Cluster-based Development in China

Implications for Egypt

Xiaobo Zhang

IFPRI and Peking University

Workshop on Cluster-based development in Egypt

December 20 2017

1

Chinarsquos Industrialization

bull China has become rapidly industrialized in just four

decades which took many European countries two

centuries

bull One key feature of Chinarsquos industrialization industrial

development is largely cluster based

bull There are thousands of clusters all over China

2

Major Industrial Clusters in China

Huzhou just down the road from Zhili is noted for its bamboo products The city of Wenzhou is famous for manufacturing a large share of the worlds supply of cigarette lighters What they all have in common is a reliance on the low

The cluster-based model is labor-intensive The real question is whether it can survive in the new environment of

Huzhou just down the road from Zhili is noted for its bamboo products The city of Wenzhou is famous for manufacturing a large share of the worlds supply of cigarette lighters What they all have in common is a reliance on the low

The cluster-based model is labor-intensive The real question is whether it can survive in the new environment of

Advantages of clusters

bull Use the existing strengths (social trust embedded in

community and abundant labor) to overcome limiting

factors such as credit constraints and lack of formal

institutions

ndash A production process is divided into many incremental steps

lowering the capital entry barriers

ndash Merchants often put-out the production to different family

workshops Producers are paid based on piece rate and donrsquot

need much working capital

4

Advantages of clusters

bull Easy for each other to learn technologies

bull Better access to markets (both final goods and input

supply) Save the sales and purchasing costs

5

6

Outdoor furniture industry in Pingyu county Henan Set up by a return migrant from the coastal area

Mainly for export Main parts are manufactured in a factory in county seat

Assembled in 53 villages with kindergarten nearbyEmployed 2200 workers (1900 women)

7

Garment Cut the clothes in a factory in countryseat

Put out the production in village workshops

Factory owners have market orders

Major Experience

bull Having a market order is essential for the survival of the

above two rural clusters

bull The clusters take advantage of the abundant female

labor in villages

bull Rather good rural roads

bull Countyrsquos support for setting up factories in industry park

in the county seat where the centralized production

stages are located

8

Specialization

Anding Potato Cluster bull Anding of Gansu Province used to be one of the

poorest places in China (poverty rate 78 in 1980) and didnrsquot produce potato until 1960s

bull Now it has become one of the three largest potato production centers in China

bull Potato accounts for two-thirds of the cropping area Anding provides every Chinese with one kg potato per year Farmers generate about 60 of their income from potatoes

9

Major Potato Production Centers in China

Anding potato cluster

Zhang and Hu 2015 World Development 10

Expand the Market

bull Establish trader and producer associations

bull Update market information systems

bull Set up a new system of local wholesale markets

bull Apply for more freight car quotas

bull Subsidize farmers to build storages

11

Acquire and Spread Market Information

bull The potato association sends informants to live in major wholesale markets nationwide to collect market information

bull The county broadcasts the information in local media (radio TV and newspapers) and on large monitors in major gathering places (central squares railway and bus stations)

bull Greater market transparency makes it harder for traders to cheat farmers

12

The Spatial Distribution of Markets Over Time

Wholesale market

Village collection point

Blue Built 1996-2000

Red Built 2001-2005

Yellow Built 2006-2010

13

Overcome Transportation Bottleneck

bull Lobby for more freight car quotas (up from 1507

in 2003 to 3605 in 2004 and 6145 in 2009)

Transportation cost to Shanghai

By car 450 yuanton

By train 225 yuanton

Anding to Guangzhou

Anding China potato train

14

Chinarsquos Industrialization

bull China has become rapidly industrialized in just four

decades which took many European countries two

centuries

bull One key feature of Chinarsquos industrialization industrial

development is largely cluster based

bull There are thousands of clusters all over China

2

Major Industrial Clusters in China

Huzhou just down the road from Zhili is noted for its bamboo products The city of Wenzhou is famous for manufacturing a large share of the worlds supply of cigarette lighters What they all have in common is a reliance on the low

The cluster-based model is labor-intensive The real question is whether it can survive in the new environment of

Huzhou just down the road from Zhili is noted for its bamboo products The city of Wenzhou is famous for manufacturing a large share of the worlds supply of cigarette lighters What they all have in common is a reliance on the low

The cluster-based model is labor-intensive The real question is whether it can survive in the new environment of

Advantages of clusters

bull Use the existing strengths (social trust embedded in

community and abundant labor) to overcome limiting

factors such as credit constraints and lack of formal

institutions

ndash A production process is divided into many incremental steps

lowering the capital entry barriers

ndash Merchants often put-out the production to different family

workshops Producers are paid based on piece rate and donrsquot

need much working capital

4

Advantages of clusters

bull Easy for each other to learn technologies

bull Better access to markets (both final goods and input

supply) Save the sales and purchasing costs

5

6

Outdoor furniture industry in Pingyu county Henan Set up by a return migrant from the coastal area

Mainly for export Main parts are manufactured in a factory in county seat

Assembled in 53 villages with kindergarten nearbyEmployed 2200 workers (1900 women)

7

Garment Cut the clothes in a factory in countryseat

Put out the production in village workshops

Factory owners have market orders

Major Experience

bull Having a market order is essential for the survival of the

above two rural clusters

bull The clusters take advantage of the abundant female

labor in villages

bull Rather good rural roads

bull Countyrsquos support for setting up factories in industry park

in the county seat where the centralized production

stages are located

8

Specialization

Anding Potato Cluster bull Anding of Gansu Province used to be one of the

poorest places in China (poverty rate 78 in 1980) and didnrsquot produce potato until 1960s

bull Now it has become one of the three largest potato production centers in China

bull Potato accounts for two-thirds of the cropping area Anding provides every Chinese with one kg potato per year Farmers generate about 60 of their income from potatoes

9

Major Potato Production Centers in China

Anding potato cluster

Zhang and Hu 2015 World Development 10

Expand the Market

bull Establish trader and producer associations

bull Update market information systems

bull Set up a new system of local wholesale markets

bull Apply for more freight car quotas

bull Subsidize farmers to build storages

11

Acquire and Spread Market Information

bull The potato association sends informants to live in major wholesale markets nationwide to collect market information

bull The county broadcasts the information in local media (radio TV and newspapers) and on large monitors in major gathering places (central squares railway and bus stations)

bull Greater market transparency makes it harder for traders to cheat farmers

12

The Spatial Distribution of Markets Over Time

Wholesale market

Village collection point

Blue Built 1996-2000

Red Built 2001-2005

Yellow Built 2006-2010

13

Overcome Transportation Bottleneck

bull Lobby for more freight car quotas (up from 1507

in 2003 to 3605 in 2004 and 6145 in 2009)

