Maritime Clusters in Landlocked Countries Prague Conference 27 April 2009 Patrick O’Riordan Aerospace, Defence and Maritime Industries European Commission Enterprise and Industry European Commission Enterprise and Industry Prague Conference on Maritime Clusters in Landlocked Countries | 27/04/09 | ‹#› Civilization grew in the beginning from the minute that we had communication - particularly communication by sea that enabled people to get inspiration and ideas from each other... Thor Heyerdahl European Commission Enterprise and Industry Prague Conference on Maritime Clusters in Landlocked Countries | 27/04/09 | ‹#› Maritime Clusters … . European Commission Enterprise and Industry Prague Conference on Maritime Clusters in Landlocked Countries | 27/04/09 | ‹#› Maritime clusters: • manufacturing industries like shipbuilding, transport (shipping) and infrastructure (ports and terminals); • ocean and sea resources like aquaculture; • service providers such as classification societies; • leisure related activities like yachting; • specific public sector organisations and services like the coast guard; • and sea related research and consultancy. European Commission Enterprise and Industry Prague Conference on Maritime Clusters in Landlocked Countries | 27/04/09 | ‹#› Cluster benefits Increase in efficiency • Increase in level of business formations • Higher level of innovation • European Commission Enterprise and Industry Increase internal and external communication and more possibilities to cooperate efficiently. Increased awareness of market developments. Focus in maritime cluster organisation on education, training and more mobility in the labour market. Focus in maritime clusters on RDI Prague Conference on Maritime Clusters in Landlocked Countries | 27/04/09 | ‹#› Maritime clusters in the Blue Paper Integrated Maritime Policy is to create optimal conditions for the sustainable use of the oceans and seas, enabling the growth of maritime sectors and coastal regions” “Business integration and competitiveness in the maritime sector are greatly enhanced by the formation of multi-sectoral clusters. These clusters are instrumental to maintain the maritime know-how of Europe and will occupy therefore a central position in the Maritime Policy.” “The Commission will encourage the formation of multi-sectoral clusters and regional centres of maritime excellence, and promote a European network of maritime clusters.” European Commission Enterprise and Industry Prague Conference on Maritime Clusters in Landlocked Countries | 27/04/09 | ‹#› Promotion of maritime clusters under IMP • Staff Working Document on Maritime Clusters SEC (2007) 1406 – October 2007 • Study on the Role of Maritime Clusters – November 2008 • Workshop “the role of maritime clusters in land-locked areas” - 27 April 2009 Prague European Commission Enterprise and Industry Prague Conference on Maritime Clusters in Landlocked Countries | 27/04/09 | ‹#› KEY FIGURES OF ALL EUROPEAN SEA-RELATED SECTORS EU-27 + Norway 15 000 Added value Employment Direct (Σ direct) added value = 186 600 million € Direct (Σ direct) employment = 4.78 million persons = 15 000 million € of added value 500 000 Average value added/employee = € 39 000 3 200 15 100 3 800 = 500 000 persons employed 50 000 156 000 1 000 40 000 70 000 Percentage maritime added value in national GDP* 1 000 2 100 8 700 28 400 500 11 500 4 000 100 100 50 25 400 300 300 1 200 200 500 2 800 23 000 24 300 6 400 Europe: 1.65% MT: 11.36% CY: 9.07% EE: 8.83% LV: 7.71% NO: 6.23% DK: 4.19% GR: 3.24% LT: 2.59% ES: 2.53% NL: 2.25% 35 000 634 000 191 000 48 000 1 000 147 000 287 000 4 000 4 000 504 000 4 000 6 000 10 000 136 000 103 000 171 000 876 000 725 000 279 000 Europe: 2.25% MT: 13.51% CY: 12.02% NO: 6.85% EE: 6.54% GR: 6.39% LV: 5.36% DK: 5.26% ES: 4.62% BG: 3.46% PT: 3.34% 20 000 500 1 200 * 145 000 38 000 3 400 17 200 Percentage maritime employment in national employment* 55 000 42 000 Top-10 countries in terms of share of maritime added value (and employment) in all sea-related Areas are listed; for other countries % share is well below 2.5% (and 3%) Value added amounts to 186 600 million € (of which 88% in the top-10 countries) Prague Conference on Maritime Clusters in Landlocked Countries | 27/04/09 | ‹#› to 4.78 million persons (of