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The Cluster Initiative Greenbook

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Regional and<br />

SME policies<br />

Investment<br />

attraction<br />

policies<br />

Science and<br />

innovation policies<br />

CI<br />

Figure 5<br />

CIs build on three main policy<br />

areas<br />

CIs (see Figure 5 above) are emerging within three distinct policy fields: 1) regional,<br />

industry and SME policies, 2) FDI attraction policies, and 3) science, research and<br />

innovation policies. On the regional side, CIs are implemented to boost development<br />

in weak regions and to rejuvenate declining clusters. Through CIs focus is shifting from<br />

cost cutting (subsidies, tax incentives, etc.) to promoting innovation and upgrading<br />

through new partnerships (Landabaso, 2002). FDI attraction policies have also shifted<br />

their focus from attracting individual firms and production units to a region or country,<br />

to involving clusters and more embedded investments. <strong>The</strong> third policy field where<br />

CIs have made an inroad is science, research and innovation policies. <strong>The</strong> tendency<br />

here is to focus on science-driven industries. In fact, a majority of CIs in the world (see<br />

further Chapter 3) are serving research intensive clusters.<br />

<strong>The</strong> CI lifecycle<br />

Just as clusters have lifecycles, cluster initiatives have lifecycles – in terms both of the<br />

degree of institutionalisation and the objectives of the initiative. (See Figure 6 below.)<br />

<strong>The</strong> need for frequent dialogue among industry, policymakers and other constituents<br />

has no obvious ending point. On the other hand, public financing and initiation activities<br />

have a beginning and an end.<br />

As important as the evolution of the CI is the legacy, or antecedence, of the CI.<br />

Antecedence can involve earlier industry initiatives, such as lobbying activities, or earlier<br />

policy initiatives, such as regional or innovation policies. Established organisations –<br />

e.g. networks, industry associations or other institutions for collaboration (IFCs), etc. –<br />

often have a great impact on the formation of CIs.<br />

After a formation period (with initiative coming from industry, government or in<br />

rare cases academia), the official CI is launched. Unless the CI fails, it will build up a<br />

stronger resource base over time and stronger commitment from the partners. Some<br />

CIs become even more institutionalised (typically financed through membership fees),<br />

which turns the initiative into a formal cluster-based institution for collaboration.<br />

Antecedence Formation CI <strong>Cluster</strong>-based IFC<br />

Time<br />

Figure 6<br />

<strong>The</strong> cluster initiative lifecycle<br />

<strong>The</strong> <strong>Cluster</strong> <strong>Initiative</strong> <strong>Greenbook</strong> • 17

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