Transportation cost to Shanghai

By car 450 yuanton

By train 225 yuanton

Anding to Guangzhou

Anding China potato train

14

Major Industrial Clusters in China

Huzhou just down the road from Zhili is noted for its bamboo products The city of Wenzhou is famous for manufacturing a large share of the worlds supply of cigarette lighters What they all have in common is a reliance on the low

The cluster-based model is labor-intensive The real question is whether it can survive in the new environment of

Huzhou just down the road from Zhili is noted for its bamboo products The city of Wenzhou is famous for manufacturing a large share of the worlds supply of cigarette lighters What they all have in common is a reliance on the low

The cluster-based model is labor-intensive The real question is whether it can survive in the new environment of

Advantages of clusters

bull Use the existing strengths (social trust embedded in

community and abundant labor) to overcome limiting

factors such as credit constraints and lack of formal

institutions

ndash A production process is divided into many incremental steps

lowering the capital entry barriers

ndash Merchants often put-out the production to different family

workshops Producers are paid based on piece rate and donrsquot

need much working capital

4

Advantages of clusters

bull Easy for each other to learn technologies

bull Better access to markets (both final goods and input

supply) Save the sales and purchasing costs

5

6

Outdoor furniture industry in Pingyu county Henan Set up by a return migrant from the coastal area

Mainly for export Main parts are manufactured in a factory in county seat

Assembled in 53 villages with kindergarten nearbyEmployed 2200 workers (1900 women)

7

Garment Cut the clothes in a factory in countryseat

Put out the production in village workshops

Factory owners have market orders

Major Experience

bull Having a market order is essential for the survival of the

above two rural clusters

bull The clusters take advantage of the abundant female

labor in villages

bull Rather good rural roads

bull Countyrsquos support for setting up factories in industry park

in the county seat where the centralized production

stages are located

8

Specialization

Anding Potato Cluster bull Anding of Gansu Province used to be one of the

poorest places in China (poverty rate 78 in 1980) and didnrsquot produce potato until 1960s

bull Now it has become one of the three largest potato production centers in China

bull Potato accounts for two-thirds of the cropping area Anding provides every Chinese with one kg potato per year Farmers generate about 60 of their income from potatoes

9

Major Potato Production Centers in China

Anding potato cluster

Zhang and Hu 2015 World Development 10

Expand the Market

bull Establish trader and producer associations

bull Update market information systems

bull Set up a new system of local wholesale markets

bull Apply for more freight car quotas

bull Subsidize farmers to build storages

11

Acquire and Spread Market Information

bull The potato association sends informants to live in major wholesale markets nationwide to collect market information

bull The county broadcasts the information in local media (radio TV and newspapers) and on large monitors in major gathering places (central squares railway and bus stations)

bull Greater market transparency makes it harder for traders to cheat farmers

12

The Spatial Distribution of Markets Over Time

Wholesale market

Village collection point

Blue Built 1996-2000

Red Built 2001-2005

Yellow Built 2006-2010

13

Overcome Transportation Bottleneck

bull Lobby for more freight car quotas (up from 1507

in 2003 to 3605 in 2004 and 6145 in 2009)

Transportation cost to Shanghai

By car 450 yuanton

By train 225 yuanton

Anding to Guangzhou

Anding China potato train

14

Advantages of clusters

bull Use the existing strengths (social trust embedded in

community and abundant labor) to overcome limiting

factors such as credit constraints and lack of formal

institutions

ndash A production process is divided into many incremental steps

lowering the capital entry barriers

ndash Merchants often put-out the production to different family

workshops Producers are paid based on piece rate and donrsquot

need much working capital

4

Advantages of clusters

bull Easy for each other to learn technologies

bull Better access to markets (both final goods and input

supply) Save the sales and purchasing costs

5

6

Outdoor furniture industry in Pingyu county Henan Set up by a return migrant from the coastal area

Mainly for export Main parts are manufactured in a factory in county seat

Assembled in 53 villages with kindergarten nearbyEmployed 2200 workers (1900 women)

7

Garment Cut the clothes in a factory in countryseat

Put out the production in village workshops

Factory owners have market orders

Major Experience

bull Having a market order is essential for the survival of the

above two rural clusters

bull The clusters take advantage of the abundant female

labor in villages

bull Rather good rural roads

bull Countyrsquos support for setting up factories in industry park

in the county seat where the centralized production

stages are located

8

Specialization

Anding Potato Cluster bull Anding of Gansu Province used to be one of the

poorest places in China (poverty rate 78 in 1980) and didnrsquot produce potato until 1960s

bull Now it has become one of the three largest potato production centers in China

bull Potato accounts for two-thirds of the cropping area Anding provides every Chinese with one kg potato per year Farmers generate about 60 of their income from potatoes

9

Major Potato Production Centers in China

Anding potato cluster

Zhang and Hu 2015 World Development 10

Expand the Market

bull Establish trader and producer associations

bull Update market information systems

bull Set up a new system of local wholesale markets

bull Apply for more freight car quotas

bull Subsidize farmers to build storages

11

Acquire and Spread Market Information

bull The potato association sends informants to live in major wholesale markets nationwide to collect market information

bull The county broadcasts the information in local media (radio TV and newspapers) and on large monitors in major gathering places (central squares railway and bus stations)

bull Greater market transparency makes it harder for traders to cheat farmers

12

The Spatial Distribution of Markets Over Time

Wholesale market

Village collection point

Blue Built 1996-2000

Red Built 2001-2005

Yellow Built 2006-2010

13

Overcome Transportation Bottleneck

bull Lobby for more freight car quotas (up from 1507

in 2003 to 3605 in 2004 and 6145 in 2009)

Transportation cost to Shanghai

By car 450 yuanton

By train 225 yuanton

Anding to Guangzhou

Anding China potato train

14

Advantages of clusters

bull Easy for each other to learn technologies

bull Better access to markets (both final goods and input

supply) Save the sales and purchasing costs

5

6

Outdoor furniture industry in Pingyu county Henan Set up by a return migrant from the coastal area

Mainly for export Main parts are manufactured in a factory in county seat

Assembled in 53 villages with kindergarten nearbyEmployed 2200 workers (1900 women)

