labels. Promoting Danish cluster organisations internationalisation, including by supporting inter-cluster collaboration across national borders, prioritisation of other types of international collaboration within the grants and strategic use of Danish representations, institutions and innovation centres abroad. Promoting Danish interests in the EU s cluster policy through the coordination of Danish participation in European cluster policy forums and through the coordination of Danish attitudes and views in relation to the EU and the European Commission s office for cluster and network policy in DG Enterprise. Ensuring continual updating and further development of the cluster strategy in dialogue with the research, technology and educational sectors and trade organisations. Collaborating with relevant ministries and authorities about using cluster organisations as strategic tools in different contexts that support the government s entire growth and innovation policy. Monitoring, assessing and measuring effects of the cluster effort, including in the form of annual performance accounts that take stock of the entire effort. Coordinating the development of new analysis tools and Internet tools for cluster organisations, and ensuring the spreading and use of new self-assessment tools in order to promote the quality and efficiency of the clusters services and performance.the cluster activities. Significant growth and employment effects can be documented for the enterprises that participate in the cluster activities. The forum is to work towards ensuring that clusters and innovation networks become one of the focal points in the government s combined growth and innovation policy. The forum will discuss and make proposals as to how cohesion and synergy can be created between the cluster effort and other relevant areas, including education, entrepreneurship, business service and the individual ministries sectorspecific innovation effort. The forum will establish strategic collaboration between the cluster organisations and relevant players in the innovation, education, export promotion and trade promotion systems. The forum will be organised with a steering committee consisting of one representative from each of the parties. The steering committee can be supplemented ad-hoc by other relevant stakeholders as observers. The steering committee will meet twice a year and be serviced by a joint secretariat managed by the Ministry of Science, Innovation and Higher Education. At the end of 2013, the forum will assess the need for an update of the strategy in the light of developments and experience gathered during the first year. 13

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15 FOCUS AREAS FOR THE FORUM S INTER-MINISTERIAL COLLABORATION ON CLUSTERS EDUCATION It is the government s objective that the educational institutions are to promote innovation in business life to a higher degree. Cluster and innovation networks can be efficient tools for integrating the innovation and education effort for all higher education programmes within many fields. The forum will work towards ensuring that the clusters potential for capturing the enterprises educational needs is used systematically in the education effort. COMMERCIALISATION AND ENTREPRENEURSHIP Clusters and networks have proved efficient instruments for entrepreneurs and for new and existing SMEs that lack experience with research collaboration. Networks can facilitate bridge-building to research and to design and commercialisation experts. In some cases, there will be a need for a commercialisation effort in extension of completed innovation projects. Close collaboration between clusters and the responsible players in the commercialisation, design and entrepreneur area is essential. The Ministry of Science, Innovation and Higher Education requires innovation networks, clusters, research parks and innovation environments to establish concrete collaborations. The forum will also enter into dialogue with the Vækstfonden (the Growth Foundation), the regional growth centres, innovation centres abroad and the local business service about how to create cohesion and synergy between these players and the clusters. PROMOTION OF EXPORT AND ATTRACTION OF FOREIGN INVESTMENTS Efficient collaboration has been established between the Danish innovation centres in China, Germany and the USA and the clusters. This helps the enterprises find international business partners. At the same time, Invest in Denmark continually makes a great effort to map and later market the Danish competence clusters abroad, partly via nine regional project managers who are physically located in innovation environments and competence clusters in the five Danish regions. Netmatch/European Enterprise Network is to collaborate with the Danish Trade Council about targeting export drives for clusters and the establishment of concrete inter-cluster collaboration between Danish and foreign clusters. The Trade Council s ordinary conditions for collaboration with Danish enterprises and organisations are applied in connection with e.g. the above-mentioned criteria. The aim is to expand collaboration with the Trade Council with a view to strengthening the individual cluster organisations international activities in the coming years. This work will also include collaboration on attracting foreign investments, and in this context, the strongest clusters can play an important role by drawing attention to areas where Denmark has special competences and strengths. All new activities should take the one-tier export promotion structure into account. DEVELOPMENT OF SECTOR-SPECIFIC FIELDS Many clusters