Field291. 3. 5 Link between Services and SME Development301. 4 Excellent Cluster Management Organizations -What are their Distinctive Characteristics?.
Services of cluster management organizations36table 7: Overview of cluster programs41table 8: Overall objectives of the cluster programs43.
Effect of Spectrum and Intensity of Services on Business activities of SME31FIGURE 16: Comparison of structural characteristics of excellent and non-excellent clusters35figure 17:
Comparison of older and younger cluster programs with regard to the specific economic environment, and R&d strategy as well as other funding programs72figure 26:
Overview services of cluster management organizations38index OF BOXES Table 1: Abbreviations for the cluster programs benchmarked in this studyabbreviations OF CLUSTER PROGRAMS USED IN THE FIGURESCOUNTRYNAME OF PROGRAMABBREVIATIONAUSTRIACLUSTER Program Lower Austrialower Austriabelgiumcompetence Centres-Light Structuresbelg LSCOOPERATIVE innovation network integrated projectbelg
Cluster management excellence and the spectrum and frequency of business-related services of the cluster organization are important determinants for the impact of a cluster.
EXECUTIVE SUMMARY 11 In order to understand the characteristics of cluster management organizations and their interaction with cluster stakeholders in more detail,
services provided by the cluster management organization and achievements and recognition of the cluster management organization.
Benchmarked clusters per country and technology area TECHNOLOGY AREAS Aviation and space Biotechnology Construction/building sector Energy and environment Food industry (non-biotech) Health and medical science
Humanities/social sciences, media, design, service innovation Information and communication Micro, nano and optical technologies New Materials and chemistry Production and engineering Transportation and mobility TOTAL
The size of a cluster does not necessarily depend on the size of the national economy.
Although the economies of Germany and Denmark are very much different in terms of the numbers of economic players,
The size of clusters in Poland is given quite small the size of the Polish economy;
Eventually there is of course a size limit set by the size of the economy as it has an influence on the number of players in economic sectors in
With the exemption of Iceland in all countries industry (SME and Non-SME) is the dominating stakeholder.
and universities account for 24 respectively 11 per cent of all stakeholders). 1. 2. 4 REGIONAL CONCENTRATION OF CLUSTERS According to the definition of Michael E. Porter clusters are geographic concentrations of interconnected companies
Modern ways of communication, particularly structured by the internet, have made communication much easier, but nothing beats faceto-face interaction when it comes to the development and implementation of projects,
in particular if problems have to be solved. Personal interaction matters in this regard as it contributes to the building of trust between project partners,
which facilitates personal interactions through frequent meetings of the cluster stakeholders. All clusters that were benchmarked show a high regional density with a median value of at least 75 per cent.
Clusters and the New Economics of Competition, in: Harvard Business Review, November/December 1998, p. 78 19 Figure 5:
and their individual environments as well on the public funding programs that support them. Cluster management organizations can be funded from different regional, national and European funding programs.
and industry-driven clusters Sources of funding Relevance of specific determinants Effects of the cluster's technology field Links between services of the cluster management organisation and SME activities 1
Apparently, larger and matured clusters provide a much better environment for results and impacts as an effect of activities of a cluster management organization.
Other examples for specific industry characteristics are the industry sectors of energy and environment, services as well as micro, nano and optic.
In order to support clusters according to their specific needs cluster programs have to take the specific technology foci of clusters into account. 1. 3. 5 LINK BETWEEN SERVICES
AND SME DEVELOPMENT A cluster management organization can influence the development of a cluster through the provision of targeted services for its members (see Box 2 for an overview of services).
This was analyzed in detail for SME members by calculating a composite indicator for business-oriented services provided by the cluster management organization that was put in relation with the impact of the work of the cluster management organization on business activities of SME.
Figure 15 displays a correlation between the spectrum and intensity (in terms of frequency) of business-oriented services and the impact of the work of the cluster management organization on business activities of SME.
