3.5.1. Report on the Cluster role in improving innovation in the target countries International Report

This project is implemented through the CENTRAL EUROPE Programme co-financed by the ERDF.

International Cluster Report

Contents

Introduction ...... 3

Facts and Figures on all Clusters ...... 3

Innovation in the Regions ...... 8

Cluster Governance Structures ...... 13

Most relevant Actors ...... 17

Cluster Potentials ...... 23

Role of Clusters in improving innovation and effects on development towards World Class Clusters ...... 27

Map of the Clusters involved in C-Plus

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Introduction The “International Report on the Cluster Role in Improving Innovation in the Target Countries” will give an overview on the 12 clusters involved in the C-Plus project and the role clusters and their members play for innovation development in their regions.

Clusters play a pivotal role in the spreading of innovation in a territory and the adoption of innovative methods of cluster management.

A crucial approach to get a clear view on the situation of the involved clusters was to analyse the cooperational and the organisational structures of the 12 central European clusters and to visualise the hubs for innovation – the most relevant cluster actors. The cluster management’s tasks are to promote cooperation and innovation and to strengthen the inner and outer relationships of the clusters. As good cluster governance is one of the key factors to develop innovation within clusters and regions activities of the cluster management are analysed as well.

Conclusively the International Report takes a look at the cluster potentials and the effects of policies towards world class cluster on the target groups.

Facts and Figures on all Clusters

Austria C-PLUS project involves the Clusters “Automation Engineering Styria” and “Mechatronik Cluster Upper Austria”.

The members of “Mechatronik Cluster Upper Austria” are mainly companies from the mechanical engineering and plant construction sector and other related businesses. The cluster initiative was founded in 2003. Administration and management lies in the hands of Clusterland Oberösterreich GmbH. The core objective of the “Mechatronik Cluster” is increased competitiveness by means of enhanced innovation performance and the further development of core competences among partner companies. Altogether the cluster has 319 actors - most of them service suppliers and mechanical engineering firms, followed by R&D and training facilitators, equipment and apparatus construction firms and plant building firms. Roughly on quarter of the actors are actual members of the cluster initiative. 70% of the partners come from the Region Upper Austria, 27% from the rest of Austria, 3% from foreign countries (Germany, Italy and Liechtenstein). Most of them (34%) have less than 10 employees, another 30% are small, 23% are medium and 12% are large organizations.

The cluster initiative “Platform Automation Engineering Styria” was founded in 2008 on the initiative of a regional company and is now administrated by the CAMPUS 02 degree program Automation Technology. It is a multi-sector network for enterprises that are active in automation engineering industry. Main aim of the Cluster is the experience exchange; major focus is put on topics like gaining and exchanging know-how, strategic research, development of cooperation between economy and

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science, lobbying and internationalisation. The “Platform Automation Engineering Styria” has currently 62 members, the majority of them have less than 20 employees, just five companies have more than a hundred employees.

Czech Republic Both Czech clusters involved in C-Plus, the “Network Security Monitoring Cluster“ (further: “IT Cluster”) and the “Cluster of Czech Cabinet Makers“ (further: “Furniture Cluster”) are located in the South-Moravian region.

The “IT Cluster” is a co-operative industrial cluster initiative focusing on the network security and security in ICT. Currently the Initiative has 21 members mostly located in the region of South Moravia. Complementary the clusters ambition is to grow on interregional and international level. The cluster has been established in the year 2010 on the initiative of companies who felt that the information infrastructures security against threats is up-to-date and its relevance is increasing. The cluster members provide network security services and consulting to companies.

Altogether the 21 member companies employ 1,350 people (20% R&D staff) and generate a total turnover of 120 million Euros. 8 of the member companies are micro enterprises with 1-9 employees, 6 of the members are small enterprises with 10-49 employees, 7 members are medium enterprises with 50-250 employees and only one member - the Masaryk university - has more than 250 employees.

The cooperative “Furniture Cluster” (Klastr českých nábytkářů) was incorporated in 2006 in Brno. It associates 37 companies, 29 of which operate in the cabinet-making and interior design fields, 5 consulting companies in the field of domestic and international exhibition and corporate development support, two professional organizations and the Mendel University of Agriculture and Forestry in Brno. A majority of the members come from traditional furniture regions like the South Moravian Region, the Vysočina Region, the Pardubice region and the Hradec Králové region. The subject of the cluster’s business is cabinet making, mediation of furniture trading, research and development in the field of the cabinet-making product innovation and furniture safety, including quality of life, and the rendition of organizational and economic consultancy services.

In total the members of the “Furniture Cluster” have 3,300 employees (1% R&D staff). Total turnover of the cluster amounts to 560 million Euro. Two members are large-scale enterprises with 250 or more employees. 5 members are micro enterprises with less than 10 employees; 18 members are small enterprises with between 10 to 49 employees, and 12 members are medium enterprises with 50 to 249 employees.

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Germany C-PLUS project involves the “Metal Cluster” with the cluster initiative “profil.metall - Steel and Metalworking Network in Brandenburg and Berlin” and the “Optic Cluster” with the cluster initiative “oabb - optic alliance brandenburg berlin”, both from the German capital region.

The cluster initiative “profil.metall”, founded in 2007, is a network of companies, R&D institutions as well as service providers and other sector related actors. It is based on four active local networks in the metalworking industry. Today it consists of about 130 companies covering a broad range of steel- and metal related products and production technologies. The companies represent the whole metal value chain from the production of crude steel to various metal products, (mechanical) engineering and processing technologies. Total turnover of the cluster was approx. 2.5 billion Euro, altogether approx. 11,000 people are employed by the cluster members. Most of the cluster companies can be categorized as SME: 9% have less than 10; 37% between 10 and 49; 35% between 50 and 249 employees. 6% of the companies employ more than 250 people.

The “Optic Cluster” (oabb) is a network of companies, service providers and research and development institutions in the field of ophthalmic optics and ophthalmic medicine. It’s mainly located around the city of Rathenow – the historical traditional core of the Berlin-Brandenburg optic industries. Today’s cluster, founded in 2007, consists of approximately 65 members. The majority of the cluster members are producing companies from the ophthalmic industry, handicraft enterprises and opticians. Other cluster members represent research institutions, universities and actors from the public (local and regional) administration. The companies’ production range covers the ophthalmic value chain. Glasses, ophthalmic lenses, spectacles frames, precision mechanics, electronics, workshop equipment and interior fittings for showrooms are produced within the cluster. Altogether the companies of the ophthalmic cluster employ ca. 770 people. Considering average company size the structure of Brandenburg’s ophthalmic industry is very small scaled. None of the members has more than 250 employees; only 3% of the companies are medium enterprises employing 50 or more people whereas 16% are micro enterprises with less than 10 employees.

Hungary From Hungary the “Pantherm - Pannon Thermal Cluster” and the “Pantex - Pannon Textile Cluster” participate in C-Plus.

Members of the “Thermal Cluster” are mainly small and medium sized enterprises like medical and wellness thermal bathes and medical hotels, one tourism consultancy agency and one investment consultancy agency. The cluster was founded in 2001 by 21 spas, hotels and autonomies to elaborate services for the members and to provide an efficient mediation of the demands and abilities within the Cluster towards the cooperation net. Core competences of the “Thermal Cluster” are the re- segmentation and re-positioning in the region following the improvements and the forming of a serving network in the region. The members of the cluster are positioned in the “supplier-company- customer” chain in the middle; the members offer direct services to their end-customers by using the services of the suppliers.

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Today the “Thermal Cluster” consists of 24 companies, employing over 3,100 people together and generating an annual turnover of more than 51 million Euros. Most of the members are SMEs, none of them employing less than 10 or more than 500 people.

The “Textile Cluster” members are mostly SMEs acting in the textile industry and dealing with production of under and upper wear and sportswear. Also 2 educational institutes belong to the the member circle as well as one R&D institute and the local Industrial Association.

