Cluster policy guide_Poly4EmI

GOOD PRACTICE GUIDE ON CLUSTER POLICY EXCELLENCE FOR STRUCTURAL CHANGE IN EMERGING INDUSTRIES

POLY4EMI CASE-BASED POLICY MODEL

This project is co-fundedby the European Union

CONTENTSFOREWORD 3

POLY4EMI - POLYMERS FOR THE EMERGING INDUSTRY PROJECT 4

INTRODUCTION AND BACKGROUND 5

BIOPOLYMER BASED INDUSTRY 5

POLY4EMI CONTRIBUTION 6

GOOD PRACTICE GUIDE 7

1. EMERGING INDUSTRIES 8

1.1 CHARACTERISTICS 8

1.2 SELECTED EMERGING INDUSTRIES 8

2. CLUSTER POLICY AND EMERGING INDUSTRIES 11

2.1 ROLE OF CLUSTER ORGANISATIONS IN EMERGING INDUSTRIES 11

2.2 CLUSTER POLICY TRENDS 12

3. POLY4EMI FRAMEWORK FOR EMERGING INDUSTRIES 14

3.1 PILLAR ONE: POLICY LEVEL 15

3.2 PILLAR TWO: CLUSTER LEVEL 19

3.3 PILLAR THREE: BUSINESS SUPPORT SERVICE LEVEL 20

4. POLY4EMI: LESSONS LEARNED 23

5. ONGOING CONSIDERATIONS HOW TO SUPPORT EMERGING INDUSTRIES 25

ACKNOWLEDGMENTSThis Guide is a product of the Poly-4EmI project funded as one of the six CIP projects “Clusters and entrepre-neurship in support of emerging indus-tries” (64/G/ENT/CIP/13/C/N04C02). Poly4EmI collected this knowledge with the help of the Cluster Observa-tory and international experts, as well as with contributions from model re-gions and other CIP projects. Poly4EmI benefited greatly from the intellectual guidance of its Advisory Board mem-bers. The production of this Guide would not have been possible without project partners and core expert team. They provided their own contributions and disseminated preliminary findings among stakeholders.

Good Practice Guide On Cluster Policy Excellence For Structural Change In Emerging Industries

Authors: Mateja Dermastia, Darja Radić, Gerd Meier zu Koecker

Published by: Chamber of Commerce and Industry of Slovenia Dimiceva 13, SI-1504 Ljubljana, Slovenia +386 1 58 98 000, www.gzs.si, [email protected]

on behalf of the Poly4EmI project partners: Ministry of Education, Science and Sport of the Republic of Slovenia, Center of Excellence PoliMaT, Slovenia, Polymer Competence Center Leoben, Austria, Chamber of Commerce and Industry of Slovenia, Automotive Cluster of Slovenia

Print: Tiskarna Present, 500 copies

Ljubljana, April 2016

This publication is co-funded by the European Union (project Poly4EmI – Polymers for Emerging Industries)

CIP - Kataložni zapis o publikaciji Narodna in univerzitetna knjižnica, Ljubljana

338.45:001.891

DERMASTIA, Mateja

Good practice guide on cluster policy excellence for structural change in emerging industries : Poly4EmI case-based policy model / Mateja Dermastia, Darja Radić, Gerd Meier zu Koecker. - Ljubljana : Chamber of Commerce and Industry of Slovenia, 2016

ISBN 978-961-6986-04-5

1. Radić, Darja, 1965- 2. Meier zu Koecker, Gerd

285099264

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FOREWORD

FOREWORD

regional policy and implement instruments to support entrepreneurship in the emerging biopolymer industry in Slovenia through clusters. The observations included in this guide were presented and discussed on several occasions, during the project at national and inter-national levels. These include Towards Cluster Policy Excellence Workshop organized by Poly4EmI and BeWiser projects in Ljubljana, February 2016, and New Cluster Policies and Tools to Support Emerging Indus-tries and System Innovation, Joint Workshop of OECD and European Cluster Observatory in Berlin, April 2016. Both events gathered most recent experience and knowledge on approaches to support industrial transformation and implementation of Smart Special-izations Strategies through clusters. Regional policy makers, representatives of European Commission, clus-ter managers, experts participated in both workshops. The policy learning process is an ongoing process. To the extent possible, this guide reflects the consensus of said discussions.

Poly4EmI - Polymers for the Emerging industry - was awarded by EC (DG GROW) within the CIP call “Clus-ters and entrepreneurship in support of emerging in-dustries” (64/G/ENT/CIP/13/C/N04C02). The Poly4EmI project addresses the challenges of Slovenia’s innova-tion policy through developing a new policy model for a more systemic approach to stimulating the trans-formation of the industrial structure through clusters based on cross-cutting technologies. The experiences and knowledge gained during the implementation of the Poly4EmI project are presented in this “Good Prac-tice Guide on Cluster Policy Excellence for Structural Change in Emerging Industries”. The guide provides conceptual guidance for policy makers who want to facilitate regional structural change and the develop-ment of emerging industries through clusters based on cross-cutting technologies.The Poly4EmI experience discussed in the present guide “Good Practice Guide On Cluster Policy Excel-lence For Structural Change In Emerging Industries” highlights the various pathways in which cluster-related policies can guide structural change associated with new and emerging industries. Particular characteristics and needs of various types of emerging industries are described in terms of corresponding policy considera-tions and actions needed to sustain sector growth and development. Review of selected cluster initiatives in various regions of Europe show a wide variety of expe-riences and results. Through the use of a series meas-urement tools, the Poly4EmI exercise has generated useful observations on the common characteristics of those regional initiatives that can be considered to be initially successful. The focus on the field of biopol-ymers allowed for the generation of tangible and traceable mapping of value chains as well as review of regional collaboration models. Poly4Emi’s deliberative process also brought out relevant observations on the role of cluster organizations and about how they can be enhanced to better adapt to the changing needs of the emerging industry clusters. The project Poly4EmI has five partners from Slovenia and Austria and is coordinated by the Ministry of Ed-ucation, Science, and Sport of the Republic of Slove-nia. Other partners include the Center of Excellence PoliMaT, the Polymer Competence Center Leoben, the Chamber of Commerce and Industry of Slovenia and the Automotive Cluster of Slovenia. These partners actively collaborated to develop and test the tools discussed in the guide and additionally participated in the policy learning process on how to better execute

DisclaimerThe information and views set out in this “Good Practice Guide on Cluster Policy Excellence for Structural Change in Emerging Industries” are those of the authors and do not necessarily reflect the official opinion of the European Com-mission. Neither the European Commission institutions and bodies nor any person acting on their behalf may be held responsible for the use that may be made of the information contained therein. Reproduction is authorised provided the source is acknowledged. Experiences and knowledge on policy level gained during the implementation of the Poly-4EmI project are gathered in the “Good Practice Guide on Cluster Policy Excellence for Structural Change in Emerging Industries”.

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POLY4EMI - POLYMERS FOR THE EMERGING INDUSTRY PROJECT

POLY4EMI - POLYMERS FOR THE EMERGING INDUSTRY PROJECT

Jury for the cross sectorial projects Dr. Alenka Rožaj BrvarDr. Andrej KrzanDr. Jana Kolar

Coordinating Team - Ministry of Education, Science and Sport (MIZS) Meta Dobnikar, Head of Unit, Science Division, Project Director (July 2015 - May 2016) Tomaž Boh, State Secretary, Project Director (February 2014 - July 2015) Urban Krajcar, Director General, Science Directorate, Chair of Steering Committee Luka Živić, Science Division, Project Officer Kim Turk, Science Division

The project Poly4EmI partners Ministry of Education, Science and Sport of the Republic of SloveniaCenter of Excellence PoliMaT, SloveniaPolymer Competence Center Leoben, AustriaChamber of Commerce and Industry of SloveniaAutomotive Cluster of Slovenia

Team Mateja Dermastia, Project Leader, Anteja ECG, Ljubljana Slovenia Darja Radić, Work Package Leader, Anteja ECG, Ljubljana Slovenia, Simona Rataj, Chamber of Commerce and Industry of Slovenia Mateja Mešl, Pulp and Paper Institute, DirectorMartin Payer, PCCL, Leoben, Asutria

Advisory Board Members Alberto Pezzi, Director of Competitive Strategy and Cluster Division, Government of Catalonia, SpainDr. Christian Ketels. Institute for Strategy and Competitiveness, Harvard Business School, USProf. Dr. Gerhard Wegner, Emeritus (Max-Planck-Institute for Polymer ResearchDr. Gerd Meier zu Köcker, Managing Director of The Institute for Innovation and Technology, Berlin, Germany

