Local or National Competitive Advantage?: The Tensions in Cluster Development Policy by Corinna Nefzger & Philip Sipos

Author:Corinna Nefzger & Philip Sipos [Nefzger, Corinna & Sipos, Philip]
Language: eng
Format: epub
Tags: Business & Finance, Management & Leadership, Management
ISBN: 9783656009245
Google: V-InMwEACAAJ
Publisher: GRIN Publishing
Published: 2011-09-16T04:00:00+00:00

Each Working Group operated with the support of consultant facilitators, and included representatives of relevant firms, the Basque Government, and education, training and basic and applied research organisations. Each was chaired by a president drawn from one of the firms in the cluster, who was selected by the regional government and the firms involved, on the basis of their sound business background, considerable standing among the business community and appropriate personal qualities including dynamism, a practical approach and international experience. The main Working Group for each cluster was subsequently supplemented by further Working Groups to address specific issues. The Basque Government proposed three groups, addressing RTD, intemationalisation and quality/human resource development, with clusters free to establish further groups as appropriate. The Working Groups and their sub-groups have continued to operate, supporting and structuring the work of their cluster on an ongoing basis, and involving individuals with appropriate experience from partner firms.

The outcome of the initial Working Groups was to develop general strategic plans which were then discussed with the Basque Department of Industry. The plans summarised the aims and tasks of each cluster, setting out specific structured objectives linked to monitoring indicators. Following negotiation with the regional government, these plans became a form of contractual agreement, or convenio, signed between the cluster and the Government. Public sector resources have been committed to the convenios and their proposed activities, with subsidies of up to 70 percent for a variety of activities, many of which have been funded through mainstream economic development policies.

Over time, further clusters have either taken up the invitation to form which at first was declined (such as paper) or proposed themselves for consideration. The regional government has welcomed new clusters taking the initiative, where they can make a sufficient case. For example, the information and communication technologies sector was initially omitted by the Basque Government because it was believed that its active, existing professional association made policy intervention unnecessary. This view changed as it became clear how important ICTs would be to overall regional economic competitiveness, resulting in the sector becoming the target of cluster policy by 1993.

Overall, the cost implications to the regional government have been limited, and this responsiveness makes the policy firmly private sector led and ensures it is inclusive, where it could otherwise be seen as unfairly favouring selected firms. Although not driven by saving money, cluster policy has been relatively inexpensive for the Basque Government. The main cluster-specific expenditure has been co-financing the cluster coordination structures. Supporting the cluster associations costs some 300 million pesetas (€2 million) per year for the 11 clusters now existing. The cost could be considered even lower in that these structures help to make other, previously existing, areas of expenditure more effective, including training and RTD plans. The key aim of the policy is to change mentalities, by altering the way businesses work with each other and the way they view their environment. Structures pursuing this type of goal can be inexpensive to establish and run, especially if their aim is to encourage others into action rather than undertake initiatives themselves.

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