Validated Joint Strategy

Lubjiana 24th June 2014 Validated Joint Strategy Clustrat – Boosting Innovation through new cluster concepts in support of emerging issues and cross-sectoral themes Valentina De Marchi, Roberto Grandinetti University of Padua

The core strategic elements of CluStrat

The base of CluStrat’s strategic framework • CLUSTERS • Interconnectedfirms and institutions • Specialized in intermediary/finalgoods/servicesrelated to onecategory of products • concentrated in a regional or subregional area • CROSS-CUTTING ISSUES • Knowledge and technology transfer • Internationalisation • Gender, diversity and innovation • EMERGING INDUSTRIES • Active ageing • Green economy • Sustainablemobility

A variety of (existing) clusters (1) • Europe is rich in clusters • Such clusters are very diverse in terms of: • Size (regional vs. sub-regional) • Specialization (high-tech vs. low-tech) • History (bottom-up vs. top-down) • Governance (with or without CMO) • …. • Emerging models of clusters: • Industrial district • High-tech regional cluster • Hub-and-spoke • …

A variety of existing clusters (2) Traditional Industrial Districts High-tech cluster Cluster Cluster Firms KEAs Hub-and-spoke Cluster Universities

A variety of existing clusters (3) Traditional Industrial Districts High-tech cluster Cluster Cluster Firms KEAs Hub-and-spoke Cluster Universities

A variety of existing clusters: policy implications • Cluster policy should consider that clusters’ form may vary across and within European regions • Cluster policy should be selective, meaning to aim at favour the strengthening or the formation of production systems that have the characteristics of a good cluster, i.e. advantageous inter-firm relationships, entrepreneurial firms, and effective institutions.

From new cluster concepts to new clusters policies: building the strategic framework

Developing the CluStrat’s strategic framework Variety of clusters EntrepreneurialCMOs Smart Specialization Strategies Developing new cluster concepts (NCCs) Supply and Demand side The actors

The two levels of the strategic framework • the European Union level, where the measures aimed at boosting cross-cluster cooperation and the formation of smart meta-clusters (transnational clustering) are to be adopted; • the regional level, where the regional government bodies should make use of the existing tools (if any) or prepare new ones to boost smart specialisation of existing clusters and the formation of smart regional clusters (regional clustering).

Developing the CluStrat’s strategic framework Variety of clusters EntrepreneurialCMOs Smart Specialization Strategies Developing new cluster concepts (NCCs) The actors Supply and Demand side

1. Developing new cluster concepts (NCCs) • In order to take the opportunities in emerging industries and develop trans-regional and trans-national cooperation, NCCs should consider put together different existing and unconnected actors with complementary knowledge: • existing clusters; • new-founded clusters; • organizations which, even if not part of a cluster, still possess competences that are relevant for cross-cluster cooperation; • Cross-cluster cooperation initiatives at: • Cluster level (Inter-cluster cooperation) • Regional level (Regional clustering) • European level (European clustering)

Developing new cluster concepts:cooperation between existing clusters Region 2 Region 1 Cluster 2 Cluster 1A Cluster 1B Smart specialisation and cross-cluster cooperation

Developing new cluster concepts:Regional clustering Region 2 Region 1 Cluster 2 Cluster 1 = Cluster 1A + Cluster 1B + … Smart specialisation and cross-cluster cooperation

Developing new cluster concepts:towards European clusters Region 2 Region 1 Cluster 2 Cluster 1 = Cluster 1A + Cluster 1B + … Meta-cluster in an emergingindustry Smart specialisation and cross-cluster cooperation KEA Region 3

Developing new cluster concepts:policy implications • European policy should favour the creation of regional clusters in cases in which the regional scale allows to take opportunities linked with the emerging industries, which a smaller scale will not allow to catch. A similar approach should favour the development of other suitable forms of collaboration and network having the same aim.

2. The actors of the NCC: large and small firms, knowledge providers, local institutions Firms KEAs/KIBS Universities

2. The actors of the NCC: the crucial role of knowledge institutions • Key enabling actors (KEA): research centres specialised in one of the key enabling technologies associated with the emerging industries, i.e. nanotechnology, advanced materials, industrial biotechnology, etc. • (Institutional) Knowledge-intensive business services (KIBS): They provide services in a specialized field, e.g. a specific category of materials or of products, supporting the innovation processes of their clients.

The actors of the NCC: the crucial role of knowledge institutions Region 2 Region 1 Cluster 2 Cluster 1 = Cluster 1A + Cluster 1B + … KIBS Smart specialisation and cross-cluster cooperation KIBS KEA In particular, specialised in a keyenablingtechnology (KET) Universities Region 3

Clusters and KETs for the emerging industries Dott. Petra Püchner – “Expected impact of new cluster strategies for Central Europe and the Danube region”

KETs for emerging industries • KeyEnabling Technologies (KETs) identifies by the EU: • Nanotechnology • Micro-nanoelectronics • Advanced materials • Photonics • Industrial biotechnology • Advanced manufacturing systems • Otherusefultechnologies: • ICT applications

