Opinion of the Committee of the Regions on Clusters and cluster policy
Date: 2008-06-19
Institutions: European Committee of the Regions
Subjects: business policy, economic concentration, exchange of information, innovation, inter-company cooperation

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Opinion of the Committee of the Regions on ‘Clusters and cluster policy’

(2008/C 257/12)

THE COMMITTEE OF THE REGIONS ISSUES THE FOLLOWING RECOMMENDATIONS:

— calls on the European Commission to draw up a framework programme to facilitate cooperation and
networking between all the administrations involved, and to draft guidelines for setting up and inter-
linking clusters — including across borders. Cooperation between clusters is a promising way to
strengthen Europe's innovative capacity and attract global attention from investors and innovators,
which is why cross-border cooperation between cluster organisations should not be restricted to
Europe alone, but should be global, with a view to achieving an end goal of ‘world level clusters’;

— considers that there should be a general strategic framework bringing together the approaches of the
various stakeholders: public administrations, universities, research centres and businesses, so as to
implement the three abovementioned processes in a coordinated manner:

— to make it possible to create the necessary conditions for encouraging the setting up and develop-

ment of clusters;

— to encourage the implementation of initiatives proposed by clusters;

— to interlink clusters both nationally and across borders, in order to cooperate and exchange experi-

ences;

— in this context, proposes that the first step in developing the strategic framework should be to set up
a High Level Expert Group which would study the matter and set down guidelines for the integration
and harmonisation of criteria for the Council and the Commission.

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Rapporteur: Antonio GONZÁLEZ TEROL (ES/EPP), Director-General for European affairs, Autonomous

Community of Madrid

POLICY RECOMMENDATIONS

THE COMMITTEE OF THE REGIONS

Whereas
the Competitiveness Council, which met on 4
December 2006, identified clusters as one of nine priorities for
innovation action at European level;

Whereas the Slovenian Presidency has called on the Committee
of the Regions to draw up an opinion by the end of June so
that its views may be taken into account in the Communication
on cluster policy being drafted by the European Commission
(July 2008);

Having regard to the Presidency Conclusions of the European
Council held in Brussels on 13 and 14 March 2008, which
stated that ‘efforts towards improving the framework conditions
for innovation should be better coordinated, including through
improved science-industry linkages and world-class innovation
clusters and development of regional clusters and networks’, and
called for the ‘facilitation of increased participation of innovative
SMEs in clusters and in public procurement’;

General comments

calls on the forthcoming French presidency to continue
1.
encouraging reports, studies and political debates on clusters,
and to explore new initiatives that could be developed as part of
the strategy on cluster policy being drawn up by the Commis-
sion;

understands the term ‘cluster’

2.
to mean a geographical
concentration of companies specialised in one sector, which are
linked with specific suppliers and other enterprises in interre-
lated industries, and which compete but also cooperate with one
another. This sector encompasses a large number of industries, a
cross-fertilisation of disciplines and activities. Clusters are fully
developed once they are able to harness their interdependence
to bid for complementary business, generating synergies which
bring growth to the whole sector, from which all the cluster
members benefit. The term ‘coopetition’ is used to define the
business strategy particular to clusters which straddles competi-
tion and cooperation, maximising competitiveness. There must
be mutual trust between the cluster members, and they must
share certain objectives and priorities so as to achieve full coor-
dination in a multi-level context;

3.
acknowledges the EU's weakness in turning ideas into new
products and services, and recognises that new public policies
must be adopted in order to facilitate networking between the
different social players involved in creating, transmitting and
applying knowledge. In concrete terms, new linkages must be
developed between public administrations, universities, research
centres and businesses;

considers that investment in R+D, is necessary but has so
4.
far not been sufficient. To encourage innovation in Europe, it is
important to join forces and gear investment in research specifi-
cally towards strategic areas;

5.
highlights that simply concentrating businesses geographi-
cally does not guarantee that clusters — or network economies,
synergies or improved competitiveness — will ensue. A critical
mass or sufficient production quantity must be reached, below
which clusters cannot be said to exist. Qualitative aspects and
external conditions must also be taken into consideration, parti-
cularly mutual trust and a sound relationship between busi-
joint action can be successfully taken on a
nesses, so that
sustainable footing;

considers that

there is not enough statistical data to
6.
measure these two aspects, and suggests that
the European
Cluster Observatory conduct a study on the conditions needed
for these aspects, which determine the existence of a cluster, to
be taken into account; offers its support, on the basis of its
experience and proximity to the regions;

agrees that clusters are important

7.
innovation drivers,
contribute to the competitiveness and sustainable development
of industry and services, and boost the economic development
of regions by creating wealth and jobs, thus contributing to
territorial cohesion, one of the EU's stated objectives in the
Lisbon Treaty;

considers that,

8.
in many cases, public authorities and
private bodies should be involved in encouraging the setting up
of clusters and helping to keep them on the cutting edge of
their sectors;

The public sector can also play a significant role in addres-

9.
sing the challenges faced by cluster initiatives by:

— assisting in objective setting and monitoring performance;

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— facilitating the cluster initiative process over time, as it

develops and matures (as set out in the point below);

— integrating the cluster initiative in a broader policy agenda.

