Cooperation in Innovative Regional Networks Experiences from Germany and Europe Helmut Kergel VDI/VDE Innovation + Technik GmbH Deputy Head International Technology Co-operation and Cluster Office of Initiative Kompetenznetze Deutschland www.kompetenznetze.de Steinplatz 1 10623 Berlin, Germany Phone +49 30 310078-154 kergel@vdivde-it.de ; www.vdivde-it.de
VDI/VDE-IT : Acting within the Triple Helix Government Economics Social needs and development Companies Research and Analysis Division within VDI/VDE-IT 15 researchers and consultants Private company, founded 1978 170 employees ; 18 mio. /year turnover Contracts with public authorities and private entities (industry, research) Initiation, implementation,monitoring, evaluation of innovation Technology and knowledge R&D Institutions Operating the office of Kompetenznetze Deutschland on behalf of the BMWi
VDI/VDE-IT: Experiences in Cluster and Cluster Policy Issues Head office of the German Cluster Initiative Kompetenznetze Deutschland Management of German Cluster Initiative ZIM-NEMO Governance/management of cluster and networks Evaluation and benchmarking of cluster and cluster initiatives Cluster mapping and cluster analyses Advice and training for cluster policy makers Involvement in European Cluster projects Involvement in relevant international working groups and advisory boards Studies, analyses, scientific publications,. Available on: www.iit-berlin.de
Contents of the Presentation The cluster approach for cooperation Cluster in Germany National cluster programme Initiative Kompetenznetze Deutschland Good Cluster Governance Key Success Factor Cluster Benchmarking Tool for cluster governance improvement European Cluster Excellence Initiative Summary / conclusions
Innovation Process by which an idea or invention is translated into a good or service for which people will pay. To be called an innovation, an idea must be replicable at an economical cost and must satisfy a specific need. (according to www.businessdictionary.com) Innovation requires various competences and viewpoints, in particular the involvement of the private sector (industry) Innovation takes place near the limits of established technologies or in the overlaps/and intelligent combination of such technologies Innovation requires cooperation!
Cooperation for Innovation Supplier-oriented approach: - Out-sourcing of entire submodules to suppliers (with all responsibilities); example automotive industry Project-oriented approach: - well implemented and successful in Europe, - very focused, in particular applied in research and development - collaborative work and benefits, partners on same eye-level Cluster-oriented approach: - in Germany since the mid 1990ies, Europe followed, - more open approach, addressing various issues far beyond R&D only
Benefits and Consequences of Co-operation Increasing of transfer of knowledge The early and intensive co-operation between Research, Science and Business supports sustainable technological progress and innovation Maximising of forces: connecting individual skills along the value chain Complementarities of competences for the adjustment of unavailable capacities Mutual learning process - two-way use of knowledge and resources Knowledge expansion Risk spreading and risk reduction Enhancement of the product range by offering complete processes and system solutions Increased attractiveness when searching for high-potentials and workforce
Project-oriented Cooperation Approach In Europe well established for Research & Development (R&D) Collaboration of academia, research organisations, and industry: - Successful national support schemes: Finland, Germany, Netherlands, Sweden,... - Successful European programmes and initatives: FP 3-7, CRAFT, EUREKA, ERA-Net, Art. 169, JTI s... - Few international schemes: IMS Intelligent Manufacturing Systems,... Characteristics: - Limited duration, ( cooperation-on-time ) - Focused on specific aims and objectives - Cooperation based on a consortium agreement (and a grant agreement) -... Other innovation related issues than R&D can be covered as well, but similar characteristics of cooperation apply
VDI/VDE-IT: Experiences in Collaborative R&D Projektträger for national funding programmes of BMBF, BMWi, BMU Projektträger for funding programmes on federal state level: Baden- Württemberg, Bavaria, (Lower Saxony, Berlin) Office of the European technology Platforms EPOSS and Nanomedicine Coordinator of various european R&D projects within FP6/FP7 Evaluation of various national R&D programmes Ex-post impact assessment of finished projects of the GROWTH programme (FP5) National contact point Smart Systems Integration Microsystems Technology Involvement and coordination of several projects within the ERAnet scheme of the EU Member of the IRC-network and EEN Member of TAFTIE (network of the european funding organisations)