The more services are provided (see e g. the median value the higher the impact on business activities of SME is.
of SME Share of clusters having initiated many successful co-operations Median value Energy & environment Micro & nano & optic Biotechnology & health Services & nontechnical innovations
Production & engineering Information & communication 0 25 50 75 100 150 125 Percentage of median value(%)31 1. 4 EXCELLENT CLUSTER MANAGEMENT ORGANIZATIONS
Excellent management is considered to be a general prerequisite for successful operation in industry and the private sector in general, in the public sector, like education, health, environment, etc.
Effect of Spectrum and Intensity of Services on Business activities of SME 0 10 20 30 Impact on business activites of SME Significant and sustainable impacts for a significant number of cluster
)( see Table 5 on next page) as well as a high level of services and activities. In terms of structural characteristics excellent clusters respectively their management organisations have more participants and feature more often a higher clarity of tasks and roles in terms of governance.
Number of clusters of the excellence portfolio per specific technology area TECHNOLOGY AREAS Aviation and space Biotechnology Construction/building sector Energy and environment Food industry (non
-biotech) Health and medical science Humanities/social sciences, media, design, service innovation Information and communication Micro, nano and optical technologies New Materials and chemistry Production and engineering
Life Long Learning Aspects for the Cluster Management Team Stability and Continuity of Human resources of the Cluster Management Team Stability of Cluster Participation Clarity of Roles Involvement of Stakeholders
Organisation Share of financial resources from private sources STRATEGY, OBJECTIVES, SERVICES Strategy Building Process Documentation of the Cluster Strategy Implementation Plan Financial Controlling System
Review of the Cluster Strategy and Implementation Plan Performance Monitoring of Cluster Management Focus of the Cluster Strategy Activities and Services of the Cluster Management Performance of the Cluster Management Working groups
Communication of the Cluster Organisation Cluster organisation's web presence ACHIEVEMENTS, RECOGNITION Recognition of the Cluster in Publications, Press, Media Success Stories Customer and Cluster Participants'Satisfaction
Stability and Continuity of Human resources of the Cluster Management Team Stability of Cluster Participation Clarity of Roles Involvement of Stakeholders in Decision making Processes Direct Personal Contacts Between the Cluster Management
OBJECTIVES, SERVICES Strategy Building Process Documentation of the Cluster Strategy Implementation Plan Financial Controlling System Review of the Cluster Strategy and Implementation Plan Performance Monitoring
of Cluster Management Focus of the Cluster Strategy Activities and Services of the Cluster Management Performance of the Cluster Management Working groups Communication of the Cluster Organisation Cluster organisation's web presence
an adequate level of governance and the provision of services are key characteristics of excellent cluster management organizations that yield effects on cluster development, particularly in regard to the development of business, R&d and international activities
and services that are provided by the cluster management organisation to facilitate the development of the cluster:
and intensity (in terms of frequency) of business-oriented services provided by a cluster management organisation and its effects on business activities of SME.
The more services are provided, the higher the impact on business activities of SME is. 6) The older and larger a cluster is institutionalized,
Structural factors such as size, age, governance and the type of agenda setter (industry or research stakeholders) have an effect on the spectrum
and intensity of services provided by the cluster management organization and thus on the development of business activities of SME.