10.
also believes that it should be the role of the public
sector to create an environment in which clusters can flourish,
for instance by:

— ensuring that there is highly-skilled human capital;

— simplifying administrative procedures for setting up and

developing clusters;

— encouraging the creation of centres of information and inte-

grated service centres;

— supporting cooperation between educational bodies and
clusters, particularly by creating joint centres for specialised
training. It would be useful if each Member State had at least
one centre for specialised cluster training;

— guaranteeing the availability of suitable financial instruments
to meet the requirements of the cluster, and ensuring good
relations between entrepreneurs,
inves-
tors and funding sources;

innovation centres,

— facilitating coordination channels both within the cluster
and with other clusters, and relations between clusters and
public administrations;

— fostering the development of opportunities for clusters exter-
nally, promoting their activity internationally and encoura-
ging the creation of cross-border networks. The right public
policy can help create a brand image of the region — and
the cluster — so as to increase its opportunities for external
growth;

— promoting R+D and innovation in its sphere of influence,
paying specific attention to the key factors for starting up
and developing innovative initiatives which,
in addition,
could help to leverage the private sector;

— supporting and stepping up private initiatives, bearing in
mind that the three levels of administration — Community,
national and regional — must be interlinked, with the
regions playing a key role in defining and implementing
policies to support clusters.

Nonetheless, highlights that the public authorities must avoid
making two important mistakes:

— they should avoid creating clusters from scratch where they
do not exist: clusters tend to evolve naturally, and creating
them artificially is likely to end in failure;

11.
considers that, in order to compete on the global market,
clusters need to build a strong network linking businesses,
universities and public authorities, and a constant innovation
process that enables them to continue generating new synergies.
This is the only way to ensure the future viability of clusters. It
should be borne in mind that, although excellence is a feature
of clusters, not all clusters can achieve the same level of devel-
opment or international scope. Excellence in this context is
created gradually, over time, via specific financial resources,
good governance
and structural, market-oriented reforms,
allowing for the necessary factor mobility (venture capital and
researchers);

considers that, faced with the current globalisation of
12.
markets,
(GVC)
it is essential to create ‘global value chains’
through clusters in order to improve coordination between
enterprises and overall competitiveness. While innovation is a
basic feature of all clusters, not all of them operate in high-tech
sectors: some are medium- or low-tech;

13.
points out that clusters are particularly useful for SMEs,
as they provide a context which encourages links with universi-
ties and large businesses, and enables them to access interna-
tional trade networks;

warns, however, that some countries and regions are too
14.
focused on SMEs, overlooking the fact that if not enough large
companies are present, the economic impact of clusters can be
limited;

Contributing to the Lisbon Agenda

considers that, at present, the free movement of factors
15.
of production and the high costs in developed economies
encourage relocation, which must be confronted by orienting
production systems towards activities with greater added value,
above all activities requiring intensive R+D and innovation;

16.
considers that the Lisbon Agenda was a response to the
new challenges of globalisation, with the aims of enhancing
human capital in the EU, giving more consistency to innovation
policies, creating a legislative framework to encourage this,
promoting the creation and growth of innovative enterprises
and improving interfaces within the
innovation system.
Achieving these aims will help us to move towards a society
open to innovation and knowledge and, therefore, competitive
— if not in terms of costs then in terms of added value;

— for the same reasons, they should avoid artificially extending
the lives of clusters when markets and technologies have
superseded them;

17.
it is
stresses that, for regions to be more competitive,
important to boost those sectors which are capital-intensive,
clearly innovative, with highly specialised human resources;

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18.
points out that there is a shortage of private spending on
R+D in Europe; but, considers that there is no point simply
increasing public R+D spending if enterprises themselves do not
adopt these goals and drive the necessary initiatives. However, it
is important for national public spending on R&D to be at a
level high enough for it to be effective. This is the only way for
such spending to be channelled, via research and innovation, to
the market. Public R+D spending should leverage private R+D
and innovation in order to substantially increase the percentage
of GDP devoted to it by Europe's regions. To achieve this, there
are four main areas for action:

— encourage the development of clusters or conglomerates
of businesses and public institutions around highly innova-
tive activities;

— boost the creation of suitable venues for these activities,
where knowledge (universities) and business (enterprises)
stand side-by-side: science and technology parks;

— step up instruments, both financial and otherwise,
support the creation of new innovative businesses;

to

— encourage networking between different centres of knowl-
edge and R+D and innovation, promote forums for exchan-
ging knowledge, and boost
the creation of networks of
regions which excel in innovation;

as a promising way to strengthen Europe's innovative capacity
and attract global attention from investors and innovators,
which is why cross-border cooperation between cluster organi-
sations should not be restricted to Europe alone, but should be
global, with a view to achieving an end goal of ‘world level clus-
ters’;

considers that cooperation between clusters is of vital
22.
interest for SMEs:
it facilitates information, tech-
nical exchanges, and the possibility of sharing research infra-
structure and production resources;

importantly,

notes that there is a discrepancy between many clusters'
23.
desire to develop their own business in their own regions or
countries, and the huge opportunities offered by exchanging
information and best practices with neighbouring clusters from
other States;

urges the Commission to remove all barriers to trade and
the internal

24.
investment within Europe. The completion of
market is a key means for opening up markets to competition;

25.
points out that barriers to trade, together with differing
legislation, social protection, administrative and tax systems, can
be a significant hindrance to cross-border cooperation. Lastly,
language barriers also mean that clusters tend to manage and
carry out their activities within the borders of their own coun-
tries, limiting their international links;

Developing the Community dimension

19.
welcomes the developments promoted by the European
Commission through a number of programmes and networks
which have led to real progress in designing and establishing
clusters, enabling experiences to be exchanged;

CoR recommendations

20.
does not question the European Commission's support
for the development of new, improved clusters at national or
regional level; considers, however, that there is a need for infor-
mation on identifying and developing good practices, and for
centres to pinpoint those tools which could be systematically
used or consulted, and which should be made readily available
to operators. Points out, that in this regard the Committee is
currently launching a study on Clusters and clustering policy: a
guide for regional and local policymakers;

21.
nonetheless, calls on the European Commission to draw
up a framework programme to facilitate cooperation and
networking between all the administrations involved, and to
draft guidelines for setting up and interlinking clusters —
including across borders. Cooperation between clusters is seen

recommends that the European Commission remedy the
26.
fragmented nature of the measures devoted to cluster promo-
tion in the EU, and considers that these should be grouped
under one specific line of action to promote clusters and
support inter-cluster cooperation;

for

as a necessary support

27.
the ever-expanding tasks
assigned by the Commission to regional authorities in the
promotion, coordination and exploitation of cluster initiatives,
the CoR considers that the Commission should also give the
regions a clearer picture of the research and innovation initia-
tives which it administers directly (principally the 7th FP and
the CIP). Similarly, special attention should also be paid to
ensuring proper coordination with the autonomous agencies set
up by the Commission in the research and innovation field and
with the JTI (Joint Technology Initiatives).

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28.
calls for the adoption and harmonisation of criteria to boost clusters at European level, which the
CoR believes would be a key addition to existing cooperation policies at all levels, so as to create a single,
structured approach rather than the partial approach taken by the various European cluster initiatives
interregional cooperation policy, technology/competition
currently existing in a variety of areas (R+D,
tracking, project funding support, etc.);

stresses that all the measures promoted through this inte-
29.
grated approach should focus on growth and competitiveness,
and on priority areas of action which must go beyond simply
exchanging experiences
joint
projects and initiatives, inter-project exchanges of staff and bene-
ficiaries, development of Community networks and institutions,
etc.;

and information to include

It should include representatives from all

lines for the integration and harmonisation of criteria for the
Council and the Commission. The group should be fully
independent and chaired by a person of European renown in
the field.
the
spheres
(particularly
regional), businesses with experience in managing clusters,
universities,
financial
bodies and other possible funding bodies (business angel
networks, venture capital funds, etc.);

research and technology institutes,

involved: politics,

administrations

To this end, proposes:

1. THE IMPLEMENTATION OF A COMMON STRATEGIC

FRAMEWORK FOR CLUSTERS

believes that this strategic framework would benefit from the
various cluster initiatives already in existence in specific
fields, and would bring them together, creating action lines
to facilitate the processes involved in the development of
clusters:

considers that there should be a general strategic frame-
work bringing together the approaches of the various stake-
holders: public administrations, universities, research centres
and businesses, so as to implement the three abovemen-
tioned processes in a coordinated manner:

— to make it possible to create the necessary conditions for
encouraging the setting up and development of clusters;

— to encourage the implementation of initiatives proposed

by clusters;