7

Garment Cut the clothes in a factory in countryseat

Put out the production in village workshops

Factory owners have market orders

Major Experience

bull Having a market order is essential for the survival of the

above two rural clusters

bull The clusters take advantage of the abundant female

labor in villages

bull Rather good rural roads

bull Countyrsquos support for setting up factories in industry park

in the county seat where the centralized production

stages are located

8

Specialization

Anding Potato Cluster bull Anding of Gansu Province used to be one of the

poorest places in China (poverty rate 78 in 1980) and didnrsquot produce potato until 1960s

bull Now it has become one of the three largest potato production centers in China

bull Potato accounts for two-thirds of the cropping area Anding provides every Chinese with one kg potato per year Farmers generate about 60 of their income from potatoes

9

Major Potato Production Centers in China

Anding potato cluster

Zhang and Hu 2015 World Development 10

Expand the Market

bull Establish trader and producer associations

bull Update market information systems

bull Set up a new system of local wholesale markets

bull Apply for more freight car quotas

bull Subsidize farmers to build storages

11

Acquire and Spread Market Information

bull The potato association sends informants to live in major wholesale markets nationwide to collect market information

bull The county broadcasts the information in local media (radio TV and newspapers) and on large monitors in major gathering places (central squares railway and bus stations)

bull Greater market transparency makes it harder for traders to cheat farmers

12

The Spatial Distribution of Markets Over Time

Wholesale market

Village collection point

Blue Built 1996-2000

Red Built 2001-2005

Yellow Built 2006-2010

13

Overcome Transportation Bottleneck

bull Lobby for more freight car quotas (up from 1507

in 2003 to 3605 in 2004 and 6145 in 2009)

Transportation cost to Shanghai

By car 450 yuanton

By train 225 yuanton

Anding to Guangzhou

Anding China potato train

14

6

Outdoor furniture industry in Pingyu county Henan Set up by a return migrant from the coastal area

Mainly for export Main parts are manufactured in a factory in county seat

Assembled in 53 villages with kindergarten nearbyEmployed 2200 workers (1900 women)

7

Garment Cut the clothes in a factory in countryseat

Put out the production in village workshops

Factory owners have market orders

Major Experience

bull Having a market order is essential for the survival of the

above two rural clusters

bull The clusters take advantage of the abundant female

labor in villages

bull Rather good rural roads

bull Countyrsquos support for setting up factories in industry park

in the county seat where the centralized production

stages are located

8

Specialization

Anding Potato Cluster bull Anding of Gansu Province used to be one of the

poorest places in China (poverty rate 78 in 1980) and didnrsquot produce potato until 1960s

bull Now it has become one of the three largest potato production centers in China

bull Potato accounts for two-thirds of the cropping area Anding provides every Chinese with one kg potato per year Farmers generate about 60 of their income from potatoes

9

Major Potato Production Centers in China

Anding potato cluster

Zhang and Hu 2015 World Development 10

Expand the Market

bull Establish trader and producer associations

bull Update market information systems

bull Set up a new system of local wholesale markets

bull Apply for more freight car quotas

bull Subsidize farmers to build storages

11

Acquire and Spread Market Information

bull The potato association sends informants to live in major wholesale markets nationwide to collect market information

bull The county broadcasts the information in local media (radio TV and newspapers) and on large monitors in major gathering places (central squares railway and bus stations)

bull Greater market transparency makes it harder for traders to cheat farmers

12

The Spatial Distribution of Markets Over Time

Wholesale market

Village collection point

Blue Built 1996-2000

Red Built 2001-2005

Yellow Built 2006-2010

13

Overcome Transportation Bottleneck

bull Lobby for more freight car quotas (up from 1507

in 2003 to 3605 in 2004 and 6145 in 2009)

Transportation cost to Shanghai

By car 450 yuanton

By train 225 yuanton

Anding to Guangzhou

Anding China potato train

14

7

Garment Cut the clothes in a factory in countryseat

Put out the production in village workshops

Factory owners have market orders

Major Experience

bull Having a market order is essential for the survival of the

above two rural clusters

bull The clusters take advantage of the abundant female

labor in villages

bull Rather good rural roads

bull Countyrsquos support for setting up factories in industry park

in the county seat where the centralized production

stages are located

8

Specialization

Anding Potato Cluster bull Anding of Gansu Province used to be one of the

poorest places in China (poverty rate 78 in 1980) and didnrsquot produce potato until 1960s

bull Now it has become one of the three largest potato production centers in China

bull Potato accounts for two-thirds of the cropping area Anding provides every Chinese with one kg potato per year Farmers generate about 60 of their income from potatoes

9

Major Potato Production Centers in China

Anding potato cluster

Zhang and Hu 2015 World Development 10

Expand the Market

bull Establish trader and producer associations

bull Update market information systems

bull Set up a new system of local wholesale markets

bull Apply for more freight car quotas

bull Subsidize farmers to build storages

11

Acquire and Spread Market Information

bull The potato association sends informants to live in major wholesale markets nationwide to collect market information

bull The county broadcasts the information in local media (radio TV and newspapers) and on large monitors in major gathering places (central squares railway and bus stations)

bull Greater market transparency makes it harder for traders to cheat farmers

12

The Spatial Distribution of Markets Over Time

Wholesale market

Village collection point

Blue Built 1996-2000

Red Built 2001-2005

Yellow Built 2006-2010

13

Overcome Transportation Bottleneck

bull Lobby for more freight car quotas (up from 1507

in 2003 to 3605 in 2004 and 6145 in 2009)

Transportation cost to Shanghai

By car 450 yuanton

By train 225 yuanton

Anding to Guangzhou

Anding China potato train

14

Major Experience

bull Having a market order is essential for the survival of the

above two rural clusters

bull The clusters take advantage of the abundant female

labor in villages

bull Rather good rural roads

bull Countyrsquos support for setting up factories in industry park

in the county seat where the centralized production

stages are located

8

Specialization

Anding Potato Cluster bull Anding of Gansu Province used to be one of the

poorest places in China (poverty rate 78 in 1980) and didnrsquot produce potato until 1960s

bull Now it has become one of the three largest potato production centers in China

bull Potato accounts for two-thirds of the cropping area Anding provides every Chinese with one kg potato per year Farmers generate about 60 of their income from potatoes