which 83% in the top-10 countries) European Commission Enterprise andemployment Industry and 44 100 Added value in € million Added value in the European maritime sectors (all Areas) 27 300 22 700 17 600 16 200 15 400 10 000 9 000 9 400 8 100 2 600 2 100 2 000 300 Coastal tourism Shipping Seaports Marine equipment European Commission Enterprise and Industry Fisheries Navy Shipbuilding Offshore supply Maritime Recreational services boating Cruise tourism Maritime works Inland Marine navigation aggregates Prague Conference on Maritime Clusters in Landlocked Countries | 27/04/09 | ‹#› Maritime economic centres are generally are represented by clusters Star-region represented by national and/or regional cluster organisation FI 3 • • Privately driven France, Spain, Italy, Finland, Sweden, Norway, UK, Poland • Government driven Germany, Denmark 2 1 SE 2 1 2 2 1 IE 1 1 2 2 1 1 2 2 1 PL 1 1 3 • 1 DE 3 LU 1 CZ SK FR AT HU SI RO • • Mixed Netherlands and Norway • Regional clusters e.g. France, the UK, Germany and Norway 3 3 2 IT 1 BG PT ES GR • 1 MT 1 CY European Commission Enterprise and Industry Prague Conference on Maritime Clusters in Landlocked Countries | 27/04/09 | ‹#› Initiative Characteristics TOP-DOWN E.g. Germany COMBINATION PLAY E.g. Dutch Maritime Network – Government induced and/or supported – Holistic and cluster wide approach – Focus on long-term strategy and policy: • Economy (e.g. level playing field and growth) • Education and recruitment • Research, development and innovation • Export • Common interest (e.g. environment and safety) – Focus on professionalism and cooperation/integration of maritime sectors European Commission Enterprise and Industry BOTTOM-UP E.g. Maritimt Forum in Norway – Induced and/or supported by strong leader firms and/or sector associations – Limited cluster approach based on supporting companies and sector associations – Focus on short-term benefits: • Rules and regulation • Tax regime • Labour market and job promotion • Innovation project support • Export support – Focus on operational problems Prague Conference on Maritime Clusters in Landlocked Countries | 27/04/09 | ‹#› Cluster typology – strengths and weaknesses Top-down organisations tend to operate with higher budgets, with a strategic focus on competitiveness and RDI for the entire sector. But face the need to balance between the interests, resulting in longer dialogue and more universal themes Bottom-up organisations are efficient are targeted to operational problems and activities (events, issues platforms) and provide a single-point-of-entry to the government But sectoral interests can prevail and focus may be short term “Mixed” cluster organisations capture all maritime stakeholders in order to have well-structured discussions between government and sector European Commission Enterprise and Industry Prague Conference on Maritime Clusters in Landlocked Countries | 27/04/09 | ‹#› Role of maritime cluster organisations All European countries with a maritime cluster have access to that cluster through a maritime cluster organisation Policy (initiatives) and actions are translated to European, national and regional level, although not in a uniform manner Maritime cluster organisations are mostly historically established (and regionally grown) based upon the specific needs of the cluster and its participants and upon the country’s culture Top-down and bottom-up initiated clusters focus in general on same content Topics of cluster organisations are mostly softer topics (e.g. innovation and labour market); in top-down maritime cluster more opportunities are created for strategical issues through the availability of funding Limited direct evaluation of impact/success of the actions of cluster organisations on projectbasis, but indirectly through the evaluation of maritime cluster organisations and the impact on financing (membership contributions) In principal, any organisation concept can do the job; nevertheless, organisations that are able to capture ‘best’ of both worlds seem most natural to balance public and private interests European Commission Enterprise and Industry Prague Conference on Maritime Clusters in Landlocked Countries | 27/04/09 | ‹#› YEAR OF ESTABLISHMENT OF MARITIME CLUSTER ORGANISATIONS 1987 1989 1991 1993 1995 1997 1999 2001 2003 European cluster* 2007 ENMC UK-Sea Vision National 2005 2009 Aquamarina UK-Maritime UK UK-One Voice FR cluster* DK NO2** SE IT NL FI NO1** PL DE ES PACA Bretagne S-W (UK) S-E (UK) Regional cluster* S-E (NO) Bergen London Haug.