The “Textile Cluster” is formed by 34 members, thereof 17 companies and several private entrepreneurs. The Cluster Association, founded by experts of the textile and clothing industry, was established in 2005; the Management Company (founded by the cluster association and its member SMEs) was established in 2009. Through the cooperation the cluster wants to encourage the development of high value added products and services and utilize the available capacities by networking between cluster members and externals more efficiently. Core competences of the cluster members are design, special equipments; well-trained experts; cooperation with R&D institutes and universities and specialized networking with external experts. Most of the companies of the “Textile Cluster” mainly work for larger companies coming from the region or from abroad.

Total employment amounts to more than 2,500 people and annual turnover is about 17 million Euros. 50 % of the members are small companies with 10 to 49 employees, the other 50 % are mostly medium size companies with 50 to 249 employees.

Italy C-PLUS project involves the Clusters “Footwear” and “Packaging”, both from Emilia Romagna region.

Shoemaking has a long tradition in Emilia-Romagna. After production started in the 1830’s a first footwear cluster could be found in the early 1900’s when the existence of a craft association in the area was already supporting a network of well-established professional relationships. The production in the cluster focuses on the manufacturing of shoes in medium-high and top-class range. The products are characterized by the use of quality-oriented raw materials, enhanced by customized and handmade craftworks. The whole supply chain – design, double preparation, creation of the shoe upper and the bottom of the shoe up to final assembling of the parts and finishing operations – is covered by the cluster.

Today the number of companies involved in the region’s footwear industry is less than 200 with a total staff of 2,969 employees. The manufacturing system of the “Footwear Cluster” generated a 405 million Euro turnover in 2002, equal to 15 million pair of shoes. 75% of its production is for export, equal to about 36% of its overall turnover. The main reference markets are EU countries, North America and Japan. The company structure is dominated by micro size companies, more than 50% have less than 5 employees and only 4% of the companies have more than 100 employees.

The “Food Packaging Cluster” located in Val d’Enza (Province of Reggio Emilia) dates back to the end of the 19th century. In the early 2000’s the local institutions, aware of the necessity of giving a collective answer to the issues of the sector and the region decided to create a “permanent table”,

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providing the basis for today’s cluster. The productive system of the cluster includes the activities and services connected with packaging, design and production of machines for the food industry and manufacturing of equipments for industrial automation. The main technical competencies are electronics, mechanical engineering, information & communication technology, packaging materials and food processing.

Altogether the “Packaging Cluster” in Val d’Enza is build by 529 companies employing ca. 5,900 people in this sector. Annual turnover created by the cluster companies reached 1,900 million Euro in 2007. Again the majority of the cluster members are very small companies, 65% of which have less than 5 employees. Another 16% of them have between 5 and 9 employees. Less than 4% of the cluster companies employ 50 people or more.

Poland From Poland the “Wood Cluster” and the “First Polish Cluster of Passive and Energy-Efficient Building Industry“ (short “Building Cluster”) are involved in C-Plus. Both clusters operate nationwide but are centred in the region of Silesia.

The “Wood Cluster” as an informal connection between companies and institutions exists since 2004. In 2007 a cooperation agreement was signed and the cluster was formally established. Polish Wood Cluster members are: commercial companies, research institutes, universities and local government units. Currently, the cluster gathers 50 players (37 companies), mainly from Southern Poland. Next to the companies other members represent local government units, universities and R&D centres and the chamber of commerce. All 37 member companies are SMEs.

Together the “Wood Cluster” members cover a broad range of products and services along the value chain. Main activity fields are the production and usage of biomass (e.g. pellets, briquettes, combustion technologies and industrial boilers), innovative methods of woodworking (e.g. Thermowood), wooden products (floors, furniture) and wooden building elements. Also wood and green energy affiliated machinery and equipment is developed and produced within the cluster.

The “First Polish Cluster of Passive and Energy-Efficient Building Industry” is a way to integrate universities, research & development institutions, NGOs and companies, operating mainly in the Silesian region, or other regions of the country, focusing on energy saving. This idea was firstly created in 2008 in the Upper Silesian Industrial Park in Katowice. Since 2011 a group of 34 strong and complementary companies is concentrated in the cluster. The cluster members offer all elements of the supply chain from raw materials, equipment and machinery, designing services, standardization services, design and selection of proper installation, use of renewable sources of energy, investment cost estimation, construction supervision, measurement systems, monitoring of achievement and energy audits. A vast majority of the cluster members belongs to the group of SMEs, 88% of the companies have less than 250 employees. In total the cluster members employ approx. 6,500 people altogether.

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Innovation in the Regions

Austria The activation of innovation, market potentials and synergies through cooperation between companies stands in the center of the regional Austrian policy. Following a systematic approach cluster strategies are closely tied and synchronized to regional knowledge bases and focus on innovation. General cluster strategies are supported by defined measures to explore strength fields, to develop young clusters and networks, to support the regional, interregional and international work of existing clusters and networks continuously. Strategic governmental concepts and frameworks to achieve these goals have been established within the regional policies.

In order to enhance the innovation level of the cluster members strengthening the R&D capacities and utilize them for the companies is another important part of public policy. To maintain the high levels of innovation and competitiveness innovative cooperation projects and a professional guidance of cooperative R&D projects are organized.

The R&D spending and the number of R&D employees, as main indicators for innovation, are in Upper Austria 1.4 times higher, in Styria 1.7 times higher than national average. Member companies of both clusters provide a high amount of innovation activities and innovative products, services and technologies. Main trends such as customer orientation, sustainable growth and energy efficiency are widely captured and actively pursued by the clusters.

Conclusively it can be fairly said that the innovation level in the participating Austrian regions is very high and public policy provides a various set of helpful instruments (see Report of the Hubs Actors for details). The regional clusters play a very important role for that development supporting growth through cooperation and innovation.

Czech Republic As the process of cluster formation and establishment started quite recently in the Czech Republic, most of the clusters are very young. To promote innovation and cooperation a cluster support program (coordinated by the Ministry of Industry and Trade) was introduced in order to overcome barriers for collaboration and economic costs of SMEs’ isolation. The first phase of the program helps to identify clusters and assess the viability and benefits of clusters. After a critical mass of actors is found the second stage supports the creation and development of clusters and cluster initiatives. Also there are two main institutions (National Cluster Association and Investment and Business Development Agency) to support and strengthen the clusters in innovation and development strategies.

Based on a survey of the economic demands and expert knowledge the South-Moravian region has developed a long-term Regional Innovation Strategy (RIS) to promote enterprise skills development, to support innovation and cooperation as well as to coordinate and implement activities to strengthen competitiveness and sustainable development of the region. Main tool of the RIS is a

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“Action Plan RIS”: an annually updated list of defined projects which have synergies in their aim to improve economic and social performance of the region.

To enhance cooperation between educational institutions, R&D facilities and companies in the region the South Moravian Innovation Centre (JIC) effectively supports the foundation and development of innovative companies. JIC developed tools to support emerging innovative firms, established the South Moravian Center for International Mobility to support human resources for science and research.

Considering research and development the South-Moravian region accounts for 11% of the whole R&D expenditure in the Czech Republic and for 17% of the Czech R&D employees. The number of R&D personnel is constantly rising in the South-Moravian region, in 2010 more than 8.700 employees worked full-time in R&D. Regional R&D expenditure in 2010 summed up to over 330 million Euro.

The “IT Cluster” is still in the process of facilitation and now prepares the strategy for further development and cooperation on development of innovations. Innovation is mainly achieved by R&D projects and networking, by participation in (international) cluster projects and in cooperation with other innovation centres.

