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Dr Vincent GOLLAIN, IAURIF, Paris

Dr Vincent GOLLAIN, IAURIF, Paris . Economic performance of the major european metropolises : the Role of Clusters. Dr Brendan WILLIAMS, DIT, Dublin . SUMMARY. Cluster and Regional Competitiveness Emergence and Development Conditions Study Methodology Synthesis of Case Studies

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Dr Vincent GOLLAIN, IAURIF, Paris

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  1. Dr Vincent GOLLAIN, IAURIF, Paris Economic performance of the major european metropolises : the Role of Clusters Dr Brendan WILLIAMS, DIT, Dublin

  2. SUMMARY • Cluster and Regional Competitiveness • Emergence and Development Conditions • Study Methodology • Synthesis of Case Studies • Recommendations

  3. 1 CLUSTER AND REGIONAL COMPETITIVENESS

  4. What is a Cluster ? • This idea can be traced back to Alfred Marshall (1890). • A cluster is a geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementarities (M. Porter). • A cluster can contain : - a small or a large number of enterprises, - small and large firms in different proportions. - Firms with local or foreign origin. • Different clusters involve varied degrees of interaction among the firms involved, ranging from loose network of association to multifaceted forms of co-operation and competition • Clusters can vary considerably in spatial extent.

  5. 2 EMERGENCE AND DEVELOPMENT CONDITIONS

  6. Elements that influence the growth of clusters Key factors : • Technology transfer, • Knowledge transfer, • Skilled labour force in related industries, • agglomeration economies • social infrastructure. We find that every large European Region has not the same chance to develop a certain cluster. Cluster development is more appropriate in areas where there is already an existing diverse economic base

  7. Two Types of Clusters 1. The « natural » Cluster (most of cases studies ) : • Cluster development is attributable to several key factors, including technology transfer, knowledge transfer, development of a skilled labour force in related industries, the benefits of agglomeration economies, and social infrastructure. • Researchers differ on how these factors promote cluster growth. 2. The « Public sector created » Cluster : • Some clusters have been created or developed by policy makers (Regional development agencies, planners, …). • These Cluster policies focus on developing a strategy that will encourage an efficient allocation of limited resources available for urban and regional economic development.

  8. 3 STUDY METHODOLOGY

  9. General Principles 1. Identification of 5 target activities : • 3 common sectors / clusters : I.C.T, Pharmacy - biotechnology, Creative industries. • 2 own sectors / clusters such as banking and insurance or logistics. 2. Methodology : • Cluster / sector analysis • Policy toward clusters • Interregional comparisons

  10. - ICT - Biotech - Creative - Finance serv. - Tourism - ICT - Biotech - Creative - Media - Tourism - ICT - Biotech - Creative - Logistics - Serv. to elderly - Environment ind. - ICT - Biotech - Creative - Banking - insu. - R & D

  11. 4 SYNTHESIS OF CASES STUDIES : EXAMPLES

  12. ICT Strengths : • Dublin : Low corporation tax ; leader in software • London : European leader ; strong demand ; proximity to clients • Paris : (inter)national leaders companies , proximity to clients • RhineRuhr : national leaders, multimedia

  13. Finance • Dublin : International Finance Services Centre • London : One of the worlds leading financial centres • Paris Ile-de-France : european and international financial centre • RhineRuhr : national leaders

  14. 5 CLUSTERS POLICIES

  15. Direct Intervention Measures • State investment. • Public services. • Entrepreneurship. • Subsidies / Incentives.

  16. Indirect Intervention Measures • Creation of a favourable business environment. • Urban planning. • Education and training. • Soft and hard infrastructure provision. • Streamlining regulation. • Public office / safety / crime reduction. • Access to capital.

  17. Linkage and networks • International. • Regional. • Local. • Customers and clients. • Suppliers and associated businesses.

  18. Public Infrastructure and Investment • Hard infrastructure. • Communications. • Soft infrastructures. • Environmental Issues.

  19. 6 RECOMMENDATIONS

  20. Recommendations from cases studies • Initial identification of sectors. • Support and development. • Role of state agencies. • Future development.

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