work within a field that has its own specific ministry. This is the case e.g. within energy, the environment, transport, foods, health/welfare, construction and experience economy. The specific ministries effort is of great value and significance to the business community s framework conditions for innovation and growth. This applies to legislation, regulation and the ministries field-specific development programmes aimed at the business community. It is important that cohesion is created between the specific ministries effort and the cluster effort, so that the specific ministries see clusters and innovation networks as an important instrument when it comes to addressing the challenges and development of the specific sectors. It is essential to avoid establishing overlapping clusters under different ministries. The specific ministries must collaborate with the forum to follow, participate in and develop clusters within their subject areas. This is already happening in e.g. the Transport Sector s Innovation Network. The Ministry of Science, Innovation and Higher Education will initiate a dialogue with relevant specific ministries (transport, foods, the environment, energy, health, and housing, urban and rural affairs) about a joint effort aimed at the relevant clusters within the specific ministries subject areas. 15

16 5. THE MAIN ELEMENTS IN THE CLUSTER AND NETWORK EFFORT There are five main elements in the joint national-regional cluster effort, which will be launched by the partners in the forum: 1) Establishment of three leagues for cluster organisations, each with their own profile and purpose. 2) Support both national cluster organisations and excellent cluster management, and good local and regional cluster organisations that create effect. 3) Strengthen the international collaboration and internationalisation of the cluster organisations. 4) Strengthen clusters as excellent knowledge dissemination organisations. 5) Strengthen smart specialisation locally and regionally. 5.1 ESTABLISHMENT OF THREE LEAGUES FOR CLUSTER ORGANISATIONS Regions have different business structures and different bases for developing clusters and networks. Cluster organisations and their enterprise clusters are at three different levels in their development. Some are small, emerging regionally/ locally specialised cluster organisations. Some are strong, mature and durable cluster organisations, and finally, some are globally competitive and maybe internationally leading cluster organisations. A new effort for cluster organisations is to be organised so as to be able to support cluster organisations at the different development stages. Three leagues for cluster organisations are to be established, for which Danish cluster organisations can qualify and in which they can be placed depending on their specific commercial possibilities and development level, geography and history. 6 The cluster effort will be tailor-made to the three leagues. The objective is to optimise the cluster organisations knowledge and innovation capacity and their activity and competence level regardless of which league they are in. The cluster organisations can move up or down in the three leagues depending on how the cluster organisation, the membership and the business structure develop. Dynamics are to be ensured in the cluster and network landscape as are strong incentives for the individual cluster organisations to develop and improve continually. The division into the three leagues will follow the European standards for benchmarking and quality measurements of cluster organisations, which have been developed by the EU, and which are being implemented by the member countries. Denmark will take the lead in this development along with Germany. The EU s initiative for the creation of excellent cluster organisations operates with cluster organisations at three levels: Gold Label ( world-class excellence ), Silver Label ( strong, mature clusters ) and Bronze Label (documentation only that a cluster organisation structure is in place; does not necessarily say anything about the cluster s level). This makes it possible for cluster organisations to compare themselves to cluster organisations in the rest of Europe for the first time. 7 The system provides a clear structure for learning in the cluster organisations for the benefit of the enterprises that use them. The internationally leading Danish cluster organisations will gain access to a number of special advantages and activities offered by the EU. Being awarded the Gold Label in particular (but also the Silver and Bronze Labels) will give cluster organisations a number of advantages. Firstly, this is recognition of the quality of the cluster organisation, which gives great international exposure and opens many doors to new partners and activities. This makes it easier to get accepted for international collaboration projects. The Gold Label is also a good marketing tool in relation to attracting investors and qualified labour for the cluster. Finally, achieving an internationally recognised quality label may smooth the 6 This model is recommended by 10 countries in a joint international effort aimed at creating a modern cluster and network policy: VDI/VDE-IT, The Perfect Cluster Policy and Cluster Programme Pan European Cluster Policy Group, forthcoming For further information on benchmarking and the 31 ECEI indicators, see: The Danish Agency for Science, Technology and Innovation, Innovation: Analyse og evaluering (Innovation: Analysis and Evaluation) 17/2011, Clusters Are Individuals: Creating Economic Growth through Cluster Policies for Cluster Management Excellence Nordic-German-Polish Cluster Policy Benchmarking Project, and VDI/VDE-IT, The Perfect Cluster Policy and Cluster Programme Pan European Cluster Policy Group, forthcoming

