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Country Report: United Kingdom Introduction Country report: United Kingdom Introduction This report has been written as a part of the Europe INNOVA Cluster Mapping Project. One part of the project is a mapping of cluster policies, cluster institutions and cluster programmes in European Countries. For each country, a separate report has been written. Oxford Research AS in Nor- way has been responsible for the mapping of cluster policies. Oxford Research has developed the structure of the mapping and prepared the final reports. Most of the work has however been done by research institutes or consultancies in the different countries. These organisations are members of “The European Network for Social and Economic Research – ENSR” or partners in the Europe INNOVA Cluster Mapping Project. Based on the national reports, the main findings have been summarised by Oxford Research in a separate report. The Europe INNOVA Cluster Mapping Project has been financed by the European Commission. The views expressed in this report, as well as the information included in it, do however not necessarily reflect the opinion or position of the European Commission and in no way commits the institution. Kristiansand, Norway, December 2007. Harald Furre Managing director Oxford Research AS Please find more information about the Cluster Mapping Project and the Authors of this report on: www.clusterobservatory.eu www.oxfordresearch.eu www.ensr-net.com Forfatter: HF Sist lagret: 21-12-2007 16:43:00 Sist utskrevet: 21-12-2007 17:37:00 O:\Aktive prosjekter\54 EU cluster mapping\Country reports\Country reports copy\United Kingdom.doc Versjon: 20 Antall sider: 46 Report written by: Gabriel Mas The Cluster Competitiveness Group, UK E-mail: [email protected]. Telephone: +34 669 86 55 03 Main ministries responsible for Finance/ Science/ Trade/ Interior Other implementing cluster policy Economy Research Industry x Key agencies responsible for Office of Science and Technology (OST), The small Business Service (SBS), The implementing cluster policy Secretary of State for the Environment, Transport and the Regions (DETR) Is cluster Yes No x policy their only task? Are there any national cluster Yes x No Number of 2 programmes? programmes Are there any regional cluster Yes x No 21 programmes? Source of financing National programmes Regional programmes National ministries x x EU structural fund x Regional budget x Business x Other x Importance of cluster policy Low Medium High National level x Regional level x Policy papers on national level Yes x No Cluster policy over time Increased impor- Reduced importance Shifted tance x Since when has cluster policy been used? 1990-95 1995-2000 2000-05 2005- x Cluster development related to a particu- Yes x No lar person/organization? Individual Business org. Political party x Agency Research inst. Successful cluster programmes Scottish Food and Drink Is there a cluster or Yes No A general council exists competitive council? x Degree of obstacles when No/Low Medium Important building cluster policy x General assessments of competitiveness? Yes x No Role of clusters as framework in policy areas Low Medium High Business network policy x FDI attraction policy x Export promotion policy x Sectoral industry policy x Science and education policy x Competition and marked integration x Source: Oxford Research 2 1 Terminology In each country there will be one or possibly several terms or phrases used to de- scribe clusters. In some cases, different terms represent “competing” perspectives on clusters and, as perspectives change over time, one term may gradually replace an- other. In UK there are at least four ways of describing clusters. • The UK Governments Department of Trade and Industry (DTI) defines clusters as concentrations of competing, collaborating and interdependent companies and institutions, which are connected by a system of market and non-market links. • Invest Northern Ireland defines clusters as geographic agglomerations of firms in the same or closely related industries. • Scottish Enterprise defines clusters as a group of industries and organisa- tions linked by a common goal or practice’. It is assumed that clusters are national models. • The Welsh Assembly’s Department of Enterprise, Innovation, and Net- works defines cluster as industries linked through vertical (buyer/supplier) or horizontal (common customers, technology, channels) relationships Sources: United Kingdom Department of Trade and Industry; http://www.dti.gov.uk/ Invest Northern Ireland; http://www.investni.com/ Scottish Enterprise; http://www.scottish-enterprise.com/ Welsh Assembly Government’s Department of Enterprise, Innovation, and Networks; http://new.wales.gov.uk 2 Cluster development programmes and cluster organisations In many countries, there are programmes set up specifically to promote cluster de- velopment. Such programmes can be carried out by existing actors (for example a government agency), or new actors can be set up to run them. Often, one of the purposes of such programmes is to help initiate cluster organisations, that is, the programme provides financing or otherwise promotes the formation of cluster- specific organisations, typically in some form of public-private partnership. A coun- try can have many (even hundreds) of such cluster-level organisations in operation. 