Philip Raines - Cluster Development and Policy

CLUSTER DEVELOPMENT AND POLICY

Other titles in the collection

Transition, Cohesion and Regional Policy in Central and Eastern Europe
Edited by John Bachtler, Ruth Downes and Grzegorz Gorzelak

Policy Competition and Foreign Direct Investment in Europe
Edited by Philip Raines and Ross Brown

Edited by
Philip Raines
European Policies Research Centre
University of Strathclyde, UK

First published 2002 by Ashgate Publishing

Reissued 2018 by Routledge
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Copyright Philip Raines 2002

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ISBN 13: 978-1-138-71764-0 (hbk)
ISBN 13: 978-1-315-19625-1 (ebk)

The following report is principally based on a study conducted by the European Policies Research Centre of the University of Strathclyde in Glasgow. Funded by several European regional development organisations, the Euro-Cluster project aimed to identify and understand the key factors behind the successful design and delivery of cluster development policies. Fieldwork consisted of face-to-face interviews with the main policy-making participants in each area and analysis of associated strategies, evaluations and documents. The research team consisted of the following:

In addition, Christian Hartmann (Researcher, InTeReg, Joanneum Research, Graz, Austria) provided the case-study chapter on Styria.

The research team is grateful to the Euro-Cluster sponsors for their support: Enterprise Ireland (Ireland); Scottish Enterprise (UK); the Scottish Executive (UK); the Northern Ireland Department of Enterprise, Trade and Industry (UK) the Welsh Development Agency (UK); the Ministry of Local Government and Regional Development (Norway); the East Sweden Development Agency (Sweden); and the Council of Tampere Region (Finland).

Lastly, the authors of the study wish to acknowledge Moira Lowe of EPRC for the thankless task of formatting the book for publication

Philip Raines
EPRC
Glasgow

Philip Raines

Few phenomena have marked discussion of economic development in recent years so much as the interest shown in the 'cluster' concept. Publicised by the work of Michael Porter and others, the proliferation of work on clusters and cluster-based policies points to one of the most dynamic exchanges between economic development theory and practice for several decades (Porter, 1990a; Held, 1996; Rosenfeld, 1997; Steiner, 1998; OECD, 1999; den Hertog, Bergman and Charles, 2001; Mariussen, 2001). As a result, there is a growing, widespread belief among policy-makers worldwide that clusters can form the basis of a successful economic strategy by supporting regional innovation, encouraging technological spillovers, producing economies of scale and scope and enhancing self-sustaining local economic development. At the same time, questions have been raised about whether the theoretical underpinnings and policy applications of the cluster approach are little more than 'old wine in new bottles', not so much borrowing from as re-labelling existing ideas. Nevertheless, whether hailed as a critical shift in policy understanding or criticised as a false panacea, it is difficult to deny that the approach to cluster development and policy represents a uniquely vigorous interaction between the academic and policy-making spheres.

Although definitions vary, clusters can be thought of as networks of firms, research institutes and public bodies, which tend to be located in relatively close geographical proximity and whose cross-sectoral linkages generate and renew local competitive advantage. In this, the cluster concept is not immediately novel. In economic development literature, the fundamental links between economic agglomeration and competitiveness are long-standing, dating back to Alfred Marshall in the late 19th century (Marshall, 1961), if not earlier. Studies of successful regional economies over the past few decades have regularly uncovered elements of clustering, ranging from the local webs of small, crafts-based enterprises in the northern Italian industrial districts to the international concentration of high-technology companies in Silicon Valley, from competitive networks of agro-businesses in the rural regions of Denmark to web design and multimedia firms in New York city.

Nonetheless, discussion of the validity and implications of the cluster concept has introduced two key important elements into economic development. First, it has brought together a series of earlier and parallel debates including those relating to 'industrial districts', 'regional innovation systems' and 'learning regions' and promoted a wider discussion of the sources of local competitive advantage. In this respect, the ambiguity of the cluster concept often cited as a weakness has surprisingly allowed a range of different economic development ideas to be combined in new configurations. It has not only raised interest in these ideas but helped to sharpen understanding of them.

Second, the policy implications of the cluster approach have been an integral part of the debate. While the role of policy intervention has only been discussed in economic development literature more fully in recent years, interest by the policy-making community in cluster development has been both intensive and pervasive. Over the last few years, there has been a dramatic proliferation of policies designed to promote development of clusters of firms and industries (or at least, purport to) (Enright, 2000). In Europe alone, cluster-based policies can already be found at national, regional and local levels in Austria, Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Spain, Sweden and the UK (case-study examples of seven of these are presented in this volume) and are in preparation in several other countries. Indeed, the annual cluster-related conferences organised by both DATAR and the OECD as well as the Competitiveness Institute have regularly attracted policy-makers from all over the world, pointing to a highly active global exchange of conceptual ideas and practical experience.