17 path when it comes to applying for funding from the EU, the government or the Danish regions. However, achieving the EU s Gold Label, Silver Label or Bronze Label does not guarantee automatic financial support, neither from the government nor from the regions, cf. details below. In the autumn of 2012, an online assessment tool will be available by means of which cluster organisations can test how close they are to meeting the criteria for achieving the Gold Label and in which particular areas they need to improve. The organisations that can render it probable by means of this tool that they meet the requirements can apply to the Innovation Network Denmark programme (or possibly the regional growth centres) for funding to complete the actual Gold Label certification process, which is carried out by independent, certified auditors. LEAGUE 1: GLOBALLY COMPETITIVE AND INTERNATIONALLY LEADING CLUSTER ORGANISATIONS These are cluster organisations that belong to the elite in Europe / the world measured against the 31 ECEI indicators, which means that they are comparable to the best organisations abroad. Often, these will be cluster organisations that have existed for an extensive period of time, which have developed excellent management and an organisation that has a close trust-based relationship with the cluster organisations players, and which are able to organise valuecreating activities tailored to the cluster enterprises needs. Such a cluster organisation will typically involve internationally leading enterprises and knowledge institutions and will be recognised nationally as well as internationally as a central player and entrance to the business community for the relevant focus area; it will also have established strong international collaboration relations. Often, the Danish internationally leading cluster organisations will focus on areas where Denmark holds business and knowledge-related positions of strength in an international perspective. Thus, these are cluster organisations that are strategically important to support not only by means of cluster funds, but also by means of research and innovation funds and appertaining infrastructure, technological service and qualified labour. Offshore Center Denmark is an example of an internationally leading cluster organisation, which has just, as the first Danish cluster, been awarded the EU s Gold Cluster Label with the approval of the European Commission based on a very high score against the 31 ECEI indicators. The ambiti on is that 10 Danish cluster organisations must be able to achieve the EU s Gold Label. LEAGUE 2: STRONG, MATURE AND DURABLE CLUSTER OR- GANISATIONS These are cluster organisations that have achieved a certain professional level and critical mass, have created documented results in the form of innovation and growth, and have established collaboration that transcends the regional anchoring. In order to qualify for this league, it is necessary to achieve a quality score against the EU s benchmarking that corresponds to silver level. However, the strong, mature and durable cluster organisations still lack something in relation to achieving the same level as the globally competitive and internationally leading cluster organisations. This could, for instance, be that they have not come very far in terms of internationalisation or in terms of creating a sufficient number of value-creating services and activities for their members. An important function for clusters and networks in this league is to support the innovation capacity in small and medium-sized enterprises also within areas where Denmark does not necessarily have international positions of strength, but where there is still room for competitive Danish enterprises if they gain access to the right knowledge and technology. The strong, mature and durable cluster organisations constitute an important part of Denmark s innovation infrastructure as regards the SMEs, and they should be given a good framework and be supported financially even if they will not all be able to develop into globally competitive and internationally leading cluster organisations. The Innovation Network AluCluster is an example of a strong, mature cluster that has high ambitions about moving up amongst the internationally leading clusters. Recognising that the current focus of the cluster does not contain sufficient development potentials to meet the ambition level, the Innovation Network AluCluster is currently considering merging with both the Innovation Network PlastCluster and the Steel Cluster in order to establish a strong, combined globally competitive cluster organisation within materials technology. LEAGUE 3: SMALL, EMERGING REGIONALLY/LOCALLY SPE- CIALISED CLUSTER ORGANISATIONS Emerging cluster organisations and small locally or regionally specialised cluster organisations are at a relatively 17

