Maciej Pietrzykowski Senior Consultant, Member of the Board

1. Managing clusters and cluster initiatives. Focus on internationalisation Strengthening business performance management in economic networksProject co-financedfrom the Leonardo da Vinci Programme2011-1-PL1-LEO05-19900Leonardo da Vinci ProjectFoundation „Partners for Local Government”Leszno27th September 2013 Maciej Pietrzykowski Senior Consultant, Member of the Board Foundation „Partners for Local Government”

2. Challenges for European industries in the era of globalisation The more markets globalise, the more likely is that resources flow to more attractive regions. Therefore! The main feature of the recent globalisation is a growing competitiveness. The competitiveness of a region is determined by the innovative activities of entire industries and branches. The business networks have to act more and more internationally.

3. Typical tools and methods used in cluster policy • Trainings leading to human resource upgrading • Cluster expansion leading to increase in numbers of firms (attracting new companies through regulations, incubators, etc.) • Business development (promoting business operations) • R&D and innovation (promoting products, innovations, knowledge commercialization ) • Business environment (improving the business infrastructure)

4. Limitations of current cluster policy • In many countries cluster policy has emerged out of SME policies and tend to focus on smaller companies and start-ups • Cluster initiatives often mean only financial incentives, with no address at competitiveness and innovation • A bias towards technology-intensive clusters • Insufficient integration of cluster initiatives at the regional level • Inflationary use of the term cluster

5. So far, clusters insisted on… • Facilitating administrative procedures, • Facilitating information flow • Fostering finance availability • Improving the branding of the region • Tax reduction • Support for trans-national activities EC, 2013, Innovation Clusters in Europe: A statistical analysis and overview of current policy support

6. With regard to clusters, we used to use the model of Triple Helix so far However, this model is not more valid and too restrictive…

7. The main objectives of EU policies, for now… • Fostering innovation • Fostering co-operation • Fostering internationalisation • Fostering qualification

8. The following ideas could foster the management process • Managerial toolkit for cluster managers and animators • Financial scheme to cover fixed costs of the cluster manager at the prenatal stage • Handbook - Managing the Intelectual Property Rights • Supporting audit of trainings needs • Supporting creation and development of networks • Evaluation of clusters performance

9. Two additional groups create the „Pentagonal Helix”

10. Two additional dimensions • People/Users – cover both skills within the cluster and user-driven agenda • Finance – means all types of access to various source of financing Crucial role of people in shaping the competitiveness of the cluster – especially cluster manager

11. Managing clusters On-going process in at least 5 areas: • Strategy • Finance • Marketing • Member services • Internationalisation During last 2 years we have delivered to cluster managers the training in all 5 areas.

12. Lesson learned after the training • Clusters are not enough organized and structured • Companies tend not to see benefits from clustering • Member services are very limited • Clusters have high interest, but neither sufficient financial nor organizational capacity to internationalise • Cluster managers require the training in management • Cluster managers are to much engaged in current operations, so they are not able to think strategically • Clusters have very limited financial resources and have to rely on external sources of financing (at least in first few years)

13. Lesson learned after the training • Cluster managers are the right people to foster internationalisation, as well as pursuing cluster initiatives • Clusters perform much better when initiative has well defined and practical objective, is demand and market-driven • Internal network has to be strengthened by the market driven cooperation factors rather than by the externally shaped policy • Transnational cooperation has to be based on mutual trust between individuals and takes a lot of time to proceed • It is much easier to expand the international network than to start one

14. Managing the cluster initiative On-going process in the five fields of action: • Information and communication • Training and qualification • Co-operation • Marketing and PR • Internationalisation CLOE, Cluster Management Guide – Guidelines for the Development and Management of Cluster Initiatives

15. 1. Information and communication • On-going process of being in touch with customers • Frequent customer interview • Internet and online communication (including most recent channels) • Regularly updated catalogue of services • Newsletters • Regular events, company tours, study trips • Press releases and communication with the society

16. 2. Training and Qualification • Analysis of branch, industry and economy related educational requirements • Promotion and mentoring of talented staff • On-going trainings • Regular events: workshops, seminars, networking, intercompany learning

17. 3. Cooperation • Initiation and support of co-operation projects • On-going networking and building new partnerships • Cooperation with R&D bodies • Facilitating external initiatives aiming at tightening cooperation relations

18. 4. Marketing and PR • Building the regional identity • On-going process of building good relations with the society • National and international PR and advertising activities • Participation in fairs, business trips, presentations for major customers • Lobbying

19. 5. Internationalisation • Access to international events, congresses, customers and trends • Support of international cooperation • Support of companies during internationalisation • Set-up of network activities between comparable/complementary international clusters • Attract foreign visits in the cluster

20. Barriers toward successful internationalisation of clusters • Low capabilities of SMEs for working strategically with international partners • Lack of structured information on internationalisation needs and potential partners for clusters • Lack of structured opportunities for meeting and developing relations with potential international partners • Lack of virtual (and real) infrastructure for collaborative activities • Lack of tailored financing schemes for internationalisation activities (particularly SMEs and particularly for longer-term trust-building and “business planning” activities) • Too little coordination between existing international networks of clusters/Cluster Organisations /innovation environments (not only on the level of clusters, but also on the level of regional/national policy levels) • Too little coordination between internationalisation goals in different policy fields FINAL CONSULTATION DRAFTCLUSTER INTERNATIONALISATION HANDBOOK“THE PRINTED VERSION”17/5/12

21. Journey towards internationalisation

22. Finding rationalisation for internationalisation • To find benefits to cluster itself • To find benefits to the businesses in the cluster • To find benefits to policy makers and to R&D bodies • To assess whether there is a right time for internationalisation (clear objectives, priorities, strategy, mission, vision, etc.)

23. Stages of the internationalisation journey • Identification of strengths and weaknesses • Identification of opportunities and threats • Strategy planning • Initiation the preparation process • Developing the trust and implement projects • Measuringof the success • Sustaining of the network

24. Thank you for your attention Maciej Pietrzykowski mpietrzykowski@partners.org.pl Mob. +48 72 82 82 590