9

Major Potato Production Centers in China

Anding potato cluster

Zhang and Hu 2015 World Development 10

Expand the Market

bull Establish trader and producer associations

bull Update market information systems

bull Set up a new system of local wholesale markets

bull Apply for more freight car quotas

bull Subsidize farmers to build storages

11

Acquire and Spread Market Information

bull The potato association sends informants to live in major wholesale markets nationwide to collect market information

bull The county broadcasts the information in local media (radio TV and newspapers) and on large monitors in major gathering places (central squares railway and bus stations)

bull Greater market transparency makes it harder for traders to cheat farmers

12

The Spatial Distribution of Markets Over Time

Wholesale market

Village collection point

Blue Built 1996-2000

Red Built 2001-2005

Yellow Built 2006-2010

13

Overcome Transportation Bottleneck

bull Lobby for more freight car quotas (up from 1507

in 2003 to 3605 in 2004 and 6145 in 2009)

Transportation cost to Shanghai

By car 450 yuanton

By train 225 yuanton

Anding to Guangzhou

Anding China potato train

14

Specialization

Anding Potato Cluster bull Anding of Gansu Province used to be one of the

poorest places in China (poverty rate 78 in 1980) and didnrsquot produce potato until 1960s

bull Now it has become one of the three largest potato production centers in China

bull Potato accounts for two-thirds of the cropping area Anding provides every Chinese with one kg potato per year Farmers generate about 60 of their income from potatoes

9

Major Potato Production Centers in China

Anding potato cluster

Zhang and Hu 2015 World Development 10

Expand the Market

bull Establish trader and producer associations

bull Update market information systems

bull Set up a new system of local wholesale markets

bull Apply for more freight car quotas

bull Subsidize farmers to build storages

11

Acquire and Spread Market Information

bull The potato association sends informants to live in major wholesale markets nationwide to collect market information

bull The county broadcasts the information in local media (radio TV and newspapers) and on large monitors in major gathering places (central squares railway and bus stations)

bull Greater market transparency makes it harder for traders to cheat farmers

12

The Spatial Distribution of Markets Over Time

Wholesale market

Village collection point

Blue Built 1996-2000

Red Built 2001-2005

Yellow Built 2006-2010

13

Overcome Transportation Bottleneck

bull Lobby for more freight car quotas (up from 1507

in 2003 to 3605 in 2004 and 6145 in 2009)

Transportation cost to Shanghai

By car 450 yuanton

By train 225 yuanton

Anding to Guangzhou

Anding China potato train

14

Major Potato Production Centers in China

Anding potato cluster

Zhang and Hu 2015 World Development 10

Expand the Market

bull Establish trader and producer associations

bull Update market information systems

bull Set up a new system of local wholesale markets

bull Apply for more freight car quotas

bull Subsidize farmers to build storages

11

Acquire and Spread Market Information

bull The potato association sends informants to live in major wholesale markets nationwide to collect market information

bull The county broadcasts the information in local media (radio TV and newspapers) and on large monitors in major gathering places (central squares railway and bus stations)

bull Greater market transparency makes it harder for traders to cheat farmers

12

The Spatial Distribution of Markets Over Time

Wholesale market

Village collection point

Blue Built 1996-2000

Red Built 2001-2005

Yellow Built 2006-2010

13

Overcome Transportation Bottleneck

bull Lobby for more freight car quotas (up from 1507

in 2003 to 3605 in 2004 and 6145 in 2009)

Transportation cost to Shanghai

By car 450 yuanton

By train 225 yuanton

Anding to Guangzhou

Anding China potato train

14

Expand the Market

bull Establish trader and producer associations

bull Update market information systems

bull Set up a new system of local wholesale markets

bull Apply for more freight car quotas

bull Subsidize farmers to build storages

11

Acquire and Spread Market Information

bull The potato association sends informants to live in major wholesale markets nationwide to collect market information

bull The county broadcasts the information in local media (radio TV and newspapers) and on large monitors in major gathering places (central squares railway and bus stations)

bull Greater market transparency makes it harder for traders to cheat farmers

12

The Spatial Distribution of Markets Over Time

Wholesale market

Village collection point

Blue Built 1996-2000

Red Built 2001-2005

Yellow Built 2006-2010

13

Overcome Transportation Bottleneck

bull Lobby for more freight car quotas (up from 1507

in 2003 to 3605 in 2004 and 6145 in 2009)

Transportation cost to Shanghai

By car 450 yuanton

By train 225 yuanton

Anding to Guangzhou

Anding China potato train

14

Acquire and Spread Market Information

bull The potato association sends informants to live in major wholesale markets nationwide to collect market information

bull The county broadcasts the information in local media (radio TV and newspapers) and on large monitors in major gathering places (central squares railway and bus stations)

bull Greater market transparency makes it harder for traders to cheat farmers

12

The Spatial Distribution of Markets Over Time

Wholesale market

Village collection point

Blue Built 1996-2000

Red Built 2001-2005

Yellow Built 2006-2010

13

Overcome Transportation Bottleneck

bull Lobby for more freight car quotas (up from 1507

in 2003 to 3605 in 2004 and 6145 in 2009)

Transportation cost to Shanghai

By car 450 yuanton

By train 225 yuanton

Anding to Guangzhou

Anding China potato train

14

The Spatial Distribution of Markets Over Time

Wholesale market

Village collection point

Blue Built 1996-2000

Red Built 2001-2005

Yellow Built 2006-2010

13

Overcome Transportation Bottleneck

bull Lobby for more freight car quotas (up from 1507

in 2003 to 3605 in 2004 and 6145 in 2009)

Transportation cost to Shanghai

By car 450 yuanton

By train 225 yuanton

Anding to Guangzhou

Anding China potato train

14

Overcome Transportation Bottleneck

bull Lobby for more freight car quotas (up from 1507

in 2003 to 3605 in 2004 and 6145 in 2009)

Transportation cost to Shanghai

By car 450 yuanton

By train 225 yuanton

Anding to Guangzhou

Anding China potato train

14

Build More Storages (55 of annual output)

Farmerrsquos storage 036 million tons

More than 2 storages per

household

Small natural ventilation storages

0185 million tons

Centrally air conditioned 10000 ton each Natural ventilation storages Medium size

