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

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120<br />

Possible<br />

work<strong>in</strong>g group,<br />

e. g.<br />

International<br />

markets<br />

The smaller firms are now more confident <strong>in</strong> their foreign<br />

deal<strong>in</strong>gs. In those countries where acquir<strong>in</strong>g customers<br />

would be very complicated due to language or visa problems<br />

or travel costs, they ask other cluster members or the<br />

manager to represent them.<br />

A large Bosnian member firm started a product-development<br />

<strong>in</strong>itiative with<strong>in</strong> the cluster, <strong>in</strong> order to be able<br />

to use the network to <strong>in</strong>crease national value added. The<br />

firms ga<strong>in</strong>ed confidence <strong>in</strong> the cluster because of the concrete<br />

advantages for member firms and the neutral management.<br />

Jo<strong>in</strong>t problems, such as the payment difficulties of an<br />

<strong>in</strong>dustrial forge that filled key orders for various cluster<br />

members, were jo<strong>in</strong>tly addressed. At first a payment moratorium<br />

was negotiated with the energy supplier. Because<br />

no def<strong>in</strong>itive solution could be found and because it was<br />

determ<strong>in</strong>ed that other firms were <strong>in</strong> great need of this service,<br />

a firm now plans to take over the forge.<br />

The companies are now actively network<strong>in</strong>g. They <strong>in</strong>vite<br />

other members to tra<strong>in</strong><strong>in</strong>g events that they have organized<br />

and even plan leisure activities for people from all parts of<br />

the country who they had never met.<br />

Increased productivity was reported by the firms after participat<strong>in</strong>g<br />

<strong>in</strong> workshops and after <strong>in</strong>dividual consult<strong>in</strong>g.<br />

General Assembly of Members<br />

(only automobile-oriented firms,<br />

no special or sponsor<strong>in</strong>g members)<br />

Election Election<br />

Election<br />

Board of Directors<br />

(5 members – 1 chairperson)<br />

Audit Director Advisory Council<br />

Possible<br />

work<strong>in</strong>g group,<br />

e. g.<br />

Technology<br />

Possible<br />

work<strong>in</strong>g group,<br />

e. g.<br />

IT-technology<br />

Possible<br />

work<strong>in</strong>g group,<br />

e. g.<br />

Logistics<br />

Possible<br />

work<strong>in</strong>g group,<br />

e. g.<br />

QM<br />

• Chambers,<br />

• Universities<br />

etc.<br />

Possible<br />

work<strong>in</strong>g group,<br />

e. g.<br />

F<strong>in</strong>ances<br />

The momentum is also reflected <strong>in</strong> <strong>in</strong>vestment. When a<br />

new firm started up, there were public comments on the<br />

<strong>in</strong>creas<strong>in</strong>g dynamism <strong>in</strong> this <strong>in</strong>dustrial branch s<strong>in</strong>ce a cluster<br />

had been set up.<br />

Through the cooperation between universities, research<br />

<strong>in</strong>stitutes, and <strong>in</strong>dustry, a competence network for the future<br />

is be<strong>in</strong>g put <strong>in</strong> place. Thus, <strong>in</strong>tense <strong>in</strong>volvement of<br />

the universities is particularly important. The University<br />

of Tuzla has designed a Master’s program around the needs<br />

of the automotive supply <strong>in</strong>dustry and presented it to the<br />

firms <strong>in</strong> the newsletter. The next step will be targeted research<br />

and development.<br />

The high degree of competence, the active partners, and<br />

positive results have also led to acceptance <strong>in</strong> the country<br />

and the region.<br />

Lessons learned<br />

Experience to date <strong>in</strong> Bosnia and Herzegov<strong>in</strong>a has shown<br />

that the cluster approach can result <strong>in</strong> effective promotion,<br />

particularly of small and medium-sized firms. However,<br />

the choice of <strong>in</strong>dustrial core is crucial, as examples <strong>in</strong> other<br />

<strong>in</strong>dustrial branches and of other <strong>in</strong>ternational projects <strong>in</strong><br />

the country have shown. The follow<strong>in</strong>g criteria must be<br />

met for a cluster to be successfully created:<br />

• In an <strong>in</strong>novative economic sector, there must be a<br />

critical mass of firms and economic activity.

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