Definition: Cluster and Innovation Networks Cluster = local/regional concentration of firms, research organisations, intermediaries of a specific (industrial) sector or of related sectors, linked through a value added chain (Michael Porter) Cluster can be found where a concentration of knowledge and competences exists in the environment of: - academic organisations (universities, other research institutes) - knowledge-based firms and organisations - specialised knowledge - a specific environment An innovation network (within a cluster) requires an active management to fully develop and exploit its potentials Cluster formation has a high relevance in knowledge-based (regional) economies
Cooperation within a Cluster Approach Cluster is an open approach for cooperation - Duration not restricted - Cooperation without specific obligations - Broad range of possible legal constructions - More a Community of Interest rather than objective driven - No specific workplan for the collaboration - Cooperation intensity and variety is developing over time Increasing competitiveness is the driver for stakeholders to cooperate within cluster - Driven by national/regional development policy - Driven by clear commercial reasons and benefit for the cluster members - Funding/granting is less important issue - Funding/granting schemes for cluster often limited to network management only -... Cooperation within cluster is complementary to project-oriented cooperation (within collaborative R&D projects for instance)
Effects of Cluster Formation Cluster increase the exchange of knowledge and experience (mutual learning) improve market assessment and market conditions for firms contribute to a quick diffusion of innovation within the cluster comprise all levels of the value added chain But: link other networks and cluster possess qualified labour, contribute to the realisation of reputation effects and trust Cluster are no guarantee for successful regional development Not all firms in a cluster are successful Critical mass and the emergence of regional/interregional value added chains are essential Firms can contribute from a cluster although they are not closely linked to it; Not every "cluster" is a cluster (inflation of the concept, no "cluster trademark")
Strategies Behind Cluster Concepts and Funding Depending on the policy origin: Example Germany: Federal level state level regional/city level Depending on political issues (underdeveloped regions?): Example Germany: Integration of the New German Laender starting 1990 Depending on the status of cluster development: Initialisation of new strengthening existing cluster Example Germany: Current competition Spitzencluster (addressing existing cluster) or BioRegio in the mid-1990ies (addressing the initialisation of new cluster in a specific technological domain)
History of German Cluster Initiatives (not all initiatives listed) Federal State Level 1995 BioRegio- Wettbewerb 1999 InnoRegio Federal Level 2000 Innovationsstrategie Saarland 2001 Lernende Regionen Kompetenznetze.de 2002 NEMO Clusterpolitik Schleswig- Holstein Clusterprozess Mitteldeutschland 2003 Innovationsstrategie Berlin Cluster- Orientierung der Regionalpolitik in Brandenburg Cluster Offensive Bayern Förderung regionaler Netzwerke Mecklenburg-Vorpommern RegioCluster. NRW Germany: > 1000 cluster or cluster like entities existing Innovation policy is increasingly linked to cluster policy Need for evaluation / priorisation / benchmarking / impact assessment to measure and justify public investments 2004 2005 InnoProfile 2006 GA-Förderung für Cluster Strategische Partnerschaften BioIndustrie2021 2007 Regionaler Clusterwettbewerb Baden-Württemberg Spitzen- cluster- Wettbewerb BioPharma- Wettbewerb Clusteroffensive Hessen 2008 ZIM- NEMO
Initiative Kompetenznetze Deutschland Aims and objectives: Club of the best 100 innovation networks in Germany Actively support cluster in their further development Increase networking between industry and research Support particular cluster with international reputation To whom is the initative addressed? Regional concentrated innovation networks: Using the brand name, increase recognition Investors looking for interesting locations and investment opportunities Decision makers from industry, administration, politics Media and the interested public www.kompetenznetze.de Kompetenznetze Deutschland is a registered brand name: Membership = Quality certification A scientific board assists the activities of the office of the Initative Kompetenznetze Deutschland and the German Federal Ministry of Economics and Technology (BMWi)
Locations and Competences www.kompetenznetze.de 110 clusters 9 innovation fields 8 regions Seite 10