Figure 18 displays the causal relationship of structural factors and agenda setters, services and effects:
and intensity of services provided by the cluster management organization which in turn depends on specific characteristics of the structural factors
-or research-driven Technology area of the cluster Structural factors Agenda setters Spectrum and intensity of services provided by the cluster management organization Impact on business activities of SME
Overview services of cluster management organizations 5 Sydow, Jörg/Zeichhardt, Rainer, 2009: Importance of Network Services for the Success of Networks, in:
Buhl, Claudia Martina/Meier zu Köcker, Gerd (eds. 2009: Cluster Management Excellence, Vol. 1: Network Services, Competence Networks Germany, Berlin, p. 20 CATEGORIES OF SERVICES EXAMPLES OF SERVICES ACQUISITION OF THIRD-PARTY FUNDING FOR PROJECTS (PUBLIC FUNDS) Acquisition of R&d
and non-R&d projects on behalf of cluster members Distribution of information about funding programs COLLABORATIVE TECHNOLOGY DEVELOPMENT, TECHNOLOGY TRANSFER AND R&d PROJECTS Organization of tasks forces/working groups Management
of projects on behalf of cluster members Legal advice, e g. on IPR INTERNAL NETWORKING AMONG CLUSTER MEMBERS Regular meetings, get-togethers, thematic events/workshops for cluster members Internal newsletters, databases etc.
DEVELOPMENT OF ENTREPRENEURSHIP Consulting and coaching Acquisition of financing (e g. venture capital, banks, public funds) on behalf of entrepreneurs MATCHMAKING
study tours Offices or other permanent representations abroad Cooperation with export promotion agencies Services for clusters members that are provided by the cluster
and/or allow cluster members to focus on their core activities. 5 Table 6 gives a general overview of services that can be offered by a cluster management organization to support the development of a cluster:
Network Services, Competence Networks Germany, Berlin, www. kompetenznetze. de/the-service/order-service/cluster-management-excellence-volume-1-network-services 39 Cluster policy
national or regional economies are able to reply to the market failure of information asymmetries.
It can therefore be assumed that due to the corrective influence of clusters within an economy, many countries have set up their specific cluster program.
How can cluster programs support the development of clusters that can compete in a global economy?
Government of Catalonia, Ministry of Enterprise and Labour, Directorate General for Industry, Observatory for Industrial Foresight 9 Foray, D.,David, P.,Hall, B. 2009.
Knowledge Economists Policy Brief No. 9. European commission. 40 their relevance on the policy agenda and their coordination with other funding programs, support of cluster internationalization, the role of program owners
Common to all programs is their rationale of increasing the competitiveness of the national economy through the facilitation of collaboration between companies and research stakeholders.
and acceleration of economic growth To create a favorable business climate with improved conditions for business development
products, services, companies and jobs based on top-class expertise To support interregional specialization and division of duties in order to create internationally competitive centres of expertise To increase the attraction of regional innovation environments in order to lure international companies, investments and leading experts to the region SHOK Strategic Centres for Science,
Technology and Innovation To establish international Strategic Centres of Excellence in STI in key competence areas with regard to future needs of the business sector and society.
and to create radical innovations FRANCE Grappe d'entreprises To develop business clusters in economic sectors with weak R&d activity Les Pôles de Compétitivité To boost the competitiveness of The french economy
the Competence Networks Initiative To increase the competitiveness of German regions To approach the excellence status of European cluster management organizations Cluster Offensive Bayern To support the competitiveness of the Bavarian enterprises in selected fields
and long term support of economic growth and employment Zentrales Innovationsprogramm Mittelstand Netzwerkprojekte (ZIM NEMO) Development of innovation capacities and competitiveness of SME through the support of innovation networks HUNGARY Cluster Development
and innovation infrastructure, improve the facilities of higher education institutes To motivate the cooperation of companies through clusters To support joint innovation investments of clusters To accredit innovative clusters ICELAND Regional Growth Agreements (Vaxtarsamningur
and investment in research and innovation in the economy ITALY Innovation Clusters Piedmont To identify firms'technological needs
and increasing the attraction of productive investments in the region 45 LATVIA Cluster Program To promote cooperation between unrelated companies operating in specified sectors and research, educational and other institutions,
and to increase international competitiveness of Lithuanian industries To create a favorable environment for innovative clusters
and the identification of potential business opportunities NORWAY Norwegian Centres of Expertise (NCE) To facilitate growth by generating
and substantial national and international growth potential Arena Program To strengthen the capability of regional business environments for innovation and value creation by intensifying alliances between business environments,
educational institutions and the public sector POLAND Polish Cluster Support Increased competitiveness of the Polish economy through the support of the establishment and development of clusters at the national and regional level PORTUGAL COMPETE To improve the sustained competitiveness
of the Portuguese economy in the context of the global market, intervening on strategic dimensions such as innovation, scientific and technological development, internationalization,
entrepreneurship and modernization of public administration ROMANIA Competitiveness Poles To foster the setting up and development of innovative enterprises/activities in enterprises resulting in an increased number of suppliers and clients on national and international markets via an integrated financing package of projects jointly developed by enterprises,
R&d organisations, NGOS and public bodies Clusters To develop specific business structures (clusters) around productive activities aiming at increasing the added value of competitive products on national and international markets SERBIA Serbian
either setting up cluster management organizations from scratch or towards the promotion of particular industries that are driven already cluster to improve the global competitiveness of industry sectors that are relevant for the national economy.