200 Yuan

Subsidystorage

15

Develop the Processing Sector

bull Local government intensified their effort to

attract investors

ndash Provide free land

ndash Help secure subsidized bank loans

ndash Guarantee stable potato supply

bull The number of processing plants increased from

0 in 2003 2 in 2004 to 12 in 2009 Now it can

process about 13 of total output

16

Develop the Processing Sector

bull In 2004 the first two plants produced only starch

bull Quickly the product lines have become more diversified

ndash Modified starch for industry use

ndash Frozen French fries for fast food chains

ndash Potato chips

ndash Potato flour

ndash Even export to the Middle East and Southeast Asia

17

Summary

bull The size of potato cluster is determined by

market size

bull So one has to keep figuring out ways to

expand the potato market

18

Summary

bull As shown in the potato case clusters are at the

local level Therefore it is essentially to have

locally tailored industry policy

bull In China local governments have played a key

role in facilitating cluster formation thanks to

their informational advantage

19

How to Incentivize Local Governments

bull In China local governments have strong

embedded interests in promoting cluster-based

development

ndash Fiscal competition among local governments

ndash Career competition among local officials

bull More research is needed to understand the

incentive structures of local governments in

other developing countries such as Egypt

20

How to Measure a Cluster

bull An industrial cluster is a locality with a high

concentration of firms in related

businesses

bull Large number of firms + relatedness

21

22

Performance of the Clustering Measure

bull It outperforms all other clustering measures in

terms of predicting the actual clusters

bull Similarly using economic census data we can

compute the clustering measure at the district

level in Egypt Next we consult informants on

about the major industries in the regions with

high degree of clustering

23

24

My presentation is mainly based on the following publications

ldquoOvercoming Successive Bottlenecks The Evolution of a Potato Cluster in Chinardquo

(Xiaobo Zhang and Dinghuan Hu)

World Development 63 102-112 2014

ldquoA Proximity-Based Measure of Industrial Clusteringrdquo (Jianqing Ruan and

Xiaobo Zhang) IFPRI Discussion Paper 1468

httpspapersssrncomsol3paperscfmabstract_id=2688022

Develop the Processing Sector

bull Local government intensified their effort to

attract investors

ndash Provide free land

ndash Help secure subsidized bank loans

ndash Guarantee stable potato supply

bull The number of processing plants increased from

0 in 2003 2 in 2004 to 12 in 2009 Now it can

process about 13 of total output

16

Develop the Processing Sector

bull In 2004 the first two plants produced only starch

bull Quickly the product lines have become more diversified

ndash Modified starch for industry use

ndash Frozen French fries for fast food chains

ndash Potato chips

ndash Potato flour

ndash Even export to the Middle East and Southeast Asia

17

Summary

bull The size of potato cluster is determined by

market size

bull So one has to keep figuring out ways to

expand the potato market

18

Summary

bull As shown in the potato case clusters are at the

local level Therefore it is essentially to have

locally tailored industry policy

bull In China local governments have played a key

role in facilitating cluster formation thanks to

their informational advantage

19

How to Incentivize Local Governments

bull In China local governments have strong

embedded interests in promoting cluster-based

development

ndash Fiscal competition among local governments

ndash Career competition among local officials

bull More research is needed to understand the

incentive structures of local governments in

other developing countries such as Egypt

20

How to Measure a Cluster

bull An industrial cluster is a locality with a high

concentration of firms in related

businesses

bull Large number of firms + relatedness

21

22

Performance of the Clustering Measure

bull It outperforms all other clustering measures in

terms of predicting the actual clusters

bull Similarly using economic census data we can

compute the clustering measure at the district

level in Egypt Next we consult informants on

about the major industries in the regions with

high degree of clustering

23

24

My presentation is mainly based on the following publications

ldquoOvercoming Successive Bottlenecks The Evolution of a Potato Cluster in Chinardquo

(Xiaobo Zhang and Dinghuan Hu)

World Development 63 102-112 2014

ldquoA Proximity-Based Measure of Industrial Clusteringrdquo (Jianqing Ruan and

Xiaobo Zhang) IFPRI Discussion Paper 1468

httpspapersssrncomsol3paperscfmabstract_id=2688022

Develop the Processing Sector

bull In 2004 the first two plants produced only starch

bull Quickly the product lines have become more diversified

ndash Modified starch for industry use

ndash Frozen French fries for fast food chains

ndash Potato chips

ndash Potato flour

ndash Even export to the Middle East and Southeast Asia

17

Summary

bull The size of potato cluster is determined by

market size

bull So one has to keep figuring out ways to

expand the potato market

18

Summary

bull As shown in the potato case clusters are at the

local level Therefore it is essentially to have

locally tailored industry policy

bull In China local governments have played a key

role in facilitating cluster formation thanks to

their informational advantage

19

How to Incentivize Local Governments

bull In China local governments have strong

embedded interests in promoting cluster-based

development

ndash Fiscal competition among local governments

ndash Career competition among local officials

bull More research is needed to understand the

incentive structures of local governments in

other developing countries such as Egypt

20

How to Measure a Cluster

bull An industrial cluster is a locality with a high

concentration of firms in related

businesses

bull Large number of firms + relatedness

21

22

Performance of the Clustering Measure

bull It outperforms all other clustering measures in

terms of predicting the actual clusters

bull Similarly using economic census data we can

compute the clustering measure at the district

level in Egypt Next we consult informants on

about the major industries in the regions with

high degree of clustering

23

24

My presentation is mainly based on the following publications

ldquoOvercoming Successive Bottlenecks The Evolution of a Potato Cluster in Chinardquo

(Xiaobo Zhang and Dinghuan Hu)

World Development 63 102-112 2014

ldquoA Proximity-Based Measure of Industrial Clusteringrdquo (Jianqing Ruan and

Xiaobo Zhang) IFPRI Discussion Paper 1468

httpspapersssrncomsol3paperscfmabstract_id=2688022

Summary

bull The size of potato cluster is determined by

market size

bull So one has to keep figuring out ways to

expand the potato market

18

Summary

bull As shown in the potato case clusters are at the

local level Therefore it is essentially to have

locally tailored industry policy

bull In China local governments have played a key

role in facilitating cluster formation thanks to

their informational advantage

19

How to Incentivize Local Governments

bull In China local governments have strong

embedded interests in promoting cluster-based

development

ndash Fiscal competition among local governments

ndash Career competition among local officials

bull More research is needed to understand the

incentive structures of local governments in

other developing countries such as Egypt

20

How to Measure a Cluster

bull An industrial cluster is a locality with a high

concentration of firms in related

businesses

bull Large number of firms + relatedness

21

22

Performance of the Clustering Measure

bull It outperforms all other clustering measures in

terms of predicting the actual clusters

bull Similarly using economic census data we can

compute the clustering measure at the district

level in Egypt Next we consult informants on

about the major industries in the regions with

high degree of clustering

23

24

My presentation is mainly based on the following publications

ldquoOvercoming Successive Bottlenecks The Evolution of a Potato Cluster in Chinardquo

