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Indian vs International Clusters

Indian vs International Clusters . India. International. Philippines – Mrs Loreto Canada-Quebec – Mr Olivier and Mr Gauthier France – Mr Pitollet and Mr Tinard Belgium-Flanders – Mr Diels. Odisha – Shri . Gupta Karnataka – Mr Rao Maharashtra – Mr Rastogi

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Indian vs International Clusters

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  1. Indian vs International Clusters India International Philippines – Mrs Loreto Canada-Quebec – Mr Olivier and Mr Gauthier France – MrPitollet and MrTinard Belgium-Flanders – Mr Diels • Odisha – Shri. Gupta • Karnataka – MrRao • Maharashtra – MrRastogi • Rajasthan – Mr Gupta

  2. Clusters and the World Bank • Increasingly important topic for the World Bank • Clusters are key drivers of competitiveness, economic growth and poverty reduction • World Bank is supporting clusters through projects combining : • Infrastructure development (e.g. industrial parks) • Skill development • Policy reforms • India: SIDBI – MSME Ministry - States…

  3. Benefits of clusters • Cooperation…and… competition • Learning and innovation • Economies of scale…and…flexibility • Access to common infrastructure • Access to inputs • Access to workers and skills • Access to service providers • Access to markets/customers • Access to governments…to lobby

  4. Clusters and the Investment Climate Sialkot - Pakistan Shenzhen - China From a small fishing village 30 years ago to one of the main light manufacturing cluster in the world Enabled by the Chinese government: Good infrastructure Good policies Became the rule as the government replicated this pilot throughout China • Leading producer of soccer balls and surgical equipment in the world • Human and social capital accumulated over 150 years • Successful despite the government/poor investment climate • Collective action by businesses to improve investment climate – e.g. private international airport with support from gvt • The exception rather than the rule

  5. What can government do to help clusters • Improve overall investment climate – clusters will emerge organically as they did for thousands of years: • Policies promoting entry/fair competition/exit • Trade logistics to facilitate access to markets and inputs • Policies to facilitate access to land/infrastructure – e.g industrial zones with possibility for expansion • Support entry of strategic first movers – e.g. Renault in Morocco • Support linkages between strategic first movers and SMEs/informal firms • Facilitate access to finance, skill development and innovation

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