2. Creating clusters and centres of excellence Cross cluster for the technical textile sector Mick Parmar, Pera Innovation

3. INNOTEX The Development of a cross cluster best practice platform for entrepreneurial innovation for the technical textile sector Contract No. 022532 Creating Clusters and Centres of Excellence 7 October 2005 European Innovation Workshop 5-7 October 2005

4. Agenda Introduction Status of The Textile Sector Market The Challenge of Globalisation European Textile Clusters & Networks Brief Presentation of INNOTEX Project Project Objectives Activities to be Organised Summary

5. Textile Sector Textiles and clothing are a major sector of European industry. Annual European turnover of 215 billion in 2003 Workforce of around 2.6 million. 25-30% of total industrial employment in some southern and eastern EU Member States The sector accounts for a total of approximately 200,000 companies in the enlarged EU 95 % of which are mainly SMEs. It is a major player in world trade, the first in textile exports and the third in clothing.

6. The Challenge of Globalisation Intensified Competition Due to The Completion of the European Internal Market Internationalisation of Product & Labour Markets

7. Global Textiles Market Segmentation % share, by value, 2004 Datamonitor, 2005 Asia-Pacific worth nearly 60% of Global markets value with sales of $612.4bn in 2004 Global Compound Annual Growth Rate of 4.2% predicted for 2004 – 2009 to a value of $1,268 billion by 2009, with dominance of Asia-Pacific unlikely to be weakened

8. Textile Sector Tough Challenges for the EU Textile Industry 1.3m jobs lost in textiles and clothing industry in Europe from 1990 – 2004 Unsustainable Price Competition Increase of low cost imports from Asia Pacific Massive Differential in Labour Costs Europe no longer able to compete on quality, cost & delivery This is Not Exclusive to The Textile Sector

9. Textiles Jobs Lost in EU-15

10. 200320042005200620072008 Germany30.533.836.737.736.636.7 USA22.122.923.524.224.925.7 Japan20.521.822.122.723.223.7 UK22.122.923.524.224.925.7 Poland3.13.544.24.4 China0.80.911.21.51.7 India0.80.9 11.11.2

11. Three Major Sectors of European Textile by volume of fibre usage

12. European Technology Platform for the Future of Textiles and Clothing

13. Technical Textile Industries Agriculture Automotive Aerospace Building/Construction/Engineering Medical/Hygiene Packaging Protective clothing Sportswear Transport

14. Technical Textile Application In Aerospace Sector

15. Technical Textile Application In Automotive Sector

16. Western Europes Consumption of Technical Textiles Source: Euratex estimate for 2004 based on Eurostat, 2004 and OETH, 2000

17. European Textile Clusters & Networks With the unprecedented competition the 190,000 SMEs in the textile and clothing sector, are increasingly recognising the importance of collaboration and networking in a traditionally secretive industry: Allowing development of efficient supply chains thus improving competitiveness Providing new markets Transfer best practice and improve innovation capacity The broader use of textile materials across an extensive range of end-uses, Providing niche sectors in which they can more easily differentiate their products in terms of quality and charge higher prices

18. European Textile Clusters & Networks The textiles cluster in Leicestershire First sectors that felt the pressures of globalisation more than 20 years ago. Through a challenging 10 year process the cluster realised that they could not compete on quality, cost and delivery The textile cluster thus looked for more innovative ways of becoming more competitive Resulting in more companies moving into the area of "technical textiles" Ranging from specialist heat and chemical resistant materials and products that moved from labour to knowledge intensive manufacturing processes, Enabling the cluster to become more competitive and allow them to compete against the low cost economies.

19. European Textile Clusters & Networks Nordic CoE for Smart Textiles and Wearable Technology (NEST) set up in 2003

20. European Textile Clusters & Networks Leapfrog – aims at measurable efficiency improvements 60% time gain through 3D virtual garment design 80% reduction in machining times for complex garments Reduction of quality faults and errors from 20% to zero WebTEXpert - aims at the development and provision of advanced methods in the field of innovation-management Focuses on new product development to increase the competitiveness of SMEs operating in the textile and clothing industry The participation of Industrial Associations and Groupings (IAGs) is considered to be a central element of the project Results disseminated to SMEs at regional, national and international level.

