Cluster support in EU Cohesion Policy
Dr. Joerg Lackenbauer
Regional Policy DG (Hungary Unit), European Commission,
Brussels
ClusterCOOP conference
Budapest, 13 July 2011
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Contents
1. Innovation and cluster support in EU Cohesion
Policy
2. The case for cluster support in EU Cohesion
Policy
3. Clusters and smart specialisation strategies
4. Some key observations from cluster support in
EU Cohesion Policy
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1. Innovation and cluster support in EU Cohesion Policy
• Broad-based EU
innovation strategy and
Community Strategic
Guidelines on Cohesion
(both 2006): strengthening
clusters as a strategic
priority for successfully
promoting innovation
• From 2007-2013, EU
Cohesion Policy offers a
total budget of EUR 350
billion to its recipients in
the EU-27
• 51% of the total are
dedicated to the 12 ‘new’
Member States (± EUR
180 billion)
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1. (cont’d)
• 25% of the total are dedicated to R&D, innovation,
entrepreneurship and other related areas (± EUR 85
billion)
→ much bigger emphasis on innovation than in 20002006
→ EU Cohesion Policy is the biggest Community
source of funding for R&D, innovation, SME support,
clusters
• Various ‘new’ Member States have started cluster
support programmes within their (mostly
competitiveness) Operational Programmes
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1. (cont’d)
The Regional Operational Programmes for innovation
set down by regions usually include actions related to
the nurturing of clusters:
• Cluster initiatives: networking activities linking
universities, SMEs, and studies to identify
regional/national cluster profiles
• Cluster organisations: special agencies to launch
or manage cluster initiatives, etc.
• Cluster infrastructures: Science parks, techno
parks and incubators
• Clusters: Financial schemes to finance firms
(usually through competitions)
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2. The case for cluster support in EU Cohesion
Policy
•
•
•
•
The European Commission very much welcomes that many of
the EU Member States are devoting Cohesion Policy resources
also to cluster development in 2007-2013
These efforts represent a move away from the classical
grants/subsidies policy by focusing resources on actions of a
more strategic nature instead of financing many small unrelated
investments
In many cases, clusters have the potential to contribute to the
increase of competitiveness of industries, they are good
supporters of technological transfer
Moreover, the geographical concentration of specialized
suppliers, service providers and competitors enables companies
to save on input costs, e.g. on costs for designs, energy, or
delivery time
In many ways, clusters policy has a great potential to contribute
to the objective of growth and jobs and to the objective of
regional development
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2. (cont’d)
•
•
•
•
•
Clusters: businesses gain by…
Firms benefit from privileged access to a specialized
labor pool which provides them with a competitive
edge
Easier access to markets (common actions)
Better prices for raw materials and intermediate
inputs by sharing the costs or bundling collective
buys
Provision of specialized advanced services, from
technology centers to incubators or technology
transfer
Easier access to financing (public and private)
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2. (cont’d)
•
•
•
•
Clusters: regions gain by…
Locations benefiting from clusters are better placed
to attract foreign investment and talent
Clustering may be used to ‘fix’ large multinational
companies in the region
The industrial policy is aligned with the concept of
smart specialisation – identification of priorities
It should result in an economy reconverted to find
niches of competitiveness in the global economy
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3. Clusters and smart specialisation strategies
What is smart specialisation?
= evidence-based: all assets
= priority setting in times of scarce
= no top-down decision, but
dynamic/entrepreneurial
discovery process inv. key
stakeholders
= global perspective on potential
competitive advantage &
potential for cooperation
= source-in knowledge, &
technologies etc. rather than reinventing the wheel
resources
= getting better / excel with
something specific
= focus investments on regional
comparative advantage
= accumulation of critical mass
= not necessarily focus on a single
sector, but cross-fertilisations
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3. (cont’d)
• “…A particular case is made for selecting Innovation as a
core priority. Place-based interventions, building on the
strengths and taking account of the weaknesses of
previous experience as regards cohesion policy in this
area, could complement policies aimed at developing a
European Research Area, by selecting in each region a
limited number of sectors in which innovation can most
readily occur and a knowledge base build up. Through
such an approach – defined in the current policy debate
as “smart specialization” - the most could be made of the
present diversity of industrial agglomerations and
networks, while their “openness” beyond regional or
national boundaries would be promoted…” (“An agenda
for a Reformed Cohesion Policy” – Barca Report
(2009))
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3. (cont’d)
• COM Communication “Regional Policy contributing to smart
growth in Europe 2020” (October 2010): “Clusters are an
important element in smart specialisation strategies … Support
for their development needs to be concentrated on areas of
comparative advantage”
• Accompanying COM Staff Working Document: “Clusters can
provide a fertile combination of entrepreneurial dynamism and
contribute to the building of a knowledge-based economy, in line
with the Europe 2020 strategy … Clusters can be an important
tool for regional development, as long as they foster and build on
regional strengths … Key areas that could be supported [by EU
Cohesion Policy] include internationalisation of cluster firms …
cooperation activities across sectors … transnational
cooperation … The selection of new cluster initiatives should be
built upon a detailed analysis of existing strengths, assets and
potential of a region”  smart specialisation strategies
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4. Some key observations from cluster support in
EU Cohesion Policy
•
•
•
•
From the first experiences with cluster support under EU
Cohesion Policy 2007-2013, certain prerequisites for cluster
policies to deliver are emerging (these ‘lessons’ are of course
not limited to Cohesion Policy)
New cluster initiatives must be carefully designed, underpinned
by regional strengths, specific competences, knowledge hubs,
ideally already existing clusters
Overarching policy objectives are important, but successful
clusters cannot be defined in a pure "top-down" way, i.e. within
a policy framework defined and implemented straight from the
drawing board
On the contrary, industry and service providers have to be
actively involved within a "bottom-up" approach, not least for
their information advantages; they must be given a say when
programmes are designed
Here, it is most obvious that EU Cohesion Policy's partnership
principle is essential for policy design
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4. (cont’d)
• Moreover, a key ingredient for a cluster is the need for a few key
individuals, e.g. successful entrepreneurs, experienced
consultants, cluster managers, business angels providing private
funding
• Also, the link to a university – or, better, linking universities and
SMEs – is often a key factor
• Clustering is a market-driven process, but EU Cohesion Policy can
be a facilitator, leveraging efforts on the way to market success
• Policymakers should avoid the proliferation of cluster initiatives,
they should not artificially keep alive unsuccessful clusters →
endless channel for subsidies → undermines competition and
aggregate efficiency
• Regarding the need for funding, EU Cohesion Policy’s JEREMIE
initiative (financial engineering tools providing – inter alia –venture
capital) can be a very helpful instrument
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Thank you for your attention!
Dr. Joerg Lackenbauer
Regional Policy DG (Hungary Unit), European Commission, Brussels
joerg.lackenbauer@ec.europa.eu
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