and innovation environments within specific growth fields TURKEY Support for the Improvement of International Competitiveness (URGE) To develop a joint action culture To create new exporters To create new export markets To develop consultancy services
for Science, Technology and Innovation X X FRANCE Grappe d'enterprises X X Les Pôles de Compétitivité X GERMANY Competence Networks Germany
If there are such strategic objectives then they are motivated by the interest in a consolidated cluster landscape (e g. in the case of Innovation Networks Denmark it was decided to limit the number of nationwide clusters) or in the concentration of efforts on the most important business sectors of the economy (e g.
With regard to the limitation of numbers of clusters per thematic area some program owners pointed out that one has to balance between the interest in concentrating resources for the benefit of efficiency and effectiveness and the potential economic benefits that result from competition between clusters in the same
OF COVERING THE MOST IMPORTANT BUSINESS SECTORS OF THE ECONOMY? AUSTRIA Cluster Program Lower Austria Yes Yes Yes BELGIUM Competence Centres-Light Structures No No Yes Cooperative innovation network integrated project No No Yes CZECH REPUBLIC Cooperation Clusters, Czech republic Yes No No DENMARK
Grappe d'enterprises No No No Les Pôles de Compétitivité Yes No Yes GERMANY Competence Networks Germany No No No Go-Cluster No No No Cluster Offensive Bayern No Yes No Cluster Policy Strategy of Hamburg No Yes Yes Zentrales
According to Porter c lusters promote competition and cooperation. Rivals compete intensively to win and retain customers.
Without vigorous competition, a cluster will fail. 10 Porter's argument is focusing on competition between companies within the cluster.
Why should not there be also competition between the cluster management organizations when they apply for public support?
Competition for limited public funds due to the decision of the program agency to support only one cluster management organization in the thematic area of XYZ puts pressure on cluster management organizations
to focus their efforts on areas and activities where they can create the most benefits for their cluster members.
A wider spectrum and a higher frequency of services for the cluster members which in turn trigger economic activities e g. of SME (for further details about the link between services
and impact) would be one of the results of such a competition. Although there are certainly restrictions for such an approach e g. in larger countries it can make economic sense to have several clusters in a specific thematic area due to the regional concentrations of relevant cluster stakeholders,
-limiting public means to a few eventual beneficiaries would definitely encourage cluster management organizations to think about how they can be better than their competitors.
Competition is always good to encourage rethinking whether one is taking the right decisions. 2. 2. 4 TOP-DOWN
Clusters and the New Economics of Competition, in: Harvard Business Review, November 1998, p. 78 52 that cluster management organizations and their affiliated members know best which projects they should focus on to create value or
'enterprises X Les Pôles de Compétitivité X X 53 GERMANY Competence Networks Germany n. a n. a. Go-Cluster n. a n. a
and consultancy services) that goes beyond internet platforms and regular meetings between program owners and cluster managers.
matchmaking but also individual services. In most cases where programs provide technical assistance this was done right from the start of the program being a part of the program strategy.
