Maritime Clusters in Landlocked Countries Prague Conference 27 April 2009

1. Maritime Clusters in Landlocked Countries Prague Conference 27 April 2009 Patrick O’Riordan Aerospace, Defence and Maritime Industries European CommissionEnterprise and Industry

2. Civilization grew in the beginning from the minute that we had communication - particularly communication by sea that enabled people to get inspiration and ideas from each other... Thor Heyerdahl

3. Maritime Clusters … .

4. Maritime clusters: • manufacturing industries like shipbuilding, transport (shipping) and infrastructure (ports and terminals); • ocean and sea resources like aquaculture; • service providers such as classification societies; • leisure related activities like yachting; • specific public sector organisations and services like the coast guard; • and sea related research and consultancy.

5. Increasein efficiency Increase in level of business formations Higher level of innovation Increase internal and external communication and more possibilities to cooperate efficiently. Increased awareness of market developments. Focus in maritime cluster organisation on education, training and more mobility in the labour market. Focus in maritime clusters on RDI Cluster benefits

6. Maritime clusters in the Blue Paper • Integrated Maritime Policy is to create optimal conditions for the sustainable use of the oceans and seas, enabling the growth of maritime sectors and coastal regions” • “Business integration and competitiveness in the maritime sector are greatly enhanced by the formation of multi-sectoral clusters. These clusters are instrumental to maintain the maritime know-how of Europe and will occupy therefore a central position in the Maritime Policy.” • “The Commission will encourage the formation of multi-sectoral clusters and regional centres of maritime excellence, and promote a European network of maritime clusters.” The first goal of an EU

7. Promotion of maritime clusters under IMP • Staff Working Document on Maritime Clusters SEC (2007) 1406 – October 2007 • Study on the Role of Maritime Clusters – November 2008 • Workshop “the role of maritime clusters in land-locked areas” - 27 April 2009 Prague

8. Added value Direct (Σ direct) added value = 186 600 million € Employment Direct (Σ direct) employment = 4.78 million persons 500 000 15 000 = 15 000 million € of added value = 500 000 persons employed Average value added/employee = € 39 000 3 200 50 000 3 800 1 000 40 000 70 000 Percentage maritime added value in national GDP* Percentage maritime employment in national employment* 1 000 55 000 500 2 100 35 000 38 000 3 400 Europe: 1.65% MT: 11.36% CY: 9.07% EE: 8.83% LV: 7.71% NO: 6.23% DK: 4.19% GR: 3.24% LT: 2.59% ES: 2.53% NL: 2.25% Europe: 2.25% MT: 13.51% CY: 12.02% NO: 6.85% EE: 6.54% GR: 6.39% LV: 5.36% DK: 5.26% ES: 4.62% BG: 3.46% PT: 3.34% 48 000 100 1 000 100 4 000 4 000 300 4 000 300 1 200 500 2 800 500 1 200 42 000 * Top-10 countries in terms of share of maritime added value (and employment) in all sea-related Areas are listed; for other countries % share is well below 2.5% (and 3%) KEY FIGURES OF ALL EUROPEAN SEA-RELATED SECTORS EU-27 + Norway 15 100 156 000 28 400 8 700 634 000 145 000 11 500 17 200 191 000 287 000 147 000 4 000 25 400 504 000 50 6 000 200 10 000 136 000 876 000 23 000 725 000 24 300 103 000 171 000 279 000 6 400 20 000 Value added amounts to 186 600 million € (of which 88% in the top-10 countries) and employment to 4.78 million persons (of which 83% in the top-10 countries)

9. Added value in the European maritime sectors (all Areas)

10. Star-region represented by national and/or regional cluster organisation Maritime economic centres are generally are represented by clusters • Privately driven • France, Spain, Italy, Finland, Sweden, Norway, UK, Poland • Government driven • Germany, Denmark • Mixed • Netherlands and Norway • Regional clusters • e.g. France, the UK, Germany and Norway

12. Cluster typology – strengths and weaknesses Top-down organisations tend to operate with higher budgets, with a strategic focus on competitiveness and RDI for the entire sector. But face the need to balance between the interests, resulting in longer dialogue and more universal themes Bottom-up organisations are efficient are targeted to operational problems and activities (events, issues platforms) and provide a single-point-of-entry to the government But sectoral interests can prevail and focus may be short term “Mixed” cluster organisations capture all maritime stakeholders in order to have well-structured discussions between government and sector

13. Role of maritime cluster organisations • All European countries with a maritime cluster have access to that cluster through a maritime cluster organisation • Policy (initiatives) and actions are translated to European, national and regional level, although not in a uniform manner • Maritime cluster organisations are mostly historically established (and regionally grown) based upon the specific needs of the cluster and its participants and upon the country’s culture • Top-down and bottom-up initiated clusters focus in general on same content • Topics of cluster organisations are mostly softer topics (e.g. innovation and labour market); in top-down maritime cluster more opportunities are created for strategical issues through the availability of funding • Limited direct evaluation of impact/success of the actions of cluster organisations on project-basis, but indirectly through the evaluation of maritime cluster organisations and the impact on financing (membership contributions) • In principal, any organisation concept can do the job; nevertheless, organisations that are able to capture ‘best’ of both worlds seem most natural to balance public and private interests

14. 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 European cluster* ENMC Aquamarina UK-Sea Vision UK-Maritime UK UK-One Voice National cluster* FR DK NO2** SE IT NL FI NO1** PL DE ES PACA Bretagne S-W (UK) Regional cluster* S-E (UK) Mersey S-E (NO) London Bergen Haug.-Sonn. Oslo Schl.-Hol. Haven Gateway 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 YEAR OF ESTABLISHMENT OF MARITIME CLUSTER ORGANISATIONS * Full name and abbreviation of European, national and regional cluster organisations as used in this study is provided in Annex 7 ** NO1 is MARUT and NO2 is Maritimt Forum; more information concerning the activities of these clusters is provided in the Background Country Report – Norway Source: Policy Research Corporation based on questionnaires of maritime cluster organisations After the popularisation of the cluster concept in Porter’s ‘Competitive advantage of nations’ in 1990: • Most maritime cluster organisations were established • Governments have become more reluctant on developing sector policies

