FINAL CLUSTER ANALYSIS - Kohtla-Järve

Final Cluster Analysis
Strengthening of processing industry – including metal
processing, chemical industry, production of building
materials, manufacturing pulp;
Development of transport and logistic systems for supporting
enhancement of transit and local industry;
Enhancement of tourism.
A special natural characteristic trait of Ida-Virumaa is the
availability of oil shale, which is used as raw material in power
stations, chemical industries and in enterprises manufacturing
building materials. However, environmental impact
of oil shale industry is considered as quite signifi cant, as the
oil shale-fi red power plants, which provide the atmospheric
emissions of gaseous products, cause main air pollution.
Metal processing has started to develop to support and
enrich the mentioned big branches of industry. In December
2007, there were more than 70 actively functioning
metal processing enterprises; their volume of investments
and number of people employed is one of the biggest in
the entire region. These are mostly enterprises involved in
export, which invest considerably in development activities
and elaboration of new products.
Wide forested areas have allowed for developing pulp industry
and the seacoast has been a favourite spot for tourists
and holidaymakers for centuries.
The most promising economic sectors of the region according
to regional authorities are:
Chemical industry,
Textile,
Construction and processing industry,
Metalworking,
Hospitality.
Now no clusters are formally functioning in Ida-Virumaa.
However, six industrial (manufacturing) parks (Narva, Sillamäe,
Kohtla-Järve, Jõhvi, Püssi and Kiviõli) can be identifi
ed in the region.
Cluster approach as a way of developing competitive network
of companies could well be used as way of funding
attainment. Transit and logistics sector currently experienc-
22
ing diffi culties due to the political tensions between Estonia
and Russia. Expert Group agreed that the main challenge
is to convince any potential cluster member company
and regional stakeholders that increased productivity and
competitiveness both of companies and the region can be
streamlined and increased through cluster networking.
Overall, Documentary survey revealed that the following
company groupings that may have a tendency to further
develop into clusters in Ida-Virumaa are:
Mining and quarrying of energy
producing materials
Manufacture of chemicals, chemical
products and man-made fi bers
Hospitality
Transport and communication
Woodworking
Metalworking
5.2. KeY FInDIngs In lenIngraD regIon
Table 10
For several years, Russian Government is paying a great
attention to cluster initiatives as the main engine of international
competitive advantage of the Russian Federation.
Therefore, cluster concepts are incorporated into offi cial
documents, i.e. legislation and documents that are more
informal. Cluster concept was elaborated in Russia due
to recent Potential Competitiveness of Russian industries
study by Michael Porter in 2006.
In 2007 the Ministry for Economic Development of the Russian
Federation has worked out the project of the Concept
of Cluster Policy in Russia and plan of its implementation. Its
realization should stimulate innovations, foreign direct investments
and economic growth of regions of potential clusters.
Concept of Cluster Policy consists of three main blocks:
Institutional assistance in cluster
development,
Measures for competitiveness of cluster participants
Formation of favourable conditions for cluster development
© Narva Business Advisory Services Foundation, St. Petersburg Information and Analytical Center, Synergy International Ltd. 2008