Clustering in the Republic Clustering in the Republic

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Clustering in the Republic Clustering in the Republic of Macedoniaof Macedonia

Nikolina Trajanoska, PhDNikolina Trajanoska, PhD

229.119.11--03.12.2010 New Delhi, India03.12.2010 New Delhi, India

Crossroad of the Balkan Crossroad of the Balkan PeninsulaPeninsula

Two PanTwo Pan--European European corridors: 8 and 10corridors: 8 and 10

Total area: Total area: 25.713 sq. km25.713 sq. km

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Population: Population: 2,1 million2,1 million

Capital city:Capital city:SkopjeSkopje

Independence:Independence:8 September, 19918 September, 1991

Parliamentary democracyParliamentary democracy

ECONOMIC PRIORITIESECONOMIC PRIORITIES(Government’s work Program 200(Government’s work Program 20077--20120133))

• Economic growth and development

- increase domestic and foreign direct

investment;

- increase the competitiveness of

Macedonian companies;

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Macedonian companies;

- improve capacity of public

institutions to implement reforms.

• Regional and world integration processes – NATO and EU

candidate

• Maintenance of macroeconomic stability

• Reduction of unemployment

Macroeconomic IndicatorsMacroeconomic Indicators

• GDP: US$ 8.834 bln, per capita 4320 US$

• Real GDP growth: 2% for 2011 3,5%

• Inflation: 3,2%, for 2010 2%

• Industry growth: 7%

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• Industry growth: 7%

• Export growth rate 17,6%

• Import growth rate 16,6%

• Free Trade Agreements: 650 mill Consumers

• Credit Ratings : BB+ (FITCH, STANDARD & POOR,S)

Industrial policyIndustrial policy20092009--20202020

• Proactive industrial policy is sum of horizontal measures for stimulation and support of creation and development of competitive domestic industry based on knowledge, innovations and cooperation among the subjects.

• Development of the policy-active dialogue with the key actors of the industrial development: business leaders, business associations, clusters, Universities, research institutions, banks, unions, employers.

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Industrial policyIndustrial policy20092009--20202020

International Eco-friendly,

INDUSTRIAL POLICY -COMPETITIVENESS ENHANCEMENT

OF MACEDONIAN INDUSTRY

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Clustering&

Networking

Applicable R&D and

innovation

Internationalco-operation

and FDI enhancement

Eco-friendly,sustainable

technologiesproducts &

services

SME developm.&

Entrepreneur-sihp

Specific measuresSpecific measures

• Further development of the consciousness for the advantages of the clustering

• Support for analysis of the clusters and the business relations and development based on concrete action plansrelations and development based on concrete action plans

• Support for the processes of connection through the chain of values

• Nets of centers for research and development and their relation with the industry

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The expected results from the The expected results from the intervention in this area areintervention in this area are::

• Improvement of the understanding of the Macedonian entrepreneurs and Directors for the positive effects of the clustering and connection in business nets

• Increased assistance on the side of the State for initiatives that will come from the very enterprises, and at

• Increased assistance on the side of the State for initiatives that will come from the very enterprises, and at the end

• By 2020 in the Republic of Macedonia to exist at least three internationally recognized, integrated and based on knowledge, industrial clusters.

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New challenges and cluster policy New challenges and cluster policy responses responses

To provide more and better information on what cluster and cluster organisations offer

To develop new cluster support methods and tools, especially for SMEs

To strengthen international cluster cooperation

To develop better cluster policies, e.g. for emerging industries

To strive for cluster excellence at all levels

To promote user-driven innovation through clusters

To address societal challenges through cluster partnerships

To make more efficient use of research and innovation support through clusters and cluster organisations

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Architecture for support of the Architecture for support of the clustersclusters

• АPPRM (ATRI)

• The Fund for development of the human resources

• The National Council for entrepreneurship and competitiveness

• The education institutions and research and development centers

• The centers for support of the entrepreneurship

• The local and regional development centers

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2002 2002 –– MaMappingpping, identification of , identification of potential clusterspotential clusters

