The strength of cooperation – a few words about clusters

Modern, globalised world gives a chance to establish one’s presence on the mass market, but at the same time it greatly increases competition, making product independent from the area it was created. How in such conditions can small and medium entrepreneurships cope? How to establish your presence in a crowd of competitors and create an interesting offer? Clustering initiatives may be an answer to these questions.

The term “Cluster” is used in many fields. It was first brought to the ground of economy by American economist Michael Porter. According to his definition, a cluster is a geographical concentration of companies and institutions operating in related sectors having ties to each other, competing and cooperating at the same time.

Porter’s concept of cluster first established in 1990 quickly gain popularity among economical theorists and practitioners, strategists and politician. Cluster structure is contemporary considered as the most mature form of economical organisation. Clustering initiatives, concentrating a number of companies and associated institutions, achieving success in their operations, are typical to network economies, distinctive to economically developed countries.

The most famous cluster in the world is the Silicon Valley in California, comprising of 6 thousands companies with over a million employees. First enterprises were already appearing there in 1912, in 1938 Hewlett Packard company was established, while in 50s and 60s, new corporation massively migrated there, what resulted in the creation of a network of cooperating companies. Currently, operation of Silicon Valley is tied with operation of electronics and IT giants. The example of Silicon Valley shows that innovative clusters are the motor of world’s development.

Clustering initiative is perceived by analyst as a reaction to hardships, high costs of research and development works, information and promotion activities. Establishment of this sort of institutional and organisational matter allows members to achieve and maintain a competitive edge on the contemporary market. Additionally, development of clusters influences not only the condition of individual entities, but the region as a whole.

List of profits from being a member of such network of cooperation is long. Most noticeable are: access to information about market development and new technologies, possibility to train staff, exchange of experiences and transfer of good practices, complementarity of resources and skills of the partners, creation of conditions for mutual trust and solidarity in rapidly changing environment, strengthening bargaining power, faster expansion etc. Most basic purpose of clusters is providing possibility to limit costs connected with production, services or transfer of knowledge. Research conducted by Polish Agency for Enterprise Development implicate that basic goals of clusters in Poland are: promotion of the sector, larger project possibilities, exchange of knowledge and experience, increase in cooperation.

One advantage of being a member of a cluster is a possibility to utilise skills and experience of partners. Position of individual members is strengthened, common standards are established, and it is easier to implement innovations. Another is fact that clustered entities can promote products of their partners. These are often completely different, complementary services. It provides a possibility to establish a comprehensive offer that can break into the market.

It was noticed long ago, that best economic effects result from combining dynamics of entrepreneurs and scientific and technical achievements. Knowledge may often be the key to establish competitive advantage, while flow of information is extremely important in economy based on knowledge. Thus it is natural for clusters to incorporate scientific and research entities, so that they facilitate innovations and can implement research, e.g. of potential export markets.

Proper usage of clusters’ inner potential eventually results in an inflow of new cooperative entities and specialists, as well as in attracting external investments to the region. Membership in a developed network of support has also its political effects. Increased strength of cooperating entities allow them to lobby for achieving national grants and EU funds, or even for an improvement of law regulations in the country.

It should be emphasised that signing a declaration or making a formal declaration about membership isn’t enough to create a cluster. Establishing a network of cooperation is a long term process. It is based on overcoming distrust natural among competitors.  A cluster is being created when a member notice actual benefits of being in a cluster. Those benefits must outweigh potential dangers of competing. In M. Porter’s definition of 1990, most important is the concept of cooperative competition. It is impossible to completely eliminate competition within one sector, but it is important to be aware that achieving optimal results is possible only through joint operations.

Clusters are a subject of interest of United Nations Industrial Development Organization (UNIDO). It has stressed the regional character of clusters and their role in shaping specialised skills and development in face of a necessity to overcome similar problems and challenges that representatives of a sector face in their field of business.

European Commission decided to support cluster initiatives. In a document of 2008 it has stressed the importance of building and developing networks of clusters in Europe. According to the Commission, clustering policy plays an extremely important role as a supporting element of regional innovation systems and of establishing international economic ties. A new type of European economic policy has been drawn in the Lisbon Strategy. A knowledge based economy is to become the most dynamic and competitive, able to achieve constant development, generating workplaces and characterised by social coherence.  A tool to achieve those ambitious plans is establishment of clusters.

In the opinion of the Commission, strong clusters offer unique combination of entrepreneurs’ dynamics and most recent achievements of science and technology, create synergic ties between subjects of innovation, thus contribute to creation of a knowledge based economy and fits into the principles of Lisbon partnership in support of growth and jobs as well as new strategy of the European Commonwealth “Europe 2020”. Due to clusters’ usefulness for the economic policy of the Union in the updated framework policy, it was decided to spend public funds for the development of clusters.

Central-Eastern European countries are just beginning to implement cluster-based policy, although Poland is efficiently tackling this problem. We are leaders in number of clustering initiatives. Our UE membership and financial support for such innovative solution is also worth mentioning.

Importance of network structures in terms of entrepreneurship’s competitiveness is invaluable. Cluster membership allows to identify common problems and possibilities in development, as well as attractive investment possibilities. By joining forces, companies belonging to a cluster become important on the market and a trademark of their region.

author: Aleksandra Siemaszko-Skiendziul

Literature:

• M. Porter, The Competitive Advantage of Nations, Harvard 1990
• K. Rosa, Klaster jako forma powiązań przedsiębiorstw w gospodarce opartej na wiedzy, Zeszyty Naukowe Wyższej Szkoły Humanitas, Zeszyt 1, Sosnowiec 2008, s. 69-78
• D. Zbińkowska, Klastry – idea, definicja, praktyka, (źródło: www.kobietywbiznesie.opi.org.pl/.../klastry_prezentacja_zbinkowska.ppt‎)
• W. Kępka, Klaster wzmacnia konkurencyjność małych firm, Gazeta Samorządu i Administracji, Nr 2 (202) 2006
• Klastry gospodarcze: promocja przedsiębiorczości w Europie Środkowej i Wschodniej, Podsumowanie w języku polskim, OECD Multilingual summaries (źródło: www.oecd.org/czech/35136926.pdf)
• M. A. Leśniewski, Koncepcja klastra w kształtowaniu rozwoju regionalnego – ujęcie teoretyczne. Zarys problemu, Acta Scientifica Academiae Ostroviensis, Ostrowiec Świętokrzyski Zeszyt 1/2012/Sectio A,  s. 67-78