Pr bendo skopje_191011_03

Success measurement of cluster organisations

Zoltan BendoTenderix Consulting and Research

Skopje, 19 October 2011

Round Table Discussion

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’... And the total was greater than the sum of parts’

Defining clusters 1/3

’My model for business is The Beatles

They were four guys that kept each other’s negative tendencies in check; they balanced each other. And the total was greater than the sum of parts.’60 Minutes Interview, 2008

Source: www.slideshare.net

Quote from Steve Jobs (1955 - 2011)

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From a phenomenon of economic geography to a tool of developmeny policy…


... cluster based development approach …

… cluster development policy …

… strategic cluster development …

… good practices in cluster policy …

HollywoodUSA

Film making

Monte Carlo

Gambling

ChampagneFranceChampagne production

… cluster accreditation …

… measurement of cluster performance …

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We can observe a number of differences between the two categories of clusters


Development tools

1. Tiny size (5-10 SMEs)2. Established3. New initiatives4. No competition among

members5. Legal entity 6. Moderate number of

connections between the entities

7. Cluster management organisation as the governor of the cluster

8. Heavily dependant on public money

Geographic phenomena

1. Huge size (critical mass is there)

2. Emerged3. With long track record4. Competition among

members5. No legal entity6. Numerous connections

between the entities 7. Cluster management

organisation as a service provider

8. Not dependant on public money

Clusters as

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Numerous EU initiatives support the development of clusters – sometimes too many…

EU initiatives in support of clusters

European Cluster Policy Group (ECPG)

European Cluster Alliance (ECA)

European Cluster

Observatory

European Cluster

Excellence Initiative

(ECEI)

Statistics and services

Policy recommendati

ons

Appropriate skills

Policy incentives &

practical tools

Regions of Knowledge networks (FP7)

Other initiatives are welcome

INTERREG Networks

Cluster Innovation Platforms

Source: Nikos Pantalos, Support for Innovation Unit, EC DG Enterprise, Presentation: International Cluster Cooperation

Issues for consideration

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What do we measure?

The three levels of the nutshell model

Source: European Cluster Excellence Initiative, WP2 and www.cluster-escellence.eu

1. Cluster organisation/ cluster management organisation

2. Cluster actors

3. Framework conditions • Acceptable required

effort

• Methodology of

assessment shall be

valid for all types of

clusters

• General

macroeconomic

conditions shall not

superimpose effects

generated by the

cluster

• Additionality

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VDI/VDE-IT developed great experience in the past years in the evaluation and benchmarking of

clusters and cluster initiativesInitiative Kompetenznetze Deutschland by VDI/VDE-IT

Source: www.vdivde-it.de

• VDI/VDE-IT is the head office of the German Cluster Initiative ’Kompetenznetze Deutschland’

• Broad scope of activities in the field of cluster management and analysis including:o Governance/management of cluster and networkso Evaluation and benchmarking of clusters and cluster

initiativeso Cluster mapping and cluster analysis

The VDI/VDE-

IT

methodology

is becoming

the

mainstream

tool for the

measurement

of cluster

success in

Europe

The agency – VDI/VDE-IT

The initiative – Kompetenznetze Deutschland

The methodology of cluster benchmarking

• Club of the best 100 innovation networks in Germany• Actively support the best clusters in their further

development• Increase networking between industry and research• Support in particular clusters with international reputation

• Set of indicators (>30) pcs measuring the performance of the cluster organisation mainly

• Based on information given by the cluster manager• Original idea: assistance for the jury of Kompetenznetze

Deutschland, decision support tool, to be applied only in Germany

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In the largest international analysis of its kind more than 140 cluster management organisations

were benchmarkedNGPExcellence 1/3

Source: Lämmer-Gamp, Thomas/Meier zu Köcker, Gerd/Christensen, Thomas Alslev, 2011: Clusters Are Individuals. Creating Economic Growth through Cluster Policies for Cluster Management Excellence, Danish Ministry of Science, Technology and Innova tion/Competence Networks Germany, Copenhagen/Berlin

Background• More than 140 cluster management organisations from 8 countries were benchmarked• Initiated by the Danish Ministry of Science, Technology and Innovation, supported by the

German Federal Ministry of Economics and Technology and its national cluster program ’Initiative Kompetenznetze Deutschland’, the Nordic Council of Ministers and Nordic Innovation

• The benchmarking was conducted from October 2010 to July 2011

Methodology• Benchmarkings were based on a structured face-to-face interview with cluster managers• Self-assessment – so the result and usability depends on whether the interviewee gave

correct answers• Cluster management organizations were benchmarked both with their peers from the same

technology field and with the complete comparative portfolio

Objective• To contribute to the development of outstanding clusters through excellent management

and excellent cluster programs• The project pays particular attention on the characteristics of cluster management

organizations and their effects on cluster development

The project• NGPExcellence – Cluster Excellence in the Nordic Countries, Germany and Poland

