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The Performance of Seaport Clusters - RePub - Erasmus Universiteit ...

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212<br />

<strong>The</strong> <strong>Performance</strong> <strong>of</strong> <strong>Seaport</strong> <strong>Clusters</strong><br />

Since exit barriers are entry barriers, we discuss opportunities to reduce cluster entry<br />

barriers 96 and include exit barriers in this discussion. Lowering entry barriers is an<br />

opportunity to improve cluster performance. Relevant entry barriers that can be influenced<br />

by actors in the cluster are: lack <strong>of</strong> (venture) capital, inaccessibility <strong>of</strong> knowledge and<br />

networks, and the amount <strong>of</strong> specific investments that have to be made.<br />

In Rotterdam, the port authority has taken the initiative to develop a venture capitalist that<br />

provides capital to start-ups. This venture capitalist is self-sustaining operates in partnership<br />

with commercial banks. This initiative has proved to be valuable for start-ups. This<br />

arrangement might explain why the availability <strong>of</strong> venture capital is not regarded as an entry<br />

barrier in Rotterdam contrary to Durban and the LMPC.<br />

<strong>The</strong> second entry barrier, the inaccessibility <strong>of</strong> knowledge and networks, is not addressed by<br />

initiatives in any <strong>of</strong> the three cases. <strong>The</strong> inaccessibility can derive from language and<br />

cultural differences. <strong>The</strong>se can hardly be addressed. <strong>The</strong> presence <strong>of</strong> all kinds <strong>of</strong><br />

associations as well as ‘port clubs’ in these ports shows that platforms to meet others in the<br />

port industry do exist.<br />

<strong>The</strong> third entry barrier, the level <strong>of</strong> specific investments that have to be made, can be<br />

addressed by developing arrangements where actors willing to make specific investments<br />

invest in assets that are leased to start-ups and entrants. Such arrangements include:<br />

• Developing land and infrastructure and leasing this to the private sector (the primary<br />

role <strong>of</strong> landlord ports). This reduces investments needs <strong>of</strong> private firms. This policy is<br />

common practice in the port industry and is done in Rotterdam, the LMPC and Durban.<br />

96 For firms present in the cluster, entry barriers are not relevant (anymore), while exit barriers are<br />

relevant. Policies to reduce exit barriers are not widespread, one could think <strong>of</strong> labor laws<br />

related to the closure <strong>of</strong> an establishment, or the take-over <strong>of</strong> an establishment. However, such<br />

laws are not cluster-specific. Furthermore, the experts rated exit barriers as unimportant. For<br />

these reasons, we do not deal with exit barriers specifically.

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