(Xiaobo Zhang and Dinghuan Hu)

World Development 63 102-112 2014

ldquoA Proximity-Based Measure of Industrial Clusteringrdquo (Jianqing Ruan and

Xiaobo Zhang) IFPRI Discussion Paper 1468

httpspapersssrncomsol3paperscfmabstract_id=2688022

Summary

bull As shown in the potato case clusters are at the

local level Therefore it is essentially to have

locally tailored industry policy

bull In China local governments have played a key

role in facilitating cluster formation thanks to

their informational advantage

19

How to Incentivize Local Governments

bull In China local governments have strong

embedded interests in promoting cluster-based

development

ndash Fiscal competition among local governments

ndash Career competition among local officials

bull More research is needed to understand the

incentive structures of local governments in

other developing countries such as Egypt

20

How to Measure a Cluster

bull An industrial cluster is a locality with a high

concentration of firms in related

businesses

bull Large number of firms + relatedness

21

22

Performance of the Clustering Measure

bull It outperforms all other clustering measures in

terms of predicting the actual clusters

bull Similarly using economic census data we can

compute the clustering measure at the district

level in Egypt Next we consult informants on

about the major industries in the regions with

high degree of clustering

23

24

My presentation is mainly based on the following publications

ldquoOvercoming Successive Bottlenecks The Evolution of a Potato Cluster in Chinardquo

(Xiaobo Zhang and Dinghuan Hu)

World Development 63 102-112 2014

ldquoA Proximity-Based Measure of Industrial Clusteringrdquo (Jianqing Ruan and

Xiaobo Zhang) IFPRI Discussion Paper 1468

httpspapersssrncomsol3paperscfmabstract_id=2688022

How to Incentivize Local Governments

bull In China local governments have strong

embedded interests in promoting cluster-based

development

ndash Fiscal competition among local governments

ndash Career competition among local officials

bull More research is needed to understand the

incentive structures of local governments in

other developing countries such as Egypt

20

How to Measure a Cluster

bull An industrial cluster is a locality with a high

concentration of firms in related

businesses

bull Large number of firms + relatedness

21

22

Performance of the Clustering Measure

bull It outperforms all other clustering measures in

terms of predicting the actual clusters

bull Similarly using economic census data we can

compute the clustering measure at the district

level in Egypt Next we consult informants on

about the major industries in the regions with

high degree of clustering

23

24

My presentation is mainly based on the following publications

ldquoOvercoming Successive Bottlenecks The Evolution of a Potato Cluster in Chinardquo

(Xiaobo Zhang and Dinghuan Hu)

World Development 63 102-112 2014

ldquoA Proximity-Based Measure of Industrial Clusteringrdquo (Jianqing Ruan and

Xiaobo Zhang) IFPRI Discussion Paper 1468

httpspapersssrncomsol3paperscfmabstract_id=2688022

How to Measure a Cluster

bull An industrial cluster is a locality with a high

concentration of firms in related

businesses

bull Large number of firms + relatedness

21

22

Performance of the Clustering Measure

bull It outperforms all other clustering measures in

terms of predicting the actual clusters

bull Similarly using economic census data we can

compute the clustering measure at the district

level in Egypt Next we consult informants on

about the major industries in the regions with

high degree of clustering

23

24

My presentation is mainly based on the following publications

ldquoOvercoming Successive Bottlenecks The Evolution of a Potato Cluster in Chinardquo

(Xiaobo Zhang and Dinghuan Hu)

World Development 63 102-112 2014

ldquoA Proximity-Based Measure of Industrial Clusteringrdquo (Jianqing Ruan and

Xiaobo Zhang) IFPRI Discussion Paper 1468

httpspapersssrncomsol3paperscfmabstract_id=2688022

22

Performance of the Clustering Measure

bull It outperforms all other clustering measures in

terms of predicting the actual clusters

bull Similarly using economic census data we can

compute the clustering measure at the district

level in Egypt Next we consult informants on

about the major industries in the regions with

high degree of clustering

23

24

My presentation is mainly based on the following publications

ldquoOvercoming Successive Bottlenecks The Evolution of a Potato Cluster in Chinardquo

(Xiaobo Zhang and Dinghuan Hu)

World Development 63 102-112 2014

ldquoA Proximity-Based Measure of Industrial Clusteringrdquo (Jianqing Ruan and

Xiaobo Zhang) IFPRI Discussion Paper 1468

httpspapersssrncomsol3paperscfmabstract_id=2688022

Performance of the Clustering Measure

bull It outperforms all other clustering measures in

terms of predicting the actual clusters

bull Similarly using economic census data we can

compute the clustering measure at the district

level in Egypt Next we consult informants on

about the major industries in the regions with

high degree of clustering

23

24

My presentation is mainly based on the following publications

ldquoOvercoming Successive Bottlenecks The Evolution of a Potato Cluster in Chinardquo

(Xiaobo Zhang and Dinghuan Hu)

World Development 63 102-112 2014

ldquoA Proximity-Based Measure of Industrial Clusteringrdquo (Jianqing Ruan and

Xiaobo Zhang) IFPRI Discussion Paper 1468

httpspapersssrncomsol3paperscfmabstract_id=2688022

24

My presentation is mainly based on the following publications

ldquoOvercoming Successive Bottlenecks The Evolution of a Potato Cluster in Chinardquo

(Xiaobo Zhang and Dinghuan Hu)

World Development 63 102-112 2014

ldquoA Proximity-Based Measure of Industrial Clusteringrdquo (Jianqing Ruan and

Xiaobo Zhang) IFPRI Discussion Paper 1468

httpspapersssrncomsol3paperscfmabstract_id=2688022

IFPRI ndash ECES Cluster-based Development

Research Project

25

Cluster-based development as an

opportunity for job creation and poverty

reduction in Egypt

bull The CBD model is consistent with Egyptrsquos

current stage of development

bull Labour intensive

ndash Large population

ndash High unemployment

bull Based on community strength

bull Overcomes credit constraints

26

Research Project Goal

bull Ensure that the existing potential is unleashed

bull Provide concrete solutions for how CBD can be scaled up for job creation and poverty reduction in Egypt

ndash USAID ARDII project area and other development projects

27

Research Stages

Stage 1 Identify the promising industrial clusters in Egypt

Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnation

Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

28

Stage 1

Stage 1 Identify the promising industrial clusters in Egypt

ndash Clustering index amp cluster mapping activity

ndash Expert structured interviews

Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnation

Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

29

Stage 1 Cluster Mapping Activity

Stage 1 Identify what are the promising industrial clusters in Egypt

ndash Clustering index amp maps

ndash Expert structured interviews

Stage 2 What are the bottlenecks that are leading to their stagnation

Stage 3 Identify how the GoE can help and further promote the growth of these industrial clusters

