Clusters, Innovation and Entrepreneurship Edited by Jonathan Potter and Gabriela Miranda Clusters,Recession, Innovation Recovery and This publication explores the success of major innovation and entrepreneurship clusters in OECD countries, the challenges they now face in sustaining their positions and the andReinvestment Entrepreneurship : lessons for other places seeking to build successful clusters. What are the key factors for cluster success? What problems are emerging on the horizon? Which is the appropriate Editedthe byrole Jonathan of Potterlocal role of the public sector in supporting the expansion of the cluster and overcoming the and Gabriela Miranda obstacles? economic leadership The book addresses these and other issues, analysing seven internationally reputed clusters in depth: Grenoble in France, Vienna in Austria, Waterloo in Canada, Dunedin in a global crisis in New Zealand, Medicon Valley in Scandinavia, Oxfordshire in the United Kingdom, Greg Clark and Madison, Wisconsin, in the United States. For each cluster, it looks at the factors that have contributed to its growth, the impact of the cluster on local entrepreneurship performance, and the challenges faced for further expansion. It also puts forward a set of policy recommendations geared to the broader context of cluster development. This publication is essential reading for policy makers, practitioners and academics wishing to obtain good practices in cluster development and to enhance the economic impact of clusters. Clusters,Entrepreneurshipand Innovation The full text of this book is available on line via these links: www.sourceoecd.org/employment/9789264044425 www.sourceoecd.org/industrytrade/9789264044425 www.sourceoecd.org/scienceIT/9789264044425 Those with access to all OECD books on line should use this link: www.sourceoecd.org/9789264044425 SourceOECD is the OECD online library of books, periodicals and statistical databases. For more information about this award-winning service and free trials, ask your librarian, or write to us at [email protected]. ISBN 978-92-64-04442-5 84 2009 06 1 P XXXPFDEPSHQVCMJTIJOH -:HSTCQE=UYYYWZ: Local Economic and Employment Development (LEED) RECESSION, RECOVERY AND REINVESTMENT : THE ROLE OF LOCAL ECONOMIC LEADERSHIP IN A GLOBAL CRISIS by Greg Clark, Chair of the OECD LEED Forum on Development Agencies and Investment Strategies ORGANISATION FOR ECONOMIC CO-OPERATION AND FOREWORD DEVELOPMENT The OECD Programme on Local Economic and Employment Develop- The OECD is a unique forum where the governments of 30 democracies ment (LEED) has advised government and communities since 1982 on how to work together to address the economic, social and environmental challenges adapt to global trends and tackle complex problems in a fast-changing world. of globalisation. The OECD is also at the forefront of efforts to understand It combines expertise from America, Australasia and Europe into pragmatic and to help governments respond to new developments and concerns, such task forces that provide rapid responses and targeted advice on specific is- as corporate governance, the information economy and the challenges of an sues. It draws on a comparative analysis of experience from some 50 countries ageing population. The Organisation provides a setting where governments around the world in fostering economic growth, employment and inclusion. can compare policy experiences, seek answers to common problems, identify Much of LEED’s accumulated expertise and research experience was born good practice and work to co-ordinate domestic and international policies. out of economic crisis. The OECD member countries are: Australia, Austria, Belgium, Canada, The work of LEED since 1982 to the present day has played a major part the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, in establishing and gaining acceptance for the notion that local action, local Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, policy flexibility and new forms of local governance in economic develop- New Zealand, Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, ment are both desirable and essential as one element in meeting the challenges Switzerland, Turkey, the United Kingdom and the United States. The Com- of economic crisis. While local action alone is not capable of solving acute mission of the European Communities takes part in the work of the OECD. local employment difficulties, it is clear that the resolution of such difficulties is harder in the absence of a local approach. A local community that lacks effective local action in times of crisis is a community impoverished in terms of its capacity to help itself escape from crisis conditions. The local level is one of proximity to