M.Goetz, Warsaw School of Economics Knowledge environment in clusters as a factor attracting FDIs: Implications for innovation policy in Poland Clusters

M.Goetz, Warsaw School of EconM.Goetz, Warsaw School of Economicsomics

Knowledge environment in clusters as Knowledge environment in clusters as a factor attracting FDIsa factor attracting FDIs: : Implications Implications

for innovation policy in Polandfor innovation policy in Poland Clusters - introductory remarksClusters - introductory remarks Knowledge – FDIs’ and Clusters’ Knowledge – FDIs’ and Clusters’

perspectiveperspective NorCOMNorCOM Science-Business co-operation – NorCOM Science-Business co-operation – NorCOM

casecase Conclusions - Guidelines for PolandConclusions - Guidelines for Poland


CClusters lusters - - geographic concentrations of geographic concentrations of

interconnected companies, specialized interconnected companies, specialized

suppliers, service providers, and suppliers, service providers, and associated associated

institutions in a particular field that are institutions in a particular field that are

present in a nation or region. present in a nation or region.

M., Porter, „M., Porter, „Location, competition, and Location, competition, and economic development: local clusters economic development: local clusters in global economyin global economy””


Clusters & Knowledge – Clusters & Knowledge – dimensions:dimensions:

• Feature - cluster possessing Feature - cluster possessing knowledge base (universities, etc)knowledge base (universities, etc)

• Mechanism – cluster facilitating Mechanism – cluster facilitating knowledgeknowledge processes processes ((spilloversspillovers, , creationcreation,, diffusion, accumulation) diffusion, accumulation)

Knowledge environment = Knowledge environment =

knowledge base + knowledge knowledge base + knowledge processesprocesses


Knowledge – FDIs’ and Knowledge – FDIs’ and Clusters’ perspectiveClusters’ perspective

FDIs:FDIs:• KnowledgeKnowledge--driven FDI (Chung, Acacer) / driven FDI (Chung, Acacer) /

KnowledgeKnowledge--seeking (Dunning, Cantwell) seeking (Dunning, Cantwell) • WIR 2005 UNCTAD Internationalization of R&DWIR 2005 UNCTAD Internationalization of R&D• Pharmaceuticals / leading vs. laggard / Pharmaceuticals / leading vs. laggard /

technology capabilities vs. spilloverstechnology capabilities vs. spilloversClusters:Clusters:• Nordic SchoolNordic School• Innovative milieuInnovative milieu, , learning region – GREMI, learning region – GREMI,

Keeble & Wilkinson, Keeble & Wilkinson, • Localised learning – Localised learning – Maskell, Malmberg, Maskell, Malmberg,

LundvallLundvall


Knowledge Knowledge role for FDIsrole for FDIs

Knowledge Knowledge features features

Clusters’ Clusters’

attractiveness attractiveness for for

FDIsFDIs


NorCOMNorCOM – – Wireless Wireless (Mobile) (Mobile) Communications andCommunications and MaritimeMaritime Communications and Navigation ClusterCommunications and Navigation Clusteraround Aalborg, Northern Jutland, around Aalborg, Northern Jutland,

DenmarkDenmark

„„JJoint oint knowledge baseknowledge base which includes which includes electronic signals transmitted in the air electronic signals transmitted in the air

by by radio waves” (Dahl radio waves” (Dahl et alet al. 2002). . 2002).


Science-Business co-operation – Science-Business co-operation – NorCOMNorCOM

Texas Instruments (TI), Radio Frequency Micro Texas Instruments (TI), Radio Frequency Micro Devices (RFMD), Analog Devices (AD), End2End Devices (RFMD), Analog Devices (AD), End2End and Siemens-BenQand Siemens-BenQ - - different forms ofdifferent forms of cooperation with the University. cooperation with the University.

HHiriringing graduates graduates GGrantrantinging scholarships for students scholarships for students SSponsorponsoringing PhD students PhD students SStudents as a test group for new tudents as a test group for new

technological solutionstechnological solutions


Science-Business co-operation Science-Business co-operation – NorCOM– NorCOM

OOrderrderinging at the University expertise at the University expertise and and consultconsultinging researchers researchers

AAssistssistinging University in the daily operation University in the daily operation (e.g. (e.g. providprovidinging equipment for University classrooms – PC equipment for University classrooms – PC roomsrooms))

OOrganizrganizinging and participat and participatinging in seminars, scientific in seminars, scientific conferences and workshops.conferences and workshops.

SScientific staff cientific staff ((professors as well as other lecturers professors as well as other lecturers and teaching assistantsand teaching assistants)) work workinging on a part-time basis on a part-time basis in R&D units of private companiesin R&D units of private companies

SimultaneouslySimultaneously,, employees with private companies employees with private companies as as part-time censors and supervisors at the Universitypart-time censors and supervisors at the University


Some concluding remarks - Some concluding remarks - GGuidelines for Polanduidelines for Poland’s ’s

innovation policy?innovation policy?„„Future Future changechangess of FDI inflow to Poland of FDI inflow to Poland”:”: First –First – increasing part of FDI will be increasing part of FDI will be

knowledge-drivenknowledge-driven, , Poland’s new competitive Poland’s new competitive advantage has to rest on knowledge. advantage has to rest on knowledge.

