By Alberto Pezzi, presented at the 17th TCI Global Conference, Monterrey 2014.

1. Clusters 0.0.: back to basics
Alberto Pezzi
Parallel 1.1 Common problems, common markets and shared value
creation
11 November 2014

2. CLUSTERS 0.0.: BACK TO BASICS
ALBERTO PEZZI
DIRECTOR OF COMPETITIVE STRATEGY AND CLUSTERS DIVISION
ACCIÓ / DIRECTORATE GENERAL FOR INDUSTRY
GOVERNMENT OF CATALONIA
TREASURER AND MEMBER OF THE BOARD OF DIRECTORS - TCI NETWORK
This presentation does not represent an official position and shall neither be binding nor construed as institutional commitment by ACCIÓ -
Generalitat de Catalunya. The examples it contains should be considered as illustratives.

3. INDEX
 Business clustering before the invention
of cluster concept
 Wild clusters Vs. domesticated clusters
 Current and future challenges for cluster
policy

4. 4
END OF XIV CENTURY: COMMERCIAL REVOLUTION Via degli orefici
Via seterie
Via calzolerie
…
BOLOGNA
Carrer argenteria
Carrer dels assaonadors
Carrer dels sombrerers
…
BARCELONA

5. 5
END OF XIX CENTURY: INDUSTRIAL REVOLUTION
Lancashire
cotton textiles
Sheffield
cutlery
North Staffordshire
pottery
Yorkshire
woollen textiles

6. 6
BEGIN XXI CENTURY: DIGITAL REVOLUTION
Source: Joint Venture Silicon Valley Network, Internet Cluster Analysis 2000

7. 1990: first mention to “clusters” by MEP
1992: first cluster-based regional development policies
XIII Cent. Today
2000 ca: first cluster-based organizations
Wine (California)
AND
(Vs.)
“domesticated”
clusters
€
POLICY MAKERS’ INTERVENTION
Apply managerial techniques
and practices to increase cluster
performance
Biotech
(Cambridge – UK)
“wild”
clusters
Silicon Valley
Sports / luxury
cars (Modena – IT)
Packaging machinery
(Bologna – IT)
POLICY MAKERS’ INTERVENTION
Observe cluster dynamics and try to
learn and take advantage from it

8. Clusters generate endogenous
competitiveness advantages by:
- improving companies’ operational
efficiency
- fostering innovation and tacit knowledge
diffusion
- stimulating creation of new companies
especially through spin-offs
- accelerating social capital formation
Source: adapted from M.E. Porter, 1998

9. Firm working in a cluster environment are
more competitive

10. POLICY
INTERVENTION
Cluster initiative
“Cluster initiatives are organised
efforts to increase the growth and
competitiveness of clusters within
a region, involving cluster firms,
government and/or the research
community”
Örjan Sölvell, Göran Lindqvist & Christian
Ketels in The Cluster Initiative Greenbook
(2003).
Implementation
Institutionalization
Mapping Anlysis
Mentoring
Monitoring
Evaluation
POLICY
INSTRUMENT
Cluster organization
Cluster organizations are entities that
are managing and representing a
cluster initiative.
A cluster organization does not
necessarily have members, but it
provides services to the cluster
initiative participants.
SPONTANEOUS
PHENOMENON
Cluster
“Clusters are geographic concentrations
of interconnected companies,
specialized suppliers, service providers,
firms in related industries, and
associated institutions in particular fields
that compete but also cooperate”
Michael E. Porter (2008)
The California Wine Cluster
Growers/Vineyards
Educational, Research, & Trade
Organizations (e.g. Wine Institute,
UC Davis, Culinary Institutes)
Sources: Michael E. Porter. California Wine Institute, Internet search, California State Legislature. Based on research by MBA 1997 students R. Alexander, R. Arney, N. Black, E. Frost, and A. Shivananda.
Wineries/Processing
Facilities
Grapestock
Fertilizer,
Pesticides,
Herbicides
Grape Harvesting
Equipment
Irrigation Technology
Winemaking
Equipment
Barrels
Bottles
Caps and Corks
Labels
Public Relations
and Advertising
Specialized
Publications (e.g.,
Wine Spectator,
Trade Journal)
Tourism Cluster
Food Cluster
California
Agricultural
Cluster
State Government Agencies
(e.g., Select Committee on Wine
Production and Economy)

11. MACROECONOMIC
COMPETITIVENESS
Microeconomic
Competitiveness
Help cluster firms to upgrade
their strategies
Cluster policies
-> better economies of scale in analyzing
 Help to identify and choose
among different strategic
options
 Horizontal cooperation
activities among companies
 Promote strategic change at
company level
Improve cluster business
environment
 Improve support and related
industries
 Improve factor conditions: ad hoc
training, technological transfer,
etc.
 Reinforce sophisticated demand:
public procurement, etc.
 Adapt and fine-tune other
horizontal policies : innovation,
entreprenueship, quality,
internationalization, etc.
and acting

12. • Cross-cluster projects
• International linkages
• Specialized networks and
institutions
• Other horizontal policies:
₋ Entrepreneurship
₋ FDI attraction
₋ Internationalization
₋ Innovation and R&D
12
RELEVANT
SCOPE
• Cluster scope defining
elements:
⁻ KETs
⁻ societal challenges
⁻ advanced services
⁻ business models
evolution
CLUSTER
CONNECTIVITY
GOVERNANCE
AND
MANAGEMENT
• Excellence of cluster organizations
• Training and capacitation cluster
managers
• Public-private cooperation
• Business leadership
MONITORING,
FINE-TUNING
AND
EVOLUTION
• Evaluation of policy intervention
• Evolution of business
• Market and technological foresight
• New emerging industries and clusters

13. apezzi@tci-network.org