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INTRODUCTION AND BACKGROUND


Globalization of modern production platforms contin-ue to create new value chains across sectors. Rapidly emerging technologies and the related formation of new industries further alter the economic landscape. New knowledge is increasingly spread all over the world. The recent economic crisis and on-going global industrial transformations call for modernization of re-gional industrial structures and new industrial compe-tencies. The policy-making paradigms are being sub-stantially re-configured. Increasingly, policy discussions are shifting their focus towards emerging industries and new regional collaboration models that trigger transformation of existing value chains and formation of new value chains and value-added networks. Different competences from various disciplines must be bundled. More regional actors have to enter strate-gic partnerships and work toward new regional coop-eration models. Much more interactions are required in a place where actors do transactions, innovations, start new businesses and create jobs. The concept of Smart Specialisation was widely introduced in Europe as a model to better exploit regional competencies and to gain sustainable and inclusive growth. They bring industry, clusters and academia together to es-tablish strategic research and development directions and to fund projects that provide the industry with the innovation and productivity tools needed to compete in global markets. The challenge remains how to imple-ment Smart Specialization Strategies through clusters to gain sustainable and inclusive growth and gener-ate a critical mass in Emerging Industries. All actors need to combine forces in implementation, including related policies, to adequately address technological and non-technological issues to established new value chains that are crossing traditional sectorial bounda-ries and regional borders. Clusters, being a network of actors can be a key instrument to facilitate process. The European Forum for Cluster in Emerging Indus-tries (EFCEI)1 acknowledged that cluster organisations can play a key role in facilitating the creation of new value chains for Emerging Industries as they can act as bridge-builders that connect companies from different

1 European Cluster Observatory: Promoting better policies to develop world class clusters in Europe, 2013, Policy Roadm-ap Actions for new linkages needed; http://www.emerg-ingindustries.eu/Upload/CMS/Docs/Policy_roadmap.pdf

sectors, sub-sectors and regions that have a need to move up in the new value chain . Consequently, cluster policy has gained increased importance to facilitate industrial transformation processes over the last years. Yet, not much practical experience exists, there is still a lack of knowledge about policy tools and approach-es that adequately address industrial transformation through clusters. Furthermore, the corresponding tool-box to support the evolution of emerging industries through clusters still have to be developedAgainst this background, the Poly4EmI was launched in 2014 as one of the six CIP projects “Clusters and entrepreneurship in support of emerging industries” (64/G/ENT/CIP/13/C/N04C02). Poly4EmI addressed the challenges of Slovenia’s innovation policy through developing a new policy model for a more systemic approach to stimulating the transformation of the in-dustrial structure based on cross-cutting technologies by using clusters. Biopolymers was used to develop a real case-based policy model which can be extended to different emerging industries as well as serve as a model for further regional implementation of the Smart Specialisation Strategy.

BIOPOLYMER BASED INDUSTRY The biopolymer industry has high potential to mas-ter the transition beyond the fossil-based industrial paradigm towards the more green economy and thus offers a substantial contribution to the development of Bio-based industry in Europe. Deriving from natu-ral biological and agricultural sources and serving as environmentally friendly substitutes for conventional materials, biopolymers have proven to be an advanced material of the 21st century. They adequately address the economic and societal challenges such as reducing CO2, improving resource efficiency, and solving major environmental problems at the same time. While the bio-based industry is already an important part of the European economy with 600 billion EUR turnover and 3.2 million employees2, the biopolymer industry is still emerging as one of its essential pillars.

2 European Bioeconomy in Figures, Study Commissioned by Bio Based Consortium, March 2016, available at http://biconsortium.eu/news/european-bioeconomy-eur-21-tril-lion-turnover-and-183-million-employees

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Figure 1: Transformation of polymer based industry

High growth is expected due to new ways of produc-ing and using of polymers, including new firms and new markets creation and green jobs. Behind those trends is a complex scientific and technology conver-gence, new knowledge creation, and transformation of traditional and formation of new value chains which are crossing boundaries of traditional sectors and value chains as well as enhancing the exploitation of local resources as well as new business models and cooper-ation models.

POLY4EMI CONTRIBUTION For years, Slovenia has been intensively investing in cross cutting technologies to create growth and new jobs. Various institutions have been established: Clusters, Centres of Excellence, Competence Centres, Centres of Slovenian Industry -- all of them bringing together industry, SMEs, and academia. Targeted investment in biopolymers and bio based materials put Slovenia among the front runners in research. However, the investments in knowledge generation did not create the expected jobs and new business models were not implemented as fast as needed in order to keep the region and SMEs competitive on a global scale. Much more interactions are required in a place where actors do transactions, innovations, start new businesses and create jobs. A sustainable,

inclusive growth of the biopolymer industry requires a dedicated and balanced approach addressing specific innovation challenges, while integrating actors and stakeholders, spread across industrial sectors, clusters, traditional value chains and geographic locations. It is a complex challenge, which apply systemic approach, commitment of regional national policy makers, drivers of industrial change, different industry and clusters to facilitate cross-sectoral spillovers, SMEs and entrepre-neurs to explore radically new business solution. After years of various attempts to find effective mechanisms to support industrial transformation, clusters have re-emerged in Slovenian policy discourse. Poly4EmI builds on the proposition that cluster plat-forms can be an effective approach for promoting en-trepreneurship to develop emerging industries. In this context, the cluster platform was created and cluster management role was tested (Figure 2). Various tools and services originating from different policies were tested to integrate demand and innovative solutions along selected value chains that can further serve as a policy mix to support emerging industries through clusters. Biopolymers was used to develop a real case-based policy model which can be extended to differ-ent emerging industries as well as serve as a model for further regional implementation of the Smart Speciali-sation Strategy.

PRESENT

FUTURE

RENEWABLE RESOURCES

RefiningPetroleum

Plastics

Films

SMART RECYCLING

Fibers

Coatings

Chemicals & Intermediales

Engineered Crops,Microorganisms, Wastes

Bioprocessing

POLYMERS

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The Poly4EmI framework for emerging industries has three pillars targeted at three groups: policy, clusters and entrepreneurs. It is a structured framework for transnational policy and cluster learning, cross-sec-toral and cross regional collaboration, innovation and entrepreneurial support services. The Poly4EmI strives to redirect attention to the interaction among firms in a place where they do transactions, innovations, start new businesses and create jobs. It goes beyond a project-oriented approach that demonstrates the technical feasibility of product and service innova-tions through pilot actions. Instead, it argues for the creation of a conducive environment for new business models that integrate innovations into existing value chains while transforming existing ones and develop-ing new ones.

Figure 2: The Poly4EmI approach

Source: Poly4EmI

The Poly4EmI project provided the opportunity to as-sess the dynamics of clusters and emerging industries. The Poly4emI proved that cluster management can play a critical role in the formation of new value chains and emerging industries. However, much more com-plex skills and management competencies are needed. Often, these are not always available within one cluster organizations or SMEs intermediaries, a much broader spectrum of clusters and regional actors must be acti-vated. A new regional cooperation model was created to bring together unrelated sectors and to open up opportunities for SMEs and entrepreneurs. The co-operation model entails existing clusters, the Center of Excellence, Competence and Technology Centers active in pulp and paper, wood, ICT, medical devices, automotive, and polymers, all of them were previously operating disconnected from each other.

The Poly4EmI proved that a systemic approach to emerging industry development can have a high po-tential to open up new business opportunities, attract new investments, international joint ventures and partnerships. The approaches put into place proved to be appropriate to meet the desired targets in a rela-tively short time. Selected bio-based value chains were mapped and linked to the value-added network. More than 300 actors were engaged in focus group discus-sions, workshops and other events. The value chain oriented voucher scheme was launched and lead to 25 cross-sectoral cooperation projects which attract-ed various firms, young entrepreneurs and start-ups which were previously outside the scope of the policy radar. Various new inter-firms networks emerged and continue working together within Smart Specialization Strategy and various EU founded projects.

GOOD PRACTICE GUIDE Experiences and knowledge gained during the imple-mentation of the Poly4EmI project are presented in this “Good Practice Guide on Cluster Policy Excellence for Structural Change in Emerging Industries”. The guide presents an overview of the applied tools which policy makers can use as a vehicle for developing emerging industries. It offers guidance for concep-tualizing clusters and discussing the experiences and learning that have been made with the development of clusters through policy intervention in the field of Emerging Industries. The guide reveals how to commit regional stakeholders to initiating structural changes, how to use clusters as a proper tool to achieve these changes and how to design policy measures to support such industrial changes. The guide provides examples of how to identify areas of cross-sectoral and cross cluster cooperation. It also identifies what tools can be applied to create collaboration spaces for innovation in the context of emerging industries. This guide does not define specific instruments for allocation of fund-ing or creation of project responsibilities. However, it does provide a set of tools and presents the rationale for why specific activities are deemed important.The Guide is divided into Chapters. The first two chapters examine key concepts and trends that shape the Poly4EmI policy framework. Chapter 3 describes the three pillars upon which the Poly4EmI conceptu-al framework is based and critical linkages between them. In Chapter 4, the Guide presents lessons learned. Chapter 5 and 6 reflect upon experiences gained by Poly4EmI that might be important for policy makers and cluster organizations to better support emergence of new value chains and in facilitation of emerging industries.