The “Furniture Cluster” is based on innovation in production. The member companies constantly develop new products to be competitive on domestic and foreign markets. Therefore the cluster has a system of strategic product innovation and innovation of production programs. Based on these programs new innovative products and manufacturing systems are developed according to market demands and fashion trends. The innovation process is based on pre-defined inputs such as market studies, participation in domestic and international trade fairs, catalogues etc.

Germany The concept of clusters as tools to enhance cooperation, create innovation and improve competitiveness is a device of Brandenburg’s economic policy for many years. Numerous cluster initiatives and networks emerged in Brandenburg covering a wide range of sectors. Each cluster is coordinated by a private or public institution and most of them are (partially) publicly funded.

Very recently the capital Berlin and the surrounding federal state of Brandenburg developed a common economic innovation policy to develop reliable structures of innovation and cooperation. This policy involves the development of strong innovative clusters of companies and R&D institutions in sectors with high future growth potential such as “Healthcare”, “Energy”, “Mobility / Logistics”, “IT / Media”. Also traditional sectors like the metal and the plastics industry belong to the sectors with a high potential. To ensure sustainable growth and support the existing strengths publicly supported clusters will be developed in these sectors. Moreover some cross-sector technologies with a high importance for innovation and competitiveness (e.g. “Materials”, “Clean Technologies” and “Automation / Production Technology”) are part of Brandenburg’s economic policy.

The state of Brandenburg provides a very diverse and qualified R&D landscape and infrastructure. The Berlin-Brandenburg region is home to many world class universities and research institutions and

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shows Germany’s highest research density. Nevertheless innovation activity of Brandenburg’s companies can be described as rather low compared to national standard. Measured in R&D employees (0.8% share of all employees) or R&D spending (1,2% share of GPD) and patents Brandenburg is behind the average of all federal states.

There are multiple reasons for the rather low figures in Brandenburg. Foremost the comparably small average company size needs to be taken into account. Moreover a significant obstacle for more R&D activities of many Brandenburg’s companies is the availability of equity capital, debt capital and venture capital. Additionally a significant number of the producing companies in Brandenburg do not have their headquarters within the region; they are other-directed and often fulfill rather the function of production than research and development sites.

Within the “Metal Cluster” specialized competences and innovation capability lay in the fields of lightweight construction, surface technologies, new materials, efficiency technologies, processing technologies and automation.

The “Optic Cluster” can be considered a highly innovative cluster. In the year 2010 members of the oabb cluster initiative could present 3 world premiers in the fields of lenses and glasses technologies. Depending on the company up to 25% of the staff works in R&D.

Hungary In Hungary several national programs aim to enhance the innovation potential of the local actors, to increase the competitiveness of the SMEs and to develop the infrastructural facility of the research institutes. The programs focused on special fields of innovation and supported mainly micro, small and medium sized enterprises and R&D institutes. Most of these programs were also available in the West-Transdanubian Region. Based on these programs numerous innovation projects could be realized in the region, but after the program “INNOCSEKK PLUSZ” had to be stopped due to the economic crisis some projects couldn’t be finished.

Clusters in Hungary can be supported on regional and national level (cluster projects of national importance by the National Development Ministry). The regional system aims to subsidize the development of horizontal services for the clusters by supporting cooperation, expansion of the own market, training and education. Although the number of supported projects is limited, the general level of support for clusters and cluster management is high. Besides financial funding, public support of clusters can also be provided by technological innovation support for clusters who qualify as “Accredited Innovation Cluster”, a program clusters can apply for until 2013.

The R&D environment in the West-Transdanubian region is in a ‘developing’ phase. There are R&D institutions which are unique in the region and use all opportunities to take part in developments, are open for participating foreign networks and markets. The universities in the region have to deal with restricted financial and human resources for research activities. The brain drain of the young talented researchers results a low research activity. At the same time in the largest universities of Hungary the researcher culture has deeper traditions. In West-Transdanubian there are no R&D institutions focusing on cooperation with clusters.

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The innovation level of the West-Transdanubian region is higher than in the Eastern part of Hungary but lower than the innovation level of Budapest (which is higher due to the centralized role and the large number of excellent universities, research centres and industrial zones in the surrounding of the capital city). In the West-Transdanubian region there are both higher developed and underdeveloped parts of the region due to the unequal presence of the leading industrial sectors. However in each part of the region there are some actors - hidden champions - which show intensive activity in innovation processes and are in active cooperation with foreign partners.

The members of the “Textile Cluster” are on a different state of development, in total the innovation level is (typical for textile and fashion sector) very low. Several SMEs are on a higher development level due to the fact that they have the possibility to work on own design and own products. It is hard to detect the innovation in its real sense.

Within the “Thermal Cluster” the cluster management itself doesn’t realize innovative activities; the members carry out new developments with help of national and regional funding by applying the newest technologies. The cluster organization (under the involvement of external consultation) helps the members to apply for new funding related technical and functional development. It needs to be taken into account that the recreation sector is not the leading sector when it comes to invention or implementation of technical or technological innovation. But many innovative and viable solutions, e.g. water supply technologies using renewable energy resources or efficient and energy saving heating / air conditioning solutions, can be found here.

Italy The Emilia-Romagna region has a defined strategy for the industrial research and technological innovation. Activities are focused on supporting collaborative industrial research, developing research centers and networks in the context of supply chains and regional productive specializations. Especially cooperation between companies and with R&D institutions or R&D platforms and also start-ups of high-technology oriented companies are fostered in order to create a highly dynamic, innovative and creative regional economic system. Productive clusters of small and medium sized companies have a long tradition in Emilia-Romagna. These clusters have successfully gained high levels of technical specialization and are competitive worldwide, especially in niche markets. Promoting cooperation and cooperative research along the production chains is a major characteristic of regional economic policy.

R&D and education are of high importance for the Emilia-Romagna region, seven Universities and many research centers can be found here. A regional network of industrial research and technology transfer laboratories, accredited by the region, has been developed in order to allow a better exchange between the (cluster) companies and the region’s highly profiled scientific landscape.

Within the “Footwear Cluster” innovation is based on design and variety of model while R&D at the moment focuses on research of lightweight materials. Typically for the fashion sector percentages of R&D staff and R&D investments are low, but the companies realize continuous incremental innovation.

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For the “Packaging Cluster” innovation is often achieved by cross-sector cooperation and a degree of openness towards the global market. On average R&D staff holds a share between 5% and 10% from total staff within the cluster, figures for formal investments in R&D are not available. Innovation is achieved continuously and incremental.

Measured by indicators the Emilia-Romagna region shows an above average innovation performance. R&D spending (1.3 % of GPD in Emilia-Romagna, 1.2% in Italy), number of R&D employees per 1,000 inhabitants (5.4 Emilia-Romagna, 4.0 Italy), number of patents (118 per 1 mln. inhabitants in Emilia-Romagna, 56 in Italy) and percentage of innovative companies (36% Emilia- Romagna, 31% Italy) are all above national average.

Poland In the Polish economic development policy the concept of clusters has become very popular in recent years. Many programs and strategies (partly national, partly regional programs) have been set up to promote innovation and cooperation. A package of actions aimed at raising the level of innovation and competitiveness of the region has been implemented in specific strategic areas. As parts of the strategies, programs to support and develop clusters and create an institutional environment for innovative enterprises have been adopted including the promoting of joint actions to implement innovative projects. In Silesia a number of cluster initiatives are carried out presently.

Within the “Wood Cluster” and its member companies the current level of innovation can be described as moderate. Most innovation activities focus on the usage of renewable energy sources. The main obstacles for increasing innovation are financial aspects as well as the fears of small and medium-sized companies to implement new, untested innovative activity.

The “Building Cluster” concentrates its innovation activities on technical solutions to create and promote innovative, energy-saving buildings. The innovation potential of enterprises will rise with the availability of modern information technology, intense cooperation with the R&D sector as well as higher levels of education.

