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TCI News letter January 2003

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TCI newsletter

From:

The Competitiveness Institute <bdoesborg[nospamplease]@competitiveness.org>

=========== The Competitiveness Institute Newsletter ==========
News from the cluster practitioners network Subscribe for free: http://www.competitiveness.org
================================================================

Bonjour!
--------------------------------------------------------------

This first TCI Newsletter of 2003 highlights a few of the many
activities in competitiveness upgrading and cluster development
that are currently underway around the world. I am writing this
note from Paris, where the annual DATAR / OECD conference on
territorial development has just started, with participation from
some 60 countries (see separate report below). The importance of
partnerships has been highlighted by a number of speakers during
the first day. Cohesion, social capital and teamwork have been
identified as keys to the appeal of a territory.This conference
provides a useful opportunity for the TCI members who are in
Paris to meet and share experiences. We will also be getting an
update on the plans for the September conference in Sweden which
will be reported on in the February newsletter.
Go well into 2003,
Ifor Ffowcs-Williams
president@competitiveness.org

Brazil and ABRABI
--------------------------------------------------------------

In Brazil, the ABRABI organization (the Brazilian Biotech Company
Association), have been working to create a biotech cluster
within Minas Gerais that is now one of the ten largest in the
world. ABRABI is a private non-profit organization dedicated to
the advancement of the bio-sciences and to the promotion of
business in Biotechnologies of all types. Currently, Brazil's
natural resources include 22% of the world's plant species and
70% of all known animals. Furthermore, the biotech market is
valued at over 30 billion dollars and valuation of Brazil's
resources range from one to several trillion dollars. This would
have been even larger had a deal between the Brazilian government
and a Swiss pharmaceuticals company not been broken -they had
planned a large investment in a biotechnology cluster in the
Amazon. Because of the rich natural resources that the Amazon
represents, Brazil maintains some large regional advantages for
future investment. What it lacks is a clear business direction
from industry leaders.
For more information please visit:
http://www.abrabi.org.br/ingles/start.html

Calgary Wireless Cluster
--------------------------------------------------------------

Even though the growth of the wireless industry has slowed due to
the economic recession and accounting scandals in the US over the
past few years, Calgary's wireless cluster represents a stable
environment for investment. The cluster developed out of the
enormous Oil and Natural Gas Industry, which is the largest
industry in Alberta and produces 90% of Canada's crude oil and
natural gas. With the need for effective communications across a
vast a diverse landscape, industry leaders worked in conjunction
with Alberta's government and the University of Calgary to
develop wireless technology. This partnership produced NovAtel
and led to the creation of the University of Calgary's
GPS/Geomatics Engineering Department. NovAtel was the first to
market hand held devices and in 1983 constructed the first North
American cellular telephone network.
Today, Calgary continues to maintain a strong infrastructure that
supports the wireless industry. Calgary has a large and educated
employment pool, it is rich with related industries, there is
strong local competition, high standard of living and low taxes
and low cost of doing business. Perhaps the most important
element is that it is an attractive environment for people to
live. The proximity to the mountains, ease of travelling in and
out of the city and clean and efficient urban amenities make it
an attractive location for recruiting skilled employees. All this
has combined to make Calgary's wireless cluster Alberta's third
largest export industry. Furthermore it maintains a growth rate
twice that of Ottawa and Denver (its two major competing
locations) and five times that of the North American average.
The recognizable weakness within Calgary's wireless cluster lies
in Canada's decentralized regulatory framework. Investor's feel
that this framework has been ineffective and that investor
confidence has suffered as a result. Processes are currently
being initiated within the industry and the government has
started taking steps towards encouraging future investment.
http://www.thecis.ca/working%20papers/Origins%and%20Structure.pdf

Cuban Biotechnology Cluster
--------------------------------------------------------------

In June of 2002, the International Biotechnology Convention &
Exhibition was held in Toronto, Canada, and highlighted Life
science biotechnology in Cuba. It provided information on the
West Havana scientific biopole - Cuba's bioregion. This kind of
attention is well warranted, as Fidel Castro has made national
health care his number one priority since coming to power in
1959. Castro's government has pumped an estimated $1 billion into
biotechnology over the last 16 years. During this time Cuban
scientists have developed vaccines for meningitis B and hepatitis
B which are sold abroad and yield as much as $125 million
annually. Although these figures are far from impressive within
the biotech world, the potential for developing this industrial
cluster is there. The future of this may depend upon two key
factors: 1) Castro's dedication to utilizing the country's
research capabilities for more than domestic use; and 2) the
continuation of the U.S. embargo.
References can be viewed at the following:
http://www.globalexchange.org/campaigns/cuba/20020517_38.html
http://www.bio2002.org/sessions/allsessions.asp?tid=5

Food clusters - ideas exchange
--------------------------------------------------------------