Poly4EmI: towards a biopolymer based industry

Impact on the use of resources, incl. a reallocation of existing or mibilisation of new funds

Open collaboration

space

SME cross- sectoral projects

Public authotities + clusters and SME

intermediaries

International Policy Learning at policy and cluster

levels

Focused workshops matchmaking, calls for

Proposals

Innovation andenterpreneurial

support

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1. EMERGING INDUSTRIES


1.2 SELECTED EMERGING INDUSTRIES The European Cluster Panorama 20144 profiles devel-opments in ten selected emerging industries, name-ly Advanced Packaging, Biopharmaceuticals, Blue Growth, Creative Industries, Digital-based industries, Environmental Industries, Experience Industries, Logis-tical Services, Medical Devices, and Mobility Tech-nologies. In general, they represent a diverse group of related industries and clusters. Some of them like Creative Industries, Mobile and Mobility Industries or Eco-innovative Industries grow out of already existing industries and hence cut across different traditionally defined sectors in building new industrial landscapes and value chains that integrate cross-sectoral compe-tencies and linkages. Some of them are cross-sectoral by nature (Environmental Industries, Digital-based Industries and Logistical Services), span many other industries and are relevant to many types of clusters. For instance, in the case of Logistical Services, such en-abling linkages have been the ICT, transportation and machinery industries. Medical Devices, Biopharmaceu-ticals, Advanced Packaging and Mobility Technologies have a well-defined core industry but demonstrate new industrial dynamics through cross-technological spill-overs and cross-industrial linkages. New linkages are creating and gaining importance, particularly when they are related to enabling industries that bring a new source for advancement in the product or service. All of them, as emerging industries, are characterised by high growth rates and further market potential.

4 European Cluster Panorama, 2014, European Commission: Brussels, available at http://ec.europa.eu/growth/smes/cluster/observatory/cluster-mapping-services/cluster-map-ping/cluster-panorama/index_en

1.1 CHARACTERISTICS Emerging industries are defined as the establishment of an entirely new industrial value chain, or the radical re-configuration of an existing one. Driven by a dis-ruptive idea (or convergence of ideas), the emerging industry turns these ideas/opportunities into new products/services with higher added value3. Emerg-ing industries can be partially or completely based on “new” industrial sectors. They are new combinations of narrowly defined activities that can also comprise existing industrial sectors that are evolving into emerg-ing industries in response to new technologies, new market demands, and new value chain configurations. Emerging industries thrive on cross-sectoral linkages, typically combining narrow activities in new ways. It is this combination rather than the individual activity that generates economic value. Emerging industries are thus either new industrial sectors or existing industrial sectors that are evolving or merging into new indus-tries. They are most often driven by new technologies and services, creative new business concepts and by societal challenges such as climate change, environ-mental and health considerations. As these are often characterized by high growth rates and further market potential, they hold the key to future competitiveness and prosperity.Emergence of new industries is much more than the re-newal of traditional industries. It involves the creation of entirely new value chains across different industrial sectors. New firms are created and business and indus-tries are connecting through the formation of entirely new value chains. New global value chains are creating new value through connecting new solutions. They are emerging at an ever-accelerating speed and often have a shorter life. As value chains in emerging indus-tries are global not local, no single location or cluster can host all the necessary competencies in order to stay at the forefront.

3 Heffernan & Phaal, 2009: ‘The emergence of new indus-tries’, University of Cambridge Institute for Manufacturing Emerging Industries Programme, http://www2.ifm.eng.cam.ac.uk/service/events/info/thursday_slides/091105phaal.pdf

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Figure 3: Example of an Emerging Industry5

Emerging industries are characterised by a high cross-sectoral nature of product and process innova-tions. Patent analysis of selected emerging industries revealed that around 50 to 70 % of the patents filed in areas related to these industries addressed multiple technological areas and not only specific single tech-nologies. The nature of business generation and inno-vations is very different in emerging industries than in conventional ones. Successful companies are able to apply their specific knowledge within new value chains.The European Cluster Panorama 2014 provides evi-dence of the European hotspots of emerging indus-tries2. In Figure 4, it can be seen that the majority of regional hotspots are concentrated in the strip be-tween Amsterdam and Munich. This area is considered to be the core of the traditional ‘European pentagon’ that economic geographers have identified as the cen-tre of Europe’s economic activity: Southern Germany, Benelux, South-western England, a Denmark, Sweden and Finland. In addition, many hotspots of emerging industries are located in the metropolitan area and are often the most innovative ones. Those regions have cultivated successful entrepreneurial ecosystems and are the home of world-class clusters. In general, such

5 Meier zu Köcker, Künzel, Nerger, Schließer, May: Forschungsatlas Elektromobilität – Prioritäre Forschungs-themen und regionale Spezialisierung in Deutschland, Berlin, 2015, http://www.iit-berlin.de/publikationen

Electromobility represents a comprehensive example for the emergence of an entire new industry, driven by cross-innovations. What started with a mere focus on the development of cars and batteries, revealed in recent times to be a much broader pattern of industrial development. Today, Electromobility is no longer looked on from the perspective of the car industry, but from an angle that includes several industries with few if any current linkages . Besides electricity generation, grid infrastructure and the car industry, it also covers creative industries that play a role in the development of mobility concepts and smart homes.

clusters are strong competitors on the world market. They have high international visibility, attract talent and invest globally. They function as ecosystems capa-ble of rapidly reacting effectively to market opportu-nities. They facilitate the development and growth of entrepreneurial, technology-driven or creativity-driven

Figure 4: European regional hotspot of emerging industries

Source: The European Cluster Observatory, 2014

Source: The research landscape Electromobility Germany, Institute for Innovation and Technology, Berlin, 2015

Power grid

• infrastructure development

• smart-Grid

Charging stations

Concepts• public• semi-public• private• technologies• comnductive/

inductive• alternating

current/ direct current

People, goods/ sevices• smartphones• mobility

Vehicle interfaces• vehicle ICT• charging tech.

Vehicle use• car-to-car• fleet manage-

ment/backend• logistics

Modes of transport• interface public

transport• intermodal

transport• mobility services

City & living• smart home• smart city• storage

Ener

gy p

rodu

ctio

n

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companies as well as the emergence of new industrial sectors. In addition, clusters within those regions are building linkages on a global scale. As this becomes more necessary with the increase of globalisation, companies need to capture the best know-how avail-able globally in locations beyond their regional and national boundaries. However, for emerging industries, regardless how they are defined, it is often the case that old patterns are not valid anymore. This also has an enormous impact on cluster policies and cluster initiatives.

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2. CLUSTER POLICY AND EMERGING INDUSTRIES


Figure 5: Focus of current cluster programmes within Europe, 20156

Source: The European Cluster Observatory, 2015

2.1 ROLE OF CLUSTER ORGANISATIONS IN EMERGING INDUSTRIES The European Forum for Cluster in Emerging Indus-tries7 acknowledged that cluster organisations can play a key role in facilitating the creation of new value chains for Emerging Industries as they can act as bridge-builders that connect companies from differ-ent sectors, sub-sectors and regions that have a need to move up in the new value chain. However, cluster initiatives in Emerging industries need new forms of support and different framework conditions. The study “Support to SMEs – Increasing Research and Innovation in SMEs and SME Development” indicates that cluster organisations indeed can be at the centre of local ecosystems, which they could animate and

6 Meier zu Köcker, Müller: Clusterprogrammes in Europe, European Cluster Observatory Report, Brussels, 2015, http://ec.europa.eu/growth/smes/cluster/observatory/in-dex_en.htm

7 European Cluster Observatory: Promoting better policies to develop world class clusters in Europe, 2013, Policy Roadmap

Actions for new linkages needed; http://www.emergingin-dustries.eu/Upload/CMS/Docs/Policy_roadmap.pdf

In last decade, increasingly, policy discussions are shifting their focus towards Emerging Industries and their dynamic potential – given that they emerge at the borderlines of different competencies and cut across and reshape different traditionally defined sectors. Consequently, cluster policy has gained increased im-portance to facilitate industrial transformation process-es over the last years For many years, most cluster programmes within the European Union mainly focused on cluster (manage-ment) organisations , since they play an important role as driver for innovation within the clusters. So far, fund-ing of such cluster management organisations mainly meant financing the corresponding staff and related infrastructure. In general, key programme objectives were to strengthen the capacities of cluster manage-ment organisations. Nowadays many European Member States and regions have recognized the importance of Emerging Indus-tries and the potential role clusters and cluster initia-tives can play to support enterprises in these indus-tries. A recent survey of cluster support programmes in Europe indicates that currently ongoing programmes focus more on the support of clusters in emerging industries than they did in 2008 . In the past, almost all types of clusters were supported. The survey also shows that some regions re-designed their current pro-grammes or designed new programmes to focus more on clusters in emerging industries. However, many other European Union Member States are still focusing more on supporting industries according to regional or national preferences (Fig. 5).

1 1 2

2

3

3 3

4 4 7 6

14

8 5

industries of the region

emerging industries

cross-sectorial collaboration

0 10 20Number of cluster programs

no focus little focus medium focusstrong focus very strong focus

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steer8. This configuration could be particularly use-ful in securing multiplier effects resulting from the implementation of selective policy instruments. The study also indicates that in fact much depends on the capacity of these intermediaries as well as on regional actors’ coordination. Cluster organisations need strong competences and appropriate resources to carry out the task. In addition, this requires that a structured governance system be in place. In regions where cluster strategies are an essential part of Smart Specialisation Strategies, cluster organisa-tions start playing a critical role in the internationalisa-tion and development of global value chains. Yet, not much practical experience exists, there is still a lack of knowledge about policy tools and approaches that adequately address industrial transformation through clusters. However, there are certain characteristic for regions having made good progress in developing emerging industries through cluster. They are present-ed in next section.