18 immature development stage compared to internationally leading cluster organisations and mature, large cluster organisations. This may be due to the fact that the cluster organisation is relatively new, that the cluster organisation lacks critical mass or quality in the circle of players (partly because it may have a very geographically limited local or regional focus), or that the cluster organisation has not yet yielded sufficient results in the form of growth and innovation in the enterprises. regions, it will be discussed what basic criteria the parties can agree to apply. For instance, it will be a requirement that every cluster organisation that receives public grants must have in-depth knowledge of all players in the enterprise and innovation system (right from local business service to universities), and they must collaborate with these to provide efficient and cohesive service for the enterprises. The crucial thing here is to identify the emerging cluster organisations whose membership enterprises have strong growth and development potentials, and to focus on supporting these both financially and in terms of competences. There are many small locally, regionally and professionally delimited cluster organisations in Denmark who are not aiming to create world-class clusters. The effort can still support these clusters as they constitute an important regional priority for the creation of economic development, growth and employment in the outlying areas and local areas. In this case, the effort will focus on upgrading the quality of the collaboration through competence development and by ensuring collaboration with other cluster organisations in order to create better effects. All clusters that have chosen to go through the EU s cluster benchmarking exercise ( bronze level ) will, as a starting point, be qualified for this league along with the completely new cluster organisations that achieve support as emerging clusters via the Danish Council for Technology and Innovation s special cluster programme. One example of a new, emerging, but immature cluster is the ongoing endeavours to establish a cluster within the digital creative professions (animation, digital games and learning etc.). PRINCIPLES FOR ACHIEVING FUNDING FOR CLUSTER OR- GANISATIONS As mentioned above, achieving the EU s Gold Label, Silver Label or Bronze Label does not guarantee automatic financial support from neither government nor regions. Financial support for cluster organisations within the three leagues will be achieved in the same way as has been the case until now by meeting the criteria and requirements that are emphasised by each of the grant-awarding authorities. These criteria may vary from region to region and among ministries depending on what is considered of greatest significance. In connection with the forum that will be established among the relevant ministries and the Danish 18

19 EXAMPLES OF IMPORTANT STRATEGIC PRINCIPLES FOR CLUSTER ORGANISATIONS APPROVAL FOR GRANTS CLUSTER ORGANISATIONS Must focus on areas with strong innovation, employment and business potential, and they must take their starting point in current or future positions of strength. Must serve as central focal points for innovation and knowledge dissemination and create synergy between public and private players, including contributing to launching activities that will strengthen incentives for both private and public players, e.g. the healthcare system, to participate in cluster collaboration and public-private innovation activities. Must supplement each other professionally rather than overlapping inappropriately, and seek collaboration with other clusters where synergy can be achieved. Must contribute innovative solutions to the great social challenges, and disseminate knowledge from the large research and innovation projects. Must participate actively in international collaboration for the benefit of the enterprises. Conduct activities based on the needs and challenges that enterprises and other participants face. Must be managed as professional and efficient cluster organisations prepared to develop regardless of which league they are in, and they must learn from best practice for cluster management excellence. Must have critical mass in their circle of participants and include a wide array of leading competences from enterprises, knowledge institutions etc. Are open to all interested players and act independently of individual interests. Must take their starting point in local, regional, border regional or national strengths, but aim to be of benefit to Denmark s entire innovation eco-system. 5.2 SUPPORT OF NATIONAL CLUSTER ORGANISA- TIONS AND EXCELLENT CLUSTER MANAGEMENT, AND OF GOOD LOCAL AND REGIONAL CLUSTER ORGANISATIONS THAT CREATE EFFECT The competences in the cluster management and organisation are crucial to the cluster s ability to create results and effects for the enterprises. Despite the fact that the cluster organisations are typically small, they have at their disposal a palette of different competences of which some are very difficult to acquire through the traditional educational system. It may therefore take several years to establish competent and efficient cluster organisations. However, it is possible to create a quicker path to skill development and professionalisation of cluster organisations if the clusters are offered different forms of competence development, sparring and support targeted at their needs. 19

