Location Dynamics of Cluster Formation and Public Sector Response - Can Planning Influence the Process?

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Location Dynamics of Cluster Formation and Public Sector Response - Can Planning Influence the Process? Location dynamics of cluster formation and public sector response - can planning influence the process? Findings from selected Metrex Metropolitan areas : Paris, Helsinki, Lombardy, Madrid, Oslo, Stockholm, Szczecin Helsinki Oslo Stockholm Szczecin Mazovia (Warsaw) Paris Sofia Lombardy (Milano) Madrid 0 Location dynamics of cluster formation & public sector response - can planning influence the process? Findings from selected Metrex Metropolitan areas: Paris, Helsinki, Lombardy (Milano), Madrid, Oslo, Stockholm, Szczecin Editors: Thierry Petit and Douglas Gordon ©IAU-IDF Paris, France and Helsinki City Planning Department, 2015 Editors: Thierry Petit and Douglas Gordon Graphic layout: Thierry Petit and Douglas Gordon Front cover design: Pascale Guery ISBN 978 2 7371 1946 0 Location dynamics of cluster formation and public sector response –can planning influence the process? 1 Location dynamics of cluster formation and public sector response –can planning influence the process? 2 Contents : Introduction…………………………………………………………………………………...… P5 Thanks………………………………………………………………………………………..……P6 The participants to the study…………………………………………………………………….P7 Part 1: Cluster theory ………………………………...……………………………….………..P9 Part 2: Case studies……………………………………………………………………………..P19 Paris………………………………………………………………………………………………...P21 Helsinki…………………………………………………………………………………..…...… P53 Lombardy Region (Milano)………………………………………………………………………P91 Madrid…………………………………………………………………………………………..….P101 Oslo/Akershus………………………………………………………………………………...…..P125 Stockholm……………………………………………………………………………………..…..P135 Szczecin………………………………………………………………………………………..….P159 Part 3: Main findings and conclusions……………………………………………......……P226 The main findings of the study: why clusters?….……………………………………….….…P227 Appendix: Methodology for the Helsinki case study………………………………….……….P235 Location dynamics of cluster formation and public sector response –can planning influence the process? 3 Location dynamics of cluster formation and public sector response –can planning influence the process? 4 Introduction Since 2009, a group led by the IAU-îdf, the Paris region urban planning agency, has been formed among the members of Metrex to address specific questions about planning regarding economic development, this group is called Econometrex. Economy and economic development is a central issue in our advanced European societies and has a pregnant role on urban development (either by the way cities are developed in a strong interaction with the private sector or the physical way they evolve thanks to the economic activities location). It is well known, but not always accepted, that planning cannot decide where economic activities will locate. But it is possible to influence its location, especially by planning, the question is how far? The aim of this group is to bring elements of knowledge and understanding about the tendencies underway concerning the localization of economic activities among the respective metropolitan areas represented. It is also to share practices in terms of analysis or concerning the conception of strategies, planning and policies concerning economic development. The Econometrex group1 has chosen to focus its present work on the actions of public authorities to foster the creation and development of clusters, especially concerning the planning issues. This work is based on two approaches: the exchange of experiences based on existing works on this issue conducted by the various members but which are very heterogeneous, and the result of firms interviews based on a common methodology for Paris and Helsinki (see annex). The first part of the study will present the main elements concerning the cluster theory, The second part is formed by the various elements brought by the members involved in the Econometrex group presented through case studies. The third part will present the findings of the Econometrex group on clusters. 1 See chapter participants Location dynamics of cluster formation and public sector response –can planning influence the process? 5 Thanks We warmly thank all the participants of the economic group for their (free) commitment in this long lasting but passionate work, with lots of debates, sometimes leading us to unexpected but interesting issues. We also would like to thank all the various attendants to the meetings who were not able to fully participate to the works but brought their ideas to the group. I would particularly like to thank Douglas Gordon who was very active in the Group and very stimulating for all of us and made this work possible. Thierry Petit, leader of the Econometrex group Location dynamics of cluster formation and public sector response –can planning influence the process? 