Second - new waves of FDIs coming to Poland Second - new waves of FDIs coming to Poland may be done by SMEsmay be done by SMEs,, these firms don’t these firms don’t posses well equipped B&R laboratories and posses well equipped B&R laboratories and premises on their own, they have to rely on premises on their own, they have to rely on synergy effects and cooperation with external synergy effects and cooperation with external entitiesentities..



innovation policy?innovation policy?„„TTwo-way spilloverswo-way spillovers””

EEffects stemming from cluster are ffects stemming from cluster are beneficial for foreign investors beneficial for foreign investors operating there as well as for local operating there as well as for local economy. It may happen thanks to economy. It may happen thanks to the knowledge spillovers, flowing not the knowledge spillovers, flowing not only from foreign investors to only from foreign investors to indigenous firms but also indigenous firms but also inversely. inversely.



innovation policy?innovation policy?„„TTechnology-leading echnology-leading versus versus technology-laggardtechnology-laggard””

DDual character of knowledge-ual character of knowledge-spillovers. Their perception by spillovers. Their perception by foreign investors depends on foreign investors depends on technological development leveltechnological development level..



innovation policy?innovation policy?„„From localized to corporate From localized to corporate excellence”excellence” KKnowledge may be beyond the reach nowledge may be beyond the reach of FDI, if appropriate mechanisms of FDI, if appropriate mechanisms are not in placeare not in placedifferent forms of cooperation and different forms of cooperation and exchanges, both formal and informal exchanges, both formal and informal no (or low) social barriersno (or low) social barriers



innovation policy?innovation policy?““CCafeteria effects”afeteria effects”

WWhile facilitating knowledge hile facilitating knowledge processes within clusters one has to processes within clusters one has to be aware of the role played by be aware of the role played by informal contacts. Besides official informal contacts. Besides official projects, programs and other projects, programs and other initiatives of high importance are initiatives of high importance are informal contacts, social events,informal contacts, social events, etc. etc.



innovation policy?innovation policy?

„„Traditional clusters” Traditional clusters”

IInnovation is not the term reserved nnovation is not the term reserved for high-tech industries or for high-tech industries or knowledge-intensive services. knowledge-intensive services. Innovations take place in traditional Innovations take place in traditional industries as well. industries as well.



innovation policy?innovation policy?„„However…”However…”

OOne has to be aware of main advantage ne has to be aware of main advantage of knowledge-intensive clusters over of knowledge-intensive clusters over traditional onestraditional ones - - possibility for possibility for politicians and decision makers to be politicians and decision makers to be more active in creating such clusters more active in creating such clusters and to influence more profoundly those and to influence more profoundly those clusters’ existenceclusters’ existence - - NorCOM successNorCOM success



innovation policy?innovation policy?„„Knowledge base & Knowledge Knowledge base & Knowledge mechanisms”mechanisms” It It seems that Polish cities and regions seems that Polish cities and regions possess knowledge potential; i.e. they are possess knowledge potential; i.e. they are equipped with knowledge-base (universities, equipped with knowledge-base (universities, scientific institutes, high schools, pools of scientific institutes, high schools, pools of well educated work force). well educated work force). Nevertheless, Nevertheless, they often lack knowledge mechanism (all they often lack knowledge mechanism (all framework and processes, which facilitate framework and processes, which facilitate knowledge circulation). knowledge circulation).



innovation policy?innovation policy?„„CCulture of knowledge sharing”ulture of knowledge sharing” CCompanies operating in NorCOM are fully ompanies operating in NorCOM are fully aware that innovativeness requireaware that innovativeness requiress interactive learning. In Poland, however, interactive learning. In Poland, however, many firms seem to regard knowledge many firms seem to regard knowledge sharing as detrimental to their sharing as detrimental to their innovativeness (at least as judged by their innovativeness (at least as judged by their behavior). behavior). Warsaw Scientific Consortium Warsaw Scientific Consortium - - breakthrough developmentbreakthrough development ? ? ““culture of knowledge sharing”culture of knowledge sharing”



innovation policy?innovation policy?„„To maintain…”To maintain…”

Inward Investment Agencies (IIA) in Inward Investment Agencies (IIA) in some western countries envisage the some western countries envisage the role of clusters not only in attracting role of clusters not only in attracting FDI but rather retaining these FDI but rather retaining these already present and improving their already present and improving their relations with local entitiesrelations with local entities..


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M.Goetz, Warsaw School of Economics Knowledge environment in clusters as a factor attracting FDIs: Implications for innovation policy in Poland Clusters