Developing International Businesses in Clusters, (DIBiC) project
This project gives deeper understanding around different methods, strategies and forms of implementation of competitive business clusters and how the may get stronger at the international scene. The members of the clusters and their cluster management teams will get at better understanding of best practices from other parts of Europe during the learning journeys. Gained knowledge and understanding of using different methods and analyses is an important factor that can be used by new cluster initiatives.
On basis of two pilots, one in Gelderland and one in Hungary, strategies are described to develop the clusters. And which are the most relevant partners to be mobilized and which are the critical success factors. The philosophy of the pilot clusters is discussed with relevant public and private stakeholders. Region 1 (Gelderland): development of Fruitport Europe cluster in Gelderland and Region 2 (Hungary): development of Vegetable and Flowers Gate Europe cluster in Hungary. A third activity in Sweden focuses on stimulating international relations in their cluster initiatives.
Activities generated in clusters is one way to face international competition:
- New markets can be developed better and faster because there is more critical mass. (e.g. lower transportations costs if product volumes can be combined).
- International orientation: International activities are much more easily to develop in clusters than in stand alone organisations, due to collective experiences.
- Keeping up-to-date in clusters is easier, especially in quickly changing markets.
- Knowledge and information transfer works better in clusters.
- Combinations of activities and spin off activities are much higher
- New technology can be implemented better. The often high costs can more easily be accommodated by a number of companies, instead of carrying them alone.
However it is not easy to improve existing clusters or to understand how (and if) new clusters can be created. Basic understanding and certain experience in this field is essential for regions that want to develop regional (knowledge based) economy or manufacturing industry. This knowledge and understanding is crucial. For choosing the right strategies in business development and policy making (regional long-term strategies including questions of governance).
The main objective of the project is to understand the processes that lead to new or more dynamic existing clusters. Basic understanding and certain experience in this respect is essential for regions that want to develop regional (knowledge based) economy or manufacturing industry.
Learning (understanding) can be best realized in practice where experiences are obtained with the relevant stakeholders in the region. Experiences are gained in cluster oriented projects where information about the successes, problems and difficulties is exchanged. In two regions (Gelderland and Hungary) new cluster initiatives are undertaken and in one region (Södermanland, Sweden) cluster change management activities are focused in existing regional clusters (towards international activities).
The three regions have defined more in details three sub-objectives (see below) each, which will provide the basis information for the main objective, formulated above.
A) Understanding how to develop International Business Clusters
This objective is understanding the process of developing a Business Cluster. What actions have to be carried out to get public and private organisations in motion, what are the drivers, the key factors, and critical success factors?
What should be the role of public and private sector?
How important are knowledge or knowledge institutes and/or a university?
How important is new technology ?
How important is an auction as an existing crystallization point or hub in this respect?
The key is to understand similarities and differencies in cluster development: what factors are general/ specific to a certain field of business/situation/region/phase.If these questions ca n be answered, this will give opportunities to develop new clusters in the future.
B) Development of a two pilot clusters
In order to assess the more theoretical aspects from objective A, two pilots in two regions are carried out, both in the agro-food sector. A third pilot in Sweden focuses on stimulating international relations in their clusters.
Pilot I: In Gelderland: Fruitport Europe
- The first sub-objective is to define the niche: niche products or niche activities. What is the international scope, what are the import and export perspectives. A SWOT-analysis is made, interesting products and /or activities are defined on basis of the strengths, markets and future needs. Information of the existing (and missing) activities with respect to cluster formation is collected.
- Second sub objective is to mobilize the relevant stakeholders for the concept. (re)organise local setting so that public organisations will contribute as well. Platform building with relevant stakeholders in the public domain, intermediate organisations and private companies.
- The third sub-objective is a plan how to expand the cluster and what is the time schedule. Are new technologies or organisations required? How will the international network be developed?
Pilot II in Hungary: Vegetables and Flowers Gate Europe
Region 2: Development of a cluster called “Vegetables and Flowers Gate Europe” (South Great Plain, Hungary).
Region 2: Development of a cluster called “Vegetables and Flowers Gate Europe”.
- The first sub-objective is to find out that at the beginning of 2006, after the construction of Highway E75 has been completed, in the new logistics situation what kind of new international cooperational-directions may be formed. By SWOT- analysis the given new demands, the changes of costs and the insurance possibilities of the products can easily be revealed.
- The second sub-objective is to define what kind of effect the implementation of the technology for storing frozen vegetables has on the operation of the cluster and on the market-reactive ability.
- The third objective is to find out what kind of conditions the logistics developments around Szeged and the building of the international highway M43 mean for the expansion of the cluster and for joining the clusters together.
Activity III in Södermanland: Regional governance for strengthen competitive cluster initiatives
The overall objective is that at least two clusters with international competitiveness cooperates in the region of Stockholm-Mälardalen.
The first sub-objective is to develop and try out different methods of cluster change management (mutual business plans, communications plans etc) focusing on international competitiveness. Communicate those methods to get learning between the cluster initiatives. This also includes indicators for measuring growth in clusters (patterns and driving forces) and benchmarking with regions in Europe (the Netherlands, Hungary) around best practices.
A second sub-objective is implementation of an action program for change management in the regional cluster initiatives.
A third sub-objective is to build and develop a better co-operation with the Universities in the region.
In order to learn from best practices in terms of clustering phylospophy and strategy (methodology for the DIBiC project) the already known clusters like Food Valley and Aalsmeer “the cut flower cluster” in the Netherlands, but also the clusters in Sweden are visited.
In general terms the outcome of the project is a basic understanding about the processes in development of international oriented clusters and possible strategies to develop and support them. In concrete terms the basis is laid for 1) “Fruitport Europe” in Gelderland, 2) “Vegetables and Flowers Gate” in Hungary and 3) the development of methods for change management towards international orientation of clusters. In addition to this, the exchange of experiences, knowledge and long-term cooperation between the active partners is a result that should be mentioned as well.