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Print FriendlyGetting off the sheep's back a Kiwi perspective
Australian Project Developments Pty Ltd specialises in industry/regional development and government liaison.
Phone/fax 02 - 62317261, Email apd@orac.net.au
E4 can be contacted on E4@clusternavigators.com
"Efforts to build clusters and networks should be viewed as part of a spectrum of tools to enhance SME competitiveness" said Mr. Ifor Ffowcs Williams in his address to the 'OECD Ministerial Conference in Bologna Italy in June 2000 (see www.clusternavigators.com)
Known to his colleagues as E4, he is based in Wellington NZ. He does however carry a Welsh passport and accent. I first met him at an OECD conference in Paris in 1995. It was, I guess, just after NZ had lifted the Americas Cup, and their rugby stocks were high - because he used these examples to stress the competitive advantages built by 3 million people in the middle of the Pacific. He told a couple of anti-Aussie sheep jokes, and then virtually challenged the government officials and academics to put down their newspapers and listen. A memorable day in the annals of international diplomacy!
E4 continues to be active all over the world - he was also a keynote speaker at the 'Future of Country Towns' conference at Bendigo (28-30 June). His mission is to raise awareness of the role that clusters can apply in economic and community development - the kiwis are 2-3 years ahead of us, mainly because economic rationalism hit their shores a little earlier. His views provide a refreshing contrast to the 'analysis by paralysis' mentality characterising much of the work in this area. He argues that there are five key issues.
Changing Behaviour
All of our communities have examples of passive clusters - they are not hard to identify. But unlocking the status quo to move to proactive clustering requires a behavioural change across all participants. Webs of informal as well as formal linkages are required, with collaboration at multiple levels. Building the trust to enable strategic discussions across the cluster requires time and commitment.
For firms, this change implies the acceptance of porous boundaries across companies and regions, as a means of addressing the isolation problem and pursuing specialisation.
For local bodies (in Australia - local government, regional development bodies, ACCs etc.), this means moving clusters to the front seat on the economic development agenda, accepting a subtle but critical role as a catalyst, and understanding that cluster boundaries can overarch political boundaries.
For universities and government agencies, proactive clustering implies building closer alignment with the private sector, actually sharing some agendas with others (instead of just talking about it), and cutting through red tape to cut down the time lag. (This would ring some bells?)
For all participants, active clustering implies that short-term steps are identified that address long-term issues, and a culture of teamwork is established to upgrade the cluster.
2. Balancing Analysis & Action
The balance between analysis and action varies with each cluster initiative, but should lean towards 'early action - early benefits'. The depth of analysis required as a precursor to action depends in part on the cluster’s culture and size. For many clusters, even where there is little social capital, agreement can be quickly reached on the early development agenda and initiatives started.
The confidence gained from small benefits enables more substantial and strategic initiatives to be undertaken. Formal benchmarking and analysis can come later.
3. Providing a Neutral Corner
The availability of an independent catalyst is important - to build the necessary web of connections and stretch peoples' thinking. A proactive government agency, usually at a local level, can be the initial catalyst.
4. Establishing a Cluster Leadership Team
A leadership team drawing together the stakeholders is an essential ingredient in a proactive clustering process. There is a key role for a facilitator to form this team, empower the participants, and ensure that the strategic agenda continues to be upgraded.
Over time, the cluster organisation needs to be formalised. Ifor believes that industry associations can be too broad geographically and too narrow in scope and capability to provide the vehicle.
5. Building a Cluster Portfolio
The economic development focus of a community should be on collaborative engagement across clusters. Many local governments have yet to move beyond support for their tourism cluster. The simultaneous development of a number of clusters within a locality can generate healthy competitive pressures between teams, and an ability to identify cross cluster issues. Weak initiatives within a cluster should be discretely sidelined.
Conclusion
E4 and I argue that a cluster agenda is a low-cost, high impact route to building local strength with a global reach. It is, above all, a powerful means of engaging and sustaining a development agenda. I call it a process of 'connecting the dots' - we also help to firstly identify the dots and run some reality checks at the outset.
The Australia - NZ Alliance on Clustering - comprising twenty organisations - is committed to introducing best practice clustering concepts. Would you like to join us? We are arranging a series of workshops involving E4 later in the year.