Local/Regional Economic Development in South ... - Value Chains

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116 • • • Recommended Phases for Cluster-Oriented Assistance Strategies Pre-selection of economic sectors that merit support Phase 1 – Diagnosis/Situation Analysis Phase 2 – Strategy Development Phase 3 – Implementation Diagnosis/ situation analysis Checklist A Macroeconomic framework conditions Checklist B Competition situation Checklist C Cluster potential Decision on economic sectors that merit support Steps for developing cluster-oriented assistance strategies Source: Schwanitz, S., M. Will und R. Müller (2002) Development of cluster-oriented assistance strategies size firms nearby with complementary production and services Ability and willingness of businesspersons to make financial and personnel contributions to development of the cluster, to trust and cooperate with other firms, to exchange information and experiences, and to relinquish some of their management tasks Ability and willingness of private sector and/or government service providers to cooperate with cluster firms and to build up sustainable cluster and innovation-oriented business services Sensitivity, skill, and willingness of government economic-development authorities at the national, regional, and local levels to create a favorable business environment and a culture of promoting private sector initiatives for innovation and cluster formation Recommendations The following important principles for results-oriented planning and implementation of cluster-oriented assistance strategies and measures can be derived from recent project experience: • Bottom-up, top-down approach: support for the initiatives of innovative businesspersons (bottomup) while incorporating change agents in public and private sponsoring and implementing organizations (top-down) • Systemic competitiveness approach: integration of measures at the micro (cluster actors), meso (service providers), and macro (framework conditions) levels, as well as the metalevel (cooperation mentality and trust) • Change management and dissemination of innovation approaches: support of change processes within the cluster and in service organizations by incorporating innovative actors (change agents) Step 1 Step 2 Initiation and raising awareness Favorable framework conditions • Cluster formation in dialogue Strategy elements Creating the institutional environment Supporting inter-firm cooperation Linking quick-win with long-term institution building: motivation of the stakeholders (cluster actors, service providers) to work on long-term structure building through realization of concrete benefits in the short term (e. g. income effects) Recommended reading Schwanitz, Simone, Margret Will und Renate Müller (2002): Förderstrategien zur Steigerung der Wettbewerbsfähigkeit von Wirtschaftssektoren in EU-Assoziierungs- und Beitrittsländern; Band 1: Förderstrategien und Band 2: Leitfaden basierend auf Clusterorientierten Politikansätzen; Hrsg. GTZ; Universum Verlagsanstalt, Wiesbaden www2.gtz.de/wbf/library/detail.asp?number=1391 The Competitiveness Institute – the cluster practitioners network www.competitiveness.org/article/archive/28/ WIRAM – The Local/Regional Economic Development Toolkit www.wiram.de/Toolkit/index.html Contact Margret Will, consultant margret.will@gmx.net Strategy development and action planning Monitoring and plan revision Cluster-oriented assistance strategy
6.2 Automotive Suppliers Cluster in Bosnia and Herzegovina Awakens Industrial Potential Wulf H. Goretzky Context In the transition countries, traditional governmentplanned industrial policy is obsolete. In addition, subsidizing capacity expansion and utilization is simply no longer financially viable. Although permanent subsidies of jobs in otherwise unprofitable firms preserve the existing structures, this apparent stabilization is a waste of economic resources that even highly developed macro-economies cannot permanently afford. In the medium and long term, jobs can only be preserved or created in competitive industrial branches and firms. Economic-policy advisory services thus also entail the introduction of new economic-development instruments and the demonstration of their effectiveness. Cluster promotion can be an important instrument with which to increase industrial competitiveness. The official launch of the automotive cluster of Bosnia and Herzegovina was less than a year ago and already this cluster has become an important factor in local economic life. In addition to a rapidly growing number of dues-paying member firms, even the government Investment-Promotion Agency and the public University of Sarajevo have joined as paying members. Local and international institutions are represented in the board. Only the ministries have limited themselves up to now to a friendly observer position. Approach In the earlier economic literature and economic-policy approaches, competitiveness was viewed either from a microeconomic or macroeconomic point of view. Microeconomics presented the competitiveness of a firm as a function of its individual production conditions, its research achievements, and its marketing strategies. The competitiveness of a branch or a country was therefore defined as the sum of individual firm results. Macroeconomic policy argued from the perspective of comparative cost advantages resulting from natural factor endowment or government planning interventions into economic processes. However, neither point of view could explain successes or failures of national economies facing competition. Therefore, since the beginning of the 1990s, more complex models have been developed, models which more clearly derive national competitive advantages from a number of determinants. Industrial competitiveness is seen primarily as the result of the quality of an industrial location. It is not only a microeconomic phenomenon; one must also look at the related and supporting supplier and service firms. In addition to supplier relationships with customers in a value chain, links and strategic alliances to universities, research institutions, providers of business development services, and customers, as well as lateral connections (e. g. to firms from other sectors that have similar needs or technologies) can also influence competitiveness. While the traditional sector approach concentrates on horizontal linkages and competitive interdependencies, the cluster approach also includes in the analysis vertical linkages between different firms and the existence of symbiotic interdependencies, from which synergies result. In the cluster approach, competitive advantages are seen in the system of interrelationships within which a firm is embedded. According to Porter, the forefather and still most cited proponent of the cluster approach, the elements of this system are: • • • • Firm strategy, structure, and rivalry Demand conditions Factor conditions, and Related and supporting supply and service firms The cluster approach is a practical alternative to the topdown approach of traditional government economic planning. In Bosnia and Herzegovina, cluster promotion is building on the industrial core of the automotive supply industry and incorporates a business environment that is also interesting for other industrial branches. A cluster is a suitable instrument for supporting small and medium-sized enterprises (SMEs). SMEs can work together in such a way that they are able to make use of the advantages of a large firm (e. g. market presence, research, training and upgrading) without having to finance large-scale infrastructure and idle capacity. Likewise, cooperation in a cluster promotes innovative capacity, since innovations can be more quickly implemented in smaller firms. Furthermore, a cluster approach can make it easier for the government to introduce concrete measures for certain industrial branches, as direct feedback from all cluster elements is possible. 117
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Division 311 South-Eastern Europe,
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Preface Promoting region-specific d
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.12 On the Path to a Learning Socie
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IHK Chamber of Commerce and Industr
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1 Einführung Introduction 9
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12 tively than working in isolation
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1 1.2 Local/Regional Economic Devel
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16 Local/regional economic developm
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The EU Context for 2 Das EU-Umfeld
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22 As was found within the EU, the
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2 The primary reasons for the posit
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28 ern European partner countries G
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3.1 Slovenia - Strengthening the Ma
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3.2 Local/Regional Economic Develop
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Structure formation: If possible, L
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is the Regional Assembly, whose 84
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3. Commercial Land Management - the
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The SEE municipalities and regions
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3.5 Cluster Formation in Austria -
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oom in the automotive sector, the S
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fore it was essential to provide cl
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Success factors and barriers for cr
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Regional Economic Development and R
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58 assume that there is any basic k
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60 current loan or new loans even b
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62 . Regional Economic Development
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6 .5 Island Development Program Cro
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166 InWEnt program (2): “Regional
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170 Development of skills and stand
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172 promotion (PACA in Serbia, loca
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17 Branimir Mirtschev, business man
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