Cluster development

From CEOpedia | Management online

Cluster development improve ability to use innovation and organizational capabilities of group of cluster participants. It includes interactive approach and combines the flexibility of small firms, cooperation and common technology development. Improves cooperation of state institutions, research and development organizations, standards bodies, quality control laboratories and universities, and even professional, political and cultural organizations with businesses on local and country level.

Cluster initiative

Cluster initiative is an organizational form that gathers key players of the cluster for its development, including a certain partnership formula, which serves the purpose of agreeing and then implementing activities important for the development of a given cluster of companies and surrounding institutions [1]. Cluster coordinator (or cluster management organisation, cluster organisation) is a legal entity that organises and animates the development of interactions, connections, knowledge flows and cooperation in the cluster, as well as provides specialized services for companies and other entities operating in a given cluster. The coordinator represents the cluster in external relations, takes care of the current administration of the cluster and performs other functions [2]. necessary for its proper functioning. In the initial phases of cooperation development, these functions are often performed not by an institution, but by a specific person defined as a cluster animator. At a later stage at the operational level it is also necessary to talk about the person who is referred to as the coordinator or manager of the cluster [3].

Cluster development phases

Observing the development of cluster initiatives in different parts of the world allowed to distinguish several phases of their life cycle [4].

The first phase (incubation) occurs when several or more than a dozen entities begin to cooperate in a basic industry around which a link is organized cooperation, thus achieving common goals [5].

The development phase is characterized by connecting to the cluster further enterprises, including entities from the so-called related and supporting sectors, encouraged by the successes of companies already operating in the cluster [6].

In the maturity phase the cluster reaches a critical mass of development; a significant number of enterprises are concentrated in it, it has strong external relations, new entities are created in it and existing entities are merged and transformed [7].

In the phase of the decline of the cluster there is a decrease in links between its participants, as well as a decrease in competitiveness, e.g. due to the "ageing" of the industry around which the cluster has been organised. Clusters that are able to adapt to changes in their environment (market, technological changes, etc.) can reverse declining trends by transforming the structures and relationships between their participants and transform into a new growth area [8].

Cluster development programme

Activities specific to the embryonic/living/incubation phase:

  • Creation of environmental conditions necessary for cluster development (lobbying for the cluster, contacts with public authorities).
  • Animation of contacts with research centres in the sector.
  • Creation of own organisational structure and brand image.
  • Preparation of a strategic action plan and cooperation.
  • Selection of leaders who are "locomotives" for cluster development [9].

Activities undertaken in the development phase:

  • Creation of partnership and trust relations among partners.
  • Creation and development of own projects.
  • Shaping a stable basis for financing the development of cluster activity.
  • Implementation of joint market activity (joint procurement, marketing, etc.) [10] .

Characteristics of the cluster in the maturity phase:


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References

Footnotes

  1. I.R. Gordon, P. McCann 2000, p. 10
  2. G. Becattini 2004, pp. 10-11
  3. G. Becattini 2004, pp. 10-11
  4. J. H. Caron., Pouder St R. 2006, pp.141-171
  5. J. H. Caron., Pouder St R. 2006, pp.141-171
  6. J. H. Caron., Pouder St R. 2006, pp.141-171
  7. P. Cooke, R. Huggings 2002, pp. 87-88
  8. P. Cooke, R. Huggings 2002, pp. 87-88
  9. J. H. Caron., Pouder St R. 2006, pp.141-171
  10. G. Becattini 2004, p. 12
  11. E.M. Bergman, E.J. Feser 1999, pp.5-6

Author: Patrycja Barszcz