-Sonn. Mersey Schl.-Hol. Oslo Haven Gateway 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 * Full name and abbreviation of European, national and regional cluster organisations as used in this study is provided in Annex 7 NO1 is MARUT and NO2 is Maritimt Forum; more information concerning the activities of these clusters is provided in the Background Country Report – Norway Source: Policy Research Corporation based on questionnaires of maritime cluster organisations ** After the popularisation of the cluster concept in Porter’s ‘Competitive advantage of nations’ in 1990: – Most maritime cluster organisations were established – Governments have become more reluctant on developing sector policies European Commission Enterprise and Industry Prague Conference on Maritime Clusters in Landlocked Countries | 27/04/09 | ‹#› PRIMARY RATIONALE FOR ESTABLISHING MARITIME CLUSTER ORGANISATIONS National cluster organisations Regional cluster organisations 3% 6% 25% 28% 38% 44% 28% 28% Competitiveness Promotion Coordination Other (e.g. education, framework) Source: Policy Research Corporation based on questionnaires amongst maritime cluster organisations Main reasons for establishing a maritime cluster organisations are to increase competi-tiveness, to promote maritime sectors, and to improve coordination within the cluster European Commission Enterprise and Industry Prague Conference on Maritime Clusters in Landlocked Countries | 27/04/09 | ‹#› Maritime cluster organisations are developed different according to specific needs and the prevailing culture In spite of differences in size, scope or funding, maritime clusters tend to be set up for similar reasons (to increase competitiveness, promote maritime sectors and coordinate activities) There is no organisational concept of cluster organisations that intrinsically excels All these clusters can play a role in public-private dialogue and benefit from learning from each others’ best practice and lessons learned European Commission Enterprise and Industry Prague Conference on Maritime Clusters in Landlocked Countries | 27/04/09 | ‹#› THE SEA RELATED SECTORS AND THEIR AREA-CLASSIFICATION Area 1 Area 2 Coastal and sea-related (marine) recreation and tourism Traditional maritime sectors*: – – – – – – – – – – – * Inland navigation Marine aggregates Marine equipment Maritime services Maritime works Navy and coastguard Offshore supply Recreational boating Seaports Shipbuilding Shipping Area 3 Fisheries In the study Economic impact of maritime industries in Europe, carried out by Policy Research on behalf of the EC, the fisheries sector was also included as part of the traditional maritime sectors; furthermore, differences exist per country with regard to the ‘scope’ of the maritime industry; the members of the European Network of Maritime Clusters regard eight sectors as part of the maritime cluster from a narrow perspective: shipping, shipbuilding, marine equipment, seaports, maritime services, yacht building, offshore services and fishing; three sectors can be added from a national, broader perspective: Navy and coastguard, inland navigation and maritime works EMPLOYMENT IN SEA-RELATED SECTORS IN LANDLOCKED COUNTRIES Employment figures for Czech Republic in all Areas 4 000 4 000 3 500 Persons employed Employment figures for Luxembourg in all Areas Area 1: Traditional maritime sectors Area 2: Coastal (and marine) tourism and recreation* Area 3: Fisheries** Persons employed 3 500 3 000 2 300 2 500 2 000 2 000 1 500 1 000 500 3 000 0 0 2 500 Area 1 Area 2 Area 3 2 000 1 500 1 100 Employment figures for Slovakia in all Areas 1 000 500 0 0 Area 2 Area 3 0 Area 1 4 000 Persons employed 3 500 3 000 2 500 2 300 2 000 1 500 1 200 1 000 500 Employment figures for Austria in all Areas Area 1 4 000 2 500 4 000 2 000 3 500 1 500 1 000 700 500 200 0 Area 1 Area 2 Area 3 Employment figures for Hungary in all Areas 3 200 3 000 Area 2 Area 3 Persons employed Persons employed 3 500 100 0 3 800 3 000 2 500 2 000 1 700 1 500 1 000 500 100 0 Area 1 Area 2 Area 3 * Employment in Area 2 