01 vedat kunt day 3_s3_ecc2012

CLUSTER DEVELOPMENT IN TURKEY: INTERNATIONALIZATION, INNOVATION AND

REGIONAL DEVELOPMENT

VEDAT KUNT

VEGO CONSULTING

Vienna, 20th April 2012

European CommissionEnterprise and Industry

Two project cases from the less developed regions of Turkey are examined;

1. Harnessing Sustainable Linkages in the Textile Sector of Turkey- UNIDO (funded by the MDGF)

2. Empowering SMEs for Networking and Inter-Regional Cooperation- Ministry of Economy (funded by the EU)

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1. Harnessing Sustainable Linkages in the Textile Sector of Turkey- UNIDO

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• UNIDO’s unique approach to Cluster Development is followed;

1. Social Capital /Trust Building

2. Establishment of Joint Actions

3. Performing Cluster

4. Poverty Reduction

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“Growth ... is an important means to enlarge human choices but it is not an end in itself. Growth at all costs can result in:

*Jobless growth (that does not expand employment opportunities);

*Ruthless growth (the fruits of growth mostly benefit the rich);

*Rootless growth (stifles cultural diversity and identity);

*Futureless growth (depletes natural resources);

*Voiceless growth (growth without expansion of democracy, empowerment)”

• UNDP – Human Development Report (1999)



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WHO ARE THE POOR???

The poor addressed in a cluster initiative are…

1. Poor cluster entrepreneurs

2. Poor farmers and/or suppliers supplying cluster firms

3. Poor workers in cluster firms and job-seekers

4. Poor consumers of clusters goods/services



Pro-poor economic opportunities:

• For poor entrepreneurs: increased productivity, investments, sales, returns and income from business activities

• For poor suppliers and farmers: increased sales (volume and frequency), better prices, higher returns

• For poor employees and job-seekers: new / more stable employment, higher wages, better working conditions

• For poor consumers: increased affordability of goods/services produced by the cluster, improved quality of the products

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Lessons learned 1

• Finding, training and developing CDAs (Cluster Development Agents/Cluster Managers) is the most important first step.

• Trust building between CDA and the cluster members is critical

• Mobilizing state incentives in the direction is the ultimate support tool to establish joint actions

• Local and national stakeholders’ governance plays a key role for sustainability

• Being a part of an “Environment” which enables innovation is the ultimate target for Companies, Academia and Institutions…

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2. Empowering SMEs for Networking and Inter-Regional Cooperation- Ministry of Economy

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MoE’s SME Development and Networking project

• 5 Pilot cities + 5 Co-op regions in the west + 5 Target international markets

• 5 priority sectors

• 5 Cluster Info Spots established as one stop shops for cluster development


Lessons learned 2

• Value Chain and Supply Chains Analysis play an important role in identifying upgrading opportunities both horizontal and vertical for the companies at implementation level and to mobilize right support mechanisms at policy level.

• Concentrating on leadership and creativity, understanding “project psychology” is critical. Unleashing creativity, developing human resources accordingly, who will ultimately manage the cluster activities will determine success or failure…

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Lessons learned 2

• Not only B2B,C2C, B2C and C2B; but also B2I, C2I, B2A, C2A and vice versa, There is extensive flow of information, knowledge, technology, finance, products, processes between each peer.

• Being a part of an “Environment” which enables innovation is the ultimate target for Companies, Academia and Institutions…

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Thank you very much for your attention…

Vedat Kunt

Partner, VEGO Consulting • UNIDO Consultant for Cluster Development

• Key Expert for SME Development and Networking Project of MoE

[email protected]

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mailto:[email protected]

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01 vedat kunt day 3_s3_ecc2012