The region of Silesia – traditionally highly industrialized and urbanized – is one of Poland’s strongest economic regions. Much of the national capacity for research and development is located in Silesia as well, 130 R&D institutions employ over 7.000 people. Expenditures on R&D in Silesia amount to nearly 8% of all Polish R&D expenditures, which is compared to the 13% Silesia contributes to national GPD a rather low figure. Silesia is nevertheless a highly innovative region as patent data shows: 13% of the country’s patents origin in the region. In 2006-2008 22% of industrial companies led innovation activities (national average 21%), which means a decline of innovative companies compared to the previous period. The potential of higher education in the Silesia province is high and includes 45 universities with more than a 178,000 students.

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Cluster Governance Structures

Austria Both Austrian Clusters do have a defined cluster management taking care of the cluster’s development. Main goals of the clusters are increased cooperation and interaction between the cluster members and an improved visibility of the clusters. So cluster activities are focused on lobbying for the respective sector and measures to interlink the actors and on knowledge transfer. Triggering actual cooperation projects, using synergies (e.g. saving potentials in qualification and training programs) and explore new markets are the overall objective.

Within the “Mechatronik Cluster” cooperation and knowledge transfer is assured by meetings, conferences and workshops. The level of trust between the cluster members is rated rather high, although it is of course subject to natural variations. In general it can be said that the cluster is very open.

To promote interaction and cooperation between the cluster members three platform meetings are organized each year within the “Automation Engineering Cluster”. Besides the personal exchange of experience at regular meetings constant efforts to arrange cooperation in the fields of R&D, joint purchases and distribution are taken by the management. Additionally a newsletter is sent out regularly.

Czech Republic Both clusters show a similar decision making system. The cluster holds regular thematic meetings (assemblies, programme councils, board meetings, directing commissions etc.) of member representatives where the issues, future activities, strategies etc. are discussed. Basic rules and regulations are stated in statutes of each cluster. The strategic decisions are based on votes of the cluster members and the cluster manager is authorized to handle the day to day management. In order to follow the needs of the industrial members in the cluster and to consider their demands and desires, more bottom-up approaches are used to define management and decision making. Clusters include their members on all important management decisions about the future plan of activities, business strategies, objectives and aims.

The “IT Cluster” is managed by a defined cluster manager. Cooperation inside the cluster is secured by the direct communication between cluster members which is topped by meetings of all cluster members on regular basis. The cooperation and coordination of common projects is organized by the cluster management. The fields of cooperation of the members covered by cluster managements are especially scientific and research projects, cluster promotion and promotion of its members, know- how sharing and the representation towards other associations and international organizations related to the network security monitoring and security in ICT topic.

The “Furniture Cluster” is managed by a team of eight employees and a cluster chairman. Its objectives are to support the members in (foreign) market development and the transfer of latest technical and technological knowledge, to link researchers with a production base, to create optimal

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conditions for technology transfer, to improve cost efficiency and promoting / marketing activities. Also continuous communication between production and R & D companies and organizations should be ensured. The cluster is organized in five working groups, each of them dealing with a specific activity: three working groups focus on export, one is dedicated to R&D and another working group is responsible for marketing and exhibitions).

Germany The German clusters involved in C-Plus both have cluster management in charge of the coordination of activities within the sector.

For the “profil.metall - Steel and Metalworking Network in Brandenburg and Berlin” cooperation amongst the cluster actors takes place in more than one dimension. Many of the member companies are interconnected by strong supplier-manufacturer-customer ties. As the activity fields of the member companies span over the whole metal working value chain, there is a high potential for (local) cooperation and many supplier-customer-relations can be found within the network. A lot of cooperation within “profil.metall” also runs on a project based level. One or more companies work together with R&D institutions on the development of a new or improved product, process or technology. Following the concept that innovation potential is especially high in cross-sector cooperation the cluster management focuses on the interaction with other clusters and overlapping technology fields with related sectors. Regular cluster meetings are held as well as conferences and workshops to ensure exchange between the cluster members and to promote cooperation and innovation. In order to increase the innovation level of the cluster members the cluster also has strong ties with regional universities and other R&D institutions. The cluster management also works closely together with the existing institutions for technology transfer in Brandenburg such as the Branchentransferstelle Stahl Metall Elektro and ensures effective access to R&D institutions by involving experts of universities and R&D institutions in its scientific advisory committee.

The “oabb – optic alliance brandenburg berlin” is organized as registered association whose board together with the network manager is responsible for the cluster management. The external network manager is confirmed by the cluster members. Cooperation within the “oabb cluster initiative” takes place at a very high intensity in the fields of production and distribution. Companies work together in order to develop new products and new distribution channels. Regular cluster meetings are held as well as conferences and workshops to ensure exchange between the cluster members and to promote cooperation and innovation. The “Optic Cluster” also cooperates intensely with two major research and development institutes and is connected with five regional universities.

Hungary Cluster management of the “Textile Cluster” is made by the Pannon Textile Cluster Non-profit Ltd. The cluster manager is elected by the cluster and its organized decision making authority is the Cluster advisory council. Cooperation between cluster companies is mainly focused on production cooperation along the value chain (assembly based on customer’s plans). The larger members of the

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cluster determine the cluster performance inside the region; they act as main customers for the smaller clients. The know-how transfer is restricted and is limited to the exchange of basic information regarding the actual work. The larger companies rarely share new and innovative concepts, the smaller actors don’t have the capacity to start notable developments.

The management of the “Textile Cluster” aims to support the members by the regional and international networking and to improve the infrastructural and human resource background of the members. Main objectives of the “Textile Cluster” are better qualification (reached by cooperation with high schools), develop high value added products and services through cooperation and share of the capacity by the networking between cluster and externals.

The “Thermal Cluster” is coordinated by the Pannon Thermal Cluster Association. Moreover the Cluster has a manager who fulfills all coordination work inside the cluster and is in continuous contact with the cluster members. Cooperation inside the Thermal cluster is special, the thermal bathes appear towards each other as competitors; cooperation needs to be strengthened. At present the largest companies are open to the foreign markets and are focusing on networking and intensive knowledge transfer. The smaller actors are following the strategy of the largest and most successful players in order to enhance competitiveness.

The cluster management cooperates with the members of the “Thermal Cluster” by providing specialized services like efficient mediation of demands and abilities, organization of aid money, elaboration of specific projects, constant information service about plans and activities, measuring the educational demands and coordination of aimed trainings satisfying the needs and PR- and marketing activities.

Italy The two clusters involved in C-Plus are not organized in any legal or institutional form, they do not have a certain cluster management. Both clusters have strong links with the regional productive context and they occurred as spontaneous aggregation of firms and institutions linked to different productive characteristics on the sub-regional level. Although the clusters are not structured or supported by a defined cluster management, local stakeholders underline the high importance of the clusters for the regional economic development and for regional employment.

The general management is based on the system of the institutions (region, province, municipalities, associations etc.) that define policies and strategies for the cluster. Firms or research centers generally receive public funding on the base of different productive specializations. Clusters themselves do not receive directly public funding because there is not a regulatory and legal recognition of clusters as institutions.

For the “Footwear Cluster” organization increasingly focused on a typology of a social network, characterized by informality and continuous information exchange, joint development of the product with the suppliers to ensure quality, production flexibility and realization speed. A certain level of cooperation between companies and between companies and service centers can be observed, but the lack of coordination and management of the actions between the various actors is evident.

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Also within the “Packaging Cluster” cooperation is based on informal and continuous information exchange. While the cooperation level among companies (mutual support in all the different aspects of the business) is good and steady, the level of cooperation between companies and institutions (predominantly the universities) stays rather low.

