Creating clusters and centres of excellence Cross cluster for the technical textile sector Mick Parmar, Pera Innovation.

Creating clusters and centres of excellence

Cross cluster for the technical textile sector

Mick Parmar, Pera Innovation

INNOTEXINNOTEX

The Development of a cross cluster best practice platform for entrepreneurial

innovation for the technical textile sectorContract No. 022532

Creating Clusters and Centres of Excellence7 October 2005

European Innovation Workshop5-7 October 2005

AgendaAgenda

IntroductionStatus of The Textile Sector Market

The Challenge of GlobalisationEuropean Textile Clusters & NetworksBrief Presentation of INNOTEX Project

Project ObjectivesActivities to be Organised

Summary

Textile SectorTextile Sector

Textiles and clothing are a major sector of European industry.

Annual European turnover of €215 billion in 2003Workforce of around 2.6 million.

• 25-30% of total industrial employment in some southern and eastern EU Member States

The sector accounts for a total of approximately 200,000 companies in the enlarged EU

• 95 % of which are mainly SMEs.It is a major player in world trade, the first in textile exports and the third in clothing.

The Challenge of GlobalisationThe Challenge of GlobalisationIntensified Competition Due to

The Completion of the European Internal MarketInternationalisation of Product & Labour Markets

Global Textiles Market SegmentationGlobal Textiles Market Segmentation% share, by value, 2004% share, by value, 2004

Datamonitor, 2005

Asia-Pacific worth nearly 60% of Global market’s value with sales of $612.4bn in 2004Global Compound Annual Growth Rate of 4.2% predicted for 2004 – 2009 to a value of $1,268 billion by 2009, with dominance of Asia-Pacific unlikely to be weakened

Textile SectorTextile Sector

Tough Challenges for the EU Textile IndustryTough Challenges for the EU Textile Industry

1.3m jobs lost in textiles and clothing industry in Europe from 1990 – 2004

Unsustainable Price CompetitionIncrease of low cost imports from Asia PacificMassive Differential in Labour Costs

Europe no longer able to compete on quality, cost & delivery

This is Not Exclusive to The Textile Sector

Textiles Jobs Lost in EU-15Textiles Jobs Lost in EU-15

Ger

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yUSA

Japa

nUK

Polan

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Chin

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Indi

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2003

20042005

20062007

2008

0

5

10

15

20

25

30

35

40

US

$ p

er

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ur

Year

Current and Projected Hourly Labour Costs

  2003 2004 2005 2006 2007 2008

Germany 30.5 33.8 36.7 37.7 36.6 36.7

USA 22.1 22.9 23.5 24.2 24.9 25.7

Japan 20.5 21.8 22.1 22.7 23.2 23.7

UK 22.1 22.9 23.5 24.2 24.9 25.7

Poland 3.1 3.5 4 4.2 4.4 4.4

China 0.8 0.9 1 1.2 1.5 1.7

India 0.8 0.9 0.9 1 1.1 1.2

Three Major Sectors of European Textile Three Major Sectors of European Textile by volume of fibre usageby volume of fibre usage

European Technology Platform for European Technology Platform for the Future of Textiles and Clothingthe Future of Textiles and Clothing

Technical Textile IndustriesTechnical Textile Industries

AgricultureAutomotiveAerospaceBuilding/Construction/EngineeringMedical/HygienePackagingProtective clothingSportswearTransport

Technical Textile Application In Technical Textile Application In Aerospace SectorAerospace Sector

Technical Textile Application In Technical Textile Application In Automotive SectorAutomotive Sector

Western Europe’s Consumption of Western Europe’s Consumption of Technical TextilesTechnical Textiles

Source: Euratex estimate for 2004 based on Eurostat, 2004 and OETH, 2000

European Textile Clusters & NetworksEuropean Textile Clusters & Networks

With the unprecedented competition the 190,000 SMEs in the textile and clothing sector, are increasingly recognising the importance of collaboration and networking in a traditionally secretive industry:

Allowing development of efficient supply chains thus improving competitivenessProviding new marketsTransfer best practice and improve innovation capacityThe broader use of textile materials across an extensive range of end-uses,• Providing niche sectors in which they can more

easily differentiate their products in terms of quality and charge higher prices

European Textile Clusters & European Textile Clusters & NetworksNetworks

The textiles cluster in Leicestershire First sectors that felt the pressures of globalisation more than 20 years ago. Through a challenging 10 year process the cluster realised that they could not compete on quality, cost and delivery The textile cluster thus looked for more innovative ways of becoming more competitive Resulting in more companies moving into the area of "technical textiles"

• Ranging from specialist heat and chemical resistant materials and products that moved from labour to knowledge intensive manufacturing processes,

• Enabling the cluster to become more competitive and allow them to compete against the low cost economies.

European Textile Clusters & European Textile Clusters & NetworksNetworks

Nordic CoE for Smart Textiles and Wearable Technology (NEST) set up in 2003

European Textile Clusters & European Textile Clusters & NetworksNetworks

Leapfrog – aims at measurable efficiency improvements• 60% time gain through 3D virtual garment design• 80% reduction in machining times for complex garments• Reduction of quality faults and errors from 20% to zero

WebTEXpert - aims at the development and provision of advanced methods in the field of innovation-management

• Focuses on new product development to increase the competitiveness of SMEs operating in the textile and clothing industry

• The participation of Industrial Associations and Groupings (IAGs) is considered to be a central element of the project

• Results disseminated to SMEs at regional, national and international level.

