Smart Guide to Cluster policy – Lessons for the adaptation of the EU automotive industry value chain Carsten Schierenbeck GROW.F2 – Clusters, Social Economy and Entrepreneurship Committee of the Regions Automotive Intergroup Brussels, 08.02.2017

Smart Guide to Cluster Policy A couple of concepts, Eight Do’s and Don’ts, and Plenty good practice examples … of how to make better use of clusters for promoting regional industrial modernisation, supporting the growth of SMEs and encouraging smart specialisation. Available at http://ec.europa.eu/growth/smes/business-friendly-environment/regional-policies/

Clusters are… …group of firms, related economic actors, and institutions that are located near each other and heave reached a sufficient scale to develop specialised expertise, services, resources, suppliers and skills. …an economic phenomenon to be distinguished from cluster organisations, cluster policies and cluster initaitives (organised efforts) . Staff Working Document (2008) 2637

Why do clusters matter?

SMEs are more innovative! Cluster firms… - are more innovative than non-cluster firms - register more trademarks and apply for more patents - cooperate more Source: European Commission 2006 Innobarometer on clusters‘ role in facilitating innovation in Europe and 2008 Staff Working Document on the concept of clusters and cluster policies and their role for competitiveness and innovation: Main statistical results and lessons learned. See http://ec.europa.eu/enterprise/policies/innovation/policy/clusters 5

European Cluster Panorama 2016 - 3043 strong clusters account for more than 54 million jobs - Gazelles in strong clusters employ 35 staff compared to 24 elsewhere - Wages in strong clusters are 3% higher than elsewhere - 40% of activity in emerging industries concentrated in 20% of regions http://ec.europa.eu/DocsRoom/documents/20381

Modern cluster policy means what?

Ingredients - 2 eggs - 200 grams of flour - 2 glasses of milk…

Entrepreneurial eco-systems +10 -10 Start-up and Scale-up initiative: http://europa.eu/rapid/press-release_IP-16-3882_en.htm

Do's and Don'ts of Modern Cluster Policy Support individual specialised firms Support new activities, in particular those being undertaken by groups or networks of related industries Create clusters from scratch Facilitate the growth of clusters by building upon existing strengths Fund large numbers of widely varied clusters Fund strategic cluster initiatives that focus on promoting the strengths, linkages and emerging competences and which are in line with the aims of national/regional smart specialisation strategies Follow growth trends without reflection Capitalise upon regional competences to diversify into new activity areas and to develop emerging industries Follow a narrow sectoral cluster approach Follow a systemic cluster approach focusing on related industries by capturing cross-sectoral linkages Develop and implement cluster policy in isolation from other policy areas Adopt an inclusive and participatory cluster approach Support cluster initiatives that are only inward looking Support cluster initiatives that have an international perspective on the positioning of the cluster in international value chains Focus exclusively on strengthening regional partnerships Build regional partnerships as a basis for joining European Strategic Cluster Partnerships

Clusters, smart specialisation & emerging industries Emerging industries are… the establishment of an entirely new industrial value chain, or the radical reconfiguration of an existing one, driven by a disruptive idea (or convergence of ideas), leading to turning these ideas/opportunities into new products/services with higher added value . European Forum for Clusters in Emerging Industries (2013) based on Heffernan & Phaal (2009)

Translating strategy into action 1. Mix of cross-cutting and cluster-specific measures 2. Organising policies around clusters with differentiated support depending on development level (immature, mature or in transition) 3. Mobilising cluster initiatives for designing and implementing smart specialisation strategies 4. Providing better SME support through cluster organisations and services 5. Promoting excellent cluster managment through benchmarking & training (Cluster Excellence initiative) 6. Promoting collaboration across regions (Interreg / CLUSTRAT, Vanguard Initiative, peer reviews, Thematic Smart Specialisation Platform) 7. Supporting internationalisationa of clusters and value chain linkages (Eur. Cluster Collaboration Platform & Eur.Strategic Cluster Partnerships) 8. Using data and knowledge platforms 9. Put in place continous monitoring and evaluation of cluster development (France, Wallonia, Denmark) and use for entrepreneurial discovery process

Boosting interregional value chain collaboration and investments through clusters

Eye@RIS tool, http://s3platform.jrc.ec.europa.eu/ Regional strength (sectoral and cross- sectoral cluster mapping) European Cluster Observatory Regional priorities (research and innovation policy priorities) Smart Specialisation Platform Regional partners (cluster organisations, European Partnerships) European Cluster Collaboration Platform Cluster Mapping tool http://ec.europa.eu/growth/smes/cluster/observatory/ Eye@RIS tool, http://s3platform.jrc.ec.europa.eu/ http://www.clustercollaboration.eu

Using clusters to facilitate value chain innovation and industrial transformation Customised SME support 18.5 mio € (04.04.17) Value Chain Innovation 2-stage procedure Regional and International Strategy 75% to support innovation in SMEs Cross-sectoral Collaboration Cluster facilitated projects for new industrial value chains (INNOSUP-1) https://ec.europa.eu/research/participants/portal/desktop/en/opportunities/h2020/topics/6084-innosup-01-2016-2017.html

INNOSUP-1-2015 Cluster facilitated projects for new industrial value chains – thematic focus

Strategic interregional collaboration http://s3platform.jrc.ec.europa.eu/industrial-modernisation www.clustercollaboration.eu/news/call-expression-interest-towards-european-strategic-cluster-partnerships

For more see http://ec. europa For more see http://ec.europa.eu/growth/smes/cluster/ http://clustercollaboration.eu Smart Guide to Cluster Policy http://ec.europa.eu/growth/tools-databases/newsroom/cf/itemdetail.cfm?item_id=8838 Clusters, Social Economy and Entrepreneurship unit (GROW.F2) Innovation and Advanced Manufacturing Directorate European Commission's Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs GROW-F2@ec.europa.eu