This document discusses best practices for cluster policy based on analysis of advanced regions. It finds that effective cluster policy (1) has clear, measurable objectives and sufficient long-term funding; (2) supports a broad range of industries through related-industry initiatives rather than individual firms; and (3) coordinates cluster programs through a capable implementation agency. Peer review is presented as an approach to benchmark policies across regions and improve framework conditions for innovation and regional collaboration around clusters.

1. Smart Guide to Cluster Policy
- How to Make Better Use of Clusters for Regional Development -
Dr. Gerd Meier zu Köcker
Head of
European Cluster Observatory
Alta, 7 March 2016

2. Where are we today?

3. Cluster and Cluster Management Matters

4. Cluster, Cluster Initiatives and Cluster
Organisations
26.04.2015|© ClusterAgentur Ba-WÜ| 4

5. Clusters Matters
• Economic activities that agglomerate in clusters account for
about 39% of European jobs and 55% of European wages
• Europe is home to some 2,500 strong clusters, i.e. statistically-
defined regional concentrations of related traded industries, that
achieve above average performance for employees, firms, and
regions
• Almost all EU Member States and majority of
regions have cluster programmes in place
• Majority of EU regions use cluster initiatives
to implement regional smart specialisation
strategies

6. Firms in Clusters Are Performing Better…..
….. than the Sector-specific Average
Cluster Monitor Germany, July 2012, 50 Cluster representing about 5000 company
Much better
Better
Similar
Slightly worse
Much worse

7. Framework Conditions are Changing

8. Examples for Innovation in the Field of
Emerging Industries (Advanced Packaging)
16Sources: gerber and Limmatdruck Zeiler
Food
Sensors
Packaging

9. Potentials for Integrating New Actors in
Emerging Value Chains
Source: European Cluster Observatory, 2015

10. Current and Future Challenges Driven
by Technologies, Markets and Society
• Wind energy goes offshore
• Food & packaging go
smart packaging
• Digitalisation
Industrial
Transformation
Processes
• Biotech & Health
• ICT & Medical devices
• Communication technologies &
automotive
Increasing
Convergence of
Technologies
• Creative industries
• Digital industries
• Bioeconomy industries
Emergence of
New Industries
New policies
New support
schemes
New approaches
to support
regional
competitiveness

11. Impact of Industrial Transformation Processes

12. Requirements for Future-oriented Cluster Policies

13. Framework Conditions for Cluster
Initiatives
Cluster
Presence
Cluster
Inititives
Economic
Impact

14. Do‘s and Don‘t of Cluster Policy Making
Don’ts Do’s
Support individual specialised firms Support new activities, in particular by groups or
networks of related industries
Create clusters from scratch (i.e. implementing
“wishful thinking” of policy-makers)
Facilitate the growth of clusters by building upon
existing strengths (i.e. implementing evidence-
based policy by building upon a comparative
analysis of regional strengths and 'entrepreneurial
discovery')
Fund a myriad of clusters Fund strategic cluster initiatives that focus on
promoting the strengths, linkages and emerging
competences, which fit into the orientations of
national/regional smart specialisation strategies
Follow growth trends without reflection Capitalise upon regional competences to diversify
into new activity areas and to develop emerging
industries
Follow a narrow sectoral cluster approach Follow a systemic cluster approach of related
industries through capturing cross-sectoral
linkages
Develop and implement cluster policy in
isolation from other policy areas
Inclusive and participatory cluster approach (i.e.
involving businesses, investors, academics and
policy-makers, reaching out to related policy
themes such as R&D, innovation,
entrepreneurship, access to finance, SME
internationalisation etc.)
Support cluster initiatives that are only inward
looking
Support cluster initiatives that have an international
perspective on the positioning of the cluster in
international value chains
Focus exclusively on strengthening regional
partnerships
Build regional partnerships as a foundation to
engage in European Strategic Cluster Partnerships
Source: Smart Guide Cluster Policy, EC

15. Cluster Policy Circle

16. Why are some regions doing better than others?

17. The Key Determinants for Cluster Policies

18. Peer Review as New Approach to Improve
Cluster Policy
Peer Review &
Benchmarking
Comparing
among
participants
Peer Review of Regional Cluster Policies
Policy Learning
& Improving

19. Cluster policy has clear and
measurable objectives
Rhône-Alpes
Skane
Lombardia
Massachusetts
Baden-Württemberg
Frequent changes
of cluster policy
Cluster policy very generic;
no measurable objectives
High continuity of
cluster policy
Characteristics of Cluster Policy
for Selected Advanced Region (I)

20. Broad spectrum of support
instruments in place
Rhône-Alpes
Skane
Lombardia
Massachusetts
Baden-Württemberg
Insufficient budget to
meet policy objectives
Narrow spectrum of
support instruments in place
Sufficient budget to
meet policy objectives
Characteristics of Cluster Policy
for Selected Advanced Region (II)

21. Rhône-Alpes
Skane
Lombardia
Massachusetts
Baden-Württemberg
Implementation agency doesn’t exist or
is not capable well coordinate cluster
programme
Cluster policy is hampered
by administrative burden
Implementation agency well
coordinates cluster programme
Cluster policy is well implemented
Characteristics of Cluster Policy
for Selected Advanced Region (III)

22. Setting Policies Around Clusters

23. Settings for Regional Collaboration
Platform to Improve Framework
Conditions for Innovation

24. Support Schemes for Developing Cluster
Initiatives

25. Thank you very much for your attention
Dr. Gerd Meier zu Köcker
ClusterAgentur Baden-
Wuerttemberg
Stuttgart
Germany
Phone: +49 711 123 3034
E-Mail: mzk@clusteragentur-bw.de