2.2 CLUSTER POLICY TRENDS Whereas cluster policy in the past often focused more on encouraging cooperation within existing cluster initiatives, more attention is now given to improving framework conditions for cross-sectoral cooperation between clusters. There are several examples of new approaches with systemic impact innovations that aim to change sectoral boundaries and improve the overall efficiency of the eco-system. Among the hubs for emerging industries (Figure 4), regions like Hamburg or Lower Austria are following promising approaches to the support of such industries through clusters. Enter-prises are enabled to enter into cross-sectoral cooper-ation through a combination of strong cluster presence in emerging industries, a well-balanced portfolio of clusters, appropriate cluster-based economic develop-ment approaches, and strong cluster initiatives. These conditions provide an environment in which enterpris-es can receive external inputs that make higher im-pacts more likely. Hamburg has just started to support emerging industries through the Cluster-Bridge Ap-proach to enable long-term cross-cluster cooperation among the actors of the eight clusters. It is characteris-tic of both regions that there is a strong need to exper-iment on policy as well as on cluster organization level. This requires openness to new and different support

8 Support to SMEs – Increasing Research and Innovation in SMEs and SME Development, Ex post evaluation of Cohesion Policy programmes 2007-2013, focusing on the European Regional Development Fund (ERDF) and the Cohesion Fund (CF), CSIL in partnership with CSES and ZEW, 2016: http://ec.europa.eu/regional_policy/sources/docgener/evaluation/pdf/expost2013/wp2_1st_intermedi-ate_report_1.pdf

schemes as well as to acceptance of failure and shorter evaluation cycles with clear exits.The emergence of new industries increases the need for adopting cluster policies. Emerging industries are reflective of innovations, new business models, and industrial transformation processes. New policy instruments and new ways to best support cluster initiatives have to be applied. Combining “strengthen-ing strengths” with encouraging structural change and the emergence of new industries can be both critical and challenging. The Region of Baden-Württemberg has adapted its cluster policies periodically over time. Today, it strongly supports cluster development in emerging industries like Electromobility and Medical Technology. The government of Flanders just adapt-ed its own regional cluster support scheme. Having previously focused primarily on support of clusters in the field of Microsystems Technologies and Biotech-nology, Flanders will now adapt its support schemes to support regional actors in the Health Industry. This is a result of the emergence of a new Health Industry, enabled by the increasing convergence of Microsys-tems Technologies and Biotechnologies towards new applications in Health Care. Cluster initiatives, which gather and represent the key actors from science and business in dedicated sec-tors, are becoming instruments of regional economic development policies. The Skane Region in Sweden has actively involved all actors from business, science, politics and regional economic development in the process of cluster policy development. The regional Smart Specialisation Strategy of Skane is solidly based on the individual strategies of the related cluster initiatives. This assures a high coherence of regional cluster-based economic development policies and the related strategies of the respective cluster initiatives. Upper Austria involves all relevant stakeholders in the formulation of the Smart Specialisation Strategy and cluster programme in order to retain existing roles and responsibilities of stakeholders in the implementation phase. Cluster organisations act as the process own-er for the field of activity committees, providing the stakeholder with organisational support and facilitat-ing the implementation of planned measures.The main actors, core competences, value chains, re-gional strengths and weaknesses are not obvious and easy to identify in emerging industries. The Vanguard Initiative mapped selected clusters in the field of Ad-vanced Manufacturing to identify related competenc-es, the main actors, infrastructure and emerging value chains. The result of the mapping provides an entire picture of actors and competences within participating clusters and enables the Vanguard Initiative to imple-ment future demonstration projects based on regional competences and industrial assets. Which mapping approach is applied is less important than the quali-

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ty of information taken from these analyses. Doing a mapping has to involve future beneficiaries and thus has to be understood as a collective undertaking of regional stakeholders. The corresponding community can be mobilised to actively contribute and support the mapping exercises. The European Cluster Obser-vatory offers an excellent tool for mapping 10 emerg-ing industries and thus can be a good start for initial mapping exercises. Whereas, in the past, cluster policies have often been understood as mainly supporting cluster initiatives by providing funding, future-oriented cluster policies aim to put in place favourable framework conditions for innovation and entrepreneurship in which new indus-trial value chains can be developed. Future-oriented cluster policies follow a systemic approach that com-bines different policies, programmes and instruments across different ministries. The role of government in this context is the role of an enabler that provides incentives and encourages cluster actors to increase value creation and strengthen their position with-in national and global value chains. The Norwegian cluster support scheme is an example of how differ-ent policies and related ministries can align with one another. Cluster organisations are supported within three different cluster programmes aiming at different levels (ARENA, NCE and GCE). These programmes are owned by three stakeholders (Innovation Norway, For-skningsradet and SIVA) with extensive experience in joint initiatives aimed at stimulating regional business development. In addition, other R&D and innovation support programmes in Norway are well aligned. This is especially the case with the Norwegian Centres of Expertise (NCE) and the Norwegian Global Centres of Expertise programme. Norway’s policy provides incen-tives and encourages cluster actors to increase value creation and strengthen their position within national and global value chains. Regions with a successful cluster policy are no longer providing just monetary funding of cluster organisa-tions but rather have a broad and flexible range of different, well-aligned financing instruments in place. The Norwegian NCE and GCE are aiming at strength-ening the clusters’ efforts in four strategic focus areas: cluster management excellence, knowledge links, innovation collaboration and cluster-to-cluster collabo-ration. The Initiative Excellence Denmark also provides a flexible, tailor-made support scheme for the Danish cluster initiative. On a regional level, Finlombarda (region of Lombardia) provides monetary support, coaching, advice and internationalisation support for regional cluster initiatives. There a trend (e. g. Norway and Denmark on national level, Lombardia, Catalonia or Hamburg on regional level) towards tailor-made 3-coloumn support schemes. However, it is the case in all of these programmes that the respective cluster

organisations are sufficiently equipped and staffed to play a proper role in the whole process. • Baseline co-funding of the core team of the cluster

management. In several cases, cluster manage-ment also has to acquire additional private funding through membership fees, fee-based services, and other means. However, baseline co-funding enabled by regional policies assures that cluster initiatives shall act as a policy tool in a support of emerging industries.

• Coaching, training and networking for cluster man-agements to contribute to an increased profession-alization of cluster management.

• Financing of strategic projects or activities with the high importance of the development of emerging industries within the region. Among others, these vital projects can contain support for the devel-opment of new cluster management services and supporting cross-clustering projects.

Taking the above-mentioned key characteristics into account, a cluster policy conducive to emerging industry is not a single policy to fund cluster organ-isations but rather a broad set of policy choices to support the entire framework conditions of the actors in related emerging industries. Such a policy aims to improve cluster-specific business environments that provide optimal conditions for companies in emerging industries to raise their productivity and innovation. Creating platforms for collective action within clusters through cluster organisations can help companies from different sectors to innovate better and exploit their business opportunities. Consequently, cluster organi-sations can in turn also be a major partner for the gov-ernment to design and implement effective policies for upgrading cluster-specific business environments.

14

3. POLY4EMI FRAMEWORK FOR EMERGING INDUSTRIES


regional eco-system. Consequently, various tools and services originating from different policies were tested to integrate demand and innovative solutions along selected value chains. The rational for the Poly4EmI framework is based on the fact the biopolymer industry is characterized by ongoing industrial transformation processes, increas-ing technology convergence, new knowledge creation, new markets and often disconnected value chains Thus Biopolymers were used to develop a real case-based policy model which can be extended to different emerging industries as well as serve as a model for further regional implementation of the Smart Speciali-sation Strategy.

Poly4EmI tested a systemic approach to stimulating the transformation of the industrial structure through clusters based on cross-cutting technologies. The approach was based on the proposition that cluster platforms can be an effective approach for promoting entrepreneurship to develop emerging industries. Poly4EmI led to a cooperation platform entails existing clusters, the Center of Excellence, Competence and Technology Centers all of them acting disconnected before. Lack of knowledge about policy tools and ap-proaches that adequately address industrial transfor-mation called for experimenting with new approaches that aim at fundamentally changing sectoral bound-aries to help improve the overall efficiency of the

Source: Poly4EmI

Poly4EmI was active on three levels: policy, clusters and entrepreneurs. This approach offered stakeholders the opportunity to meet, discover, design and act in a coordinative way. This included transnational policy learning, enhancement of cluster collaboration, net-working and strengthening entrepreneurial support activities. Consequently the Poly4EmI platform (Figure 6) was designed to: initiate innovations (through new

Figure 6: Poly4EmI Cooperation Platform

regional cooperation models), enable enterprises to in-novate (through cluster initiatives) and facilitate enter-prises to innovate (through business services providers and proper funding schemes)This chapter presents a collection of practical tools for policy development as well as for cluster manage-ment that have proven to be appropriate to meet the desired targets. The tools are grouped according to

Industrial transformation, technology convergences, new knowledge, economic, environmental, societal callenges, new markets

Initiate to innovate

Regional Cooperation models

Strategy

Enable to innovate

Cluster initiatives

Capacity and open space

Facilitate to innovate

Business service providers

Business support services

Firms, SMEs, Start ups New Global Value Chains

15


three levels, namely policy level, clusters level and business support service level. It has to be emphasized that tools are context dependent and depend on the specific objectives of the regions. Poly4EmI applied them in a line with a systemic approach based on the proposition that cluster platforms can be an effective approach for promoting entrepreneurship to develop emerging industries. Poly4EmI also aimed to facilitate the reshaping of existing industrial value chains and/or to create new value chains by capitalising on the transformative power of cross-cutting technologies and service innovation and on the potential of resource efficiency and the concept of the „circular economy“ that lead to a more robust and resilient industrial land-scape.