PROVISION OF TRAINING AND CONSULTANCY SERVICES) AUSTRIA Cluster Program Lower Austria X BELGIUM Competence Centres-Light Structures X X Cooperative innovation network
Technology and Innovation X FRANCE Grappe d'enterprises X Les Pôles de Compétitivité X Table 12:
Icelandinnovation Clusters Piedmont, Italycluster Program, Latviainnocluster LT, Lithuaniainnocluster LT+,Lithuanialuxembourg Cluster Initiativenorwegian Centres of Expertise (NCE), Norwayarena Program, Norwayinnovative Economy Operational
to enable it to develop its various services. EUR 8. 3 million p. a. EUR 5 million p. a. EUR 104 millioneur 11 millioneur 452 millioneur 60 million
up to 90%Cluster services provided for collaboration partners: up to 85%Up to 50%50%,60%,70%funding from the program depending on conditionsn. a. 50%funding from the NCE programmax. 50%funding from the programup to 100
III) Cluster programs that focus on the commercial exploitation of the R&d potential of a country's economy The third type of cluster programs is characterized by a focus on the establishment of clusters
Although these type of program shares the objective of promoting economic growth with KEY FINDINGS 1. Different types of cluster programs serve different purposes. 2. Most cluster programs feature high on the government's agenda. 3. Coordination
This set of actors produces pervasive and systemic effects that encourage companies within the region to develop specific forms for capital that is derived from social relations, norms,
IV) Network programs to support the competitiveness of national industries This type of program is not a cluster program in the narrow sense as it promotes the establishment of industrydriven R&d networks that need not necessarily be rooted in regional environments,
Support to innovative industrial cluster organizations, Slovakia Luxembourg Cluster Initiative CLUSTER PROGRAMS THAT FOCUS ON THE COMMERCIAL EXPLOITATION OF THE R&d POTENTIAL OF A COUNTRY'S ECONOMY Strategic Research Program for Centres of Excellence
Furthermore, many members of Go-Cluster are funded also by other programs of the Federal government such as the Zentrales Innovationsprogramm Mittelstand (ZIM) of the Federal Ministry of Economics and Technology (BMWI.
and are considered as being important from an economic policy point of view. 14 The Zentrale Innovationsprogramm Mittelstand (ZIM)( Central Innovation Program SME) of the Federal Ministry of Economics and Technology supports innovation activities through three subprograms:
For more information about the Spitzencluster-Wettbewerb (Leading-edge cluster competition) please see www. bmbf. de/en/10726. php. 16 The majority of the programs that were benchmarked in this project are programs that were initiated
and further developing the competitiveness of the country's economy in the global context. From the survey it can concluded that all program owners agree on the importance of internationalized clusters
(Iceland) Regional Growth Agreements (Vaxtarsamningur)( Iceland) Competitiveness Poles (Romania) Support to integration of enterprises in suppliers'chains or networks (Romania) Support to innovative industrial cluster
NCE clusters receive regular support with internationalization activities through services provided by the program management agency Innovation Norway.
and brokerage events o Identifying new business and market opportunities worldwide o Facilitating participation in EU projects.
but in some cases programs also make budgets for travel expenses of the cluster management, event organization and consultancy services available.
NETMATCH is also partner in the European Enterprise Network. The importance of tailor-made internationalization support for clusters through cluster programs is corroborated by the findings of a survey of international activities of clusters. 17 The survey analyzed clusters from different European countries including clusters that are supported in the programs
In turn this increases the willingness of companies and other stakeholders such as research institutions or government bodies to engage financially in international cluster activities.
professional support of cluster managements through tailor-made services has gained more importance in recent years. Many program owners were-as a key element of their strategic approach to cluster development-from the very beginning of the program pro-active in terms of dialogue with clusters, specific criteria for support, provision
They cover topics such as sustainable financing, innovation management, quality management, IPR, internationalization, communication and services.
but only tailor-made services to facilitate individual cluster development. With the establishment of NETMATCH in 2010 the program Innovation Networks Denmark has set up a similar support organization.
