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Building an Abundant Ecosystem for Prosperity:

The Competitiveness Agenda Global South Summit - Nashville

Emiliano Duch Competitive Industries Global Practice

The World Bank Group November 11, 2013

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• The World Bank Group has two ambitious goals: end extreme poverty within a generation and boost shared prosperity.

– Reduce extreme poverty at 3% in 2030

– Foster income growth of the bottom 40%

• Focusing on enriching livelihoods through economic growth, inclusion, and sustainability

The World Bank new goals

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• Dialogue and action on ongoing and emerging development challenges, bringing the perspective of developing countries to global issues.

• Support clients in delivering customized development solutions by packaging finance, knowledge, and convening services.

• Help advance knowledge about what works.

The role of the World Bank

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One example of “what does and does not work”

“Kodak: A Parable of American Competitiveness” The “Disastrous fallout” of the Rochester Optics cluster

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One example of “what does and does not work”

Source: Author’s elaboration based on data from Prof. Michael E. Porter, Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School (2009)

Rochester vs Tucson Optics clusters

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One example of “what does and does not work”

• Roche said this week it has extended for a fourth time the offer to buy Ventana Diagnostics for around $3 billion.

• Roche Diagnostics CEO Severin Schwan has said that Ventana would be an “ideal partner” for global diagnostics platform for tissue analysis.”

Genomeweb, 31 Oct 2007

Tucson as an incubator of “non optic” innovations

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One example of “what does and does not work”

Confrontation of innovation policy models:

• The old model of large company based innovation, with technology transfer between university and “the industry”. (Exemplified by the Rochester case)

• The new model of spin off of technologies into start ups and small companies, in “industries” that either did not exist yet, or never thought they had anything to do with. (Exemplified by the Tucson case)

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One example of “what does and does not work”

Source: Author’s elaboration for the OECD study on Higher Education impact in S. Arizona

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One example of “what does and does not work”

Source: Author’s elaboration for the OECD study on Higher Education impact in S. Arizona

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• After almost twenty years of experience …, the results are mixed, ... While there have been many examples of value creation in clusters that have brought productivity increases and prosperity to their regions, there are also many instances of publicly funded structures that have not created any value.

Public-Private Dialogue for Sector Competitiveness and Local Economic Development, World Bank, 2011

Clusters and cluster initiatives for prosperity

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Collective efforts to improve cluster initiatives: • 2003 TCI conference Greenbook and “learning

sessions”. • 2003 Cluster Competitiveness Report • 2004 USAID Evaluation report • 2007 EU Cluster Mapping Case Studies • 2007 Barcelona/Washington Clusters Summer

School • 2009 USAID Case studies • 2009-12 European Cluster Excellence Initiative

Managing cluster initiatives professionally

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Managing cluster initiatives professionally

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Managing cluster initiatives professionally

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Managing cluster initiatives professionally

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Managing cluster initiatives professionally

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Managing cluster initiatives professionally

Competitiveness agendas and professional tools need to be

consolidated worldwide, like the macroeconomic ones did in the past.

The WB and EU are already working together through the Competitive

Industries and Innovation Program trust fund with that goal.

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Thank you for your attention!

For slides contact:

Emiliano Duch

educh@worldbank.org