30

Stage 1 Structured Expert Interviews

bull What defines an industrial cluster

ldquointerconnected businesses that are geographically concentratedrdquo

ndash Common Goal amp Identity

ndash Interdependent

ndash Degree of collective efficiency

31

Stage 1 Structured Expert Interviews

bull Criteria to narrow down the choice of

cluster

bull Geographical focus Upper Egypt

32

Stage 1 Structured Expert Interviews

bull Promising sectors

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

bull Common bottlenecks

bull Suggested government intervention

33

Stage 2

bull Stage 1 Identify the promising industrial clusters in Egypt

bull Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnationndash In depth case studies 2 ndash 3 clusters

bull Stakeholdersrsquo workshop

bull Field work

bull Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

34

Stage 2 Stakeholder Workshop

bull Having an industry focus

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

35

Next Steps

bull Stage 2 Field work

bull Stage 3 Determine how the GoE can help

and further promote the growth of these

industrial clusters

36

Thank you

37

Cluster-based development as an

opportunity for job creation and poverty

reduction in Egypt

bull The CBD model is consistent with Egyptrsquos

current stage of development

bull Labour intensive

ndash Large population

ndash High unemployment

bull Based on community strength

bull Overcomes credit constraints

26

Research Project Goal

bull Ensure that the existing potential is unleashed

bull Provide concrete solutions for how CBD can be scaled up for job creation and poverty reduction in Egypt

ndash USAID ARDII project area and other development projects

27

Research Stages

Stage 1 Identify the promising industrial clusters in Egypt

Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnation

Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

28

Stage 1

Stage 1 Identify the promising industrial clusters in Egypt

ndash Clustering index amp cluster mapping activity

ndash Expert structured interviews

Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnation

Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

29

Stage 1 Cluster Mapping Activity

Stage 1 Identify what are the promising industrial clusters in Egypt

ndash Clustering index amp maps

ndash Expert structured interviews

Stage 2 What are the bottlenecks that are leading to their stagnation

Stage 3 Identify how the GoE can help and further promote the growth of these industrial clusters

30

Stage 1 Structured Expert Interviews

bull What defines an industrial cluster

ldquointerconnected businesses that are geographically concentratedrdquo

ndash Common Goal amp Identity

ndash Interdependent

ndash Degree of collective efficiency

31

Stage 1 Structured Expert Interviews

bull Criteria to narrow down the choice of

cluster

bull Geographical focus Upper Egypt

32

Stage 1 Structured Expert Interviews

bull Promising sectors

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

bull Common bottlenecks

bull Suggested government intervention

33

Stage 2

bull Stage 1 Identify the promising industrial clusters in Egypt

bull Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnationndash In depth case studies 2 ndash 3 clusters

bull Stakeholdersrsquo workshop

bull Field work

bull Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

34

Stage 2 Stakeholder Workshop

bull Having an industry focus

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

35

Next Steps

bull Stage 2 Field work

bull Stage 3 Determine how the GoE can help

and further promote the growth of these

industrial clusters

36

Thank you

37

Research Project Goal

bull Ensure that the existing potential is unleashed

bull Provide concrete solutions for how CBD can be scaled up for job creation and poverty reduction in Egypt

ndash USAID ARDII project area and other development projects

27

Research Stages

Stage 1 Identify the promising industrial clusters in Egypt

Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnation

Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

28

Stage 1

Stage 1 Identify the promising industrial clusters in Egypt

ndash Clustering index amp cluster mapping activity

ndash Expert structured interviews

Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnation

Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

29

Stage 1 Cluster Mapping Activity

Stage 1 Identify what are the promising industrial clusters in Egypt

ndash Clustering index amp maps

ndash Expert structured interviews

Stage 2 What are the bottlenecks that are leading to their stagnation

Stage 3 Identify how the GoE can help and further promote the growth of these industrial clusters

30

Stage 1 Structured Expert Interviews

bull What defines an industrial cluster

ldquointerconnected businesses that are geographically concentratedrdquo

ndash Common Goal amp Identity

ndash Interdependent

ndash Degree of collective efficiency

31

Stage 1 Structured Expert Interviews

bull Criteria to narrow down the choice of

cluster

bull Geographical focus Upper Egypt

32

Stage 1 Structured Expert Interviews

bull Promising sectors

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

bull Common bottlenecks

bull Suggested government intervention

33

Stage 2

bull Stage 1 Identify the promising industrial clusters in Egypt

bull Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnationndash In depth case studies 2 ndash 3 clusters

bull Stakeholdersrsquo workshop

bull Field work

bull Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

34

Stage 2 Stakeholder Workshop

bull Having an industry focus

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

35

Next Steps

bull Stage 2 Field work

bull Stage 3 Determine how the GoE can help

and further promote the growth of these

industrial clusters

36

Thank you

37

Research Stages

Stage 1 Identify the promising industrial clusters in Egypt

Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnation

Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

28

Stage 1

Stage 1 Identify the promising industrial clusters in Egypt

ndash Clustering index amp cluster mapping activity

ndash Expert structured interviews

Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnation

Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

29

Stage 1 Cluster Mapping Activity

Stage 1 Identify what are the promising industrial clusters in Egypt

ndash Clustering index amp maps

ndash Expert structured interviews

Stage 2 What are the bottlenecks that are leading to their stagnation

Stage 3 Identify how the GoE can help and further promote the growth of these industrial clusters