Poland The purpose of creating the “Polish Wood Cluster” was the need to have an efficient platform for internal communication between partners. All firms operating within the cluster have access to common sources of information and actions to strengthen the relations between the actors (creation of a database, internal messaging system, logistics, information about economic and technological trends). The “Wood Cluster” is managed by a cluster coordinator, the Agency for Enterprise Development from Chorzów. All actions taken by the cluster are supervised by the coordinator who is responsible to implement the cluster’s objectives, organize an efficient information flow within the cluster, obtain external funds, create equal conditions for the cluster partners, represent the cluster to external actors and coordinate administrative, production and investment activities.

Cooperation in the “Wood Cluster” is ensured by periodical meetings, conferences, seminars, newsletters available on the cluster website, trainings, and on basis of a planned e-learning platform for individual workers and clusters actors. Objectives of the “Wood Cluster” are common marketing (e.g creating a common brand), purchasing and sales, the transfer of knowledge and technology, the optimization of technological processes, lobbying activities and qualification of the companies and employees. As effects of cooperation e.g. a joint offer made by individual actors, jointly carried out work on improving production technology and a wide range of complex deliveries have been achieved.

Main objective of establishing the “Polish Energy-saving and Passive House Cluster” was the development of joint activities in the fields of designing, building and energy efficient building management. This aspiration can be achieved by linking the resources of individual members of the cluster and gained common knowledge in the field of energy-saving building to disseminate it by creating comprehensive services to the market. Cluster coordinator is the Upper Silesia Industrial Park (GPP) in Katowice whose activities include advice for enterprises, research and development and the implementation of joint projects.

The “Building Cluster” is organized on basis of a Cluster Council, composed by 12 representatives from the sector. The council, which meets once every three months, holds responsible for the implementation of the cluster’s actions. Main topics are the construction of a passive building and energy-saving Research and Development Centre; a program to improve the energy-saving performance of schools; the promotion of passive and energy saving construction by organizing conferences, training courses, seminars and public relation measures. Also external cooperation structures (e.g. towards the German market), certification of member companies and qualification as well as cooperation with R&D institutions are in the focus of the cluster management.

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Most relevant Actors

Austria The most important cluster actors within the “Mechatronics Cluster Upper Austria” can be grouped into the two categories public/administrative actors and companies. The Upper Austrian Federal Economic Chamber and the Federation of Upper Austrian Industry both have a huge influence on the network as they are owners of the Clusterland Oberösterreich GmbH who is the host organization of the cluster. The Mechatronics Cluster itself is referred to as the most important partner concerning know-how and information transfer as well as the initiation and implementation of cooperative projects. On the business side the comparatively large and export oriented companies Fill Gesellschaft m.b.H, Wintersteiger AG and Engel Austria GmbH are driving forces in the cluster. Each of the three companies has also a seat in the cluster’s consultative committee. The local subsidy of German based Bosch Rexroth GmbH is another central cluster actor, being one of the most important customer, supplier or partner for many other cluster members. The Software Competence Center Hagenberg as one of Austria’s largest independent software research centers represents one of the cluster’s most important R&D partners. Indirectly car manufacturers (e.g. BMW, Daimler) as the main customers of the Mechatronics cluster also have a big influence on innovation activities of the cluster because their constant demand for innovation and development induces a high innovation level at the cluster member companies.

Analysis of the benchmarking results statistically identified the Pro Automation GmbH, the Linz Center of Mechatronics GmbH, the Miba Automation Systems GmbH, the Fill Gesellschaft m.b.H. and the Volke GmbH as innovation leaders of the Mechatronics Cluster (for more details see “Report on Innovation”).

For the “Platform Automation Engineering Styria” the degree program Automation Technology of UAS CAMPUS 02 is responsible of operational cluster management, organization and administration. Moreover Campus02 is the only research institute involved in the cluster and therefore a highly valuable R&D partner. Financing of the cluster is based on the Styrian Federal Economic Chamber whose industry section is also one of the operative drivers of the cluster. The M&R Automation GmbH as one the driving forces behind the foundation of the cluster is still one of the key actors. The Dynamic Assembly Machines GmbH seems to be another core actor as they are supplier, customer and development partner for a number of other cluster members. On the R&D side the Graz University of Technology is not a cluster member itself but often referred to as an important partner for innovation by the member companies.

Based on the statistical calculation and subjective opinion of the facilitators the following innovation leaders have been identified for the Styrian cluster: AUTFORCE Automations GmbH, Hage Sondermaschinenbau GmbH & Co KG, Ing. Sallegger GmbH & Co KG, M&R Automation GmbH and PLS Automation GmbH.

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Czech Republic

For the “IT Cluster” the most important members are AdvaICT, INVEA-TECH and UNIS COMPUTERS. AdvaICT a.s. has developed from a Masaryk university spin-off and provides complex solutions in monitoring, administration and computer network security areas. Based on its origin and know how property it became one of the most innovative companies. INVEA-TECH develops and markets innovative, reliable and cost-effective comprehensive network solutions. UNIS Computers deals with communication elements for end applications and offers a wide range of modern IT services. Another important member of the cluster is Rowan Legal providing consultancy services for the companies in the cluster.

Considering R&D the Masaryk University in Brno is an important partner (and also member) of the „IT Cluster“. Other R&D partners are the Brno University of Technologies and the CVUT Praha.

Relevant actors of the “Furniture Cluster” are the companies HON, Dřevojas (BMF) and Nadop. HON, a family owned company whose tradition traces back to the 1920’s, grew into a prominent Czech manufacturer of office furniture and interior accessories. BMF, a manufacturing co-operative is a leading producer and contractor of bathroom and hotel furniture and furniture made for the European market. The company – which exists for more than 60 years and is run without any foreign capital – works hard on research of new materials and designs or modification of already known materials. The company NADOP Ořechov produces all kinds of furniture and has operated in the market since 1990. NADOP places great emphasis on precision material processing, quality surface treatment, top-level metal work, and professional installation.

Most important R&D actor for the “Furniture Cluster” is the Department of Furniture, Design and Living of the Mendel University of Agriculture and Forestry.

Germany As the “profil.metall Cluster” as a region-wide network is based on local network activities, these local networks (Kompetenznetzwerk Metallverarbeitung und Umwelttechnik Eisenhüttenstadt e.V., ARGE Metall- und Elektroindustrie Südbrandenburg, Wirtschaftsforum Prenzlau and Netzwerk Metall Barnim) are actors of very high importance and influence on the cluster’s development.

Most important companies of the “profil.metall Cluster” are ArcelorMittal Eisenhüttenstadt GmbH (regional subsidy of the world’s biggest steel company), Kjellberg Finsterwalde (one of the world leaders in products and technologies for thermal cutting, joining and altering of materials), Unitechnik Automatisierungs GmbH (manufacturer of measures, control and automation engineering), SIAG Finsterwalde GmbH (leading supplier for the power generation industry), ARCUS Planung + Beratung Bauplanungsgesellschaft (engineering and architecture company) and Ferrostaal Maintenance Eisenhüttenstadt GmbH (mechanical engineering, production technologies, plant service).

Within the “Metal Cluster” the Cottbus Technical University of Brandenburg with its Panta Rhei Research Centre for lightweight construction materials, the Technical University of Berlin with its

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Fraunhofer Institute for Production Systems and Design Technology, the Wildau Technical University of Applied Science, the Lausitz University of Applied Science, the Eberswalde University of Applied Science and the Brandenburg University of Applied Science are important partners for R&D cooperation.

Other innovation oriented cooperation partners of the “Metal Cluster” are the Casa Eisenhüttenstadt – service center to encourage young talent and ensure provision of sufficient specialists – and the technology and knowledge transfer association Branchentransferstelle Stahl Metall Elektro, systematically supporting cooperation of companies with R&D institutions to trigger innovative projects. Also the IG Metall (Regional Union Management Berlin-Brandenburg-Sachsen) is partner of the network.