• Conclusion from the mapping exersise: culture of cooperation is low, but there are groups with potential for cluster developmentdevelopment

• Stratetegic decesision:”bottom-up approach”, learnong by doing

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Macedonia Competitiveness ActivityMacedonia Competitiveness Activity

• Textile

• IT

• Wine

• Tourism

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• Tourism

• Lamb meat and sheep cheese

• Wood and furniture

• Automotive

• Agro equipment

Purpose of the Evaluation of the Purpose of the Evaluation of the clustersclusters

• Provide relevant information on effectiveness of various approaches implemented by ME

• Use lessons learned to guide the development

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• Use lessons learned to guide the development of the strategy for private sector development and the new competitiveness activity

• Executed in November – December 2009 by a local consulting company

Specific objectives of the Specific objectives of the evaluationevaluation

• Independently identify achieved results and assess the impact on clusters

• Analyze the effectiveness of implemented interventions

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• Evaluate the current state of clusters in terms of functionality, sophistication, sustainability, collaboration

• Identifying key problems and obstacles for Macedonian businesses to become more competitive

Findings on Impact Findings on Impact -- 11

• Greatest success in achieving the “cluster-creation effects” – initiating cooperation and rising partnership

among cluster members and other domestic and international stakeholders.

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and international stakeholders.

• Significant success in – Supporting export growth– Supporting productivity growth– Supporting positive trends in GDP growth

Findings on Impact Findings on Impact -- 22

• Indirect effects have been identified in:– The increase of companies’ domestic market

share

– The revenue growth

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– Improvement of professional and business skills within companies

• Less effective than desired in job creation

Most valuable interventions for Most valuable interventions for ClustersClusters

• Promotion and marketing activities, participation on fairs (operational assistance)

• Expertise in increasing productivity and flexibility– More local experts

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– More local experts

• Improving the value chain: purchasing raw materials, logistics, warehousing, financing

Recommended future initiatives for Recommended future initiatives for the clusters the clusters -- 11

• Transfer knowledge in new production methods– just in time, scheduling, flexible manufacturing

• Continue strengthening the Clusters

• Investigate possibility for intermediary

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• Investigate possibility for intermediary wholesaler

• Continuous education– Technology Transfer Centers

– Linkages with educational and R&D institutions

Recommendations for Building Recommendations for Building Competitiveness Competitiveness –– long termlong term

• Building assets, skills and capabilities that meet the test of the foreign competition

• Continuous investing in ICT (equipment, software and knowledge)• Relying on market research• Implementation of integrated marketing approach• Work on branding

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• Work on branding• Introduction of international quality standards• Improvement of the business culture• To be present at international exhibitions and trade fairs• Permanent education and training• Cooperation with the universities in order to adjust their curricula to

bring competent and skilled staff to the industry

Recommendations for selfRecommendations for self--development development -- 11

• Cooperate with the local government

• Use sector-specific information in developing adequate business strategies (information about technology, R&D, input markets and target markets, etc.)

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markets, etc.)

• Establish code of practice and change managerial approach to act on domestic market as well as on foreign market.

• Use local consultancy services for process and quality management

Recommendations for selfRecommendations for self--development development -- 22

• Participate in the establishment and financing of supporting organizations, such as trade associations, cluster-relevant R&D institutions, training centers etc.

• Strengthen horizontal and/or vertical cooperation by converting informal agreements into formal contractual commitments.

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commitments.

• Foster the cooperation and openness of clusters in order to:– build up a critical mass of information, knowledge, skills and

technology,

– reduce the cost of developing new products and services,

– decrease pressure among local rivalries etc.

Creation of Creation of brbrааndnd

How to create a brand?

• Sufficient capacity

• Stabile quality

• Price

• Direction towards the final consumers

• National agenda for sale

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Thank You for Your AttentionThank You for Your Attention

Contact:

MINISTRY OF ECONOMY

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Tel:++389 2 3093 497, 3093 498;

Fax:++389 2 3093 502

e-mail: nikolina.trajanoska@economy.gov.mk

www.economy.gov.mk