in landlocked countries is achieved in the cruise tourism sector ** Employment in Area 3 in landlocked countries is achieved in fish processing and aquaculture Source: Policy Research based on Ecotec (2006) – Employment trends in all sectors related to the sea or using sea-resources, BIMCO/ISF (2005) – Manpower 2005 update, Eurostat – Industry, Trade and Services (Annual enterprise statistics) 2005, and Policy Research based on LEI (2006) – Employment in the fisheries sector Hungary and Austria have highest employment in Area 1; the Czech Republic has highest employment in Area 3 compared to the other European landlocked countries NO STARS FOR EMPLOYMENT IN TRADITIONAL MARITIME SECTORS (AREA 1) IN LANDLOCKED COUNTRIES Employment figures for Czech Republic in Area 1 2 000 1 800 Persons employed 1 600 Employment figures for Luxembourg in Area 1 Persons employed 2 000 1 400 1 200 1 000 800 400 1 600 200 1 400 0 700 500 100 Shipping 1 200 1 000 700 600 1 800 Inland navigation Shipbuilding 900 Recreational boating 800 Employment figures for Slovakia in Area 1 600 400 100 200 50 0 Shipping 2 000 Maritime services Inland navigation Maritime works 1 800 Persons employed 1 600 1 400 1 200 1 000 1 000 700 800 600 600 400 1 100 Employment figures for Austria in Area 1 2 000 1 800 0 2 400 3 200 Shipbuilding 3 800 1 400 1 200 2 000 1 000 1 800 400 400 100 200 0 Marine equipment Shipping Recreational boating 2 000 1 600 600 400 Recreational Shipbuilding boating Inland navigation Shipping Persons employed Persons employed 1 600 600 Inland navigation Employment figures for Hungary in Area 1 1 700 800 100 200 2 000 1 400 1 200 1 200 1 000 800 600 400 400 200 200 0 Shipping Inland navigation Shipbuilding Recreational boating Source: Policy Research based on Ecotec (2006) – Employment trends in all sectors related to the sea or using sea-resources, BIMCO/ISF (2005) – Manpower 2005 update, and Eurostat – Industry, Trade and Services (Annual enterprise statistics) 2005 No stars for landlocked countries because maritime employment does not exceed 5 000 persons, yet countries as Austria are strong niche players in certain subsectors NO STARS FOR EMPLOYMENT IN COASTAL TOURISM (AREA 2) AND FISHERIES (AREA 3) IN LANDLOCKED COUNTRIES Area 2* Area 3* (figures on country level) (figures on country level) Employment in cruise tourism Employment in fish processing and aquaculture 2 300 100 200 700 100 1 200 1 700 * Source: Policy Research based on Eurostat – Tourism indicators 2005 NUTS II regions in landlocked countries do not exceed 1 000 persons employed in Area 3 Source: Policy Research based on LEI (2006) – Employment in the fisheries sector No stars are awarded to regions within landlocked countries because maritime employment does not exceed 1 000 persons Thank you for your attention! Aerospace, Defence, Maritime Industries European Commission, DG Enterprise and Industry http://ec.europa.eu/enterprise/sectors/maritime/shipbuilding/index_en.htm European Commission Enterprise and Industry Prague Conference on Maritime Clusters in Landlocked Countries | 27/04/09 | ‹#› Cluster benefit Approach Main initiatives Sector involvement Mainly project-based approach • Promotion campaigns through websites, videos and presentations • Report on economic importance of the cluster • Organising promotion events Almost all sectors are involved in these initiatives Focus in maritime cluster organisation on education, training and the labour market Project-based and structural approach • Programs in cooperation with universities and professors • Recruitment campaigns and fairs • Platforms to exchange best practices Almost all sectors are involved in these initiatives with leading roles for shipping and shipbuilding industry Focus in maritime clusters on RDI Project-based approach based upon (high budget) government support programs and structural approach • On (governmental) project basis • Structural cooperation with RDI-institutes and universities • Platforms to exchange best practices Almost all sectors are involved in these initiatives with leading roles for shipbuilding, marine equipment, offshore supply and shipping Promotion of the maritime cluster European Commission Enterprise and Industry Prague Conference on Maritime Clusters in Landlocked Countries | 27/04/09 | ‹#›