The “Optic Cluster” in its achievement to improve to world class draws significant benefit from the active involvement of many different actors. At first the innovation leaders, companies Acri.Tec GmbH and Optotec GmbH, both highly innovative companies and world market leaders in their fields, transport a lot of innovation potential into the cluster and its members. In cooperation with other stakeholders new products, services and technologies are developed for mutual benefit. Another stakeholder of high influence on the cluster is the TechnoTrade Import-Export GmbH, the company shows extraordinary good connections and cooperative structures with the emerging Asian markets.

Considering education and qualification, a factor of huge impact on future cluster development, the Ophthalmic Guild Brandenburg is another important stakeholder of the “Optic Cluster”. Not only provides the guild extensive Know-how on these subjects and runs qualification institutions itself, via the network of guilds it also taps national and international projects and knowledge on education and qualification issues for the cluster. As most of the opticians are organized in the guild the cluster gains from the guild’s inclusion also direct contact and feedback from its main customers – the users of ophthalmic products.

On the R&D side most relevant actors for the “Optic Clusters” are the University of Applied Sciences Brandenburg, the Technical University of Applied Sciences Wildau, the Technical University Berlin, the Beuth University of Applied Sciences Berlin and the University of Applied Sciences Potsdam. Two other regional research and development institutes, the Fraunhofer Institut für Biomedizinische Technik IBMT and the Leibniz Ferdinand Braun Institut are also important partners.

Italy Since the clusters are not legally recognized at an institutional level they are usually represented by professional associations and other local institutions in the area, which know the history and daily assess the development potential.

At the moment the service centre CERCAL (composed by SMEs as a training school) plays an important role for training and qualification for the “Footwear Cluster”. Cluster actors see a clear demand that CERCAL develops further into a more active role as a monitoring, coordinating and stimulating cluster hub.

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On the R&D side the University of Bologna and the University of Rimini, the Instituto di Istruzione Superiore "Marie Curie", the Instituto Superiore per le Industrie Artistiche, the Technologic hub of Rimini specialized in fashion and the Technopole of Rimini are the most relevant actors for the “Footwear Cluster”. As for the public stakeholders the Emilia Romagna Region and the Province of Forlì-Cesena, the Municipalities of San Mauro Pascoli, Savignano and Gatteo as well as the Chamber of Commerce of Forlì-Cesena need to be mentioned. Besides the CERCAL the CNA Innovazione of the high-tech network is an actor who operates as intermediary and integrator between the research and technology. As another service center the Centuria-RIT - Romagna Innovazione Technologia (big consortium including enterprises, public administrations, trade associations, chamber of commerce and banks) aims at promoting the associates’ development and the growth of the whole area of Romagna through technological and organizing innovation, in particular in agrofood and manufacturing sectors.

Considering companies in the Italian “Footwear Cluster” Casadei and Vicini (who markets with the “Zanotti” brand) are, together with Gucci – Sergio Rossi and Baldinini the leading shoe companies not only in the cluster, but at national and international level. Their collections are sold all over the world and their shoes are mainly manufactured within the cluster, where several shoe parts manufacturers are located. A leading company in upper manufacturing is Smart Leather, a business with a 30-year experience, working for the main brands in the area.

For the “Packaging Cluster” the Centro Servizi Val D'Enza service center can be seen as the central actor. Organized as a permanent consultation table it acts as a coordination centre among various local stakeholders in order to promote both cooperation between institutions and companies and among universities, school and businesses. The service center (composed by institutions, high schools and SMEs) works as an “animator” of these three actor groups and monitors the economical development of the sector. Other important service centers for the cluster are the center for innovation of the high-tech network of CNA Innovazione, DemoCenter-Sipe center for innovation and technology transfer and the regional innovation center of Reggio Emilia Innovazione.

Research and Development is represented by several actors of the “Packaging Cluster”: the Universities of Bologna, Modena, Reggio Emilia, Parma and Ferrara; the Instituto di Instruzione Superiore "Silvio D'Arzo", the Technologic Hubs of Reggio Emilia, Parma and Bologna; the National Research Council (CNR), the National Agency for Energy and Environment Technologies (ENEA) and other laboratories specialized in packaging. As public stakeholders the Emilia Romagna Region, the Province of Reggio Emilia, 9 Municipalities and Chamber of Commerce of Reggio Emilia are important cluster members.

Important companies within the “Packaging Cluster” are ARDAGH GROUP (packaging business operating in metal, glass and technology), DALTER (production of packaging for food, especially Parmiggiano Reggiano), SEI SRL (installer business), REGGIANA GOURMET (food industry) and LOGIT (producer of packaging production lines).

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Hungary For the “Thermal Cluster” one of the most innovative members is the Büki Medical Bath, a market leading member of the cluster that acts as good practice in business planning, innovation processes, utilization of information. The Lenti Medical Bath performs over the average in process innovation, innovation performances, new ideas, collection of internal and external knowledge and business planning, the very same applies for the Sárvári Medical Bath. The Lipóti Thermal Bath acts as good practice in innovation processes, utilization of information and the Gránit Thermal Bath is a good practice example in business planning. Also the Soproni Rehabilitation Institute can be seen as a leading cluster member in business planning, innovation processes, utilization of information and by the providing of services.

Whithin the “Textile Cluster” the companies Rád-Varr Ltd., COLOR Clothing and Commercial Ltd. and Viva La Femme Ltd. could be identified as the most innovative and relevant cluster actors.

Rád-Varr Ltd. constantly develops its product palette, welcomes the new demands of its customers and develops continuously the distribution channels. In the last two years the company introduced more than 5 new products representing 50% of the entire sales. The company also shows a higher innovation rate than the average. COLOR Clothing and Commercial Ltd. a medium sized enterprise with smaller cluster members as its suppliers as well as Viva La Femme Ltd. show a higher rates in innovation and have a good structured business plans. Viva La Femme Ltd. also continuously develops its products. In the last two years the company introduces more than 5 new products representing 40% of their entire sales.

Poland The main initiator of the “Wood Cluster” and the leader of innovative activities is Agency for Enterprise Development ARP. As the cluster is still in its developing phase, all members have the same influence on the cluster’s perspectives. Therefore no most (!) relevant actors could be identified; a complete list of actors is laid out in output 3.4.1 and the Polish “Report on Innovation”.

Important R&D actors of the “Wood Cluster” are the Technical University of Czestochowa, the Agricultural University in Cracow and the Technical University in Gliwice.

Driving force of the “Building Cluster” is the Upper Silesian Industrial Park from Katowice. As innovation leaders of the cluster the Foundation for Energy Efficiency (BEI) , the HVAC Company Ltd., the Design Office Consulting and SPEC Bau Poland Sp. zoo could be identified.

Other influential stakeholders who are involved in the execution and implementation of the idea of energy-saving buildings are AB Group Sp. z o o (Investment management), AGA Bauservice Sp. zoo (construction and installation services), Bauren Renke Piotr, P.A. Nova S.A., Group-Arch Sp. zoo, MBC Automatyka i wentylacja Sp. zoo, T.B. Tumas Z.A Radzyński (all design services), OST-ENGINEER D.Szydlik, M.Osadnik, M. Tyszczak, Sp. J (service providers) and the Polski Instytut Budownictwa Pasywnego i Energii Odnawialnej im, Gϋntera Schlagowskiego Sp. zoo (R&D unit). Also on the R&D

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side the Silesian Technical University and the Cracow University of Technology are important actors for the “Building Cluster”.

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Cluster Potentials

Austria The Austrian Regions “Upper Austria” and “Styria” both have a cluster-oriented economic, innovation and technology policy. As activation of innovation and synergies through cooperation is considered to be vital, cluster development has become a long-term important instrument of public policy since the 1990s. Consequently a large number of well functioning and innovative clusters, networks and cluster initiatives can be found in the regions. Relationships between the different cluster actors from science, education and the commercial sector are long grown and can be considered as strong and reliable.