A major study under the direction of Playford City Council (South
Australia) is shedding light on the nature, drivers and location
of food clusters.
The study, inter alia, assembles national and international
material and contacts - it will thus be of interest to anyone
involved in food clusters. The establishment of a 'global network
of foodies' is one of the project outcomes.
The material is being incorporated in a report that walks the
reader through the core determinants of a successful food cluster
- investment, infrastructure, exports and marketing, role of
MNES, innovation, social and community issues, delivery
mechanisms. The Action Agendas developed in the study region,
together with national and international initiatives spinning off
from these, are being included in the report. The expected
release date of which is mid 2003.
If you would like to exchange ideas on food clusters please
contact Rodin Genoff - rgenoff@playford.sa.gov.au or Rod Brown
apd@orac.net.au

Korean Government to Map Out Industry Clusters
--------------------------------------------------------------

South Korea is making a concerted government effort to combine
biotech and IT industry clusters. Its hopes are to create special
industrial regions for knowledge-based, high-tech industries and
establish Korea as a world leader in IT. The government plan will
attempt to allow firms to benefit from each other's work and
combine their strengths in a uniform and efficient manner.
Government officials hope to have the plan developed by next
September.

Southern China - Electronic Industrial Cluster
--------------------------------------------------------------

As the world of electronics moves towards advanced IT products,
investment and development of southern China's electronic
industry boomed. This is due to a dedication to developing
industry clusters. Much of this development has been led by
foreign companies - particularly from Taiwan - investing in
China. Many Asian governments are recognizing the significance of
IT clusters and are modelling them after Silicon Valley,
California. The first such organization to use the Silicon Valley
model was the Hsinchu Science-based Industrial Park in Taiwan.
Its success in attracting foreign investors has served as a guide
for future cluster development.
http://www.jri.co.jp/research/pacific/RIM-e/2001/RIMe200101cluste
ring.html

International Conference on Territorial Development
--------------------------------------------------------------

The second International Conference on Territorial Development
will be held at the Cit� des Sciences in Paris, France, from the
21st to the 23rd of January 2003, and will examine the role of
regional governments for the development of territories.
Jean Pierre Raffarin, the Prime Minister of France, and Jean Paul
Delevoye, Minister for Civil Service, State Reform and Spatial
Planning are among the Conference speakers.
This Conference on Territorial Development takes place while
France is undergoing a profound institutional evolution. In
particular, the movement towards increased decentralisation is
reinforcing the role of the region. Placed at an intermediate
level between the State and local entities, a region can play a
key-role in supporting local economic development and to
establish partnerships between different levels of government and
different stakeholders.
How can a region achieve this objective? With which tools? These
questions are going to be examined along three principal thematic
approaches:
Supporting economic development through the attractiveness of
territories and the territorial anchoring of enterprises;
Reinforcing economic and social cohesion of territories;
Enhancing the role and participation of civil society,
particularly for environmental management purposes and to boost
local democracy.

Over 80 high-level decision-makers - from all over the world,
representing central governments, research institutions,
businesses, and local governments - will contribute to
round-tables and forums. A series of workshops will examine a
number of technical issues. In parallel to these events, an
exchange fair will enable project-managers to share their
experiences and to diffuse "best practices".
Organised by the French Agency for Territorial Development
(DATAR), the Caisse des d�p�ts et consignations, and the
Organisation for Economic Development and Co-operation (OECD),
the conference stands as the major platform enabling
stakeholders, including local elected officials, major
socio-economic decision makers and local development project
managers, to meet and discuss territorial development.
Conference website : http://www.eiadt.com

TCI Dinner in Paris
--------------------------------------------------------------

Once again the EMEA group (TCI members of Europe / Middle East /
Africa) will be organizing the TCI dinner during the OECD- DATAR
Conference in Paris. The dinner will take place on the evening of
January the 23rd. Those who are interested in attending should
contact Elisabeth Rocha (competitiveness@competitiveness.org)
TCI Annual Conference Update
Last month TCI started a new project in preparation for the
Annual Conference in September in Gothenburg (see
http://www.competitiveness.org/gothenburg/ ). Each month a
different group of the EMEA-Team will be contacted in order to
discuss potential clusters. These contributions will be entered
into a book that will be written by Prof. �rjan S�lvell prior to
the conference. The purpose of the book is to gather best
practices / policies of clusters in the EMEA region, which will
then be discussed in workgroups during the first two days of the
conference. During the first conference call members from
Austria, Germany and Switzerland participated and some
interesting ideas have already been gathered. For more
information please contact Franziska Blunck:
fblunck@competitiveness.org.