problems and stakeholders and thus one in which appropriate solutions can be sought. It is there that adjustments to the supply of and demand for jobs and skills can be made and particular types of incentives can be stimulated. This encompasses not only the design of policy measures, but also the mobilisation of policy agencies and users/benefi- ciaries as well. The local level is both the sphere of corporate competitiveness and the place in which unsatisfied economic needs and potential sources of jobs can be identified more easily. It is at this level that many job-producing projects, training schemes and social outreach programmes are formulated, Issued under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed selected, launched and sustained. The local level is also a place for the mo- herein do not necessarily reflect the official views of the OECD bilisation and intervention of actors from the public sector, trade unions and member countries. employers, businesses, voluntary associations and community groups, co- operating within partnership arrangements. It is no exaggeration to say that a “movement” emerged whereby, at the lo- © OECD 2009 cal level a broad spread of actors moved to create an environment of self-help RECESSION, RECOVERY AND REINVESTMENT : THE ROLE OF LOCAL ECONOMIC LEADERSHIP IN A GLOBAL CRISIS. RECESSION, RECOVERY AND REINVESTMENT : THE ROLE OF LOCAL ECONOMIC LEADERSHIP IN A GLOBAL CRISIS. in dealing with the stresses caused in their locality by a rise in unemployment. TABLE OF CONTENTS All this took place against a background of crisis; there was an urgency about FOREWORD . 3 the action required which attracted the interest of national political leaders and EXECUTIVE SUMMARY . 7 the news media. This led to the adoption of a high profile for these initiatives Leadership agendas and the Barcelona Principles . 9 and to the generation of a good deal of momentum to provide the financial and The review . 12 operational support required to create agencies at a local level whose defined Barcelona principals . 13 objective was to create jobs through the promotion of enterprise. INTRODUCTION . 15 The role of local action. 15 This global crisis is like no other that we have experienced since the early Delivering local development . 17 20th century. We have entered a period of great uncertainty whereby old values The “Barcelona principals” for local recovery and reinvestment . 19 need to be reassessed. We are facing a global employment crisis which will demand action at all levels of government and require that all stakeholders are Aims and methods . 21 engaged – government, trade unions and business. This is the approach that Analysis: impacts of and responses to the recession LEED has advocated for the last 27 years. Our collaboration with Barcelona by local economies worldwide 25 and The Work Foundation to analyse impacts, responses and challenges for CONCLUSIONS . 79 the future in 41 localities around the world provides a new platform from The Barcelona Principles for promoting recovery and reinvestment 80 which we can assert the value of local responses at times of economic crisis. APPENDIX: Detailed comparison OF THE Impacts OF The Barcelona Principles which emerged from a meeting in the city and which AND RESPONSES to THE RECESSION AND CRISIS. 97 have been considered by the LEED Directing Committee are a clear founda- The evidence: verified local economy “snap shots” tion for recovery. from across the globe 113 Aarhus . 113 I am particularly grateful to Greg Clark, Chair of the LEED Forum on Barcelona . 118 Development Agencies and Investment Strategies and to Debra Mountford Basel . 127 from the LEED Programme who have led this work agenda over the last six Bilbao . 129 months. In his capacity as Chair, Greg Clark, in collaboration with Joe Huxley Birmingham. 134 and Emma Allen, has authored an outstanding and timely report which will Brussels . 140 be an invaluable aid to localities and national governments as they respond to this crisis. I would also like to thank Jordi William Carnes, Deputy Mayor of Glasgow . 143 Barcelona, Mateu Hernandez, Executive Director of Economic Promotion for Hamburg . 149 Barcelona and Alexandra Jones, Associate Director at The Work Foundation Helsinki . 152 for their support and proactive membership of the LEED Partners Network. Lille . 159 Sheelagh Delf and Helen Easton of the LEED Programme and Sarah Barnett Liverpool . 163 of The Work Foundation have also provided invaluable support throughout Lyon . 169 the last six months. Finally, I would like to express my sincere thanks to all of Milan . 174 the local leaders and practitioners that made have made this work possible and Munich . 178 been key partners to