Evaluating the human element in clustersEmily Wise

Parallel 4.1 New Cluster Policies and Cluster Evaluation

12 November 2014

EVALUATING THE HUMAN ELEMENT IN CLUSTERS

EMILY WISE, PHD MADELINE SMITHRESEARCH FELLOW AND CONSULTANT HEAD OF STRATEGY, INSTITUTE OF DESIGN INNOVATION

LUND UNIVERSITY AND IEC GLASGOW SCHOOL OF ART

CLUSTER POLICY ADDRESSES SYSTEM (OR COORDINATION) FAILURES

The stated objective of cluster programmes (examples):

• Denmark: The objectives innovation networks are to strengthen public-private collaboration and knowledge transfer between public universities and private companies on research and innovation, thus promoting knowledge-based growth in business and industry.

• France: The goal of competitiveness clusters is to build on synergies and innovative, collaborative projects in order to give partner firms the chance to become first in their fields, both in France and abroad.

• Germany: The Leading-Edge Cluster competition supports high-performance clusters formed by business and science that enter into strategic partnerships which boost Germany's innovative strengths and economic success.

• Sweden: VINNVÄXT’s mission is to promote sustainable regional growth by developing internationally competitive research and innovation milieus in specific growth fields. Effective regional innovation systems speed up industrial and business renewal towards innovation-led sustainable growth.

Source: Lindqvist, Ketels and Sölvell (2013), The Cluster Initiative Greenbook 2.0

Clusters address seven ”innovation gaps”

A GENERALLY ACCEPTED EFFECT LOGIC FOR CLUSTERS?

Norwegian Innovation Clusters – programme effect logic

TACTICS handbook on impact evaluation of cluster-based policies

Evaluation Framework for US Regional Innovation Clusters

THIS LOGIC HIGHLIGHTS THE ROLE OF COLLABORATION IN DRIVING LONGER-TERM ECONOMIC EFFECTS

...contribute to increased interactive learning and collaborative R&I

projects

...which contributes to increased innovation, international

attractiveness, productivity and growth

Activities to strengthen or upgrade a cluster/ innovation

environment...

Input/Resources Activities Results/Outcomes Effects

3-10 years >10 years

NEED TO EVALUATE IMPACT ON BOTH SYSTEM COORDINATION AND ECONOMIC PERFORMANCE

Data/Indicators:

? Number/type/strength of engagement of actors in cluster initiative

? Number/type/strength of alliances/collaborations among cluster participants

? Number/type/strength of alliances/collaborations with related actors outside the cluster

Methods of data collection/analysis:- Surveys- Interviews- Social network analysis

Data/Indicators:

- Number/quality of publications and patents (and other IP)

- Number of new products/processes/ services- Number of new firms/firm growth- Level of investments attracted (VC, FDI)

- Firm-level revenue/growth; export/growth; employment/growth; and wages/growth

Methods of data collection:- Surveys- Interviews- Business registers/national statistics

Impacts on System Coordination (aka the human element)(engagement, linkages/interaction, collaboration)

Impacts on Economic Performance(intermediate outcomes and productivity)

Note: see Giuliani et al. (2014) for additional elaboration on the ”two-stage” evaluation process

CURRENT ISSUES

• Perspectives on what is included in the human element vary

• Types of data collected and from whom (cluster manager or firms) differ

• Little possibility to benchmark and learn across geographies

THE TASK AFTER BELFAST

• Shared perspective on the key dimensions of “the human element”

• Consensus on what should (and could) be measured

• A systematic and easily-implementable approach to data collection

EVALUATING IMPACT OF THE HUMAN ELEMENT MORE OF A “BLACK BOX”

WHAT IS THE HUMAN ELEMENT?

DIMENSIONS

• Engagement/mobilisation

• Internal collaboration

• External interaction

CHARACTERISTICS (EXAMPLES)

• Key actors are engaged and guide the strategic direction of activities

• A high percentage of cluster stakeholders participate in activities

• There is regular interaction and dynamic collaborative links between actors within the cluster

• There are perceived benefits and commitment to pursuing joint activities (addressing common goals)

• The cluster has a clear value proposition and positions itself in relation to a broader market

• The cluster proactively seeks ways to strengthen its value proposition through external linkages

KEY DIMENSIONS OF THE HUMAN ELEMENT

DIMENSIONS

• Orchestration

• Strategic orientation

CHARACTERISTICS (EXAMPLES)

• Leadership/management is familiar with the various actors in the cluster

• There is a proactive attitude and effective approach to identifying and acting on opportunities

• Leadership/management is knowledgeable of the business area and its market

• Longer-term plans for cluster development are anchored with the local/regional government

ADDITIONAL DIMENSIONS OF THEHUMAN ELEMENT (?)

Core Cluster Firms

HOW TO MEASURE – FIRM LEVEL

• Strength of engagement in cluster initiative• Type of activity (networking, workshop,

project) • Type of engagement (time, financial

investment)

• New cooperative activities with cluster participants• Type of partner (company, university,

research organisation, investor)• Type of activity (networking, workshop,

project)

• New cooperative activities with actors outside of the cluster• Type of partner (company in same or

different sector, university, research organisation, investor)

• Type of activity (networking, workshop, project)

Target Group Data/indicators Method of data collection

• Standard survey questions

• Regular reporting intervals

HOW TO MEASURE – CLUSTER LEVEL

Cluster manager

Description of characteristics at (four) levels of development• Engagement/mobilisation• Internal collaboration• External interaction• Orchestration• Strategic orientation

Target Group Data/indicators Method of data collection

• Self-assessment tool rating perceived level of development in relation to standard descriptions

• Regular reporting intervals

• Evaluation of the human element • Is an integral part of the ”generally accepted” effect logic for cluster policy

• Provides evidence of the impacts we already see (and explain qualitatively)

• Can be used to explain results (or lack of results)

• Can be used to examine the relationship between ”the human element” and economic performance

• The proposal from members of the TCI working group• Establishes an initial set of key dimensions

• Suggests a simple approach for measuring these dimensions at firm and cluster level, which could be easily integrated into (existing) regular assessments

• Sets the stage for international peer learning, benchmarking and more in-depth analysis

WHAT ARE THE STRENGTHS AND BENEFITS OF THIS APPROACH?

• Innovation Norway and VINNOVA will pursue data collection on the human element as part of their existing monitoring/evaluation processes...others interested?

• Discussion of results from these national efforts in forthcoming meeting of TCI evaluation working group

• As a core group develops, could pursue:• Common portals for cluster-level self-assessments

• Approaches for sharing/benchmarking firm-level data

• Further joint development of frameworks – including analysis of relation between human element and economic performance

• International peer learning and benchmarking

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