The “Mechatronik Cluster” is currently in a developing state; growth beyond regional and also national borders is seen as its future perspective. Also the “Automation Platform” has constantly grown since it was founded and continuously invites companies acting in the Styrian automation sector. The platform is presently in an emerging state; all large-scale companies from the sector are involved. Future quantitative growth will be realized by smaller companies joining the platform. Broadening the cluster’s activities for communication and promotion are, besides fostering cooperation, the major future goals.

Czech Republic The “IT Cluster” and its members are specialized in developments of software and also updating of hardware and selling with added value. Therefore there is no supply chain contained in the cluster but companies cooperate and share information in the software development and new technical solutions in their sector. The cluster has quite strong market position thanks to its core members and especially because the field of operation is very specific and there are not many other companies on the national level specialized in network security outside of the cluster. In the future NSMC aims to become the centre of excellence in the ICT security on national and also international level.

The “Furniture Cluster” is one of the oldest clusters in the Czech Republic and has a comparably large number of members. Its members have long tradition on the market and some of them belong to the strongest on the Czech market. Based on that and after several years of existence the cluster actors are able to cooperate (also based on personal relationships) in common projects and achieve good results together. The cluster aims mainly on the creation of high-quality processing, of marketing studies, whose results are used for the successful entry of firms into foreign markets and increase overall competitiveness. Cluster penetration of domestic and foreign markets is allowed by intensive research and development programs and new production technologies in which all cluster members participate.

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Germany The purpose of “profil.metall” is to achieve greater prominence and to unlock innovation potential for the metals sector through increased cross-regional cooperation between existing and active regional networks. Basically the cluster is aiming at the systematic build-up of the steel - construction value creation chain, focusing on the use of new materials and processing technologies. To accomplish the overall cluster strategy cluster management aims with its activities at specific targets to strengthen capabilities of its members. The Brandenburg Metal Cluster is a developing cluster. Its number of members is growing, so are some of the member companies themselves. The market position can be described as strong on the regional market and partially – depending on company respectively product – strong on global level.

The objectives of “oabb” are to enhance innovation in products and processes, to develop new markets and to promote the sector. Another crucial and successfully achieved aim is internationalization, exploring relationships especially with Eastern Europe suppliers and customers. The overall strategy of “oabb” is broken down into major categories, each of them backed by a systematic activities performed in the respective field. Cluster management has also developed a so called “Roadmap” plotting out the overall innovation strategy of the cluster. As a part of that roadmap an outlook on the future prospective of products and services offered by the cluster members has been developed. This strategic concept provides a useful guideline for the cluster members to plan development in new products, helps in the determination of market objectives and can be used a basis for the company’s personnel policy. oabb cluster provides the only complete ophthalmic value chain in Germany, offering a broad product range for opticians, the ophthalmic medicine and simply everyone who wears glasses. The cluster is also market leader in workshop technologies and special lenses. Regarding the life cycle the oabb can be described as a developing cluster with a strong presence on markets in Eastern Germany, North Rhine-Westphalia, Bavaria and the Baltic Countries and perspectives to explore other markets in Western Europe.

Hungary Not having a long tradition the West-Transdanubian Clusters can be generally considered to be newcomers or being in a developing stage.

In Hungary the textile companies lost their market in the last decades and lost the direct contact with the customers. Instead of this direct cooperation with their former customers the SMEs work now for the large companies as subcontractors. The SMEs in the textile industries are not able to open to new markets because of essential inner barriers like the lack of language skills, the ability of representing the company and the poor technical resources which are out-of-date. In the supplier chain the specialization is missing. Still the “Textile Cluster” is a developing cluster in its life cycle status with a dominant market position on the regional clothing market.

Innovation is of a low presence in the “Textile Cluster” of the West-Transdanubian region. As the actors of the local textile industry make assembly for companies; this activity doesn’t leave enough

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space for starting real innovation inside the SME. No remarkable innovation potential was detected during the benchmarking survey inside the cluster. Still the textile industry is of importance for employment and economic development in the region. As already recognized by the cluster management steps to support the cluster hub actors in the way of restructuring their activities and to concentrate on innovative developments have to be taken. The cluster hub actors must start to restructure their strategy, they have to identify the emerging needs of the market players and turn in the direction of specialization. Ideal would be that the cluster hub actors specialize themselves on different production fields which could result the completion of their services. Another option is following ecologically friendly production and marketing strategies, an attempt is undertaken at the moment by an initiative in green procurement, the so called TexEastile transnational project.

The “Thermal Cluster” is a developing cluster in its life cycle status. The market position of the cluster is central and leading. The cluster management is in the process of restructuring the strategy of the cluster. At the moment the innovation potential of the “Thermal Cluster” is low. The actors of the thermal sector react very sensitive on the competition and are mistrustful towards the competitors. Most important aim of the cluster management is to create an open relationship between the members in which they don’t appear as competitors to each other but can complete each other’s services. Organization of a structured knowledge transfer between all actors would be a next step inside the cluster.

The cluster also strives for forming connections with European regional company centers. Some members of the “Thermal Clusters” have already aimed to increase their attractiveness by launching new services, using new processes in the services. One of the fields of high importance for future development could be the development of efficient and energy-saving technologies for water and heating systems.

Italy The local production system of the many SMEs of the Italian “Footwear Cluster” is challenged. Life cycle of fashion products becomes shorter demanding a rapid renewal of products and therefore a high flexibility and high pace of design processes and the capability to differentiate the product to meet a highly different demand very fast. Competition becomes fierce, the pressure on cost- containment is rising. The appearance of large (multinational) footwear companies threatens the informal cluster structure and the grown relationships. Internationalization, Standardization and mass production in the footwear sector lead to a declining number of companies.

The “Packaging Cluster” is characterized by a high degree of production flexibility and customer orientation, a highly competitive production system composed of large integrated groups and of specialized SMEs, vertical and horizontal cooperation along the value chain and significant importance of R&D as the key to competitiveness. Main strategies followed by the cluster members are the customized production, continuous technological innovation linked to investments in R&D processes, the introduction of new packaging materials, the development of after-sales services and internationalization.

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One opportunity for the Italian clusters could be the development to distinctive, high quality production systems with strong local and regional ties in opposition to multinational companies and brands. A professionalized cluster management supporting the cluster member companies with certain services to enhance cooperation, performing lobbying and marketing activities for the respective sector, promoting R&D capacities and broadening current technological approaches and trends etc. pp. could play an important role in this process.

Poland The “Polish Wood Cluster” deals with matters relating to the wood industry, power engineering and automation. A future priority field of activities will be sustainable development of the energy production from renewable sources. Development activities will be largely related to renewable energy and recovering the energy from waste. To help the adoption of innovative activities a new laboratory where technologies for renewable energy production are tested in strictly commercial exploitation conditions will be opened soon. Currently the cluster operates throughout the whole country, but cooperation with foreign entities and access to the market on international level in the near future is expected. The cluster’s innovation potential is undoubtedly very large; many activities towards introduction and transfer of modern technology are being implemented now.

By working together the members of the “Building Cluster” – who are mostly companies operating in traditional sectors so far – do have new possibilities to integrate innovative solutions with standard production processes, bring significant added value and increase their productivity and efficiency. The cluster board and the cluster members constantly develop innovative services and products and explore new markets for passive and energy saving house building. To support these processes they are also applying for certificates like British BREEAM certificate which is one of the most important green building rating systems. The main challenge to be tackled by the actors of the “Building Cluster” will be the barriers that are related to the still low level of knowledge on energy-saving passive-building and the coordination of the logistics chain. However, it seems the level on activities to affect innovation implementation, as engines of growth to create conditions for increasing competitiveness of the economy as a whole, needs to be more effective.