21. European Textile Clusters & Networks Within FP6 a number of Economic and Technological Intelligence (ETI) projects for SMEs will touch about 30 clusters of SMEs around Europe Fashion Net - aiming at fostering innovation and technology transfer among European SMEs of the fashion system, promoting partnerships and networks Intelligent Textile Environment (ITE) - assists entrepreneurs in their Framework Programme research through events, coaching, benchmarking and case studies Shoes 5000 – aims to involve 5000 footwear SMEs in working towards technological innovation through research participation and dissemination of information

22. INNOTEX Project Brings together a supply chain of 5 complementary EU clusters To form a new Network of Clusters involving several leading European regions Domain of technical textiles. Leading clusters within their own sector Representing different phases in the production process and use of technical textiles Clusters at different phases in the struggle against low- wage competition from Asia Pacific. Estonian polymer-composite cluster will allow transfer knowledge and best practice from the very best clusters in the Western Europe regions to clusters in the new member states.

23. INNOTEX Objectives Develop a best practice platform for innovation & entrepreneurship for the technical textiles sector through transfer between clusters Increase competitiveness through raised innovation capacity and exposure to innovation opportunities requiring cross cluster competency mixes for new markets

24. Strategic Output Development of pan-European and cross sector supply chains Joint projects utilising competency complementarities New innovative strategies and ongoing cooperation

25. Participants UK LSEP(Textile Cluster) LI(Knowledge transfer) Pera(Innovation/SMEs) Denmark Flagskibet.dk(Maritime Cluster) Elvström Sails(End user) UdviklingsCenter Hadersley(Knowledge transfer) Spain Inspiralia(Innovation/SMEs) FITCA(Textiles Sector) FSV(Research) Estonia Enterprise Estonia (Composites Sector) ECTA(Textiles sector)

26. Project Overview Supports pilot action 1.2.3.1 – supporting network activities between existing business clusters that operate in the same or different sectors in Europe….and confirming the need and willingness for establishing at European level co-operation platforms facilitating the exchange of knowledge and best practices between existing clusters in Europe 30 month duration Start date 1 October 2005 8 work packages

27. Structure of Work Programme

28. Work Package 1 – SWOT analysis of the clusters Activities Meet to establish common framework Do SWOT analysis of clusters Benchmark the clusters innovation capacity Deliverables Common framework for the SWOT analysis Report on the SWOT analysis for each of the four clusters Report on the benchmarking exercise

29. Work Package 2 – Exchange of Knowledge & Best Practice between Clusters Activities Identify vehicles for exchange of knowledge Plan timetable & content for vehicles Execute events & document with at least 4 exchange visits to the 4 participating clusters. Deliverables Report on the vehicles chosen for knowledge & best practice transfer between partners Plan for seminars, workshops, exchange visits etc. Report on each seminar, workshop & exchange visit

30. Work Package 3 – Development of Joint Projects & Innovative Strategies Activities Cluster competency analysis Definition of joint projects & identification of funding Form new and larger cross cluster supply chains for the development of high quality concepts for cross cluster collaboration Drafting of joint innovative business strategies for cooperation Deliverables Report on cluster complementarities Report on potential joint project activities Report on potential joint business strategies

31. Work Package 4 – Defining a Best Practice Platform for Entrepreneurial Innovation Activities Define a framework for a best practice platform Define the content Define for the technical textiles industry Deliverables Report on framework for a best practice platform Report on content for a best practice platform Model of the best practice platform

32. Work Package 5 – Preparation of Policy Recommendations & Modification of the Platform Activities Benchmark INNOTEX against other projects Develop general model for platform Develop policy recommendations Deliverables Benchmarking report on the best practice platform A general model for a best practice platform Report specifying policy recommendations

33. Work Package 6 - Dissemination Activities Synergies with other projects, action plan, promotional material Four National Conferences Information seminars at Trade Fairs Synergies with PAXIS projects Final conference Deliverables Action Plan for exploitation of results Dissemination information – events, press releases, brochure etc. Evaluation of results Final conference reports

34. Summary Aims to use high value added products to compete against threat from Asia Pacific Transfer of best practice between complementary clusters in textile related sectors Develop a model transferable to other sectors Development of new networks and pan-European joint projects

35. Textile Innovation Process 1% INSPIRATION 99% Cross-Clustering