6 Participants to the study Lead partner: Paris Region urban planning institute IAU-IDF, France -Thierry Petit, Economist, (IAU-IDF) -Delphine Brajon, Econometrician, statistician, IAU-IDF -Pascale Guery, Cartographer, (IAU-IDF) Co-leader: City of Helsinki, Finland -Douglas Gordon, Architect, International Coordinator, city planning -Susa Tulikoura, Urban Planner, city planning Lombardy Region, Italy - Adriana May, Director of the territorial cooperation structure, territorial and urban unit. Community of Madrid, Spain -Alberto Leborero, Deputy Director of Regional Planning, General Directorate of Urban Planning and Spatial Strategy, Ministry of Environment and Land Management. City of Oslo, Norway -Peter Austin, Planning Advisor, Urban Development Department. Stockholm county council, Sweden -Jessica Andersson, planner, Stockholm Läns Landsting (Office of Regional Growth, Environment and Planning) -Cecilia Lindahl, planner, Stockholm Läns Landsting (Office of Regional Growth, Environment and Planning) -Carl-Johan Engström, consultant, has put together the summery of the Stockholm report Szczecin city, Poland -Ewa Kurjata, Senior Strategy Management Office, Szczecin Municipality -Krzysztof Michalski, Deputy Director, Szczecin City Planning Office -Dariusz Dołgoszyja, Head of the Programming and Computing System Development Unit, Szczecin City Planning Office Location dynamics of cluster formation and public sector response –can planning influence the process? 7 Location dynamics of cluster formation and public sector response –can planning influence the process? 8 Part I: Elements on cluster theories Location dynamics of cluster formation and public sector response –can planning influence the process? 9 1. Elements on cluster theories2 1.1 The concept and its formalization Traditionally, economic development was mainly perceived as an external process where local actors had but little proactive mean of action. This vision began to change by the emerging 1970’s new theories about “innovative environments”, “learning regions” or “clusters”. Since then the local scale gains value in a growing world economic competition. The theories about cluster can be traced since Alfred Marshall’s works who first mentioned the industrial districts (1890) as being a benefit for the economic actors due to their proximity and geographic concentration, generating externalities. Nearly a century later in 1979, the Italian economist Gioacomo Becattini followed by several other Italian economists applied this concept of industrial district to the northern Italy industry, with a holistic view. He improved the theory by putting his analysis at the whole districts level, considering it an entity, instead of analyzing each firm composing the cluster. In 1990, the American economist Michael Porter of the Harvard business school introduced the notion of “clusters” which he defines as follows : “Geographic concentrations of interconnected companies, specialized suppliers, service suppliers, firms in related industries firms, and associated institutions (universities, standard agencies, and trade associations) in particular fields that compete but also cooperate.”3 Porter who firstly analyzed the cluster phenomenon at country level recognizes that a cluster can be of various type and size: urban, rural, city to nationwide, depending on the type of activity concerned on the type of competition between firms and their strategy. Porter’s contribution mostly laid on a better formalization of the concept and a broader view, especially with the diamond diagram, explaining how countries (extended to regions) gain competitive advantage through clusters. 2 This part is largely inspired by the study : “Clusters mondiaux : regards croisés sur la théorie et la réalité des clusters” Sylvie Lartigue et Odile Soulard, IAURIF, janvier 2008. 3 “The Competitive Advantage of Nations”, Michael Porter, 1990. Location dynamics of cluster formation and public sector response –can planning influence the process? 10 Porter’s diamond and the competitive advantage. Clusters, through proximity, bring a competitive advantage as it develops and intensifies interactions between 4 complementary factors that participate to the national/regional competitiveness and synthetized by the diamond (see diagram upper). These factors are: The factor (inputs) conditions which include the production factors of the firms of the cluster: workforce, scientific research, capital, infrastructures, natural resources. The context for firm, strategy and rivalry. The political, legislative and economic environment of the firms must be healthy, stable and business friendly, encouraging investment innovation and competition. Demand conditions. A local market that should be of good quality and larger enough with customers that have sophisticated demands and
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