The actors of the NCCs: policy implications • In order to increase the ability of European regions to compete in emerging industries, innovation projects developed by firms and clusters have to be supported by an appropriate knowledge institutions (sub)system, including KEA and institutional KIBS that have reached the excellence in their field and are able to support projects of transnational cooperation on emerging industries. • In order to ensure to involve just knowledge institutions being particular knowledgeable, a form of accreditation of both KEA and KIBS at the European level could be developed

3. The supply and demand side of emerging industries • Integrating the perspective of the supply side with that of the demand side constitutes a highly qualifying element of CluStrat. • This means conceiving and creating contexts where the supply side and the demand side of emerging industries can interact • Creation of innovative environments (Living Labs, Societal Pilots,…) by firms, clusters, public actors

The supply and demand side of emerging industries: the quadruple helix model Source: Arnkil et al., 2010

The supply and demand side of emerging industries: policy implications • Cluster policies should support the interaction of the demand and supply side, to ensure to better tap into emerging industries markets • Considering that demand is much more fragmented than the other helix, cluster policy should support the organization of the demand

The supply side and the demand side of an emerging industry Region 2 Region 1 Cluster 2 Cluster 1 = Cluster 1A + Cluster 1B + … Context of experience KEA Region 3 Region 4

The supply side and the demand side of an emerging industry Region 2 Region 1 Cluster 2 Cluster 1 = Cluster 1A + Cluster 1B + … Context of experience KEA Region 3 Region 4 http://www.openlivinglabs.eu

4. NCCs and Smart Specialization Strategy • Cross-cluster and cross-sectoral collaboration within regions is considered a key way for the region to identify and develop a unique competitive advantage but represent also a key subject for EU policy makers to deliver smart specialization objectives to • Smart specialization at the regional, not at the cluster level, which should be developed considering for the relative advantages with respect to other EU regions • ‘New’ clusters (regional or European clustering) should be performed considering for the overall regional S3 (convergency)

4. NCCs and Smart Specialization Strategy (2) Public policies Demand SMART SPECIALIZATION Knowledge institutions Firms

The example of Veneto region pilot on the sustainable living cluster

5. NCCs and Entrepreneurial CMOs • In order to cope with the complexity emerging from cross-cluster cooperation and addressing emerging industries cluster management organizations (CMOs) should be entrepreneurial • Entrepreneurial CMOsare capable of: • identifying and proposing to cluster firms business opportunities in emerging industries • offer occasions of cross-cluster cooperation.

5. NCCs and Entrepreneurial CMOs (2) • Should support firms collaboration toward emerging industries (intra-cluster, cross-cluster, trans-national) • A useful example is that of ‘business network contracts’ developed in Italy (Italian Law 9 April 2009, n. 33, art. 3, co. 4-ter, developed within the ‘Small Business Act for Europe’) • allows two or more enterprises, on a purely contractual basis, to jointly perform one or more economic activities in order to increase their potentials for innovation and competitiveness • Specific (innovation-oriented) goals, common body for governance, suited for SMEs • Should support the creation of new firms • ‘smart’ business incubators

Indicators of CMOs excellence

NCCs and Entrepreneurial CMOs: policy implications • In the context of selective policies to favour clusters, a crucial aim is that of the evolution of CMOs toward an entrepreneurial approach, so that they get capable of identifying and proposing to cluster firms (or their combinations) business opportunities in emerging industries and to offer occasions of trans-regional cooperation. This way, CMOs would facilitate the development of the cluster smart specialization, which already represents a key concept of the European Commission 2020 policy framework

New cluster concepts and the cross-cutting issues

Implications for cross-cutting issues:Knowledge and Technology Transfer Variety of clusters To ensure NCC work as learning systems, where information and knowledge circulate and combine to generate new knowledge, an appropriate cognitive infrastructure need to be developed Favoursynergiccooperationacrossknowledgeinstitutions (intra-regions and across-regions). Cross-industry K&T transfer EntrepreneurialCMOs Smart Specialization Strategies Developing new cluster concepts (NCCs) The actors Supply and Demand side The insertion of the demand expands and empowers the knowledge and innovation community

Implications for cross-cutting issues:Internationalization Variety of clusters The mainrole of entrepreneurialCMOsshould be to promoteinternationalization and transnationalcooperation Regional and European clustering may strengthen the competitive position of Europe and its regions in the emerging industries, on a global scale EntrepreneurialCMOs Smart Specialization Strategies Developing new cluster concepts (NCCs) Contexts for demand and supply to interactshould involve (and may be replicated in) different (EU) regions The involvement of KEA and institutional KIBS in different EU regions is necessary to develop competences in the emerging industries The actors Supply and Demand side

Implications for cross-cutting issues: gender and diversity Variety of clusters EntrepreneurialCMOs Smart Specialization Strategies Entrepreneurial CMOs should support diversity in entrepreneurship (ethnic entrepr., woman entrepr.) and human resource management as source of creativity and innovation for firms and institutions involved Developing new cluster concepts (NCCs) Knowledge of diversity of consumers and users and their involvement stimulate the design of innovative solutions in every emerging industry The actors Supply and Demand side

Validated Joint Strategy