European Clusters Go International

European Clusters Go International

- Current Status and Key Success Factors -

Gerd Meier zu Köcker1, Lysann Müller1, Zita Zombori2

1Agency Competence Networks Germany

2 Gedeon Richter, Hungary

New Delhi, November / December 2010

page 2

Why This Study (I)?

Internationalisation of clusters is considered to be of high relevance for the competitiveness of cluster firms

Key success factors still not really understood

Still a challenge for the cluster managements to provide tailor-made support

More than organising delegation missions and trade fairs !

Appropriate funding schemes often missing

The European-wide study should contribute to a

Better understanding of the key success factors

page 3

Why This Study (II) ?

117 clusters participated in the Pan-European survey

From 11 different countries

From different technological domains

Most of them label within their national cluster support

scheme

All have international ambitions

page 4

General Observations (I)

10%

38%

38%

14%

Strongly agree

Mostly agree

Mostly disagree

Strongly disagree

22%

58%

16%

4%

Strongly agree

Mostly agree

Mostly disagree

Strongly disagree

The cluster management has a dedicated mandate for Internationalisation

2007 2010

page 5

The cluster has developed and implemented an internationalisation strategy

-3 -2,5 -2 -1,5 -1 -0,5 0 0,5 1 1,5 2 2,5 3

All networks and clusters - 2007

All networks and clusters - 2010

Networks and clusters in which

the actors feel responsable for

internalisation

Networks and clusters in which

the management is responsable

for internationalisation

Index valueStrongly disagree Strongly agree

Zustimmung

Score: +3 - Strongly agree

Score: +1 - Mostly agree

Score: -1 - Mostly disagree

Score: -3 - Mostly disagree

General Observations (II)

page 6

Key Success Factors for International Co-operations

High competitiveness of products and services provided by

the cluster firms

Access to clusters and networks in targeted countries

Key Success Factors I + II

page 7

The Korean Experience – Key Success Factors by German SME Perspectives

Own investigations, 2009

page 8

Key Success Factors for International Co-operations

Clusters having developed and implemented an

internationalisation strategy tend to initiate more international

co-operations with positive feedback in firms business

Key Success Factors III

page 9

New Co-operations Initiated within the Last Three Years

page 10

Key Success Factors for International Co-operations

Cluster managements having a dedicated mandate and strong

backing from the cluster firms to create international co-

operations tend to be more successful

Key Success Factors IV

page 11

-3 -2,5 -2 -1,5 -1 -0,5 0 0,5 1 1,5 2 2,5 3

All networks and clusters

Networks and clusters in which

the actors are responsable for

internalisation

Networks and clusters in which

the management is responsable

for internationalisation

Index value

Score: +3 - Strongly agree

Score: +1 - Mostly agree

Score: -1 - Mostly disagree

Score: -3 - Strongly disagree

Strongly disagree Strongly agree

Clusters Having a Clear Mandate for Internationalisation Tend to be more Successful

Compared to 2007 clusters made considerable progress in terms of

internationalisation with positive impact on cluster firms business

page 12

Key Success Factors for International Co-operations

Cluster managements having a dedicated mandate and strong

backing from the cluster firms to create international co-

operations benefit much more from EU-funding projects

Key Success Factors V

page 13

Being Involved in European Programmes was of Significant Benefit for the Cluster Managements…….

Being involved in European programmes/projects supporting international cooperation among

clusters, had a positive impact on the internationalisation activities of the cluster managements

-3 -2,5 -2 -1,5 -1 -0,5 0 0,5 1 1,5 2 2,5 3

All networks and clusters

Networks and clusters in which

the actors are responsable for

internalisation

Networks and clusters in which

the management is

responsable for

internationalisation

Index value

Score: +3 - Strongly agree

Score: +1 - Mostly agree

Score: -1 - Mostly disagree

Score: -3 - Strongly disagree

Strongly disagree Strongly agree

page 14

…. but with a Comparable Low Impact on Cluster Firms Business’, except if the Cluster Management have had a Mandate

Being involved in European programmes/projects supporting international cooperation among

clusters, had a positive impact on the internationalisation activities of the cluster firms

-3 -2,5 -2 -1,5 -1 -0,5 0 0,5 1 1,5 2 2,5 3

All networks and clusters

Networks and clusters in which

the actors are responsable for

internalisation

Networks and clusters in which

the management is

responsable for

internationalisation

Index value

Score: +3 - Strongly agree

Score: +1 - Mostly agree

Score: -1 - Mostly disagree

Score: -3 - Strongly disagree

Strongly disagree Stongly agree

page 15

Case Example – Gedeon Richter - A Global Player, but Still Interested in Increasing International Co-operations

page 16

-5000

0

5000

10000

15000

20000

25000

30000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

M H

UF

R&D expenditure as % of sales

6,9%

8,8%

Continuously Increasing R&D Expenditures as

Driver for Internationalisation

page 17

Drivers for Gedeon Richter’s Increased Internationalisation Efforts

Gedeon Richter is well positioned in many important markets world-wide,

but

Increased pressure comes for Asian competitors

Innovation capability becomes decisive success factor

R&D efforts increases continuously

main objective of the internationalisation strategy

Identification of SMEs world-wide, whose inventions / R&D pipeline fit to

Gedeon Richter’s product portfolio

Joint R&D and commercialisation of SMEs’ inventions / products

page 18

Recommendations (I)

Policy Recommendation

Future funding activities should focus on cluster managements having a clear

mandate to internationalise

Support developing and implementing of tailor-made internationalisation

strategies

Encourage cluster managements to take over responsibility for

internationalisation on behalf of the cluster firms

Support new support measures and tools provided by cluster management

than funding those already offered by other bodies

Delegations missions

Trade fairs

….

Do not make too much pressures on clusters if they are not yet ready for

internationalisation

page 19

Recommendations (II)

Recommendation for cluster managements and firms

Cluster managements should take over responsibility for internationalisation on

behalf of the cluster firms

Develop and implement a tailor-made internationalisation strategy together

with the cluster firms (at the very beginning)

Focus support measures on those firms that have competitive products and

technologies available

Apply for funding only if there is a clear mandate by the cluster firms.

Otherwise a low impact on firms is very likely

Create demand-oriented services and support for the cluster firms

Do not stick on conventional tools

page 20

Thank you very much for your attention !

page 21

Thank you very much for your attention !

Dr. Gerd Meier zu Köcker

Managing Director

Agency Competence Networks Germany

E-mail: [email protected]

Phone +49 30 310078118