Cluster development (or cluster initiative or economic clustering) is the economic development of business clusters. The cluster concept has rapidly attracted attention from governments, consultants, and academics since it was first proposed in 1990 by Michael Porter.
Many governments and industry organizations around the globe have turned to this concept in recent years as a means to stimulate urban and rural economic growth. As a result, a large number of cluster initiative organizations were started during the 1990s, and the trend continues. The first comprehensive study of cluster initiatives around the world was reported in the "Cluster Initiative Greenbook" published by Örjan Sölvell, Christian Ketels and Göran Lindqvist, with a foreword by Michael Porter. The report was presented at the annual meeting of The Competitiveness Institute, TCI, in Gothenburg in 2003. A follow up study in 2005 covered more than 1400 cluster initiative organizations around the globe. In 2013, a decade after the first Greenbook, The Greenbook 2.0 was launched at the TCI global conference in Kolding, Denmark.
While the purpose of cluster initiative organizations is to promote economic development within the cluster by improving the competitiveness of one or several specific business sectors, it is important to differentiate these public-private organizations from policy-making organizations at different levels, e.g., national government units such as the UK Department of Trade and Industry (DTI), and supranational bodies such as the OECD and the European Commission and from industry associations comprising firms within one business sector, e.g., biotech, steel.
More specifically, cluster initiatives are organizations or projects that are organized as collaborations between a diverse number of public and private sector actors, such as firms, government agencies, and academic institutions.Whereas lobbying policymakers may be one of the cluster initiative’s activities, cluster initiatives generally are involved in a broad range of activities, e.g., supply-chain development, market intelligence, incubator services, attraction of foreign direct investment, management training, joint R&D projects, marketing of the region, and setting technical standards.
In June 2007, the European Cluster Observatory was launched. Financed by the European Commission DG Enterprise and Industry, it provides information about clusters, cluster initiatives, and cluster policy throughout 32 European countries. An example of a business cluster from the United Kingdom is the Northeast of England Process Industry Cluster (NEPIC). Information on this cluster and other European Clusters can be found on the European Cluster Observatory.
In 2009, under the Competitiveness and Innovation programme, the European Commission launched the European Cluster Excellence Programme from which the European Secretariat for Cluster Analysis (ESCA) was established.ESCA has since worked to spread best practice and improve the professionalism of Cluster managers across Europe by benchmarking, advising on best practice, analysing and accrediting Cluster organisations across the EU. ESCA's work has now extended beyond the borders of the EU including North America and Asia. By October 2014 ESCA had analysed 610 cluster organisations in 35 countries leading to Bronze level labelling. By October 45 Clusters have been awarded the Gold Label. An example of an ESCA Gold label Cluster is the North East of England Process Industry Cluster (NEPIC).
In the United States, residential cluster development in new housing developments is a means of permanently protecting open space and environmental resources, usually with conservation easements, while still allowing landowners to develop their property.Houses are built closer together on part on the land rather than spread evenly on large lots over the whole development.
Eureka, often abbreviated as E!, or Σ! is an intergovernmental organisation for research and development funding and coordination. Eureka is an open platform for international cooperation in innovation. Organisations and companies applying through Eureka programmes can access funding and support from national and regional ministries or agencies for their international R&D projects.
A science park is defined as being a property-based development that accommodates and fosters the growth of tenant firms and that is affiliated with a university based on proximity, ownership, and/or governance. This is so that knowledge can be shared, innovation promoted, and research outcomes progressed to viable commercial products. Science parks are also often perceived as contributing to national economic development, stimulating the formation of new high-technology firms, attracting foreign investment and promoting exports.
A social enterprise is an organization that applies commercial strategies to maximize improvements in financial, social and environmental, the Triple bottom line, well-being—this may include maximizing social impact alongside profits for co-owners.
Private sector development (PSD) is a term in the international development industry to refer to a range of strategies for promoting economic growth and reducing poverty in developing countries by building private enterprises. This could be through working with firms directly, with membership organisations to represent them, or through a range of areas of policy and regulation to promote functioning, competitive markets.
A business cluster is a geographic concentration of interconnected businesses, suppliers, and associated institutions in a particular field. Clusters are considered to increase the productivity with which companies can compete, nationally and globally. Accounting is a part of the business cluster. In urban studies, the term agglomeration is used. Clusters are also important aspects of strategic management.
The diamond model, also known as Porter's Diamond or the Porter Diamond Theory of National Advantage, describes a nation's competitive advantage in the international market. In this model, four attributes are taken into consideration: factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry. According to Michael Porter, the model's creator, "These determinants create the national environment in which companies are born and learn how to compete."
The Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA) was launched in 1994 in Davao City. It is located in one of the world's most resource-rich areas in Southeast Asia and includes the Heart of Borneo and the Sulu-Sulawesi Marine Ecoregion.
Innovation economics is a growing economic theory that emphasizes entrepreneurship and innovation. In his 1942 book Capitalism, Socialism and Democracy, economist Joseph Schumpeter introduced the notion of an innovation economy. He argued that evolving institutions, entrepreneurs and technological changes were at the heart of economic growth. However, it is only in recent years that "innovation economy," grounded in Schumpeter's ideas, has become a mainstream concept".
Innovation management is a combination of the management of innovation processes, and change management. It refers to product, business process, marketing and organizational innovation. Innovation management is the subject of ISO 56000 series standards being developed by ISO TC 279.
The Union for the Mediterranean is an intergovernmental organization of 42 member states from Europe and the Mediterranean Basin: the 27 EU member states and 15 Mediterranean partner countries from North Africa, Western Asia and Southern Europe. It was founded on 13 July 2008 at the Paris Summit for the Mediterranean, with an aim of reinforcing the Euro-Mediterranean Partnership (Euromed) that was set up in 1995 as the Barcelona Process. Its general secretariat is located in Barcelona, Spain.
The International Organisation of Employers (IOE) was created in 1920 to advocate for employers and the business community in the tripartite governance structure of the International Labour Organization (ILO). Today, from its headquarters in Geneva, Switzerland, IOE continues to defend and promote these same interests across a wide range of UN agencies, international organisations, intergovernmental processes and the media. As of September 2019, IOE had 156 national employer organisations members in 145 countries. It remains involved in the activities of the International Labour Organization, acting as Secretariat to the Employers' Group, as well as representing business in international forums, including the G20 intergovernmental process on labour and social policy. It describes itself as "the largest network of the private sector in the world" and "the global voice of business".
The Paper Province is a business cluster for the pulp and paper industry in Värmland, northern Dalsland and the county of Örebro in central Sweden. It is focussed on encouraging collaboration on marketing, skills development, procurement, project development and regional growth. The cluster organization is owned and operated by its 90 member companies, from global giants to local suppliers, representing the entire value chain.
The European Aerospace Cluster Partnership (EACP) is a permanent partnership between collaborating European aerospace clusters. The consortium currently comprises 45 aerospace clusters from 18 different countries and was initiated by the city of Hamburg in 2009 and co-funded by the European Commission.
Chiang Mai Creative City is an initiative to develop Chiang Mai into a creative city. A creative city is a city where cultural and creative activities are an integral part of the city's economic and social functioning. The experience of other cities which have implemented such strategies has shown that they can be more successful than cities which have not. On 31 October 2017, Chiang Mai has been designated as a UNECO Crafts and Folk Art Creative Cities Network.
MARSEC-XL, the Marine software engineering Cluster of Excellence, is a Cluster initiative (CI) in Malta aimed at creating a hub for business activity, research, technology transfer, education and training, promoting Marine Software and Systems Engineering.
Eurogas is an association representing the European gas wholesale, retail and distribution sectors towards the EU institutions. The association aims to strengthen the role of gas in the energy mix by establishing an ongoing dialogue with European industry players, global gas producers and relevant institutions. Eurogas was founded in 1990, with its members currently including 44 companies and associations from 22 countries.
Biopeople - Denmark's Life Science Cluster is a publicly funded partnership and National Center established, authorised, and funded by the Ministry for Science and Higher Education to improve innovation, collaboration and education within the National Danish Innovation System. Biopeople is established as a Center at the Faculty of Health and Medical Sciences at University of Copenhagen.
The North East of England Process Industry Cluster (NEPIC) is an economic cluster created following the industrial cluster ideas and strategy of Michael Porter. This Process Industry Cluster has been created by the chemistry using industries based in North East England where more than 1,400 companies are based in the supply chain of the sector. The sector has over 35,000 direct employees and some 190,000 indirect employees in the northeast of England and together they represent over one third of the industrial economy of the region. Companies in the Cluster manufacture 50% of the UK's Petrochemicals and 35% of the UK's Pharmaceuticals and they significantly contribute towards making the region the only net exporting region of the UK. The region has over £13 billion of exports.
The National Competitiveness Council (NCC) is a public-private body that develops strategy for the long-term competitiveness of the Philippines through policy reforms, project implementation, institution building, and performance monitoring.