3.1 PILLAR ONE: POLICY LEVELDefining the biopolymer strategy within Poly4EmI was based on transnational policy learning about how to better execute regional policy and implement instru-ments to support emerging industries through clus-ters. A central purpose was to examine the readiness of policy and cluster organisations to support biopol-ymer industry development in Slovenia. Piloting new policy learning tools, i.e. stress testing and peer re-view, lessons learned from previous European actions and various analyses and studies conducted within previous projects in the area of clusters and emerging industries in Slovenia were taken into account. Addi-tionally experience of peer regions were examined to provide input on the core elements of a regional biopolymer strategy and to demonstrate stress re-silience of the current Slovenian policy framework to respond to the needs of emerging industries. Mutual experience exchange in meetings with representatives from other regions and active participation on interna-tional conferences and expert meetings add value to the main findings and recommendations for the design of a biopolymer strategy. To shed greater light on the capacity and readiness of Slovenian cluster organiza-tions to develop an emerging industry, benchmarking of cluster organizations was conducted.The results of transnational policy learning are: impact assessment of policies conducive to cluster devel-opment in Slovenia; stress testing and peer review; benchmarking of cluster organizations; a revised strengths and weaknesses analysis and policy recom-mendations for a biopolymer strategy.

TOOL 1: STRESS TEST AND PEER REVIEWAn important aspect within the Poly4EmI project was the transnational learning exercises on how to better execute regional policy and implement instruments to support Emerging Industries through clusters. The purpose was two-fold: to examine the readiness of policy and clusters organizations to support Emerging

Industries and to define the core elements of emerging industry policies. The stress test approach provides regions with a unique opportunity to reflect on their past successes deriving from a policy perspective. The test helps to determine how and where policy can mostly sup-port the future economy while implementing it in an integrated, coordinated and sustained manner. For policies and programmes aiming at industrial develop-ment, the exercise simulates the relevance of industry by maintaining the competitive edge of a mature in-dustry while promoting the development of emerging industries. Stress testing of regional policies is a well-structured way to peer review and benchmark regional cluster policy approaches. It is a voluntary approach towards better regional policies. It also stimulates mutual learn-ing and striving for excellence and reveals where a giv-en regional policy approach stands compared to other peers. The approach involves significant collaboration amongst stakeholders based on sound analysis, lead-ing to better insights. It is very practical and, in a time of ever-accelerating speed of change, provides policy makers and clusters with the opportunity to build capabilities needed to support businesses to move as quickly as possible in the direction where opportunity is opening up. Within the Poly4EmI project, the stress testing and peer review were designed with the objective of enhancing mutual learning on transnational cluster policy among European regions that are developing bio-based industries. It was a common undertaking of five regions, namely Slovenia , Bavaria, Flanders, Lower Austria and Saxony-Anhalt. With the exception of Slovenia, these regions were selected because they already have policies and/or structures in place that promote the development of a bio based industry. The selected countries each provide excellent cases from which Slovenia can learn. Additional stress testing and peer review was conducted within the other five CIP projects. All were focused on support of Emerging Industries.

Figure 7: The Stress Test and Peer Review Approach

Source: Poly4EmI

Comparing

Comparing among peers

Analysis

Stress test and Peer review

Learning

Policy Learning & Improving

16


The Poly4EmI stress test and peer review contained two steps (s. Figure 7). First, the stress test analysed each region as to whether their policies are adequate to respond to the challenges associated with the de-velopment of particular emerging industries. Results served as a starting point for discussion on how to design better policies anchored in the specific regional context. During the stress test, different stakeholders of the policy making process (e. g. policy makers, clus-ter managers, regional economic developers, interme-diaries, Chamber of Commerce, Business Foundation, and others) were interviewed. The second step con-tained a one-day Policy Learning Arena workshop with regional representatives who participated in the stress test. The purpose of the Policy Learning Arena was to stimulate and facilitate policy learning based on the findings and outcomes of the stress test. As a result, participating regions realised how far their policies are developed compared to regional peers, what elements could be transferred from others, and how this could be implemented in their respective regions.

The stress test and peer review conducted within Poly4EmI provided the participants with the principal elements of bio-based policies and structures. These included bio-based industry as a strategic policy objective, the involvement of relevant cluster actors in the policy development process, financial support through thematic and generic programmes, innovation hubs, clusters as catalysts and cross-border collabora-tion. The main elements were further grouped into two dimensions, namely “policies and programmes” and “vehicles for implementation” (see Figure 8). The com-bination of these dimensions reflects the mandatory framework to develop a bio-based industry in a region through a systemic cluster-based policy approach.

Figure 8: Elements of bio-based industry: programmes and vehicles for implementation regions

Source: Poly4EmI

TOOL 2: CLUSTERMAPPING Cluster mapping is a key part of assessing clusters in a given region as it provides rich fact-based analysis of local competitiveness. Cluster mapping and value chain or competence mapping can be done in very different ways. These can also be considered to be proper tools for mapping emerging and new indus-tries or regional competences.Poly4EmI reviewed the ten selected emerging indus-tries defined within the European Cluster Panorama to identify and select one of them in which Slovenia has already been able to create the conditions for growth based on biopolymer cross-cutting technologies. The European Cluster Panorama 2014 provided evidence

of the European hotspots of emerging industries. The Cluster Panorama helped to gain insights into the current patterns of specialisation where competences exist and growth is most likely to be achieved in Slove-nia. Slovenian hot spots of emerging industries are in Advanced Packing, Medical Devices and Pharmaceuti-cals; all closely linked to Biopolymers. Advanced Packaging was identified as an option to be tested within the project due to its relatedness to biopolymer industries. Advanced Packaging is com-prised of the conventional packaging industry com-plemented by stakeholders that create and provide additional added-value products and services to fill or expand the scope of the core functions of packaging.

Systemic perspective on the development of a bioeconomy: different elements and good practice

Innovation Hubs for the development of a bioeconomy

Flanders: FISCHLower Austria: Technopole

Bioeconomy as a strategic policy objective

BavariaSaxony-Anhalt

Flanders

Clusters as a catalyst for the development of a bioeconomy

Bavaria: Chemical ClusterSaxony-Anhalt_ BioEconomy

Cluster

Involvment of relevant actors in the policy development

process

Saxony-AnhaltFlanders

Cross-border collaboration

Flanders: cross-regional collaboration through Interreg

projects and clusters

Financial support through thematic and generic

programmes

BavariaSaxony-Anhalt

Policies andprogrammes

Vehicles forimplementation

17


Figure 9: European leading regions in Advanced Packaging

Source: European Cluster Observatory, 2014According to the cluster mapping, Advanced Packag-ing is concentrated in Southern and Central Germany and some of the neighbouring countries: Poland, Slo-vakia, Czech Republic, Austria, and Slovenia. This area is home to 18 out of 20 strong clusters as shown in Figure 9. Some of the other strong areas include West-ern Turkey and Western Romania, both of which exhibit good performance in all areas, apart from productivity.The cluster mapping supported Poly4EmI to identify a strong industrial and scientific base of actors in the field of Advanced Packaging that could be further sup-ported to develop bio-based industry in Slovenia.

TOOL 3: ROAD MAPPING AND FORESIGHT It is important to understand cross-science, cross-tech-nology and cross-sectoral trends that affect industrial structures. In this regard, road-mapping and foresight help to identify and explore new technologies and new areas of research. Similarly, these exercises contribute to our understanding of the ways in which cross-sec-toral trends affect industrial structuresand how they might lead to the emergence of new industries or the redundancy of existing industries. A road-mapping and foresight process includes the identification of trends and factors that drive biopolymer industries and relat-ed cluster development. It also includes the identifica-tion of consequences for biopolymer-based industrial structures and delineation of policy implications. An exploratory approach with invited international experts from the biopolymer and related sectors was applied to discuss where biopolymer trends might lead and where new market application potential for biopol-

ymers might be. The essence of the foresight exercises was prognostic since they examine the consequences of trends and framework conditions in the Slovenian biopolymer industry. The approach was complement-ed by Visual Mapping Techniques (VMT) (VOSViewer, QuantumGIS) which were used at different stages to consolidate the analysis of several trends. They also served to conduct a DELPHI interview and to build sce-narios for the subsequent Value Chain Analysis (Tool 4). VMTs allowed for visualization and analysis of the complex interplay of the selected topic as it related to drivers, trends, and outcomes of future developments. Various interesting patterns of cross-sectoral and cross-regional collaboration possibilities and value chain formations were identified. Biopolymer research builds on modern-day advancements in chemistry, materials science, biotechnology, nanotechnology and other sciences. Cross disciplinary collaborations in sci-ence fields are fully exploited. As such, offers a strate-gic entry point to a variety of advanced technological applications. Included among these are applications of immediate relevance to agriculture, health, water and environmental management, energy efficiency and value-added industrial production. Coatings and films, medical devices, pharmaceutical, food and automo-tive represent additional examples. In the last decade, Slovenia became one of the most dynamic grounds for biopolymer research. However, it is still lagging behind in cross disciplinary collaborations in science fields as well as in technological applications and general indus-trial innovation.

