Sustainable Financing of Clusters

Sustainable Financingof Cluster Initiatives

Gerd Meier zu Köcker

Bernhard Grieb

ClusterAgentur BW

September 22, 2017

Financing of Cluster Initiatives in Europe

01.10.2017© ClusterAgentur BW| 2

Source: ESCA data, April 2017

Baseline Support

• Mainly public co-financing on regional or national level

Membership-based Financing

• Membership-fees

• Fee-based Services

EU-Projects

• COSME

• H2020

• INTERREG

• etc.

Financing Approach of Cluster Initiatives

Usual Financing Structure of Cluster Initiatives in Europe Today

Real Case Sustainable Financing

Aviation Cluster BodenseeAIRea

30 Members (25 companies, 5 academic partners)

1,5 FTE

2012-2014 Funded by ERDF (50 % funding)

EFRE funding terminated in 2015



Actions implemented by clustermanagement

Increase of membership fees

Cost savings (outsourcing / insourcing)

Attracting of new strategic partners through new services(Regional Development Agency / Chamber)


Change of Funding Sources


50%

75%

50%

25%

2012-2014 ab 2015

Mitgliedsbeiträge EFRE WiFö/IHKMembers RDA / Chamber


Determinants of FinancingCluster Initiatives


Financial options

• Akquisition ofnewmembers

• Introductionof new fee-bases services

• Free servicesto be turnedinto fee-basedservices

• Increase ormodifymembershipfees

• Identificationof new clients

• Regional

• National

• European

Members ServicesMembership

FeesClients

FundingProgrammes

Determinants of Financing Cluster Initiatives


Financial options






• Regional

• National

• European

Members ServicesMembership

FeesClients

FundingProgrammes

New Members

Advantages

– Increase critical mass

– Close gaps in value chain

– Gain „High Quality“ members

Disadvantage

– More members, more demand

– High ratio members / FTE can lower Quality ofperformance


Determinants of Financing Cluster Initiatives


Financial options






• Regional

• National

• European

New Members ServicesMembership

FeesNew Clients

New FundingProgrammes

Cluster ServicesHow they contribute to profit generation andcommittments


ServicesApplied by

CM €- €0 €+

Organisation of trade fair missions often X X X

Company Visits (by Members) usual

Face-to-face visits (CM visits individualmembers)

often X X

VIP-Event Rare X X X

Seminar/Training usual X X

PR / Promotion of cluster usual X X X X

PR / Promotion for members rare X X

Connecting members usual X X

Project management rarel X X X

Publication usual X X

Studies intended for members rarely X X

Appreciated bymembers

Financial Contribution


ServicesApplied by

CM €- €0 €+

Networking usual x x x

Consultancy rare x x x

Matching suppliers with key buyers rare x x

PR Material usual x x

Competence Atlas / Mapping often x x x

Seminars / Training often x x

Organisation of trade fair missions often x x xxx xxx x

Cluster ServicesHow they contribute to profit generation andcommittments

Appreciated bymembers

Financial Contribution

Services: Public Relation for SME

Example: HighTechCommCluster Nanotechnolgieund Munich Biotech

Cluster Managements support SME in PR and communication manners. This includes - Analyses (What exists? What is needed?)- Communication / Marketing Strategy

development- Dedicated PR activities / Website

development /maintenance

Services: Matching Supplier -Buyers

Example: Samsung Innovation Days Silicon Saxony

During Samsung Innovation Days members of the Silicon Saxony Clusters get direct access to Samsung Management and buying agents.

Members are selected and trained for face-to-face meetings

High success rate

What Members are Ready toPay for

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Source: Silicon Saxony, 2015/2016

Legal advice, certifications

Market and trend studies

Support in product development in newareasSupport in access to public funding

IPR / Trademark issues

Support in product design development

Feasibility studies

Business plan development for start-ups

Support in product development in newareas

General support for start-ups

Brainstorming / Open Innovation etc

Demand

Readiness to pay

Low High

Baseline Support

• Mainly public co-financing on regional or national level

• Value for Money

Membership-based Financing

• Membership-fees

• Fee-based Services

Strategic Projects

• Public investments instead of public funding

• New services (of strategic relevance )

• Complex cross-sectoral initiatives

• Projects for regional development

• Strategic projects

• International projects (members’ demand driven)

Sustainable Financing of Cluster Initiatives

Toward Sustainable Financing ofCluster Initiatives

17

ClusterAgentur Baden-WürttembergWilli-Bleicher-Straße 1970174 Stuttgart

01.10.2017© ClusterAgentur Baden-Württemberg

Dr. Gerd Meier zu KöckerDirector General

[email protected]

Sustainable Financing of Clusters

Economy & Finance

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