20 20 In 2009, two different functions were established, which were to support the Danish clusters and networks. The two functions supplement each other. One of the functions was Reg X, which was established in collaboration between a number of partners, including the Ministry of Business and Growth, the Region of Southern Denmark and the University of Southern Denmark. Reg X was to work specifically with strengthening and developing Danish clusters through competence development, knowledge exchange and networks. The other function was Netmatch wihic was established by the Ministry of Science, Innovation and Higher Education via an EU tender. Netmatch was established with a view to being a resource for the Danish innovation networks and other clusters to draw on for competence development of the cluster organisations secretariats, increased internationalisation, development of better matchmaking activities and strengthening of collaboration and synergy between the networks. Netmatch is run by, among others, REG LAB, which is a network and think tank with more than 100 members across innovation and business policy players in Denmark. This gives Netmatch an efficient platform for creating exposure, gathering experience and creating a better framework for knowledge and interaction among the clusters and other key players, e.g. in regions, municipalities and knowledge institutions. Netmatch is also responsible for annual performance accounts of activities in the participating cluster organisations, development of common tools for the cluster organisations, and holding regular meetings, workshops, conferences and seminars for cluster managers and staff. It is important to ensure that the extensive experience and knowledge about cluster development accumulated by the two functions have over the last three years are not lost. In 2013, the activities will be gathered on one platform, which will be accessible to all cluster organisations in the three leagues. The activities will also be further developed and tailored in relation to matching the development stages of the different clusters. 5.3 INTERNATIONALISATION OF CLUSTER ORGANISATIONS The best cluster organisations must engage in international collaboration because this is beneficial to the enterprises and other members of the clusters. Cluster organisations can each play an important role in relation to supporting the internationalisation processes of small and mediumsized enterprises by serving as door-openers for access to international knowledge, partners and new markets and export possibilities. However, the cluster organisations do not have detailed knowledge of foreign conditions, markets and potential partners. It is therefore essential to collaborate with the key players who work with internationalisation of Danish enterprises and investment promotion, including the Danish Trade Council and Invest in Denmark, the Danish innovation centres abroad, embassies and business offices as well as industry associations. It has become clear that there are special potentials and advantages to be found in establishing international clusterto-cluster collaborations, where Danish cluster organisations establish collaboration with one or more foreign cluster organisations which have something relevant to offer from a Danish point of view. This provides Danish enterprises with efficient access to a wide circle of relevant enterprises and knowledge institutions etc. abroad. 20 Danish cluster organisations have launched international activities and collaboration with foreign cluster organisations and with the Danish innovation centres in the USA, Germany and China. By the end of 2013, specific international cluster collaboration projects will exist with at least 50 foreign cluster organisations (see appendix). INTERNATIONALISATION AN INTEGRATED PART OF THE CLUSTERS EFFORT From 2014, international business activities in cluster organisations in the two top leagues are to be a permanent part of the activities that are offered to enterprises. INTERNATIONALISATION OF INNOVATION ACTIVITIES VIA THE CLUSTER ORGANISATIONS The cluster organisations can contribute to strengthening the internationalisation of Danish research and innovation. Foreign research and technology development institutions and enterprises are to contribute increasingly to research and innovation activities for the benefit of Danish enterprises. The cluster organisations are to contribute to the internationalisation of Danish innovation activities and attract foreign competences and investments wherever this is possible and relevant. For instance, cluster organisations can, via collaboration with foreign cluster organisations, increase the participation of foreign universities and researchers in the Danish industrial PhD programme by launching industrial PhD projects in Danish companies. SUPPORT AND SPARRING FOR INTERNATIONALISATION Netmatch and Reg X offer the networks specific help and

21 sparring in relation to their international activities, international benchmarking and ex-ante assessment of compliance with the European ECEI criteria. The actual assessment of compliance with the ECEI criteria must be carried out by independent benchmarking experts, and the awarding of ECEI labels must be approved by a group appointed by the European Commission. Netmatch can help find international contacts and organise international visits and trade fair participation abroad in collaboration with the Danish innovation centres in Germany, the USA, China and other places. Netmatch is also the office of the European Enterprise Network and can offer the networks access to partners, including cluster organisations throughout Europe. STRENGTHENED CLUSTER COLLABORATION IN DENMARK S BORDER REGIONS There are several competent and well-run cluster organisations in the border regions in Northern Germany, Southern Norway and Southern Sweden. Some are already collaborating with cluster organisations in the Danish border regions. Several cluster organisations and enterprises would benefit from initiating cross-border collaboration. Further initiatives will be launched to support cross-border collaboration for cluster organisations and for cluster policy. Cluster organisations in neighbouring countries will be invited to participate in joint activities for the Danish clusters where this is relevant. In collaboration with foreign parties, Netmatch will organise an international cluster organisation day for the 100 best clusters