1. A Synthesis of the Mature Industry Cluster Cases Peter Warrian & Celine Mulhern University of Toronto

2. The ISRN “Mature” Industries  Aerospace  Automotive parts  Mining  Steel

3. Four Points of Analysis: A. Adaptation Pressures B. Knowledge Flows: Formal R&D and Tacit Know-how C. Clusters or innovation systems – or a bit of both? D. Policy Options

4. A. Unbundling the corporation and “externalizing” innovation  New constellations of points along the supply chain: Highly advanced SMEs SMEs as de facto “managers” of the supply chain

5. B. Talent and Skills  Formal R&D - major, industry-wide innovations imported into Canada  Canada’s competitive strength: on- the-ground KNOW-HOW  Common problem: serious shortage of skilled workers

6. C.The Geography of Mature Industries  QUESTION: Clusters? Innovation systems? All of the above?  ANSWER: It depends on the level of knowledge in question  R&D: Global innovation systems  Tacit Know-How: Very significant clustering patterns in Windsor, Golden Horseshoe/GTA, Sudbury, Montreal

7. Lessons for policy makers Summary of Common Challenges Facing “Innovative” Mature Industries  Labour shortages  Sporadic know-how transfers within clusters  The outsourcing of supply chain management by anchor companies

8. Policy Options  Use public education system to improve labour supply:  Greater emphasis on traditional industrial studies in universities, community colleges  Emphasize traditional industrial trades in secondary school career counselling programs

9. Policy Options  Develop networking forums to facilitate smoother and more consistent know- how transfers  Ie. Materials and Manufacturing Ontario, one of four provincial Centres of Excellence.  Ie. McMaster Steel Research Centre – creates collaboration between technical staff and scientists

10. Policy Options  Facilitate opportunities for inter-industry learning  Ie. Expose companies to mature industry success story strategies, such as The Dofasco Way

11. Conclusions  Where there is a will, governments at all levels can make a difference in the adaptation and sustenance of mature industries in the new economy.