15. National cluster organisations Regional cluster organisations Competitiveness Promotion Coordination Other (e.g. education, framework) Source: Policy Research Corporation based on questionnaires amongst maritime cluster organisations Main reasons for establishing a maritime cluster organisations are to increase competi-tiveness, to promote maritime sectors, and to improve coordination within the cluster PRIMARY RATIONALE FOR ESTABLISHING MARITIME CLUSTER ORGANISATIONS

16. Maritime cluster organisations are developed different according to specific needs and the prevailing culture In spite of differences in size, scope or funding, maritime clusters tend to be set up for similar reasons (to increase competitiveness, promote maritime sectors and coordinate activities) There is no organisational concept of cluster organisations that intrinsically excels All these clusters can play a role in public-private dialogue and benefit from learning from each others’ best practice and lessons learned

17. THE SEA RELATED SECTORS AND THEIR AREA-CLASSIFICATION Area 1 Area 2 Traditional maritime sectors*: • Inland navigation • Marine aggregates • Marine equipment • Maritime services • Maritime works • Navy and coastguard • Offshore supply • Recreational boating • Seaports • Shipbuilding • Shipping Coastal and sea-related (marine) recreation and tourism Area 3 Fisheries * In the study Economic impact of maritime industries in Europe, carried out by Policy Research on behalf of the EC, the fisheries sector was also included as part of the traditional maritime sectors; furthermore, differences exist per country with regard to the ‘scope’ of the maritime industry; the members of the European Network of Maritime Clusters regard eight sectors as part of the maritime cluster from a narrow perspective: shipping, shipbuilding, marine equipment, seaports, maritime services, yacht building, offshore services and fishing; three sectors can be added from a national, broader perspective: Navy and coastguard, inland navigation and maritime works

18. EMPLOYMENT IN SEA-RELATED SECTORS IN LANDLOCKED COUNTRIES Employment figures for Czech Republic in all Areas Area 1: Traditional maritime sectors Area 2: Coastal (and marine) tourism and recreation* Area 3: Fisheries** Employment figures for Luxembourg in all Areas Employment figures for Slovakia in all Areas Employment figures for Austria in all Areas Employment figures for Hungary in all Areas * Employment in Area 2 in landlocked countries is achieved in the cruise tourism sector ** Employment in Area 3 in landlocked countries is achieved in fish processing and aquaculture Source: Policy Research based onEcotec (2006) – Employment trends in all sectors related to the sea or using sea-resources, BIMCO/ISF (2005) – Manpower 2005 update, Eurostat – Industry, Trade and Services (Annual enterprise statistics) 2005, and Policy Research based on LEI (2006) – Employment in the fisheries sector Hungary and Austria have highest employment in Area 1; the Czech Republic has highest employment in Area 3 compared to the other European landlocked countries

19. NO STARS FOR EMPLOYMENT IN TRADITIONAL MARITIME SECTORS (AREA 1) IN LANDLOCKED COUNTRIES Employment figures for Czech Republic in Area 1 Employment figures for Luxembourg in Area 1 Employment figures for Slovakia in Area 1 1 100 2 000 Employment figures for Austria in Area 1 2 400 3 200 3 800 Employment figures for Hungary in Area 1 Source: Policy Research based onEcotec (2006) – Employment trends in all sectors related to the sea or using sea-resources, BIMCO/ISF (2005) – Manpower 2005 update, and Eurostat – Industry, Trade and Services (Annual enterprise statistics) 2005 No stars for landlocked countries because maritime employment does not exceed 5 000 persons, yet countries as Austria are strong niche players in certain subsectors

20. NO STARS FOR EMPLOYMENT IN COASTAL TOURISM (AREA 2) AND FISHERIES (AREA 3) IN LANDLOCKED COUNTRIES 100 100 200 Area 2* (figures on country level) Area 3* (figures on country level) Employment in cruise tourism Employment in fish processing and aquaculture 2 300 1 200 700 1 700 * NUTS II regions in landlocked countries do not exceed 1 000 persons employed in Area 3 Source: Policy Research based onLEI (2006) – Employment in the fisheries sector Source: Policy Research based onEurostat – Tourism indicators 2005 No stars are awarded to regions within landlocked countries because maritime employment does not exceed 1 000 persons

21. Thank you for your attention! Aerospace, Defence, Maritime Industries European Commission, DG Enterprise and Industry http://ec.europa.eu/enterprise/sectors/maritime/shipbuilding/index_en.htm

22. Cluster benefit Approach Main initiatives Sector involvement Promotion of the maritime cluster Mainly project-based approach • Promotion campaigns through websites, videos and presentations • Report on economic importance of the cluster • Organising promotion events Almost all sectors are involved in these initiatives Focus in maritime cluster organisation on education, training and the labour market Project-based and structural approach • Programs in cooperation with universities and professors • Recruitment campaigns and fairs • Platforms to exchange best practices Almost all sectors are involved in these initiatives with leading roles for shipping and shipbuilding industry Focus in maritime clusters on RDI Project-based approach based upon (high budget) government support programs and structural approach • On (governmental) project basis • Structural cooperation with RDI-institutes and universities • Platforms to exchange best practices Almost all sectors are involved in these initiatives with leading roles for shipbuilding, marine equipment, offshore supply and shipping