Economic performance of
the major european
metropolises : the Role of
Clusters
Dr Vincent GOLLAIN,
IAURIF, Paris
Dr Brendan WILLIAMS,
DIT, Dublin
SUMMARY
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Cluster and Regional Competitiveness
Emergence and Development Conditions
Study Methodology
Synthesis of Case Studies
Recommendations
1
CLUSTER
AND
REGIONAL
COMPETITIVENESS
What is a Cluster ?
• This idea can be traced back to Alfred Marshall (1890).
• A cluster is a geographically proximate group of
interconnected companies and associated institutions in
a particular field, linked by commonalities and
complementarities (M. Porter).
• A cluster can contain :
- a small or a large number of enterprises,
- small and large firms in different proportions.
- Firms with local or foreign origin.
• Different clusters involve varied degrees of interaction
among the firms involved, ranging from loose network of
association to multifaceted forms of co-operation and
competition
• Clusters can vary considerably in spatial extent.
2
EMERGENCE AND
DEVELOPMENT
CONDITIONS
Elements that influence the growth
of clusters
Key factors :
• Technology transfer,
• Knowledge transfer,
• Skilled labour force in related industries,
• agglomeration economies
• social infrastructure.
We find that every large European Region has not the
same chance to develop a certain cluster.
Cluster development is more appropriate in areas where
there is already an existing diverse economic base
Two Types of Clusters
1. The « natural » Cluster (most of cases studies ) :
• Cluster development is attributable to several key factors,
including technology transfer, knowledge transfer,
development of a skilled labour force in related industries,
the benefits of agglomeration economies, and social
infrastructure.
• Researchers differ on how these factors promote cluster
growth.
2. The « Public sector created » Cluster :
• Some clusters have been created or developed by policy
makers (Regional development agencies, planners, …).
• These Cluster policies focus on developing a strategy that
will encourage an efficient allocation of limited resources
available for urban and regional economic development.
3
STUDY
METHODOLOGY
General Principles
1. Identification of 5 target activities :
• 3 common sectors / clusters : I.C.T, Pharmacy
- biotechnology, Creative industries.
• 2 own sectors / clusters such as banking and
insurance or logistics.
2. Methodology :
• Cluster / sector analysis
• Policy toward clusters
• Interregional comparisons
- ICT
- Biotech
- Creative
- Finance serv.
- Tourism
- ICT
- Biotech
- Creative
- Media
- Tourism
- ICT
- Biotech
- Creative
- Banking - insu.
-R&D
- ICT
- Biotech
- Creative
- Logistics
- Serv. to elderly
- Environment ind.
4
SYNTHESIS OF CASES
STUDIES : EXAMPLES
ICT
Number of employees of ICT companies
400000
350000
300000
250000
200000
150000
100000
50000
0
Dublin
London
Paris
RhineRuhr
Strengths :
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Dublin : Low corporation tax ; leader in software
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London : European leader ; strong demand ; proximity to clients
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Paris : (inter)national leaders companies , proximity to clients
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RhineRuhr : national leaders, multimedia
Finance
The finance industry in European regions
Share of European employment
9,0%
8,0%
7,0%
6,0%
5,0%
4,0%
3,0%
2,0%
1,0%
0,0%
8,3%
5,4%
3,6%
2,7%
2,2%
1,5%
0,8%
Brussels
Ile-deFrance
Dublin
Frankfurt
RhinRuhr
Randstad
London
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Dublin : International Finance Services Centre
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London : One of the worlds leading financial centres
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Paris Ile-de-France : european and international financial centre
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RhineRuhr : national leaders
5
CLUSTERS POLICIES
Direct Intervention Measures
• State investment.
• Public services.
• Entrepreneurship.
• Subsidies / Incentives.
Indirect Intervention Measures
• Creation of a favourable business environment.
• Urban planning.
• Education and training.
• Soft and hard infrastructure provision.
• Streamlining regulation.
• Public office / safety / crime reduction.
• Access to capital.
Linkage and networks
• International.
• Regional.
• Local.
• Customers and clients.
• Suppliers and associated businesses.
Public Infrastructure and
Investment
• Hard infrastructure.
• Communications.
• Soft infrastructures.
• Environmental Issues.
6
RECOMMENDATIONS
Recommendations from cases
studies
• Initial identification of sectors.
• Support and development.
• Role of state agencies.
• Future development.