Partnership within www.kompetenznetze.de Scientific Institutions (Uni, FH) (Fundamental Research) Research and Development (Applied Research) Fast transfer of technology Transformation of the research results in innovative products Public Administrations (Ministries, regional administration etc.) Education Institutes (Education and Training) Service Provider (Financial Service Provider, Logistics, Business Development) Information exchange about requirements of the market from the companies point of view Companies 10% 17% 3% 5% 3% 49% 13% Source: 69 members of the Initiative Kompetenznetze Deutschland SME Large Industry Supplier, Manufacturer, Sales
Innovative Network Services Innovation Beyond R&D Human resources services Education and training (addressing young people and addressing specific required key qualifications) Entrepreneurship (and innovation) support Public relations and marketing Communication and exchange of experience Purchasing alliances Internationalisation... http://www.kompetenznetze.de/service/bestellservice/medien/publikation_netzwerkservices_internetversion.pdf
Good Cluster Governance Key Success Factor Cluster management Transforming a cluster (regional concentration of stakeholders) into a regional innovation network (managed cluster) Cluster management is more than project management only Approach of Kompetenznetze Deutschland: To support the cluster managers to fulfill their job Tools developed: - Various working groups on issues like innovation management, financing cluster and their managament, cluster management quality, - Survey methodologies and tools for member satisfaction surveys - Benchmarking of clusters - Support in internationalisation - Individual consulting
Benchmarking of Cluster Tool for Improvement Benchmarking = Comparison with others / with the best shows specific strengths and weaknesses stimulates a process of continuous improvement motivates to learn from the best can be understood as a commitment to cluster management excellence provides important information about other cluster provides findings which can be used in the practical work gives policy makers valid information about the competitive position of a cluster compared to others Results of the benchmarking directly support the cluster management in the effort of improving the value and efficiency of the cluster for its members and stakeholders
Cluster Benchmarking Sub-dimensions and Indicators
Benchmarking Process Preliminary discussion by phone (briefing, explanations, etc.) Identification of comparative portfolio(s) Adaption of the set of indicators Joint meeting on-site (half-day), mandatory participants: - Benchmarking expert - Technology expert - Cluster manager Analysis and visualisation of findings (benchmarking against the comparative portfolio) Elaboration of findings and recommendations (Cluster-specific 25 pages report) Follow-up meeting (optional, if desired by the cluster) Fact sheet and interview guideline
Cluster Benchmarking: Selected Results Example 100 90 80 All clusters registered Development Prozent of share [%] of n priva ate financing of cluster management since em mergence [%] 70 60 50 40 30 20 10 0-10 -20-30 -40-50 -60-70 -80-90 -100 1 All ICT-clusters registered ICT Cluster A Range of values for the upper (best) 25 % of the clusters Median value of clusters within the comparable portfolios Range of values for the lower 25 % of the clusters Indicator: Development of Share of Private Financing
Cluster Benchmarking: Selected Results Example 100% 90% 80% ICT Cluster A 70% 60% 50% 40% 30% 20% All cluster registered All ICT-cluster registered Ulilization of regional membership potential [%] 10% 0% 1 2 Indicator: Mobilisation/Utilisation of Regional Membership Potential
Cluster Benchmarking: Selected Results Example Bundeling regional competence, networking with external partners 4,00 Measured against a pre-defined scale 3,50 Intensity of index activities 3,00 Training and education Entrepreneurial support 2,50 2,00 1,50 1,00 0,50 0,00 Internal information and experience exchange ICT Cluster A All ICT Clusters Collaborative Technology development (without funding) Indicator: Intensity of Services Offered by the Cluster Management Acquisition of public funds Internationalization
Cluster Benchmarking: Results Summary Structure 100,00% Share of maximal score Achievements / recognition / performance Internationalization 90,00% 80,00% 70,00% 60,00% 50,00% 40,00% 30,00% 20,00% 10,00% 0,00% Financing ICT Cluster A All ICT Clusters Typology, governance, co-operation Service output Service spectrum