30

Stage 1 Structured Expert Interviews

bull What defines an industrial cluster

ldquointerconnected businesses that are geographically concentratedrdquo

ndash Common Goal amp Identity

ndash Interdependent

ndash Degree of collective efficiency

31

Stage 1 Structured Expert Interviews

bull Criteria to narrow down the choice of

cluster

bull Geographical focus Upper Egypt

32

Stage 1 Structured Expert Interviews

bull Promising sectors

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

bull Common bottlenecks

bull Suggested government intervention

33

Stage 2

bull Stage 1 Identify the promising industrial clusters in Egypt

bull Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnationndash In depth case studies 2 ndash 3 clusters

bull Stakeholdersrsquo workshop

bull Field work

bull Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

34

Stage 2 Stakeholder Workshop

bull Having an industry focus

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

35

Next Steps

bull Stage 2 Field work

bull Stage 3 Determine how the GoE can help

and further promote the growth of these

industrial clusters

36

Thank you

37

Stage 1

Stage 1 Identify the promising industrial clusters in Egypt

ndash Clustering index amp cluster mapping activity

ndash Expert structured interviews

Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnation

Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

29

Stage 1 Cluster Mapping Activity

Stage 1 Identify what are the promising industrial clusters in Egypt

ndash Clustering index amp maps

ndash Expert structured interviews

Stage 2 What are the bottlenecks that are leading to their stagnation

Stage 3 Identify how the GoE can help and further promote the growth of these industrial clusters

30

Stage 1 Structured Expert Interviews

bull What defines an industrial cluster

ldquointerconnected businesses that are geographically concentratedrdquo

ndash Common Goal amp Identity

ndash Interdependent

ndash Degree of collective efficiency

31

Stage 1 Structured Expert Interviews

bull Criteria to narrow down the choice of

cluster

bull Geographical focus Upper Egypt

32

Stage 1 Structured Expert Interviews

bull Promising sectors

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

bull Common bottlenecks

bull Suggested government intervention

33

Stage 2

bull Stage 1 Identify the promising industrial clusters in Egypt

bull Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnationndash In depth case studies 2 ndash 3 clusters

bull Stakeholdersrsquo workshop

bull Field work

bull Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

34

Stage 2 Stakeholder Workshop

bull Having an industry focus

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

35

Next Steps

bull Stage 2 Field work

bull Stage 3 Determine how the GoE can help

and further promote the growth of these

industrial clusters

36

Thank you

37

Stage 1 Cluster Mapping Activity

Stage 1 Identify what are the promising industrial clusters in Egypt

ndash Clustering index amp maps

ndash Expert structured interviews

Stage 2 What are the bottlenecks that are leading to their stagnation

Stage 3 Identify how the GoE can help and further promote the growth of these industrial clusters

30

Stage 1 Structured Expert Interviews

bull What defines an industrial cluster

ldquointerconnected businesses that are geographically concentratedrdquo

ndash Common Goal amp Identity

ndash Interdependent

ndash Degree of collective efficiency

31

Stage 1 Structured Expert Interviews

bull Criteria to narrow down the choice of

cluster

bull Geographical focus Upper Egypt

32

Stage 1 Structured Expert Interviews

bull Promising sectors

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

bull Common bottlenecks

bull Suggested government intervention

33

Stage 2

bull Stage 1 Identify the promising industrial clusters in Egypt

bull Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnationndash In depth case studies 2 ndash 3 clusters

bull Stakeholdersrsquo workshop

bull Field work

bull Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

34

Stage 2 Stakeholder Workshop

bull Having an industry focus

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

35

Next Steps

bull Stage 2 Field work

bull Stage 3 Determine how the GoE can help

and further promote the growth of these

industrial clusters

36

Thank you

37

Stage 1 Structured Expert Interviews

bull What defines an industrial cluster

ldquointerconnected businesses that are geographically concentratedrdquo

ndash Common Goal amp Identity

ndash Interdependent

ndash Degree of collective efficiency

31

Stage 1 Structured Expert Interviews

bull Criteria to narrow down the choice of

cluster

bull Geographical focus Upper Egypt

32

Stage 1 Structured Expert Interviews

bull Promising sectors

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

bull Common bottlenecks

bull Suggested government intervention

33

Stage 2

bull Stage 1 Identify the promising industrial clusters in Egypt

bull Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnationndash In depth case studies 2 ndash 3 clusters

bull Stakeholdersrsquo workshop

bull Field work

bull Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

34

Stage 2 Stakeholder Workshop

bull Having an industry focus

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

35

Next Steps

bull Stage 2 Field work

bull Stage 3 Determine how the GoE can help

and further promote the growth of these

industrial clusters

36

Thank you

37

Stage 1 Structured Expert Interviews

bull Criteria to narrow down the choice of

cluster

bull Geographical focus Upper Egypt

32

Stage 1 Structured Expert Interviews

bull Promising sectors

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

bull Common bottlenecks

bull Suggested government intervention

33

Stage 2

bull Stage 1 Identify the promising industrial clusters in Egypt

bull Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnationndash In depth case studies 2 ndash 3 clusters

bull Stakeholdersrsquo workshop

bull Field work

bull Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

34

Stage 2 Stakeholder Workshop

bull Having an industry focus

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

35

Next Steps

bull Stage 2 Field work

bull Stage 3 Determine how the GoE can help

and further promote the growth of these

industrial clusters

36

Thank you

37

Stage 1 Structured Expert Interviews

bull Promising sectors

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

bull Common bottlenecks

bull Suggested government intervention

33

Stage 2

bull Stage 1 Identify the promising industrial clusters in Egypt

bull Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnationndash In depth case studies 2 ndash 3 clusters

bull Stakeholdersrsquo workshop

bull Field work

bull Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

34

Stage 2 Stakeholder Workshop

bull Having an industry focus

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

35

Next Steps

bull Stage 2 Field work

bull Stage 3 Determine how the GoE can help

and further promote the growth of these

industrial clusters

36

Thank you

37

Stage 2

bull Stage 1 Identify the promising industrial clusters in Egypt

bull Stage 2 Understand the bottlenecks that are leading to the clustersrsquo stagnationndash In depth case studies 2 ndash 3 clusters

bull Stakeholdersrsquo workshop

bull Field work

bull Stage 3 Determine how the GoE can help and further promote the growth of these industrial clusters

34

Stage 2 Stakeholder Workshop

bull Having an industry focus

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

35

Next Steps

bull Stage 2 Field work

bull Stage 3 Determine how the GoE can help

and further promote the growth of these

industrial clusters

36

Thank you

37

Stage 2 Stakeholder Workshop

bull Having an industry focus

ndash Furniture and wood manufacturing

ndash Agroindustry

ndash Handicrafts

35

Next Steps

bull Stage 2 Field work

bull Stage 3 Determine how the GoE can help

and further promote the growth of these

industrial clusters

36

Thank you

37

Next Steps

bull Stage 2 Field work

bull Stage 3 Determine how the GoE can help

and further promote the growth of these

industrial clusters

36

Thank you

37

Thank you

37