In France the association France Clusters offers similar services to clusters that are supported through the Grappe d'entreprises program
but the services are also available to other clusters. Several program owners highlighted that cluster managers have to trust the program owners;
The transparent offer of services and the transparent implementation of instruments are important for trust building.
and that have an impact on the national economy. In this regard an active involvement in the development of individual clusters has two principal dimensions:
and that have an impact on the national economy. Therefore, the majority of program owners argued to focus programs on cluster excellence instead of numbers of clusters.
Targeted, need-focused services such as related workshops and seminars, benchmarking as well as a continuous strategic dialogue with cluster organizations to question
on the one hand they should support cluster organizations through the provision of services targeting cluster management excellence
Since 2006 the annual performance of the clusters that are supported through the program is measured through quantitative data, e g. indicators on number of new services or products
usage of services (e g. matchmaking) offered by the cluster managements, etc. 19 The results of the annual performance assessment is used
-and the overall impact of the cluster support on the national economy. The challenge of measuring impacts lies in the complexity of the huge array of variables that decide on the actual effect of funding.
Normally the economic impact of activities can be measured after 5-7 years depending on the number of participating enterprises in the cluster with concrete registered activities.
The Lower Austrian regional Government department for Economy, Tourism and Technology has developed and implemented a system of different monitoring
and the impact of state aids and further innovation support services with the aim to improve single innovation policy instruments as well as to coordinate the overall regional innovation system with all involved actors/intermediaries.
Also, Lithuania incorporated cluster policy into the regular innovation policy, trying to create a favorable environment for innovative clusters
Comparison of older and younger cluster programs with regard to the specific economic environment, and R&d strategy as well as other funding programs 0 0, 51 1, 52 2, 53 3, 54 coordination with infrastructure programs coordination with business development programs
Many cluster programs provide both of these support services. Comparing the programs that exclusively provide fundingwith those that supply technical assistance and funding,
or cluster programs can provide both services. When comparing the cluster programs that focus exclusively on the establishment of new clusters with those that focus exclusively on the further development of matured clusters towards excellence clusters,
e g. some of the cluster programs provide extensive budget for R&d investment, others supply budget for the development of cluster management organizations only.
and networks of cluster managers should be supported through adequate instruments. 2. Cluster managements should get support for the development of value-adding services that can be offered to the cluster members. 3. Cluster managements should get support with the development
e g. technical assistance or capital investments in organizations. 8. Quality labeling of cluster organizations should feature as an integral part of cluster programs 9. The program should activate competition among the clusters benefitting from the program by setting up e g. annual contests.
in order to be able to adjust support to changing economic environments smoothly and quickly. 4. Clusters have different characteristics depending on their context (e g. history of origin,
and extend the global competitiveness of the European union's economy that is the most important conclusion from the benchmarking of 261 cluster management organizations.
and value-adding products and services for the cluster members. And it is also about developing favourable framework conditions in
and that have an impact on the national economy. In this context is it important to support cluster management through targeted,
need-focussed services such as relevant workshops and seminars, benchmarking as well as a continuous strategic dialogue to question
The support should focus on those industries in which a country's economy shows pronounced comparative advantages on the global market.
but also flexible enough to respond quickly to changing economic and technology environments in which clusters are operating in. 6. Monitoring
Phd Program, the Danish Incubator Program and the Danish GTS-system (Danish RTO institutes. Thomas has worked previously at the Nordic Council of ministers, the Ministry of Economic Affairs and the Prime minister's Office.
He holds a Master's degree in economics from the University of Copenhagen and a Phd degree in international economics from Copenhagen Business school.
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