TOOL 4: MAPPING OF VALUE CHAINS Value chain analysis has come into widespread use by government and the private sector, especially to identify options for industrial development. Its par-ticular attractiveness draws from, among other things, its capacity to deal with a new business environment or improvements in existing industrial development. Value chain mapping is a methodology that helps to identify the various actors in the value chain, their functions and the interdependencies among them. With regard to emerging industries, value chain analy-ses often reveal different sectors that could cooperate but are often disconnected. A visual value chain map illustrates the way the product flows from raw material to end markets. It shows the type of actors involved and depicts which actors and relations are the ones that are potential “disruptors” for emerging industries. The value chain mapping approach is able to point out the process of value addition, meaning that the val-ue of the products and services increase, to map the various industrial key drivers involved in the process of value addition, from the initial production to its final shape, and identifying measures that can improve their capacities to show the increasing interrelatedness of

18


industry agents. Close interaction generates efficiency in business transactions.Within the Poly4EmI project, many value chain anal-yses have been conducted to learn more about how they are covered within Slovenia, where missing links are and where there is potential for new actors to step into exiting value chains. An expert workshop was conducted with the participation of experts from Slovenian industry, administration and the research sector. Results of road mapping, foresight and cluster mapping served as key inputs for discussion lead by an experienced moderator. As a key outcome, five bi-opolymer-related value chains had been identified with

Source: Poly4EmI

TOOL 5: REGIONAL COLLABORATION MODELLINGResults of the transnational mutual learning exercise, cluster analysis, road mapping foresights and value chain mapping indicate that the Slovenian biopolymer ecosystem is fragmented. Cross-sectoral, cross-clus-ter networks in the area of biopolymers remain weak in the case of Slovenia. Bio-based value chains are only emerging and are disconnected. Applicants for the utilisation of knowledge are missing. New part-ners are needed from Slovenia and Europe for future cluster collaborations and networking along industrial value chains. Within the Poly4EmI project, it became clear that this can not be a task of any singular cluster organization or any other intermediary. In order to succeed, the analytical tool of regional collaboration modelling was implemented in the project (Figure 11).

dedicated relevant for Slovenia. Those value chains can be considered as the most promising candidates to be put at the core of the Slovenian bio-based industrial strategy. Figure 10 reveals a good example. The value chain mapping points out the whole spec-trum of various sectors that need to be involved in the value chain development. In the case of Advanced Packaging for Pharmaceuticals and Cosmetics, the following sectors and industries are involved: Forestry, Pulp and Paper, Fine Chemical Industry, Polymer (pro-cessing) industry , and technical packaging, Pharma-ceutical industry and cosmetics.

Figure 10: Advanced Packaging for Pharmaceuticals / Cosmetics

Figure 11: Cluster and new value chains development as a result of new collaboration models

Source: Poly4EmI

Production of cellulose- containing plants

Forestry sector

Recovery of (micro- crystalline cellulose

Fine chemical industry

Recovery of cellulose from wood

Pulp and paper industry

Packaging of pharmaceuticalsPharmaceutical industry

Packaging of cosmeticsCosmetics industry

Production of packaging films containing one or multiple layers of

(micro)Crystalline cellulosePolymer processing industry

End of Product Life / Recycling

Production of packagingTechnical packaging industry

INVOLVING NEW ACTORS FROM NEW

VALUE CHAINS

NEW FIRMS, CROSS CLUSTERING

EXISTING CLUSTERS

CROSS-SECTORAL SPILLOVERS DRIVEN

BY CLUSTER

19


Dedicated attention was given to the attraction of clusters and related intermediaries from various sectors primarily connected to bio-based industries. These included SMEs active in bio-based related technologies and firms that can benefit from new bio-based applications and solutions. Various workshops and meetings were conducted to promote a new regional cooperation platform. This platform included the following cluster initiatives: Centers of Excellence, Chambers of Commerce, Competence and Technology Centers active in Pulp and Paper, Wood, Automotive, ICT, Medical Devices, and Polymers. Public and private intermediaries for SMEs were also included. These entities were previously not connected to one another. The platform promoted the use of biopolymers and bio-based materials in various industrial applications. The Poly4EmI team acted as platform facilitator bring-ing all related actors together. In the end, the platform successfully supported cross-fertilisation of different sectors and ICT to create ideas and turn ideas into radical new solutions and marketable products.

3.2 PILLAR TWO: CLUSTER LEVELClusters play an important role in the development of emerging industries. In particular, cluster organisations can support the various actors by acting as a facili-tator for all different stakeholders. There is evidence that professional cluster managements can provide a higher impact9. Consequently, the second pillar of the Poly4EmI tools focused on clusters and cluster man-agement.

TOOL 1: CLUSTER MANAGEMENT EXCELLENCE Excellent cluster and network management can be considered as a main prerequisite for a cluster organ-isation to achieve the highest impacts and to support cluster actors to increase competitiveness. To develop emerging industries, cluster management excellence becomes even more important due to the fact that ac-tors from different sectors who have never cooperated before must be brought together. Benchmarking is a comparative analysis of the struc-ture and governance of a cluster initiative as well as of the strategy and business support services offered by the cluster management. The objective of benchmark-ing is to initiate mutual learning among peers in order to improve their own respective structures, processes and services.

9 Kind, Meier zu Köcker, 2012: Developing Successful Creative and Cultural Cluster - Measuring their outcomes and impact with new framework tools, Tanja Mühlhans (eds.), Senate Department for Economic,Technology and Research;

Poly4EmI used the European Cluster Excellence Initia-tive’s (ECEI)10 cluster benchmarking approach to gain a better understanding of what kind of role Sloveni-an clusters and related intermediaries might play in the development of new value chains and emerging industries. Despite the fact that benchmarking of clus-ter organisations is well established in Europe, it was carried out in Slovenia for the very first time. In the context of Poly4EmI, intermediaries that link academia, industry and SMEs (essential for future development of bio-based industries) were benchmarked. The bench-marking included clusters, the Center of Excellence, Competence and Technology Centers in the field of wood, polymers, biotechnology, automotive, medical devices and information technologies. The assessment included two steps: (1) Benchmarking interviews with representatives of cluster organisations were conducted according to the ECEI approach and benchmarking reports with recommendations were prepared. (2) Based on the reports, an experience exchange workshop among cluster organisations with an ESCA11 moderator was implemented to stimulate mutual learning. This workshop resulted, among other, in a dedicated action list to achieve cluster manage-ment excellence. In addition, it became evident what kind of cluster services still need to be developed in Slovenia for better support emerging industries, what kind of resources are required, and how to monitor and improve the development of the cluster manage-ment. All participants of the benchmarking exercises received ECEI-Bronze Label to make evidence that they are interested in cluster management excellence.

TOOL 2: CLUSTER EXCELLENCE SCORECARDThis Cluster Excellence Scorecard reflects the aggre-gated strengths and weaknesses of cluster organiza-tions representing a regional or national cluster portfo-lio, based on ECEI benchmarking exercises. The results provide inputs for policy makers in terms of where to support future activities as well as how to support Slovenian cluster managers best.Figure 12 presents aggregate position of Slovenian cluster organizations against the six dimension (based on 31 individual quality indicators) of the ECEI ap-proach. This Cluster Excellence Scorecard for Slovenia reveals clearly the aggregated strengths and weak-nesses and provides an excellent input for policy mak-ers where to focus future support activities as well for

10 The European Cluster Excellence Initiative (ECEI) devel-oped an internationally recognized benchmarking ap-proach. So far, more than 1000 benchmarking exercises have been conducted and can be used as a comparative portfolio. www.cluster-analysis.org

11 European Secretariat for Cluster Analysis (ESCA) is an international network of experts. www.cluster-analysis.org

20


the Poly4EmI management where to support Slovenian cluster managers best. Updating such an Excellence Scorecard on a yearly base, will help to monitor the de-velopment of the cluster portfolio and make evidence of improvements.

Figure 12: Slovenian Cluster Excellence Scorecard

Legend: green bars mean that the respective ECEI-indicator is entirely fulfilled. Yellow means that the respective ECEI-in-dicator is partly fulfilled. Red means that the ECEI-indicator is not fulfilled

TOOL 3: COACHING AND MENTORING THROUGH CLUSTER TWINNING A new support scheme has been tested within Pol-y4EmI that focuses on coaching and mentoring of cluster managers on how to improve their manage-ment performance. The approach based on the idea that a European cluster organisation that has received the ECEI “Gold Label” coaches and advises a Slove-nian bronze-labelled one (Cluster Twinning). The ECEI benchmarking report serves as a basis to identify strengths and weaknesses of Slovenian clusters regard-ing their management excellence. The analysis of this report means a kind of introduction to the current per-formance of the cluster as a kind of starting point for mentoring by the gold-labelled cluster organisation. The main result of the mentoring is the estimation of how well-prepared the Slovenian cluster organisation is to strive for cluster management excellence and what it has to do to achieve this within a short time. Coaching for the implementation of new services consisted of sharing the experiences of gold-labelled cluster organisations with Slovenian clusters. This was done by implementing the business services focused on cross-clustering for new global value chains, inter-nationalisation and implementation of innovative ideas. In addition, the result of the service is the creation of an environment conducive to developing cross-re-gional value chains. The Poly4EmI project tested this approach with great success. Based on a cluster vouch-

er approach, the gold-labelled cluster organisation received a small remuneration for the efforts connect-ed with the mentoring and coaching. One twin pair, Technology Network ICT (Slovenia) and CYBERFORUM (Germany), can be considered as good practice. Even after the twinning period of about six months, they are still cooperating in business and technology transfer.