2.1 Agencies for cluster policy implementation in the UK The Department of Trade and Industry (DTI) is the United Kingdom’s government branch responsible for, among other things, cluster policy. However, much of the responsibilities of the DTI have been transferred to regional authorities. DTI's ap- proach to regional policy is designed to build the capability of regions, putting greater emphasis on growth within all regions and strengthening the building blocks for eco- nomic success and boosting regional capacity for innovation and enterprise. The DTI's cluster policy is to generate stable conditions that foster the development of clusters, but not to artificially create them. Through recognizing that clusters are 3 unable to operate in isolation. Four cross cutting themes were identified as being essential to cluster development: • Role of Higher Education Institutions (H.E.I’s) • Encouraging H.E.I’s to work with Office of Science and Technology (OST) who are responsible for knowledge transfer and exploiting funding programs for the exploitation of science. A report entitled Higher Educa- tion and Business Collaboration for Success details the collaboration be- tween HEI’s and business sectors. • Skills • The Department of Education and Science (DfES) and the DTI jointly published a report entitled Skills Strategy in 2003. This details how the Government, employers and industries can develop a demand-led educa- tion system to increase the regional level of skills. The report also identifies the need for raising skills and innovation in clusters. New services have been set up e.g. Learndirect and the Learning Skills Council. • Access to finance • The Small Business Service (SBS) was created to help small companies to access finance more easily. • Planning • DETR published Planning for Clusters in 2000, this lad to the review of the planning system carried out by the Office of the Deputy Prime Minis- ter (ODPM), and resulted in the publication of the Planning Green Paper published in 2001. Regional Development Agency In the UK, Regional Development Agencies were developed under the Regional Development Agencies Act in 1998, due to the need for decentralisation in order for the work of the DTI to be performed on a regional basis. The RDA’s adopted cer- tain powers from the Government to perform its purposes of regional development. In addition the act permitted Ministers the right to delegate any part of their func- tions to their RDA. The RDA’s became responsible for: • Developing and reviewing the economic development strategies • Following the strategies to achieve outcomes. The Secretary of State was responsible to provide guidance on: • Any issues in the strategy formulation, adoption and revision • Determining the financial duties of the RDA • Subject to conditions and with approval of the Treasury, provide Gov- ernment grants, • and loans and overdrafts to allow the RDA to perform its duties. The RDAs were to design collaborative projects to engage the various actors in clus- ters to encourage innovation activity and knowledge transfer between the companies, universities, industry experts, training organisations, business associations and ven- ture capitalists. The devolution process, initiated in the 1990’s, has given increased competencies, but in different ways, to the Northern Ireland, Scottish, and Welsh “home nations” 4 These home nations have development agencies which report to their respective Assemblies, not the UK Department of Trade and Industry. The RDA’s, in turn, all report to the DTI (with the exception of the London Development Agency, which reports to the London Greater Authority). Northern Ireland follows a similar structure as the other English regional develop- ment agencies. It reports to the UK Department of Enterprise, Trade, and Innova- tion. Development Agencies of Home Nations: • Invest Northern Ireland: Supports business growth and inward invest- ment, promotes innovation, research and development and in-company training, encourages exports and supports local economic development and company start. It is reports to the Northern Ireland Department of Enterprise, Trade, and Investment • Scottish Enterprise: The main economic development agency for southern and eastern
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