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1. AIM OF UNIDO CLUSTER APPROACH

1. AIM OF UNIDO CLUSTER APPROACH. UNIDO POGRAMME PROMOTES DIALOGUE AND COOPERATION BY: HELPING STAKEHOLDERS DEVELOP A CONSENSUS-BASED VISION STRENGTHENING THEIR CAPACITY TO ACT UPON SUCH A VISION. 2. PILLARS OF UNIDO CLUSTER DEVELOPMENT APPROACH.

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1. AIM OF UNIDO CLUSTER APPROACH

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  1. 1. AIM OF UNIDO CLUSTER APPROACH • UNIDO POGRAMME PROMOTES DIALOGUE AND COOPERATION BY: • HELPING STAKEHOLDERS DEVELOP A CONSENSUS-BASED VISION • STRENGTHENING THEIR CAPACITY TO ACT UPON SUCH A VISION

  2. 2. PILLARS OF UNIDO CLUSTER DEVELOPMENT APPROACH • CREATION OF LINKAGES THROUGH BUSINESS GENERATION AND HENCE: • NEED BASED – STAKEHOLDER LED AND MANAGED • FLEXIBLE – MATCHES REQUIREMENTS OF THE LOCAL DYNAMICS • FOCUSED ON INTERMEDIARY GROUPS AND NOT ON INDIVIDUAL STAKEHOLDERS • COOPTITION

  3. 3. ADVANTAGES OF COOPERATION • SMES CAN COLLECTIVELY ACHIEVE ECONOMIES OF SCALE THROUGH • BULK PURCHASE OF INPUTS • ACHIEVE OPTIMAL SCALE IN USE OF MACHINERY AND EQUIPMENT • POOL PRODUCTION CAPACITIES TO MEET LARGE ORDERS • INTER-ENTERPRISE COOPERATION ENABLES SMES TO SPECIALIZE • INCREASED RESPONSIVENESS TO MARKET CHALLENGES • SPEEDY DISSEMINATION OF BEST PRACTICES: ORGANIZATIONAL CAPABILITIES, SKILLS, TECHNOLOGICAL INNOVATION, ETC.

  4. 4. Steps of Cluster Development Approach DS TB APs • Full time CDA • Intermediary led • Role of BDS • 3-4 years’ time • Entry: Pressure point • Holistic thereafter Implementation of SR Activities Monitoring & Evaluation Exit Social capital at local level through a business agenda

  5. 5. MAIN STAGES OF CLUSTER DEVELOPMENT PROGRAMME • SELECTION OF TARGET CLUSTERS • DIAGNOSTIC STUDY • TRUST BUILDING • DRAFTING OF A CLUSTER ACTION PLAN • IMPLEMENTATION • MONITORING AND EVALUATION

  6. 6. SELECTION OF CLUSTERS • CRITICAL DETERMINANT OF THE SUCCESS OF THE PROGRAMME • SELECTION FRAMEWORK BASED ON THE: • IMPORTANCE OF THE CLUSTER • PROMOTABILITY • VIABILITY • SUSTAINABILITY • HELPS TO ENSURE AN EFFECITVE AND WIDE REACHING IMPACT Contd……….

  7. 7. SELECTION OF CLUSTERS …contd. • HELPS ENSURE AVAILABLE RESOURCES ARE USED ON CLUSTERS WHERE THE APPROACH HAS THE GREATEST LIKELIHOOD TO BE A SUCCESS I.E. • CONTRIBUTE TO ECONOMIC SUCCESS OF SMEs • REVITALIZATION OF SYSTEMIC INTERACTIONS • DISSEMINATION OF BEST PRACTICES

  8. 8. DIAGNOSTIC STUDY • THIS IS AN ATTEMPT TO • IDENTIFY OBSTACLES FACED BY THE CLUSTER • AND OPPORTUNITIES THAT WOULD BECOME AVAILABLE • IF BARRIERS TO COLLABORATION ARE DISMANTLED IN THE SELECTED CLUSTERS • AND IF SYSTEMIC INTERACTIONS ARE REVITALIZED Contd……….

  9. 9. DIAGNOSTIC STUDY….contd. • THIS IS A PARTICIPATORY STUDY NOT ONLY ABOUT THE CLUSTER CONSTRAINTS AND POTENTIALS • BUT ALSO LOCAL LINKAGES AND SUPPORT MECHANISMS • THE PARTICIPATORY PROCESS HELPS BUILD INITIAL TRUST AMONG POSSIBLE PARTNERS AND SECURE THE POSITIVE INVOLVEMENT OF DIVERSE ACTORS • VALUE ADDED DATA

  10. 10. TRUST BUILDING • ESTABLISHING AN ATMOSPHERE OF TRUST WITHIN A CLUSTER IS AN ESSENTIAL PRE-REQUISITE FOR BUILDING A REALISTIC ACTION PLAN FOR THE CLUSTER THAT WILL HAVE SUPPORT FROM CLIENTS, SERVICE PROVIDERS AND SUPPORT AGENCIES. • THIS IS AN ON-GOING ACTIVITY IN CLUSTER DEVELOPMENT

  11. 11. DRAFTING OF THE ACTION PLAN • THE ACTION PLAN IS A ROADMAP • THAT WILL HELP TO DEVELOP AND FOSTER LASTING RELATIONSHIPS AMONG THE CLUSTER ACTORS • WHILE AT THE SAME TIME DELIVERING RESULTS • THIS IS AN ATTEMPT TO EMBODY THE VISION OF THE CLUSTER AS A WHOLE • INTO A SET OF ACTIVITIES THAT CAN BE IMPLEMENTED IN COLLABORATION BY THE VARIOUS CLUSTER ACTORS

  12. 12. IMPLEMENTATION OF THE ACTION PLAN • THE IMPLEMENTATION OF THE ACTION PLAN IS NOT SIMPLY THE REALIZATION OF THE TARGETS SET • BUT MORE AMBITIOUSLY A RADICAL CHANGE IN THE WAY THE CLUSTER ACTORS INTERACT WITH ONE ANOTHER AND CONDUCT THEIR BUSINESS

  13. 13. IMPLEMENTATION OF THE ACTION PLAN • IMPLEMENTATION OF ACTIVITIES GRADUALLY SHIFTED TO THE PRIVATE SECTOR WITH SUPPORT DRAWN FROM LOCAL INSTITUTIONS • IT IS IN THE IMPLEMENTATION OF THE ACTION PLAN • THAT THE ADVANTAGES TO BE DERIVED FROM CLOSER COOPERATION • AND GREATER SYSTEMIC INTERACTION ARE • DISCLOSED AND EXPERIENCED BY THE CLUSTER ACTORS • ULTIMATELY LEADS TO CREATION OF SOCIAL CAPITAL

  14. 14. MONITORING AND EVALUATION • MONITORING OF QUANTIFIABLE OUTPUTS IS AN IMPORTANT COMPONENT OF CLUSTER DEVELOPMENT • IT HELPS IN DISSEMINATING BEST PRACTICES AND STRENGTHENING TRUST • FIRM LEVEL AND CLUSTER LEVEL • NEED TO IDENTIFY SUBTLE AND SLOWLY EMERGING CHANGES IN THE RELATIONSHIPS AMONG CLUSTER ACTORS, MAKES THIS TASK CHALLENGING: SUSTAINABILITY INDEX

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