3.3 PILLAR THREE: BUSINESS SUPPORT SERVICE LEVEL Cluster organisations and other SMEs intermediaries are important facilitators within clusters as they man-age networks of companies, universities and research institutions that develop and sell products and servic-es. There are many examples of traditional services such as networking, workshops, business missions, newsletters and databases. However, there is a com-mon understanding that such services are no longer sufficient to support industrial transformation and emergence of emerging industries. Poly4EmI identified various services, selected most suitable and tested them in real environment. Such services can be offered by cluster organizations or oth-er SMEs intermediaries, public or private knowledge providers.

TOOL 1: OPEN SPACE COLLABORATION ARENAAn open space/brokerage platform where businesses, knowledge institutions, business support organisations and policy decision makers from emerging industries meet can serve as an efficient space to search for and explore radically new, cross-sectoral business solutions and opportunities. Such a space can contribute to the exploration and creation of business connections for new value chains based on the potential of new tech-nologies. Strong existing clusters and networks with proven competencies and a developed business sup-port environment are conducive to the establishment of such a space where existing and emerging clusters and networks can further work together to build bridg-es between the different value chains in support of emerging industries.Various tools and approaches to enhance the collabo-ration between clusters and cluster members do exist. They provide the space for stakeholders, clusters and their members (businesses, knowledge institutions, business support organisations, policy makers) to share innovative ideas. Moreover, they can reflect on their shared challenges and find new topics of cooperation, develop new partnerships and new value chains. They are characterised by a particular combination of modes of delivery. Poly4EmI implemented a “Creativity Work-shop Concept” and used Advanced Packaging value chains as a pilot case. The main methods used were:

13 %

29 %

14 %

43 %

38 %

24 %

22 %

31 %

8 %

14 %

38 %

25 %

66 %

66 %

78 %

43 %

24 %

55 %

TYPOLOGY, GOVERNANCE, COOPERATION

FINANCING

STRATEGY and OBJECTIVES

CLUSTER MANAGEMENT SERVICES

ACHIVEMENTS RECOGNITION

TOTAL ASSESMENT

21


• Presentation of the pre-collected project ideas re-lating to different (emerging) industries in order to find the partners for cooperation, followed by the selection of the best projects that receive mentor-ing or the innovation voucher for further develop-ment of the project idea.

• Workshops in small groups, with experts and other interested stakeholders in order to identify barriers and challenges about cross-sectoral approaches in particular fields, and generating ideas for future cooperation.

The basis is always the selection of a particular topic/theme/field of cross-sectoral cooperation and invita-tion to the particular stakeholders to share their pro-ject ideas. This could be done in different ways such as the launch of an idea call, launch of requests for expression of interest to participate with project ideas or the selection of the project ideas via a collaboration portal. The Poly4EmI used a more targeted approach including interviews, meetings and focus groups. The highly motivated facilitators played a critical role in the process since the participants’ profiles had to be defined carefully to reach the right potential partners (SMEs, technology providers, experts,). The following key success criteria can be highlighted for project-generating workshops of this type: • Advanced preparation of participants prior to the

workshop • Custom-tailored workshop design • A proper composition and balance of participants • Interested community with intrinsic motivation and

commitment • Sufficient non-scheduled/programmed time for

informal talks • Assessability and comparability of projects is ena-

bled by use of form sheets • Discussion of unconventional ideas already in a

very early phase • Well-established clusters in relevant sectors• Sufficient number of interested cluster members in

relevant sectors• Sufficient number of qualified facilitators (“knowl-

edge architects”)

TOOL 2: COINVEST Due to missing applicants, actors along value chains, missing entrepreneurship and SMEs in clusters, the Poly4EmI also tested the COINVEST tool, which was developed by COBIK Center of Excellence within the programme of Center of Excellence 2010 – 2014.

COINVEST is a brand name for the regional platform (encompassing South-East, Central and Eastern Eu-rope) that is currently growing through cooperation between high-tech start-ups and specialised investors http://www.coinvest.si/. The annual high-tech invest-ment conference is an important part of the platform. COINVEST is a platform connecting regional high-tech projects with the emerging innovation ecosystem. With its activities, it aims to develop an ecosystem to help prospective projects to obtain necessary assets: capital, access to market, managerial skills. COINVEST organises education for promising projects, connects them to mentors and organises successful investment conferences.The process starts with the call for projects with a pre-structured one-page online application form where the main information about the idea owner and their project idea are required. The call for projects is structured to specific fields/areas (like Cloud Comput-ing, Life Science, etc.). An internal demo day follows where the project idea owners present their project ideas (pitch) to the international experts of the specific field/area (members of the advisory board). The main goal of this event is to pre-select the project ideas and to assess the level of project idea development and the needs of their owners for education/training to further develop their project ideas to the point of in-vestment readiness. The obligatory training/education of pre-selected project ideas follows, implemented by professional educators. The most promising project ideas are selected in this phase for the presentation on the COINVEST confer-ence. In this investors’ conference the selected project teams present their ideas to the international investors. The best project ideas are awarded with EUR 5,000 and the arrangement of a one-month stay involving training and meetings with potential investors and partners in Silicon Valley. In parallel, a database of all projects is created and the updated information on project proposals is sent periodically to the investors and to the members of the COINVEST regional platform.

TOOL 3: VALUE CHAIN VOUCHERSWithin Poly4EmI, the project partners developed a new voucher scheme, not yet known in Slovenia. The Poly4EmI vouchers were aiming at building the bio-polymer value chain. The Poly4EmI voucher scheme started with the identification of bioeconomic world trends, along with the identification of potential propulsive sectors in Slovenia and the identification of all relevant stakeholders (researchers, companies, clus-ter organisations). Focused workshops were organised in collaboration with the Paper and Pulp Institute as a key cluster organization. The Chamber of Commerce

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and Industry of Slovenia served as an intermediary for SMEs. The Chamber’s role was firstly to identify the ex-isting (but not complete) biopolymer value chains and secondly, to group the relevant stakeholders around new, innovative projects, run by the companies and users of various solutions. In the next step, the Chamber of Commerce and In-dustry published a Poly4EmI voucher call for bio-poly-mer innovative projects. Within Poly4EmI, the vouchers seek to facilitate the formation of new value chains and networks. The focus was on the following four areas:Development of an innovative product. The innova-tion voucher empowers companies to analyse and test innovative ideas in order to give it the best possible start for success. It also supports the SMEs in their approach to the companies and research institutions (knowledge providers) with their innovation-related problems. The voucher also provides an incentive for the public knowledge provider to work with SMEs when their tendency might have been either to work with larger firms or to have no industry engagement at all. The vouchers were dedicated to the prior art analysis, competing art analysis, proof of concept including prototyping and scale-up testing benchmark-ing/international comparison, consultancy (IPR, legal). Providers of such services were sought among IPR offices, research organisations, certified institutions, and consultancy firms. Internationalisation of innovation. The internation-alisation voucher empowers companies to analyse their international market potential and initiate their internationalisation activities and their presence in the international markets. The vouchers were dedicated to market analysis and international cooperation/match-making events, brokerage events, including event fees. Providers of such services were sought among market analysis specialists and event organisers.Value chain (cluster) development. The value chain/cluster development voucher empowers companies to start collaborating and to define their common interest, goals and strategies. They are encouraged to define and develop their “own” business model for cooperation. The vouchers were dedicated to value chain development and coordination activities. These include partner search/meetings, strategy and project development, cooperation/business model design and implementation. Providers of such services were sought among members of the value chain as well as through other providers of business networking and consulting firms.Gaining of entrepreneurial skills. The training/entre-preneurial skills voucher is dedicated to young com-panies/start-ups in order to assure to them the best conditions for a successful business start – especially in the field of strategic partner search. The voucher

was dedicated to training on entrepreneurship, men-toring, coaching and training on start-up presentations (pitches), and presentation design. Providers of such services were sought among start-up initiatives, tech-nology parks, university incubators, and VC-funding consultants.