in the Nordic and Baltic countries every two years. COLLABORATION WITH THE INNOVATION CENTRES The cluster organisations collaborate with the Danish innovation centres located in China, Germany, Brazil and the USA to create new collaborations and export opportunities for Danish enterprises. In the coming years, this collaboration will be expanded and reinforced. The innovation centres are to be natural focal points for the clusters and the networks bridge-building to international collaboration and the creation of trans-border inter-cluster collaboration. PARTICIPATION IN INTERNATIONAL CLUSTER POLICY FORUMS The EU member states and many other countries focus on developing and strengthening cluster policy. Extensive policy development and knowledge sharing is taking place within the cluster area in a number of forums and working groups appointed by the individual countries or the EU. Denmark is to participate in the international forums where this is relevant and necessary to contribute to a modern cluster and network policy in Denmark, and to ensure Danish cluster organisations the best chances of participating in international collaboration and becoming known abroad. In future, ministries, government agencies and regions will ensure coordination of Danish participation in the different European and other international forums, so that Denmark gets the requisite influence on the European cluster policy and obtains the knowledge that is necessary in order to support the cluster policy in Denmark as well as the cluster organisations development. 5.4 CLUSTERS AS KNOWLEDGE DISSEMINATION ORGANISATIONS To the cluster organisations, a central activity is to help participating players start research and innovation projects and apply for funding from relevant programmes and pools. The cluster organisation itself does not necessarily have to be an active partner in all of these projects. However, in cases where the cluster organisation has special competences that add further value to the project and increase the effect, e.g. in relation to knowledge dissemination and matchmaking, it should be possible for the cluster organisation to participate. The clusters that achieve the EU s EIEC Label can document that they are excellent players in the innovation system. The EU is expected to give these clusters easier access to a number of the EU s research and innovation programmes. Excellent clusters should have access to being innovation and knowledge dissemination partners on a par with GTS institutes in applications for Danish research and innovation programmes that place emphasis on innovation and knowledge dissemination. In some countries, e.g. Belgium, cluster organisations assess innovation projects and allocate project funds to enterprises and knowledge institutions. This makes it possible to ensure greater cohesion and synergy in the effort within a given field or business area, including large derived knowledge dissemination effects that benefit other members of the cluster. It might therefore at a later stage be worth considering giving competently managed clusters responsibility for driving an innovation scheme targeted at the cluster s players and enterprises. Finally, it will be possible for the cluster organisations in compliance with governmental and regional grant conditions to use part of their network grant to launch minor innovation projects or pilot projects, during which the parties can find out whether there is potential in the area for subsequent preparation of a more comprehensive application to other national or EU programmes. In addition, large projects from the Danish regions, the Danish Council for Strategic Research, the Danish Council 21

22 for Technology and Innovation, the Danish National Advanced Technology Foundation, EUDP the Energy Technology Development and Demonstration programme, GUDP the Green Development and Demonstration Programme, MUDP the Eco Innovation programme etc. can use the cluster organisations seminars etc. to a greater degree as a channel to communicate new research results created in publicly funded projects to a wider circle of enterprises. This will ensure much wider knowledge dissemination of results in Denmark. In this connection, it is advisable that it be made a requirement that all large research and innovation projects must consider how professional results can also be spread via one or more cluster organisations. 5.5 SMART SPECIALISATION LOCALLY AND RE- GIONALLY In connection with the implementation of the Structural Funds , it is expected that Denmark will need to prepare a national strategy / regional strategies for smart specialisation. The strategies are to identify the positions of strength that the individual regions have and wish to promote and develop. Innovation and development via clusters is a key tool in a strategy for smart specialisation. The smart specialisation strategies will therefore be guiding for the regional cluster effort and must therefore also be coordinated with the new forum for the cluster effort. 22