Serbian development plan
--------------------------------------------------------------

The Serbian government is in the process of adopting a
development plan for 2010. Early indications are that it will
attempt to uphold international environmental standards. This is
due to the nature of the EU and other global organizations that
still impose trade penalties on countries that do not meet
environmental and other industrial regulations. Serbia's Minister
of Science, Technology and Development believes that the
privatization of Serbian industries, cooperation within the
Balkan states, government aid for struggling large companies and
innovative new ideas to be developed within the private sector
are the keys to their development plan and the future success of
Serbia's economy.
http://www.serbia.sr.gov.yu/news/2002-12/24/327236.html

New Members
--------------------------------------------------------------

TCI would like to introduce the following new members.
Individual Members
From Switzerland: Regula Bieri is a student of economics at the
University of Bern.
From the UK: Lorna Everall is an MBA student at the University of
Aston in Birmingham and is searching for information on the
"formalization" of the clustering process, focusing on photonics.
Supporting Members
From Austria: Gerd Holzschlag of the Styrian Economic Fostering
Society. SFG is the development Agency for the Austrian province
of Styria, and they handle a wide range of business fields such
as cluster development, technology centres, science parks, and
centres of competence. They have also been developing a
measuring-monitoring system for the "aging" of clusters.

Welcome to everyone!

Request
--------------------------------------------------------------

Industry and Knowledge Clusters: Principles Practices and Policy
Many of you have requested purchasing information about the book
"Industry and Knowledge Clusters: Principles Practices and
Policy" by TCI member Piero Formica. The publishers are
University of Tartu Press. As an update Mr Formica has sent
notice that the book will be slightly delayed in print and will
now be available at the end of February / beginning of March. The
next edition of the newsletter will contain information on prices
and how to obtain copies of the book.

Game On Scotland!
--------------------------------------------------------------

A fascinating article giving lessons in game theory from a new
Scottish cluster appeared in The Economist recently. It reported
the success of a young entrepreneurial computer programming
student, David Jones, from the University of Abertay in Dundee.
Jones started his own company designing computer games and
consequently hit the jackpot with the game Lemmings in 1991.
Since then he has employed many of his fellow students and
substantially increased the size of his company. This success has
significantly changed the areas computing dynamics. A university
professor even arrived at the idea of tailoring a special course
that offers a degree in computer games, the first of its kind in
Britain. Needless to say the course has proved extremely popular,
so much that applicants outnumber places in the course ten to
one. This creative approach to education has strengthened the
area and made it more attractive for investment. Scotland now has
13 computer games development companies and the cluster is
attracting outside attention. In 2002 a Canadian company invested
7million pounds on an innovation centre in the area. Furthermore,
as the price of developing games continues to rise, the companies
have also managed to get investment from fund raisers in the
country's capital. Edinburgh's Noble Fund Managers will raise 25
million to finance future projects. We will keep you updated on
any new levels reached by the cluster.
'CENTIVE' share Research, Projects and Publications
In July 2002, The Sir John Cass Business School, City of London
established a research centre - The Centre for New Technologies,
Innovation and Entrepreneurship (CENTIVE). This brings together
research which they have been conducting over the past decade,
and combines them with current projects involving new technology
clusters and related themes. Interested parties should visit:
http://www.business.city.ac.uk/facman/centres/centive

Canada Innovates for the Future
--------------------------------------------------------------

The Canadian government is placing considerable weight on an
innovation strategy for the country as a means of enhancing
Canada?s international positioning and improving the Canadian
standard of living. Businesses seeking growth in sales and
profits turn to innovation as an entry point for enhanced
competitive standing. Governments improve efficiency,
effectiveness and program development by being innovative.
The Innovation Series 2002/03 is four conferences under one
banner, covering key aspects of innovation in the country and in
individual organizations. Each of these events is clearly
developed at the intersection of economic reality and sound
business practice with innovation as their principal subject.
Knowledge Management:
Advancing Knowledge Management for Competitive Advantage
December 11 and 12, 2002 in Toronto
Incubation and New Ventures:
Commitment to Entrepreneurship
January 22 and 23, 2003 in Montreal
Focusing on Innovation:
Creativity and Capacity Building and a National Innovation Update
April 7 and 8, 2003 in Toronto
2003 Strategic Alliances Conference:
Growing in Real Time Through Strategic Alliances
May 27 and 28, 2003 in Ottawa

For more information visit: http://www.conferenceboard.ca/

The Knowledge Economy
--------------------------------------------------------------

Readers may be interested in visiting the following online
community: http://www.developmentgateway.org/knowledge. The
knowledge economy community on the Development Gateway is a
platform for sharing knowledge on how developing countries can
better leverage knowledge to enhance their economic
competitiveness and achieve development goals. It is also an
effective tool for any cluster practitioner who wishes to learn
how to best utilise resources and capabilities.
Examining the 'Euro-Cluster'
A new book entitled 'Cluster Development and Policy' is
available. It is part of a volume of books examining industrial
cluster development in theory and practice and is produced by the
European Policies Research Centre (EPRC). The book evaluates
cluster development policy in Europe through a series of case
study chapters mainly written by EPRC researchers. The book
provides a clear overview of cluster theory and its varying
relationship with policy practice. Philip Raines who edited the
book remarked: "...few books have been published on cluster
policy, and it is hoped that by filling this gap, the book will
be of interest to the policy making as much as the academic
community". For further information or to obtain copies of the
book contact Ashgate Publishing: http://www.ashgate.com�
================================================================
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