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The benchmarking of cluster management organizations focused on 5 dimensions covering 34

indicatorsNGPExcellence 2/3


Structure of the cluster

1. Age of the CO2. Legal form of the CO3. Nature of the cluster: driving forces4. Nature of the cluster: degree of

specialisation5. Composition of the cluster

membership (Committed members)6. Regional concentration of the cluster

members (Committed members)7. Utilization of regional growth potential8. International members of the cluster9. Nature of co-operation between cluster

members

Achievement and recognition of the cluster

organisation1. Intensity of external requests for co-operation

2. Origin of external co-operation requests

3. Geographical dimension of the external co-operation requests

4. Characteristics of co-operation with foreign clusters

5. Media appearances6. Impact of work of the CO on R&D

activities of the cluster members7. Impact of the work of the CO on

business activities of the cluster members

8. Impact of business-oriented services of the CO on business activities of the SME members

9. Degree of internationalisation of cluster members

10. Impact of the work of the CO on international activities of the cluster members

1. Assignment of tasks/clarity of role definitions of the cluster management and the cluster members

2. Number of cluster members per employee (FTEs) of the CO

3. HR competences and development in the CO

4. Strategic planning and implementation processes

5. Thematic and geographical priorities of the cluster strategy

Cluser management and governance/Strategy of the CO

1. Current sources of financing of the CO2. Share of private financing of the CO in

relation to the age of the cluster3. Financial sustainability of the CO

Financing of the cluster management

1. Acquisition of third party funding2. Collaborative technology development,

technology transfer or R&D without 3rd party funding

3. Information, matchmaking and exchange of experience among members

4. Development of HR5. Development of entrepreneurship6. Matchmaking and networking with external

partners/promotion of cluster location7. Internationalisation of cluster members

Services provided by the CO (spectrum and intensity)

CO = Cluster Organisation

1. Research-driven clusters are much more similar to industry-clusters than previous research suggested;

2. Clusters with a small or high share of public funding are similar in terms of structure and governance, but different in terms of impact;

3. The visibility and attractiveness of a cluster and the impact of the cluster management organization on SME development depends on its age and size; apparently, larger and matured clusters provide a much better environment for results and impacts through activities of a cluster management organization;

4. The structural characteristics of a cluster in terms of e.g. size, governance structure or degree of specialization as well as the impact of the work of a cluster management organization depend on the technology field it is operating in;

5. Clusters with a high impact on business activities of SME feature an active cluster management organisation in terms of spectrum and frequency of business-related services.

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The excellence of the cluster management does matter to a great extent

NGPExcellence 3/3

Key findings


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Assessment of the absolute quality of cluster organisation excellence according to a scale

negotiated on European levelEuropean Cluster Excellence Initiative

Source: www.cluster-excellence.eu

Background• A PRO INNO Europe Initiative to raise the excellence of cluster management in the EU• 14 project partners develop a meaningful set of quality indicators and assessment

procedures for the evaluation and documentation of Cluster Management Excellence• Project coordinator: International Centre for Competitiveness, IESE Business School• Project implementation period: 09.2012 – 08.2012• Funded by DG Enterprise and Industry of the European Commission

Methodology – work is still in progress!• Focus on cluster organisation and cluster actors• The goal is to create an objective process for measuring and assessing Cluster

Management Quality• A mutually agreed and structured set of quality indicators will be developed• As a result of negotiation on European level a measurement scale (from insufficient to

excellent) shall be defined• A score above 80% of the theoretical maximum is considered excellent• Minimum thresholds defined are need to be eligible for a ’Quality Label’• Methodology will be available from 2012• Domains of indicators: (1) Structure of the cluster; (2) Typology, governance,

cooperation; (3) Financing cluster management; (4) Strategy, objectives, services; (5) Achievements, recognition

Rationale• Labelling excellent clusters is becoming common practise within Europe

but an internationally harmonised and recognised approach is missing

▪ Sole right for applying for dedicated pole program sources

▪ Advantages and preferential treatment in some calls for proposals (extra points in the selection process)

▪ New members of the cluster (joining the cluster after the accreditation) can benefit also from the above advantages

▪ The accreditation license is valid for 2 years ▪ After 2 years the license has to be renewed

▪ Select and classify the clusters that: o Are able to reach significant international

and domestic performance o Have further potential remarkable

opportunitieso Are not rent-seekers

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Cluster accreditation is used in Hungary to filter clusters applying for grants from the Structural

FundsCluster accreditation in Hungary 1/2

Source: Pole Programme Office, MAG Zrt., EPAP

▪ Continuous application▪ Cluster accreditation quarterly

▪ The clusters successfully going through the accreditation process receive a certificate

Overview

• The accreditation is an expert evaluation system with the aim of selecting the most promising initiatives

• The Accreditation Committee comprised of governmental decision makers and reputable economists from the private sector

Aim

Duration

Frequency of the

accreditation

The accreditation entitles

for

Accreditation

Certificate

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The focus is rather on the performance of the cluster members than on the cluster organisation

Cluster accreditation in Hungary 2/2Content of the criterion group Pcs of criterion

▪ The accreditation model is based on quantitative and qualitative criteria that have been determined by experts and have been tested on operating clusters

▪ The model is a coherent evaluation system grouped to five subcategories

▪ The model aims to select cooperations which reached market-proven success

▪ 10 ▪ Evaluation of the forms and content of the cooperations in the cluster

▪ Analysis of the sort and number of cluster members

▪ 2

▪ 5

▪ 4

▪ 14

35▪ Examination of market-proven

success with emphasis on the export activities and high added value

▪ Analysis of R&D activities in the cluster

▪ Analysis of the cluster’s vision and strategy

▪ Filtering the cooperations without relevant content

I. Cooperations in the cluster

II. Members of the cluster

III. Business performance of

the SME members

IV. R&D performane

V. Strategic and

operational plan

Groups

Source: Pole Programme Office, MAG Zrt., EPAP

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Contac

tse-mail: [email protected]

www.tenderix.hu

Thank you for your attention!