23 6. FUNDING OF THE CLUSTER EFFORT The primary function for the Forum for the Cluster and Network Effort is to serve as adviser and coordinator in correspondence with the suggested tasks in relation to existing authorities and grant-giving bodies. This means, among other things, that the forum may make recommendations to relevant grant-giving authorities about the use of cluster funds, but it will not be given decision-making competences in relation to the allocation of grants. Funding will come from the government s existing Innovation Network Denmark programme, among others. Similarly, the Danish regions will continue to fund the effort via growth forums and the individual regions strategic prioritisation of the regional development funds and the EU s Structural Fund grants. 8 In addition, the effort will be co-funded through private funding, own funding and the EU s research and innovation programmes. As a part of the collaboration with other specific ministries, possibilities of specific ministries participating in supporting cluster efforts within the relevant fields within the ministries respective grant frameworks for research and innovation may also be discussed. It will be possible for the forum partners to provide supplementary funding for existing clusters and networks to undertake additional functions or tasks. This principle also applies across regions, so that for instance several regions can collaborate with the government on strengthening promising new or existing clusters. The Danish Ministry of Science, Innovation and Higher Education / the Danish Council for Technology and Innovation will continue, via the Innovation Network Denmark programme, to fund supplementary support functions for the development of clusters and networks in all three cluster leagues and certain internationalisation activities associated with these. 8 As of December 2012, the framework for Denmark s future grants from the Structural Funds from 2014 and onwards is not yet known. 23

24 APPENDIX 1. CLARIFICATION OF CONCEPTS WHAT IS AN ENTERPRISE NETWORK? Among management consultants, enterprise network denotes relations based on employees and their competences across the enterprise s organisation. Among business consultants and business analysts, the same concept is used as a synonym for a group of enterprises in a limited local or regional area. WHAT IS AN ENTERPRISE CLUSTER? As there is no unambiguous definition of an enterprise network, the term enterprise cluster is more often used to denote a group of enterprises that are in horizontal and vertical networks within a relatively limited local or regional area. This means that enterprises are part of a number of relations with suppliers and customers (the vertical level) and also part of relations with other enterprises that produce similar products or services, which form part of the sales or use process in interaction with or relation to the enterprise s own products or services (the horizontal level). In the traditional perception, enterprise clusters have an element of geographic proximity that makes it possible to interact about qualified labour, suppliers and specialised information. The players in the cluster differ across the value chain, and they can be both competitors and partners at the same time. There are enterprise clusters all over Denmark, and some small or large enterprise clusters have been mapped. WHAT IS AN INNOVATIVE NETWORK? The concept innovative network has been used in relation to a formal network collaboration in which a network facilitator seeks to promote the establishment of relations between a number of enterprises and e.g. one or more knowledge institutions. Such innovative networks can be established by researchers at knowledge institutions. Some innovative networks are based on a large research project. Others are based on many small projects. In 2009, 166 such small or large innovative networks were mapped in Denmark. WHAT IS A HIGH-TECH PLATFORM? A high-tech platform is a collaboration between one or more enterprises and one or more public research institutions. The objective is long-term development of pioneering technology that can facilitate several new commercial assets for the participating enterprises. The platforms typically have a duration of 3-5 years. Typically, the government will finance between DKK 15 and 75 million and up to 50 percent of the overall platform project. A high-tech platform is not a cluster or a network. A high-tech platform can be the result of a collaboration project in an innovative network. WHAT IS A STRATEGIC PLATFORM FOR INNOVATION AND RESEARCH (SPIR)? A SPIR contributes financially to initiatives that strengthen cohesion between strategic research and innovation. The programme creates 6-8-year platforms for enterprises, research and technology institutions and public authorities with a focus on more efficient knowledge dissemination and the possibility of faster and more interactive utilisation of new knowledge for the benefit of innovation in the private and public sectors. Typically, the government finances between DKK 60 and 80 million and up to 75 percent of the entire platform project. The objective is not to develop a large enterprise cluster, but to promote business-relevant, good university research that supports research, innovation, competitiveness and growth in many enterprises. Existing enterprise clusters and innovative networks participate in knowledge dissemination and research activities in a SPIR. WHAT IS A CLUSTER ORGANISATION? A cluster organisation is a flexible organisational entity that serves as a facilitator for value-creating interaction between players in the cluster. The need for a cluster organisation arises because both 24

