economy

Cluster policy: main directions and types

Table of contents:

Cluster policy: main directions and types
Cluster policy: main directions and types

Video: Introduction to cluster algebras and their types (Lecture - 01) by Jacob Matherne 2024, June

Video: Introduction to cluster algebras and their types (Lecture - 01) by Jacob Matherne 2024, June
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More than half a century of experience of the leading countries of the world shows that cluster policy is so far the most effective tool contributing to the development of a post-industrial globalized economy. The creation of clusters makes it possible to use the competitive advantages of the territory, since a group of companies from interrelated industries, as well as enterprises supporting their activities, directly affect the development of the region and the economy of the country as a whole.

The concept

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In industrial policy, a cluster is understood as a combination of geographically localized companies related by industry, the infrastructure supporting their activities, including scientific and educational institutions, suppliers of equipment and components, and organizations providing consulting and specialized services.

The clusters include residential and commercial real estate, educational institutions and other facilities that ensure the livelihoods of people and organizations working in this cluster. Interconnected groups of companies are formed where it is necessary to develop key, innovative areas. The most successful clusters allow for a technological breakthrough and the formation of new market niches.

Cluster policy is a set of interconnected actions that is designed to stimulate and support private business and local governments in efforts to create and develop clusters. Government agencies may initiate the creation of industry groups of companies, but with the mandatory participation of regional authorities.

A bit of history

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The first clusters began to form around the 1950s and 1960s in North America and Western Europe. These were local programs to support, usually, traditional types of business for a given locality. Around the 70s, large-scale national programs began to appear to support the development of individual groups of enterprises, and from the second half of the 90s such cluster policy measures already worked in all developed countries.

Clusters have become an important and effective tool for economic policy and the implementation of a country's development strategy. Significantly increased the amount of funds allocated from state and local budgets. Long-term practice of implementing cluster programs in leading countries of the world has shown its effectiveness.

For example, the BioRegio bio-cluster development project allowed Germany to become a leader in the biotechnology sector, 700 million euros were allocated for financing, which allowed the industry to grow by 30% during the implementation of the program.

Types of clusters

There are various classifications. If we take as a basis the type of system-forming organization around, in cooperation with which a group of companies is formed, then two types are divided. The main, and often initiative, is:

  • A large-scale enterprise, with the anchor around which, usually, technologically interconnected groups of enterprises are formed. For example, in many countries, along with large enterprises that produce primary products from hydrocarbons - ethylene, ammonia, enterprises are being built that further produce consumer products from this raw material.
  • Organization defining economic development (associations, chambers of commerce and industry, regional agencies). Usually, specialized cluster policy agencies, which can be either public or private, are involved in the initiation and management.

Typology

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According to the core of the cluster, the type of common and unifying features, the following types of clusters are distinguished:

  • based on a complex technological basis;
  • developing traditional activities for the region, which was characteristic of the early periods of cluster policy development, for example, tourist clusters in Italy and Austria;
  • enterprises interconnected by contractual relations;
  • intersectoral clusters;
  • a network formed by several clusters belonging to different sectors of the economy and characterized by a high degree of aggregation, for example, chemical and automotive industries.

Categories

When analyzing cluster policy, two main categories are identified that are the result of this focused activity.

An industrial cluster is not spatially limited to any particular area; it has a tendency to have wider borders and can extend to the entire region, and to the country as a whole. Usually consists of various entities that pool resources for the development of a particular sector of the economy. For example, the cluster policy in Russia for the development of space technologies covers enterprises of the industry, which are located not only throughout the country, but also in Kazakhstan, where the Baikonur cosmodrome is located.

A regional cluster is formed in a specific local environment, spatially limited by agglomeration. Such clusters usually consist of small and medium-sized enterprises that focus on taking advantage of social capital and geographical location.

Policy objectives

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The main goal of cluster policy is to achieve a high level of development, sustainable growth, economic diversification by increasing the competitiveness of enterprises. At the same time, all entities participating in the work of clusters, including suppliers of equipment and components, companies providing the work process, including service, consulting, research and educational organizations, receive an incentive to development.

The goal of cluster policy is also the development of key, strategic technologies and industries, when a country seeks to achieve an advantage in the global high-tech market.

Directions

Despite the fact that states use a variety of industrial development tools, the main directions of cluster policy are determined.

Promoting institutional development in many countries is the main direction of state influence; it includes the creation of a specialized agency that initiates and develops industrial clusters, carries out strategic planning, determines specialization and spatial distribution.

Mechanisms are being developed to support projects aimed at introducing high technologies, modern management methods, and increasing the effectiveness of interaction. In many countries, as part of the region’s cluster policy, there are contests for financing, which is awarded to the company that provided the most promising projects.

The main direction is the creation of favorable conditions for development, attracting investments in cluster infrastructures, including engineering networks and real estate, improving the quality of labor resources and providing tax incentives and preferences.

Main tasks

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The cluster policy of any state, first of all, is aimed at creating conditions for development. At the same time, for its effectiveness it is necessary to solve the following tasks:

  • the formation of conditions, including the development of strategies that ensure the work of high-tech enterprises, contributing to an increase in the competitive advantages of group members;
  • providing effective support, including small and medium-sized businesses, attracting investment, developing innovative and industrial policies, engineering infrastructure, stimulating exports;
  • information support, providing advisory, methodological and educational assistance to sectoral and regional cluster policies. Coordination of activities of all participants in the process: state, local government and business.

Models

Depending on the degree of influence and the role of the state in the development of cluster policy, two models are distinguished:

  • Anglo-Saxon (USA, Canada, Australia), has a significant impact on the formation of clusters of mechanisms of market self-regulation. It works with minimal government intervention, which only needs to create conditions for cluster initiatives and reduce barriers to initiators. Regional cluster policy is responsible for the creation and organization of financing. The central government directly, including financially, only supports groups of enterprises of strategic importance to the national economy.
  • Continental (including Japan, Sweden, South Korea), here the state plays the most active role in the implementation of cluster policy. State bodies carry out activities to initiate them, determine priority areas, develop national programs for the development of key industries, create infrastructures and support measures.

Types of policies

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Many determine the competitiveness of a country depending on the degree of development of clusters, which are the result of the focused efforts of the whole society. There are several types of cluster policy, depending on the degree of state participation in their work.

  • The first type is catalytic policy, when state bodies only establish interaction between entities involved in cluster activities. It does not participate in cooperation.
  • The second type, when, in addition to the supporting, catalytic function, elements of control over further development and growth stimulation are added.
  • The third type of cluster policy, characteristic of Asian countries, involves government participation in the specialization of enterprises, their development and growth.