A cluster of opportunities and challenges

New book puts cluster policies on the agenda

Professor Susana Bórras has just published the book 'Cluster Policies in Europe’, which puts focus on the importance for a country to harmonise its policies according to the dynamic needs of business clusters. But why is it so important to take these clusters into account? And what might happen if collaboration does not exist at all levels?

Clusters collaborate and compete

A cluster is a geographic concentration of interconnected businesses in a particular field. If the market changes, a vast number of businesses are affected – and they will also have impact on each other. Therefore it is important that the politicians accept the institutional framework that helps the businesses to be competitive on the international market. And when the need of the cluster changes – which it does constantly – this institutional framework must follow.

China vs. Italy

Susana Bórras gives several examples of places where the policies have been inadequate.

- A number of business clusters composed of low-technology businesses exist in Italy. They manufacture shoes in the inexpensive market segment . They have been in keen competition with China in recent years.

The cluster businesses have certain problems, with which the state, the regions and the municipalities could have helped them. For instance, they could have granted the businesses better opportunities to strengthen their knowledge competences in relation to development of technology, design, production quality, etc. But it has not been possible to target the policies at all levels, explains Susana Bórras.

The problem is that both businesses and politicians have been lacking visions. As a result, it has not been possible to link the funding between the different levels. Furthermore, there have not been coordinated strategic efforts to improve the competitiveness of the businesses.

- EU funding has not been spent in interaction with the other levels. They have not been applied strategically enough, says Susana Bórras.

Further information here: http://frontpage.cbs.dk/insights/880004.shtml