Benchmarking Approach Key Success Factors Comparative portfolio as a reference is the key success factor for every benchmarking Sufficient number of entries / benchmarked clusters is mandatory (critical mass in general) Sufficient quality of entries / benchmarked clusters is mandatory (critical mass of clusters with comparable characteristics) Sub-groups for tailor-made benchmarking must be available (according to technology domains, cluster emergence, etc.) Approach to be broadly applied clusters in Europe differ considerably Benchmarking experts with experiences in terms of cluster issues AND technology/industry domain of the cluster to be benchmarked Flexible format, where appropriate results can be achieved using less than 100 % of the full set of indicators Keep it as simple as possible Structured face-to-face dialogue (max. half-day) with the cluster manager (involvement of members not mandatory, but optional) Efforts for preparation shall be limited for all involved parties (< 2 hours) Practice-oriented indicators, easy to be understood, no scientific approaches Local language preferred for dialogue and reporting Individual report (about 25 pages) to be used by the cluster management for improvement No ranking or rating by the benchmarking team
ECEI A PRO INNO Europe Initiative to raise the excellence of Cluster Management in the EU 13 project partners develop a meaningful set of quality indicators assessment procedures for the evaluation and documentation of Cluster Management Excellence Project coordinator: International Center for Competitiveness, IESE Bus iness Sch ool Project run tim e: September 2009 - August 2012 E uro E uropea pean n Commission Enterprise and and Industry
ECEI Label Project Overview EEuro uropea pean n Commission Enterprise and Industry
Indicators for Good Practice of Cluster Governance (Work in Progress of the ECEI project) Cluster emergence (bottom-up) Composition of the cluster: diversity of members, size of the cluster, regional/technological focus Resources for cluster management and origin of the resources (personnel, financial, infrastructure, ) Cluster management skills Sustainable financing (large share from private sources and future prospects) Membership fluctuation Degree of cooperation within the cluster Cluster strategy building, cluster strategy focus, strategy implementation Spectrum and quality of services provided by the cluster management Demand-orientation of services provided by the cluster management Added-values for the cluster members, provided by the cluster management Cluster recognition (local, national, international)
Internationalisation of Cooperation in Innovation Why? New business opportunities, expand the market for own products and services Achieve and use knowledge, products, and services originated from other regions (no re-invention of the wheel...) for own purposes Attract talented/educated personnel abroad for the own region Market the own region, attract foreign investment for the own region Accessing new environments (technical, economical, social) for validation of own ideas, products, services International cooperation and innovation contributes to address the global challenges...
Internationalisation of cluster Study by VDI/VDE-IT 2007 Achieving a better understanding of the needs and the dominating influencing factors for the internationalisation of cluster 91 different cluster have been interviewed from 10 different countries gathering 32.000 companies, R&D institutions, universities, etc. Representing about 2,5 Mio. employees Being interested in transnational co-operations http://www.kompetenznetze.de/the-service/order-service/medien/shortstudy_internationalisation.pdf
Dominating Strategies for International Cluster Cooperation Figures in % Only 10 % of the interviewed cluster have concrete plans and partners already available > 15 % have no strategy or concept available Most cluster have rather diffuse expectations Source: 85 cluster replied, multiple answers allowed
Summary / Conclusions A cluster-oriented approach for cooperation is well suited for initiation and implementation of innovation actions on regional level, not limited to R&D cooperation only various initiatives in Germany. Cluster are successful, when being demand driven, well and objectivedriven managed, flexible and adaptable, and having sustainable sufficient resources for management and innovation related actions. Good (excellent) cluster management is a key issue of success. - In Germany, methodologies and tools for improving cluster management are existing and are being used experiences are available outside Germany too. - In Europe, several actions are ongoing to provide a cluster overview and to assess cluster management excellence as well as to support cluster (and their managers) in becoming excellent results are and will be available outside Europe too.
VDI/VDE Innovation + Technik GmbH Making High-Tech a Success. Helmut Kergel VDI/VDE Innovation + Technik GmbH International Technology Co-operation and Cluster Steinplatz 1 10623 Berlin, Germany Phone +49 310078-154 kergel@vdivde-it.de