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Chapter 11 – Governance and Performance in Seaport Clusters; Results of the Cases 169 On the contrary, various firms in the LMPC oppose the project and some port authorities are also skeptical. This illustrates the shortcomings of the innovation regime in the LMPC: no institutional support for innovative ideas and an environment not conducive for innovation. In this context, one expert remarked: ‘if someone is fired in Houston, he/she starts a new firm, if someone is fired in the LMPC, he/she moves to Houston’. The innovation regime in Durban The innovation regime in Durban is at best moderate. The scope of coordination is limited. The experts in Durban have realistic ambitions: Durban is not positioned to develop innovations. The firms in the cluster are mostly part of internationally operating firms, with limited involvement in innovation. The ambition is to become an ‘early adopter’ in the African context. Given this ambition, an opportunity is to encourage the knowledge transfer between large, internationally operating leader firms and local firms that are related to these leader firms. Such a project enables these local firms to become early adopters. Such a project also could also support the empowerment of the ‘previously disadvantaged’ (mainly black South Africans), an important policy objective in the South African context. The innovation regime in Rotterdam The innovation regime in Rotterdam is moderate, according to the experts. The port is not an ‘innovation prone environment’, even though some of the conditions for such an environment are fulfilled: knowledge centers are present (especially the Technical University and the national research center TNO in Delft, and Erasmus University in Rotterdam), government subsidies for innovation projects are available, and organizations that encourage innovation and knowledge transfer are present. Furthermore, the port authority encourages and initiates innovative projects. The experts frequently mentioned four explanations for the relatively bad regime given the favorable conditions. First, profit margins of the majority of firms in the cluster are small. The industry is to a large extent cost driven and not willing or able to free up resources for innovation. Second, cooperation proves to be very difficult. Firms in the port cluster are not willing to share information and knowledge. The threat of opportunistic behavior prevents cooperation. Third, even though governments (national and regional) encourage innovation,
170 The Performance of Seaport Clusters they focus on ‘systemic’ technological innovations whereas the majority of firms do not posses the organizational capabilities and market position to engage in such projects. Fourth, some experts argue that past experiences have an influence: in the past innovative projects, especially in the field of ICT-applications, were not successful. This makes it difficult to create coalitions for new innovative projects. In this respect, it is important to make a distinction between the port related manufacturing activities on the one hand and cargo handling, transport and logistics firms on the other. The manufacturing firms cooperate better. Perhaps the most important coalition in petro- chemical manufacturing is the coalition of chemical firms and various public organizations to encourage the development of ‘industrial ecology’ (INES, see http://www.inesmainport.nl). This coalition did invest substantially in projects and investigates the viability of others. The innovation regime; conclusions from the cases The innovation regime is the most problematic regime. The quality of this regime is regarded as moderate in all three cases. Experts indicate creating coalitions is difficult. Two reasons for these difficulties were identified in all cases. First, financial resources to develop innovative capabilities are lacking, due to the limited returns on investment in the port and the cost-focus of most firms. Second, firms in the port cluster have difficulties with cooperation in networks on the basis of trust. The port industry is not a high trust industry. Conflicts related to the distribution of potential benefits obstruct cooperation to realize those benefits. An effective innovation regime is difficult to develop in such a cluster. It has become clear from the cases that without port authority involvement and public funding a good innovation regime does not arise. It has also become clear that in any innovation regime adoption is central. Firms in the port cluster adopt technologies developed outside the port cluster (examples are ICT, the use of new materials, new communication systems, and the like). This is hard to reconcile with the need for public funding, since such funds are generally for knowledge development, not for adoption.
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PETER W. DE LANGEN The Performance
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The Performance of Seaport Clusters
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Preface v PREFACE My first publicat
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Preface vii The frequent question w
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x Emperical part: three cases of se
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1 INTRODUCTION Economists have alwa
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Chapter 1 - Introduction 3 1.2 Over
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Chapter 1 - Introduction 5 Second,
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2 CLUSTERS AS UNIT OF ANALYSIS In t
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Chapter 2 - Clusters as Unit of Ana
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20 The Performance of Seaport Clust
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22 Table 1: Four ways in which clus
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4 VARIABLES OF CLUSTER PERFORMANCE
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Chapter 4 - Variables of Cluster Pe
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5 CLUSTER STRUCTURE In this chapter
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Chapter 5 - Cluster Structure 41 Th
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Chapter 5 - Cluster Structure 43 ef
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Chapter 5 - Cluster Structure 45 Th
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Chapter 5 - Cluster Structure 47 fi
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Chapter 5 - Cluster Structure 49 va
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Chapter 5 - Cluster Structure 51 Ta
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54 6.1 Coordination in a cluster Th
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7 ANALYZING THE PERFORMANCE OF SEAP
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Chapter 7 - Analyzing the Performan
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8 CLUSTERING IN SEAPORTS In this ch
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Chapter 8 - Clustering in Seaports
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106 The Performance of Seaport Clus
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112 9.3.3 The presence of intermedi
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232 Industry experts The Performanc
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234 Agglomeration economies 10. Ind
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236 Cluster barriers Entry barriers
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238 Solving collective action probl
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240 The weight of the variables of
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Appendix 2: Cluster Experts in the
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Appendix 2: Cluster Experts in the
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English Summary 249 The Performance
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English Summary 251 The third schoo
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English Summary 253 The empirical p
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English Summary 255 Internal compet
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English Summary 257 • The innovat
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262 Tabel S1: Het effect van de vie
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Curriculum Vitae 271 Curriculum vit
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The Performance of Seaport Clusters
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