European Textile Clusters & NetworksEuropean Textile Clusters & NetworksWithin FP6 a number of Economic and Technological Intelligence (ETI) projects for SMEs will touch about 30 clusters of SMEs around Europe

Fashion Net - aiming at fostering innovation and technology transfer among European SMEs of the fashion system, promoting partnerships and networks

Intelligent Textile Environment (ITE) - assists entrepreneurs in their Framework Programme research through events, coaching, benchmarking and case studies

Shoes 5000 – aims to involve 5000 footwear SMEs in working towards technological innovation through research participation and dissemination of information

INNOTEX ProjectINNOTEX Project

Brings together a supply chain of 5 complementary EU clusters

To form a new Network of Clusters involving several leading European regionsDomain of technical textiles. Leading clusters within their own sector Representing different phases in the production process and use of technical textiles Clusters at different phases in the struggle against low-wage competition from Asia Pacific.

• Estonian polymer-composite cluster will allow transfer knowledge and best practice from the very best clusters in the Western Europe regions to clusters in the new member states

.

INNOTEX ObjectivesINNOTEX Objectives

Develop a best practice platform for innovation & entrepreneurship for the technical textiles sector through transfer between clusters

Increase competitiveness through raised innovation capacity and exposure to innovation opportunities requiring cross cluster competency mixes for new markets

Strategic OutputStrategic Output

Development of pan-European and cross sector supply chains

Joint projects utilising competency complementarities

New innovative strategies and ongoing cooperation

ParticipantsParticipantsUK

LSEP (Textile Cluster)LI (Knowledge transfer)Pera (Innovation/SMEs)

DenmarkFlagskibet.dk (Maritime Cluster)Elvström Sails (End user)UdviklingsCenter Hadersley (Knowledge transfer)

SpainInspiralia (Innovation/SMEs)FITCA (Textiles Sector)FSV (Research)

EstoniaEnterprise Estonia (Composites Sector)ECTA (Textiles sector)

Project OverviewProject Overview

Supports pilot action 1.2.3.1 –“supporting network activities between existing business clusters that operate in the same or different sectors in Europe….and confirming the need and willingness for establishing at European level co-operation platforms facilitating the exchange of knowledge and best practices between existing clusters in Europe”

30 month duration

Start date 1 October 2005

8 work packages

Structure of Work ProgrammeStructure of Work Programme

Work Package 1 – Work Package 1 – SWOT analysis of the clustersSWOT analysis of the clusters

ActivitiesMeet to establish common frameworkDo SWOT analysis of clusters Benchmark the clusters’ innovation capacity

DeliverablesCommon framework for the SWOT analysis Report on the SWOT analysis for each of the four clustersReport on the benchmarking exercise

Work Package 2 – Work Package 2 – Exchange of Knowledge & Best Practice Exchange of Knowledge & Best Practice

between Clustersbetween ClustersActivities

Identify vehicles for exchange of knowledgePlan timetable & content for vehiclesExecute events & document with at least 4 exchange visits to the 4 participating clusters.

DeliverablesReport on the vehicles chosen for knowledge & best practice transfer between partnersPlan for seminars, workshops, exchange visits etc. Report on each seminar, workshop & exchange visit

Work Package 3 – Work Package 3 – Development of Joint Projects & Innovative Development of Joint Projects & Innovative

StrategiesStrategies

ActivitiesCluster competency analysisDefinition of joint projects & identification of fundingForm new and larger cross cluster supply chains for the development of high quality concepts for cross cluster collaborationDrafting of joint innovative business strategies for cooperation

DeliverablesReport on cluster complementarities Report on potential joint project activitiesReport on potential joint business strategies

Work Package 4 – Work Package 4 – Defining a Best Practice Platform for Defining a Best Practice Platform for

Entrepreneurial InnovationEntrepreneurial Innovation

ActivitiesDefine a framework for a best practice platformDefine the content Define for the technical textiles industry

DeliverablesReport on framework for a best practice platform Report on content for a best practice platform Model of the best practice platform

Work Package 5 – Work Package 5 – Preparation of Policy Recommendations & Preparation of Policy Recommendations &

Modification of the PlatformModification of the Platform

ActivitiesBenchmark INNOTEX against other projectsDevelop general model for platform Develop policy recommendations

DeliverablesBenchmarking report on the best practice platform A general model for a best practice platform Report specifying policy recommendations

Work Package 6 - DisseminationWork Package 6 - Dissemination

ActivitiesSynergies with other projects, action plan, promotional materialFour National ConferencesInformation seminars at Trade FairsSynergies with PAXIS projectsFinal conference

DeliverablesAction Plan for exploitation of resultsDissemination information – events, press releases, brochure etc.Evaluation of resultsFinal conference reports

SummarySummary

Aims to use high value added products to compete against threat from Asia Pacific

Transfer of best practice between complementary clusters in textile related sectors

Develop a model transferable to other sectors

Development of new networks and pan-European joint projects

Textile Innovation ProcessTextile Innovation Process

1% INSPIRATION

99% Cross-Clustering