Cluster Development Artic (T&F) ClusterLab II: Services and Economic Sustainability

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1 Cluster Development Artic (T&F) ClusterLab II: Services and Economic Sustainability Gerd Meier zu Köcker, Tromsö 30 October

2 Financing of Clusters in Europe Arctic T&F 2017

3 Real Case Sustainable Financing Aviation Cluster BodenseeAIRea 30 Members (25 companies, 5 academic partners) 1,5 FTE Funded by ERDF (50 % funding) EFRE funding stopped in 2015 ClusterAgentur BW

4 Actions Undertaken Actions: Slight increase of members (quality growth) Increase of membership fees Cost savings (outsourcing / insourcing) Revise service portfolio Attracting of new strategic partners through new services (Regional Development Agency / Chamber) ClusterAgentur BW

5 Change of Funding Sources 50% 25% 50% 75% ab 2015 Mitgliedsbeiträge Members EFRE WiFö/IHK RDA / Chamber ClusterAgentur BW

6 Services: PR for SME Example: HighTechComm Cluster Nanotechnolgie und Munich Biotech Cluster Managements support SME in PR and communication manners. This includes - Analyses (What exists? What is needed?) - Communication / Marketing Strategy development - Dedicated PR activities / Website development /maintenance

7 Determinants of Financing Cluster Initiatives Financial options Members Services Membership Fees Clients Funding Programmes Akquisition of new members Introduction of new feebases services Increase or modify membership fees Identification of new clients Regional National European Free services to be turned into feebased

8 Determinants of Financing Cluster Initiatives Financial options Members Services Membership Fees Clients Funding Programmes Akquisition of new members Introduction of new feebases services Free services to be turned into feebased services Increase or modify membership fees Identification of new clients Regional National European

9 New Members Advantages Increase critical mass Close gaps in value chain Gain High Quality members Disadvantages More members available? More members, more demand High ratio members / FTE can lower Quality of performance

10 Determinants of Financing Cluster Initiatives Financial options New Members Services Membership Fees New Clients New Funding Programmes Akquisition of new members Introduction of new feebases services Free services to be turned into feebased services Increase or modify membership fees Identification of new clients Regional National European

11 Cluster Services How they contribute to profit generation and committments (Group I) Financial Contribution Appreciated by members Services Applied by CM Organisation of trade fair missions often X X X Company Visits (by Members) Face-to-face visits (CM visits individual members) usual often X X VIP-Event Rare X X X Seminar/Training usual X X PR / Promotion of cluster usual X X X X PR / Promotion for members rare X X Connecting members usual X X Project management rarel X X X Publication usual X X Competence Mapping rarely X X

12 Services: Matching Supplier - Buyers Example: Samsung Innovation Days Silicon Saxony During Samsung Innovation Days members of the Silicon Saxony Clusters get direct access to Samsung Managment and bying agents. Members are selectd and trained for face-to-face meetings High success rate

13 What Members are ready to Pay for Legal advice, certifications Market and trend studies Support in product development in new areas Support in access to public funding IPR / Trademark issues Support in product design development Feasibility studies Business plan development for startups General support for start-ups Support in product development in new Brainstorming / Open Innovation areas etc Low Readiness to pay Demand High Source: Silicon Saxony, 2015/

14 Share of Private Income of Mechatronics Cluster (I) VDI/VDE-IT 14

15 Share of Private Income of Mechatronics Cluster (II) VDI/VDE-IT 15

16 Toward Sustainable Financing of Cluster Initiatives

17 Sustainability The Cluster Service Portfolio Objectives Fields of Actions Innovation creation / new products and services Creation of knowledge Creation of demands Creation of (project) ideas Turning ideas into common actions Commercialisation of innovation Internationalisation Trend- and technology scouting Delegation missions / participation in trade fares Market analyses ; search profiles Tailor-made international B2B matching Business development (national) Workforce development Initiating B2B among cluster actors Training of staff within companies B2B between cluster actors and externals, within the sector Acquisition of workforces Cross-Clustering Vocational training schemes development (incl. adaptation) Tailor-made matching Suplier meets OEM Development of new curricula / upgrading Visibility / regional branding Advertising of capability of the cluster / network Advertising / marketing of the region Competence mapping of cluster actors Regional branding / USP Networking Networking Events Meet and Mapping Greet Company visits International networking Complexity VDI/VDE-IT

18 Sustainability The Cluster Service Portfolio Yellow boxes indicate where companies are ready to pay for services Objectives Fields of Actions Innovation creation / new products and services Creation of knowledge Creation of demands Creation of (project) ideas Turning ideas into common actions Commercialisation of innovation Internationalisation Trend- and technology scouting Delegation missions / participation in trade fares Market analyses ; search profiles Tailor-made international B2B matching Business development (national) Workforce development Initiating B2B among cluster actors Training of staff within companies B2B between cluster actors and externals, within the sector Acquisition of workforces Cross-Clustering Vocational training schemes development (incl. adaptation) Tailor-made matching Suplier meets OEM Development of new curricula / upgrading Visibility / regional branding Advertising of capability of the cluster / network Advertising / marketing of the region Competence mapping of cluster actors Regional branding / USP Networking Networking Events Meet and Mapping Greet Company visits International networking Complexity VDI/VDE-IT

19 Cluster Management Services

20 Towards Sustainable Financing The Case Clusterland Upper Austria 20

21 Organigram Clusterland Upper Austria (2013)

22 Paradigm Change Professionalisation of cluster managements Clustermanagements turn to become service provider for members Policy makers (Clients!! not only funding provider) Focus given on demand oriented services with high impact on cluster key members Implementation of new management tools, e. g. Customer Relationship Management - CRM Satisfaction analyses Involvement of key members in strategic decisions Membership growth: quality instead of quantity

23 Main Action Fields

24 CRM System als Key for Communication and Cooperation between Cluster Management and Members

25 Privater Finanzierungsanteil % Share of Private Financing over the Years

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