25 cluster players and public authorities can see an advantage in involving cluster collaboration in a strategic and professionalised context. This makes it possible to join forces around a shared strategy and a shared objective that create greater value for society and for the individual player than the players would be able to achieve individually. Cluster organisations typically consist of a small secretariat with a cluster manager heading the day-to-day work, and a board that holds responsibility for the strategic direction. Over the last 15 years, a whole string of cluster organisations have been created in Denmark based on public offers of funding for cluster and network secretariats. The cluster organisations often see it as their task to create networks and collaboration projects among the cluster s players within innovation, technology, education and training, commercial collaboration, research and market access to international markets. WHAT IS INNOVATION NETWORK DENMARK? An approved Innovation Network is a nationwide innovative network with its own network organisation, in which enterprises meet other enterprises, researchers and experts from Denmark and abroad within different specialised focus areas. There are 22 Innovation Networks in Denmark, which are supported by the government programme Innovation Network Denmark. An Innovation Network complies with the definition of a cluster organisation and is a cluster organisation. The network must be open to all of Denmark, so the 22 Innovation Networks are concentrated regionally with more than 80 percent of the participants within a radius of 150 kilometres and the majority of their activities within two regions. The purpose of the Innovation Network Denmark programme is to establish cluster organisations that will help give the enterprise participants an overview of the most recent knowledge, technology, research and development within their field and create collaboration projects, networks and research, development and innovation activities. The Innovation Networks receive government funding from the Danish Council for Technology and Innovation. In order to be approved as an Innovation Network, the cluster organisation must apply for this and comply with a set of guidelines in order to ensure that the organisation offers its members as many different cluster services as possible. Members and network participants are private and public enterprises, of which more than 80 percent are SMEs, public research and educational institutions, GTS institutes, public authorities, industry organisations etc. The Innovation Network s secretariat must be non-profit and will typically be located in a research park, a university, an GTS institute or an industry organisation. WHAT IS MEANT BY POLICY FOR CLUSTERS AND INNOVATIVE NETWORKS? A policy for clusters and networks is the initiatives that are launched by public authorities in order to strengthen innovation and competitiveness of enterprises through clusters and networks. In the EU, cluster policy denotes the policy and the associated initiatives that actively support the establishment and development of cluster organisations and network organisations. In many countries, both in the EU and in the rest of the world, cluster policy is now considered to constitute one of the important cornerstones in the innovation policy. The policy for clusters and networks is typically supported by a special regional or national cluster programme, which co-funds the establishment of and activities for cluster and network organisations for the benefit of its members and participants. The objective of the cluster and network policy is to ensure competitiveness, growth and employment by focusing on knowledge dissemination, collaboration, research, development and innovation. The balance in the activities varies between industries and enterprise sectors, considering that knowledge dissemination, technology and innovation are more central to some types of clusters and networks than to others. In Europe, various terms are used to describe the programmes that support the creation of cluster and network programmes: cluster programme, programme for innovation networks, programme for competence networks or programme for expertise centres. One analysis shows that the programmes, regardless of their names, basically refer to the same policy. 9 25

26 APPENDIX 2. THE INTER-MINISTERIAL AND INTER-REGIONAL WORKING GROUP ON THE CLUSTER AND NETWORK EFFORT MINISTRIES Thomas Alslev Christensen (Chairman), the Ministry of Science, Innovation and Higher Education / the Danish Council for Technology and Innovation Morten Solgaard Thomsen, the Danish Agency for Science, Technology and Innovation / the Ministry of Science, Innovation and Higher Education Tina Rud Mogensen, the Danish Agency for Science, Technology and Innovation / the Ministry of Science, Innovation and Higher Education Sune Astrup Christiansen, the Ministry of Science, Innovation and Higher Education Anders Ziegler Kusk, the Danish Agency for Universities and Internationalisation / the Ministry of Science, Innovation and Higher Education Anders Thomsen, the Danish Business Authority / the Ministry of Business and Growth Tine Hylleberg, the Danish Trade Council / the Ministry of Foreign Affairs Uffe Andreasen, the Ministry of Housing, Urban and Rural Districts REGIONS Lene Brinch Knudsen, Central Denmark Region Tine Aage, Region Zealand Thomas Kampmann, North Denmark Region Olav Sønderskov, Region of Southern Denmark Ebbe Mosbæk Rasmussen, Capital Region of Denmark Diana Lindahl, Growth Forum Bornholm Lars Albæk, Cluster Development Bornholm (Greater Copenhagen Growth Centre) OTHER ORGANISATIONS Lone Vingtoft, Danish Regions Anne Sofie Sørensen, Danish Regions Lotte Langkilde, REG X Merete Daniel Nielsen, Netmatch Kim Bech, Copenhagen Capacity 9 The Danish Agency for Science, Technology and Innovation, Innovation: Analyse og evaluering (Innovation: Analysis and Evaluation) 17/2011, Clusters Are Individuals: Creating Economic Growth through Cluster Policies for Cluster Management Excellence Nordic-German-Polish Cluster Benchmarking Project 26

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