— to interlink clusters both nationally and across borders,

in order to cooperate and exchange experiences;

INCUBATION PHASE

— creation of environmental conditions needed for develop-

ment;

— provision of financial aid to make it easier to intercon-
nect small and large enterprises in the same area and
harness potential synergies;

in this context, proposes that the first step in developing the
strategic framework should be to set up a High Level Expert
Group which would study the matter and set down guide-

— relations with research centres in the sector;

— involvement of ‘driver’ enterprises;

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START-UP PHASE

— development of relationships of trust;

— interlinking of businesses from different clusters so as to

create cross-border meta-clusters;

— creation of own organisational

structure and brand

image;

— development of strategic cooperation agenda;

GROWTH PHASE

— creation and development of own projects;

— incorporation of clusters in European technology plat-

forms;

— alliances between clusters, interregional cooperation plat-

form;

— dissemination of results of cooperation between clusters,
ensuring that the project results reach other regions;

— new products as a result of joint initiatives;

MATURITY PHASE

— own patents and innovations;

— appearance of commercial sub-clusters;

— strategic partnerships for economic development;

— attraction of new investment to the region;

— linking observatories and technology tracking bodies in
different regions by setting up a European system for
tracking
and
improving information on intellectual capital, so as to
anticipate possible supply-side solutions and value-adding
technologies;

innovation,

industrial

research

and

— encouraging cooperation with European technology plat-

forms;

— implementing joint public projects between several
procurement

specifications

(common

and

regions
processes);

— promoting common regulations in different areas to
encourage or anticipate development of innovative tech-
nologies;

stresses that it is essential to combine existing information
into a single European Cluster Information Platform
(INFOCLUSTER) and include features that are useful to
enterprises and are only partially covered at present; in this
context, considers that the most suitable body to perform
the role of information platform would be the European
Cluster Observatory:

— a regional information system which sets out the current
range of infrastructures and research centres, enterprises
active in R+D and innovation, universities and other
bodies, research areas promoted, key technical and poli-
tical
resource would facilitate
networking between knowledge centres and clusters. It
could be managed by the European Commission in coop-
eration with the CoR, which could provide contacts with
regions and clusters existing at regional level;

etc. This

contacts,

2. INITIATIVES TO PROMOTE THE CREATION OF A
STRATEGIC FRAMEWORK BRINGING CREDIBILITY TO
THE PROCESS

— a dynamic European competition barometer in which
each cluster could compare itself with similar ones, and
find out its position in relation to the competition;

acknowledges that cooperation between enterprises in
clusters must be encouraged, promoting the creation of a
first-level network of cluster networks, enabling them to
share services and best practices at European and global
level, for instance by:

— developing and rolling out cooperation tools so as to

share the knowledge acquired by regional clusters;

— a cluster policy map showing national and regional poli-
in all fields (R+D and
cies in each geographical area,
innovation funding,
instruments,
support
financial
training and exchange programmes, etc.) for the exchange
of information;

— promoting events/meetings/match-days with the various
players, particularly enterprises, in the different clusters;

— various reports on the best knowledge-sharing practices

applied by enterprises or clusters;

— drafting a joint annual activity report for all European

clusters;

— promoting the development of shared services in the

fields of training, information, etc.;

stresses that it is key for public administrations to encourage
early demand projects, by:

considers it necessary to promote cooperation between
financial
instruments for innovation (capital/debt/direct
aid) in regions or countries, in order to facilitate investment
in major projects involving several regions from different
European countries via clusters, which could benefit from
greater leverage from European funds such as the EIB and
EIF;

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believes that it is possible for clusters to share resources
and services so as to have joint access to higher-quality
services:

3. EX-ANTE, EX-DURANTE AND EX-POST ASSESSMENT
MEASURES TO SERVE AS GUIDANCE FOR FUTURE
INITIATIVES

— specialised job exchange and programmes for researcher

exchanges and training in the private sector;

— mobility of enterprises sharing incubator facilities and

services;

— exchange of

technical

research structures and
skills,
production facilities so as to achieve economies of scale
and scope;

— European system for research tracking, industrial innova-
tion and improved information on intellectual capital;

Brussels, 19 June 2008.

considers that assessment is a means of research that can use
specific techniques and answer questions such as: have the
needs of the cluster have been met? Has a suitable policy
been designed and properly implemented? Will it have the
desired effect? Can unachieved objectives be re-examined?
Can the effectiveness of the policy be increased?

sees assessment as a tool that should be used throughout the
implementation process and that should, among other bene-
fits, increase the credibility of the cluster policy.

The President

of the Committee of the Regions

Luc VAN DEN BRANDE