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4. POLY4EMI: LESSONS LEARNED


gies could be refocused towards facilitation of external interactions that maximize the value of the biopolymer ecosystem. The value chain voucher proved to be an effective instrument to help SMEs and entrepreneurs to get access to most desirable support services in this regard. Also, the Poly4emi deliberations suggested that a voucher scheme which is managed by private SME intermediary organizations can be much more effective due to a number of factors. These include far fewer administrative issues, better understanding of the target groups and much better alignment of the voucher objectives with the broader scope of pro-gramme. The Poly4emI demonstrated that cluster management could play a critical role in emerging industries. They can animate, steer and facilitate the creation of new value chains in emerging industries. They can combine various instruments and can act as bridge-builders that connect companies from different sectors and sub-sectors at regional and cross-regional level. They can establish and nurture linkages between clusters in different locations and provide SMEs with access to the most advanced technologies, know-how, and markets. To play this role, cluster organizations need strong competencies, understanding of platform busi-ness models, they need resources and they have to be recognised and well positioned in the regional policy implementation structure. At the same time there is a need for cluster management to apply pressure on the development of such unique capabilities and makes this the most important strategic priority of cluster development. Poly4EmI confirmed that internationalisation is an es-sential part of clusters in emerging industries. Slovenia do not possess all competencies in bio based indus-try, SMEs need to capture the best globally available know-how in locations beyond their regional and na-tional boundaries. Linkages between clusters in differ-ent locations which offer complementary strengths can provide access to the most advanced technologies, know-how and resources. This linkages are critical for the industrial transformation towards bio based one. Along those lines, challenges remain since clusters are still excessively focused on branches of a single sector, they are not recognized as a driver of industrial

The Poly4EmI exercise proved that a systemic ap-proach to emerging industry development can have a high potential to open up new business opportu-nities, attract new investments, international joint ventures and partnerships. The approaches put into place proved to be appropriate to meet the desired targets in a relatively short time. Selected bio-based value chains were mapped and linked to a value-added network. More than 300 actors were engaged in focus group discussions, workshops and other events. The value chain oriented voucher scheme was launched and lead to 25 cross-sectoral cooperation projects which attracted various firms (including young entre-preneurs and start-ups) which were previously outside the scope of the “policy radar”. Various new inter-firms networks emerged and continue working together within Smart Specialization Framework. The Poly4EmI project provided the opportunity to assess the dynamics of clusters and emerging indus-tries. The initial idea to activate networks of consor-tium partners did not work. A much broader spectrum of clusters was needed to unlock the potential of clusters and entrepreneurship for regional econom-ic development based on the biopolymer industry. Consequently, a joint platform of existing clusters and intermediaries was created with a view towards a new regional cooperation model. The initial platform was enlarged to bring together unrelated sectors and to open up opportunities for SMEs and entrepreneurs. The Poly4EmI model entails existing clusters from Au-tomotive, ICT, medical devices, and polymer sectors, the Center of Excellence, Competence and Technology Centers active in Pulp and Paper. All of these cluster groups were previously operating disconnected from each other. Only then, a critical mass of actors and interactions was created capable of triggering trans-formation of existing value chains and formation of bio based value-added networks. Poly4EmI tested various new services. Results indicate that many more business services have to be available in the region that offer entrepreneurs and firms smart collaborative choices. Such services include open arenas that support cross fertilizations of technologies and sectors and provide constant support to start up teams and firms. Internationalization emerged as one of the Consequently, cross cluster collaboration strate-

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transformation. Without both, clusters cannot be very effective and cannot deliver results in line with policy objectives and expectations. Strategic partnerships as key implementation instruments of Slovenian Smart Specialization Strategy offer a great opportunity to overcome those barriers and to unlock the potential of clusters and entrepreneurship for regional economic development in which clusters may become a place of transformation towards bio based industry.

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5. ONGOING CONSIDERATIONS HOW TO SUPPORT EMERGING INDUSTRIES


understanding of how to best turn these recommenda-tions into practice.

EFCEI-Recommendation 1: Improve framework conditions for clusters in emerg-ing industries. Policies should address emerging in-dustries and the new industrial value chain orientation and associated linkages on all levels.

Poly4EmI experienceImproving framework conditions for emerging in-dustries is definitively of high importance. However, supporting emerging industries must be based on regional strengths and driven by related clusters with high potential rather than by current policy trends or individual preferences. The most promising emerging industries must be selected on the basis of objective criteria. Cluster mapping and value chain analysis helped Poly4EmI to gather relevant information on where to start. As a result, Advanced Packaging and related clusters were identified as a regional stronghold with high potential . Focusing on this sector allowed for identification of a critical mass of industry and aca-demic actors to jointly develop bio-based industry in Slovenia. It also provided guidance for policy makers on where best to start . The involvement of beneficiar-ies in the mapping exercise provided an excellent basis regional stakeholders to find common ground. The related community was mobilized to actively support and contribute to the mapping exercises.

EFCEI-Recommendation 2: Use cluster initiatives to boost entrepreneurship and SME growth in emerging industries. Cluster organisa-tions should be given a major role in the development

The foregoing sections of this guide serve to describe and interpret the twenty-four months of institutional interaction among the Poly4EmI consortium mem-bers and other participating institutions and industrial entities. Perhaps the major policy-level contribution is the framework for conducting ongoing observation of emerging industries within clusters. In this regard, the authors of this guide have endeavored to identify, doc-ument and validate a selected number of approaches in use at some of Europe’s most progressive regions. The observations offered here are also intended to re-flect on the unique circumstances presented by emerg-ing industries at each stage of growth and develop-ment. In particular, the Poly4EmI exercise focused on how the new demands generated by evolving value chains are eliciting creative responses on the part of policy-makers and cluster organizations. The cluster organizations themselves are challenged to adapt to different modes of collaborative arrangements involv-ing both vertical and horizontal relationships as well as specially adapted incentive mechanisms. It will be important to continue to expand the parameters of the analytical and strategic models discussed here. In 2013, the European Forum for Clusters in Emerg-ing Industries (EFCEI) made an attempt to develop recommendations on how to best support emerging industries12. At that time, not much practical experi-ence existed on how to implement them. In order to continue to the ongoing discussions and consider-ations, the authors of the present guide provide the following reflections on the recommendations of the EFCEI, based on the practical experiences and lessons learned within Poly4EmI. It shall contribute to a better

12 European Cluster Observatory: Promoting better policies to develop world class clusters in Europe, 2013, Policy Roadmap Actions for new linkages needed; http://www.emergingindustries.eu/Upload/CMS/Docs/Policy_roadm-ap.pdf

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of new international linkages. Cluster excellence needs to be developed and promoted.

Poly4EmI experienceAt the time of initially supporting emerging industries, neither a dedicated cluster initiative nor a critical mass of companies exists . In the case of Poly4EmI, nei-ther a dedicated biopolymer industry cluster emerged nor it would have made sense to set-up a biopolymer cluster initiative. In reality, there were several related industrialclusters that related to Advanced Packaging in one way or another. The Poly4EmI experience has shown that, at an early stage of an emerging industry, a broader platform that invites and gathers all interested actors is much more promising. The Poly4EmI platform provided a new regional cooperation model, open for all interested stakeholders. Due to the complexity of development of emerging industries, it can not be one cluster organization that is responsible. Moreover, the competences and assets of a region-- including key actors-- must be bundled and actively involved. One cluster organization is hardly able to offer all the different business support tools on a professional level (see Pillar 3). Instead, a regional cooperation model, bundling and gathering the assets of all key stakeholder is a more promising way to succeed. Within such a common undertaking, cluster initiatives can play a very active rolealong with other stakeholders as well. It is at the policy level that framework conditions and incentives must be set with the active support of all stakeholders.Since cluster initiatives do play an important role, cluster management excellence and the development of new business support services are of high impor-tance. The ECEI-Benchmarking and labelling approach is an excellent tool to identify tailor-made support for cluster management. Other tools, like cluster twinning or the Regional Cluster Scorecard, shall be used as well. Management excellence and new services shall also be provided from other intermediaries according to their core competences. The regional cooperation model coordinates the key actors and their services accordingly.

EFCEI-Recommendation 3: Provide better business support services to emerging industries. Business support services are important to address some of the critical problems in emerging industries

Poly4EmI experiencePoly4EmI tested a wide set of support services and schemes on all three levels (policy, cluster and busi-

ness support level). Following the idea of a systematic approach was one of the key success factors. When supporting emerging industries, experimenting new support services on all levels is needed. Lack of ex-perience or high complexity of the situation are often the reasons for this. Higher openness for new sup-port schemes (including failures) is required given the shorter evolution cycles of new value chains. Simply copying existing approaches and tools did not work. However, getting inspired and learning from advanced regions helped significantly. Thus, policy tools like stress testing and peer reviewing of other regions contributed to finding out where Slovenia stands com-pared to other peer regions and what can be adopted. The key message from the Poly4EmI project which is relevant for all regions interested in seriously sup-porting emerging industry is that it is mandatory to follow a systematic approach. Different competences from various disciplines and actors must be bundled. More regional actors have to enter strategic part-nerships and work toward new regional cooperation models. Moreover, new actors, like start-ups, do play an important role since they are often more open to industrial change. A broad spectrum of support tools must be applied to bring actors from different sectors to build new value chains. The concept of Smart Specialisation provides good framework conditions for the support of emerging industries. The challenge remains as to how to imple-ment Smart Specialization Strategies (through clusters) in practice. Excellence is needed on all levels to sup-port emerging industries. This is the case not only at the cluster management level but, even more impor-tantly, on cluster policy level.

This project is co-fundedby the European Union

Cluster policy guide_Poly4EmI

Documents

Transcript of Cluster policy guide_Poly4EmI