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Role of Clusters in improving innovation and effects on development towards World Class Clusters

Clusters are specific forms of production organization characterized by a regional concentration of flexible enterprises operating in complementary fields of business. Cluster actors are mainly companies, public and administrative institutions, research and development institutes and sector related service centers.

Clusters also represent a key factor for competitiveness and innovation and therefore for economic and employment growth. Cooperation within clusters raises the level of innovation of local agglomerations in a specific sector. Forming clusters, following widely acknowledge theories, also leads to an improved competitiveness of the enterprises involved (especially of SMEs). As clusters are territorially grounded they also play an important role for the development of regions. Supporting or triggering economic growth or stability, clusters contribute to more prosperity of regions.

Although used more and more frequently, the understanding of the term “World Class Clusters” is not yet precisely defined or described. Speaking of “World Class Clusters” generally expresses the ambitions of clusters to improve the quality of their performance, to achieve excellence in their management organization and cooperative structures and their wish to become internationally well known innovation and business hubs. A certain set of criteria grouped into three main dimensions Framework Conditions, Cluster Actors and Cluster Organization/Management to reach a better understanding of “World Class Clusters” has been developed [see: Gerd Meier zu Köcker, Klas Svensson, Nicholas Szechenyi (2010): World Class Clusters ‐ An Attempt to Formulate the Main Criteria of World Class Clusters. Discussion Paper]. All three dimensions have an important impact on the development and performance of clusters, which, of course, may vary accordingly. A first insight in the circumstances we find for the main dimensions in the C-Plus Clusters is given by this report.

The role of each cluster member in each cluster is different and depends on the type of the organization, the position in the cluster and the actual economic situation of companies and other cluster actors. All cluster members are important as they represent the variety and differences in the cluster and characterize range of products and solutions offered. Each member brings something valuable to the cluster. The diversity accompanied by the available expertise enables the cluster members to join their competencies and cooperate for innovation and growth.

Large companies are playing a significant role within the cluster. Due to the extent of production they are investing more to the R&D activities and are generating innovations. Last but not least larger companies are involving the SMEs into their supply chains, which often drives the SMEs to increase their innovation level as well. Larger companies in the cluster are more prone to take the leading role and organize the supplier network on the basis of joint R&D.

On the other hand, SME’s play an important role in the cluster as well. With their flexibility and possibility to quickly and effectively adopt new market trends and demands they are often highly competitive. Clusters are also often linked to medium enterprises who act as world leaders in their market niches and to smaller firms able to reach very high levels of technical specialization. Many

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clusters have achieved a strong international presence with an above average export specialization in their respective sectors. To maintain this competitiveness – on the national as well as on the global level – means to generate new knowledge and improve the capability of processing this knowledge within the cluster and its stakeholders steadily in order to keep a high level of innovation.

Amongst the “C-Plus Clusters” very advanced clusters can be found e.g. in Austria, Germany and Italy (Packaging). The clusters in Poland and Hungary are quite young, complex cooperative and communication structures are not yet fully developed. Also it can be said that the younger clusters (also the “Footwear Cluster” in Italy) act on a more informal level whereas more established clusters have produced more organized (and probably more efficient) managing structures. In the Czech clusters the situation seems to be different, although still young very organized cooperation structures (management, board, working groups) exist in both clusters.

Clusters in the regions Clusters play a very important role in distributing and promoting innovation within the regions and the sectors. Cooperative projects of the cluster and its members, organized events bringing experts from science, research and development and the companies together and other management methods aim to improve innovation capability and competitiveness of the clusters. Successful clusters support their members in developing innovative products, processes and services which enable growth processes and ensure sustainability. This development helps to secure the economic future and employment of an area and triggers investments in R&D and production facilities. Also, as innovation processes rely on skilled labour, cluster development contributes to qualification and education processes. Evidently clusters produce an impact on the territory of the cluster in many ways.

Interconnections between R&D institutions and the local economy are of high importance for the regional development. The transfer of knowledge into the companies and building or improving capabilities to transform this knowledge into innovative products, processes and services play a decisive role. As R&D is often concentrated in big centres, especially in regional cities, these centres have a big impact on clustering.

Some of main future tasks for clusters will be to:  build up or intensify cooperation along the production chain to increase regional value creation,  develop innovative products, processes and solutions,  intensify cooperation with R&D to get new inputs and ideas,  increase the capability of companies to utilize this knowledge,  keep a high innovation potential in the region,  face challenges of internationalization,  create and use common marketing and lobbying strategies,  explore new markets and  improve the member’s financial capacity to act.

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Clusters between cooperation and competition Within Clusters the companies cooperate and compete at the same time forming the basis for cluster creation with establishing relations existing between the companies. In these cooperative and exchange relations specific knowledge is generated and the ability to adopt and process knowledge is increased for mutual benefit. Involving competitors within a cluster and motivating them to intensively cooperate and compete with each other typically leads to very positive outcomes for the whole cluster.

A high cooperation level between the different cluster actors proves to be helpful for a positive cluster development. Cooperation takes place from company to company, with public or administrative actors and with researching and educating facilities. The development of new products, services and technologies for the benefit of clusters and regions can be enhanced significantly through intense cooperation between companies and R&D institutions (schools, universities, private research institutions etc.). Supporting the set-up and performance of cooperative projects and structures according to the companies’ needs and matching their demands can promote the innovation capacity of a cluster.

Framework conditions for a cooperation- and innovation-friendly environment are to be set by regional, national and supranational policies. Given the political will a broad set of supportive measures for cluster development can be provided by public and administrative entities. The density of available (and relevant) R&D institutions, the transport- and communication infrastructure, structures to support technology and knowledge transfer, the available qualified workforce, the access to venture capital or supportive funding programs to trigger cooperative projects influence cluster development.

Cluster Strategies and Management When developing cluster / innovation strategies within the regions a broad approach with participation of all relevant and interested actors should be considered. On the on hand this ensures a comprehensive inclusion of different aspects (e.g. political strategy, technological development, environmental topics, public funding programs etc.) and actors (e.g. companies, administration, research, unions, local stakeholders, chambers etc.) that need to be taken into account. On the other hand early and broad participation of all interest groups is the most promising way to encourage the different stakeholders to support the activities of the cluster once a strategy is set.

Professional management has to take the historically long grown – and successful – existing cooperative structures into account. Cluster management requires a high sensitiveness dealing with the immanent conflict of finding the approach to encourage cluster member companies to cooperate for mutual benefit despite being competitors. The risk of possible conflicts between member companies competing on the very same market makes cooperation within the cluster more complicated; especially when it comes to directly customer oriented and technologically less specialized sectors (e.g. the Italian Footwear Cluster).

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Also the organized communication flow within the cluster is very supportive for the dissemination of successfully applied innovative methods, production technologies or new products and services. Once a cluster member has successfully realized an innovative approach to a certain problem (considering production as well as management methods, resourcing, distribution, marketing or human resources) within a cluster it is much easier for other cluster members to learn from the innovation leader and adopt the innovation.

Supportive policy programs and (regional) strategies to promote cluster development and innovation exist in all of the countries / regions analysed. But the programs and strategies differ significantly in the degree of specialization and limitation towards certain regions or sectors. Some can be considered to promote innovation and cooperation rather non-specifically whilst other are precisely aiming to support clusters (e.g. in Czech Republic) or sectors (e.g. in Germany).

A high innovation level of the cluster actors and their judgement of the policies allows the conclusion that the measures taken in these regions are helpful for the promotion of a cluster towards world class. Most important seems to be the presence of a well organized and active cluster management with a clear vision on future perspectives of the cluster. Besides specific topics depending on the sector the cluster is active in, some instruments to support innovation and competitiveness can be generalized. The early recognition of technological trends and measures to prepare the cluster members accordingly, e.g. by information through workshops and conferences, by involving leading R&D institutions and by triggering joint projects to explore these trends, is a crucial task for the cluster managers.

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