Can Government Catalyze Clusters? Examples of Government Actions

Transcription

1 Can Government Catalyze Clusters? Examples of Government Actions 6th International Conference The Competitiveness Institute Gothenburg, Sweden, September 2003 Presented by: Kevin Fitzgibbons, Group Leader, Strategic Planning and Policy National Research Council Government of Canadal on behalf of Indira Singh Director, Executive Projects Office Ministry of Northern Development and Mines Government of Ontario, Canada 1

2 Outline Conceptual context The role of government Impact Forms of action Recommendations Ontario government role in mining cluster Questions Concluding remarks 2

3 Providing the Context - What are Clusters? A geographically proximate group of inter-connected companies and associated institutions " Porter and Stern A group of inter-related industries that drive wealth creation in a region primarily through the export of goods and services San Diego Association of Governments A group of industries whose linkages mutually reinforce and enhance their competitive advantage Scottish Forest Industry Cluster 3

4 Providing the Context - Who is Using the Cluster Approach? National governments State, provincial governments Local, municipal governments Development agencies 4

5 Providing the Context - Why the Cluster Based Model? Enhance productivity which determines prosperity Integrated and holistic model for economic development Inclusive and collaborative Facilitates tacit knowledge and promotes social capital Benefits accrue for all involved 5

6 Government Role in Cluster Development Broker, facilitate, participate and listen! Create opportunities for productive dialogue Conduct cluster assessments Institutionalize cluster upgrading Invest in technical, physical and knowledge infrastructure Sponsor cluster conferences and forums 6

7 Forms of Government Action Adoption of a cluster-based economic vision Funding for cluster assessments and strategy development Restructuring programs and services Enhancing R&D spending Infusing technology Experimenting early with new products Procurement - demanding customer Enacting progressive laws and regulations Creating a critical mass of institutions Building and nurturing communication networks 7

8 Specific Government Actions and Their Impacts on Clusters An emerging dynamic wine cluster with unique high quality globally competitive ice wines, winning international awards and enjoying superior ratings - Niagara, Ontario Stronger presence of information technology, biotechnology, multimedia and aerospace clusters - Quebec, Canada 8

9 Specific Government Actions and Their Impacts on Clusters cont d A mature telecommunications cluster surpassing Silicon Valley in terms of growth and job creation - Ottawa s Silicon Valley North, Canada A world leader among agriculture biotechnology clusters, renowned for developing world firsts - Saskatoon s Plant Biotechnology 9

10 Specific Government Actions and Their Impacts on Clusters cont d Formation of an Information, Communications and Technology (ICT) Cluster creating jobs with a strong 3 year growth rate of 177% ( ) - New Brunswick, Canada Arizona s Strategic Planning for Economic Development (ASPED) a powerful tool to revitalize the economy - Arizona, United States 10

11 Specific Government Actions and Their Impacts on Clusters cont d Systems Design Cluster attracts talented expatriots, foreign investment and major companies, and continues to grow - Bangalore, India Semi-conductor and telecommunications cluster draws ex-patriots, foreign investment and major firms - Taiwan 11

12 Government Role in Cluster Development Recommendations for Specific Areas Set and communicate an economic vision of promoting clusters Assess and benchmark clusters Restructure programs and services to support cluster Make data/information available by clusters Learn and apply new paradigms Promote technology infusion 12

13 How the Ontario Government Mobilized Cluster Participants Open to new models of economic development Invested in the analysis of clusters Diffused information and insights with stakeholders Engaged stakeholders and secured buy-in Convened a cluster forum Resulting in: Unanimous, conclusive support for a cluster strategy Momentum and energy of participants Private sector leadership emerged 13

14 Ontario Metropolitan Areas: Selected Industries Mining Mining: Sudbury 10% 8% 6% 14 Ottawa - Hull Kingston Belleville Peterborough Oshawa Hamilton 4% 2% 0% St. Catharines - Niagara Kitchener Brantford Guelph London Windsor Sarnia Barrie North Bay Sudbury Sault Ste. Marie Thunder Bay -2% Explosives Manufacturing: Sudbury North Bay Smelting: Sudbury Mining Machinery: Sudbury North Bay

15 Core competencies to build on: SNO Sudbury Neutrino Observatory The 2 nd most important scientific breakthrough in the past decade (AAAS) World recognition as an engineering achievement in mining and instrumentation technology A model partnership between private sector, university and governments at all 15 levels

16 Ontario Mining Cluster Participants Selected Quotes "If we are going to survive in today's global market, we all must work together. Divided we fall and united we conquer. The cluster approach just makes sense... The cluster approach would give Ontario's mining industry a strengthened voice - a strengthened vision that will allow us to maximize the full potential of our minerals in Ontario. We can't settle for any less." Jamie Lim, Mayor of the City of Timmins (population 70,000) August

17 Ontario Mining Cluster Participants Selected Quotes I like the cluster approach because it recognizes the vital role played by education institutions and the importance of collaboration in order to achieve academic objectives. A number of internationally renowned clusters have developed around institutions of higher education. Judith Woodsworth, President, Laurentian University, August

18 Ontario Mining Cluster Participants Selected Quotes "A good cluster strategy has the potential to breathe life into natural resource-based parts of the economy. It can also help to reconcile sustainable development with economic growth in communities that need both. Consequently, a cluster strategy must pull knowledge and experience together into products and services that, through (cooperation and innovation among the cluster participants), continue to be relevant, competitive, and therefore sustainable. George Pirie, Chief Executive Officer of Placer Dome Canada, August

19 Best Advice Business Leaders - Lead and participate in the development of cluster strategies - Identify weaknesses and strengths of clusters - Set higher aspirations pursuing global strategies Academics - Promote a culture of entrepreneurship among students and professors - Focus on applied research and support the needs of local clusters through cluster analysis, training programs, R&D 19

20 Best Advice Cluster Facilitators - Encourage synergies and build consensus - Maintain the balance of achieving short and long-term benefits - Focus on concrete action plans for cluster specific initiatives Local Political Leaders - Engage with federal, state, provincial and/or regional governments to build a competitive local environment - Build/encourage/facilitate local and global partnerships to attract knowledge-based firms - Support clusters by promoting inherent strengths/assets 20

21 Questions for Discussion Why should government support cluster-based economic development? What would a comparable approach to the cluster approach have to offer? Why does the cluster approach enjoy such widespread popularity/appeal? How can government support cluster development? 21

22 Concluding Remarks Government actions can catalyze clusters Governments around the world with differing ideologies are using the cluster approach No other model enjoys such widespread appeal Rather than single companies or firms, clusters are the main source of income, jobs and export growth Governments with experience in cluster development must share successes and insights with others Above all: Be realistic and manage expectations : Cluster development is a long term-process fraught with obstacles Commitment, leadership and communication are constants for success 22