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Pre-Selection of Initial Set of Product Groups

First Steering Committee MeetingRiyadh, 7 December, 2005. Cautionary note. Initial set of 4 selected clusterspilot or demonstration clusters onlynot exclusive base for diversification and competitiveness building Methodology applicable to all clustersWe seek clusters with pro-active industry le

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Pre-Selection of Initial Set of Product Groups

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    1. Pre-Selection of Initial Set of Product Groups/Clusters Drawing on Industrial Survey of 2002 December 2005

    2. First Steering Committee Meeting Riyadh, 7 December, 2005 Cautionary note Initial set of 4 selected clusters pilot or demonstration clusters only not exclusive base for diversification and competitiveness building Methodology applicable to all clusters We seek clusters with pro-active industry leaders or “drivers” – who share our vision

    3. First Steering Committee Meeting Riyadh, 7 December, 2005 Primary criteria for pre-selection High-potential for technological upgrading – value added/worker At least moderately competitive at present – judged by exports Dynamic – indicated by growth of total output Already significant – which means some business capability exists

    4. First Steering Committee Meeting Riyadh, 7 December, 2005 Supplementary criteria – initial Span a range of industries One strategic high-tech cluster One oil-related cluster An existing non-oil related national (possibly SME) cluster An existing non-oil-related foreign driven cluster

    5. First Steering Committee Meeting Riyadh, 7 December, 2005 New high-tech cluster choice Strong candidates for selection Information and communication technologies (ICT) Biotechnology (in selected application areas) Petrochemicals

    6. First Steering Committee Meeting Riyadh, 7 December, 2005 Candidates for high-tech sector ICT – its importance is well known and widely addressed in the KSA Petrochemicals is already a very strong industry Biotechnology is an emerging, crucially important “general purpose technology” – it is the clear choice

    7. First Steering Committee Meeting Riyadh, 7 December, 2005 Spearman-Kendall ranking Measures aggregate performance by following criteria Value-added per employee Percent of exports in total sales Average annual growth rate in total output over a few years

    8. First Steering Committee Meeting Riyadh, 7 December, 2005

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