Table 1 . Cluster Development in Action – An Indicative Fast-Track Timeline
Month 1
Month 2
Cluster Manager ( CM ) establishing an informal cluster ignition team with relevant local , state and national support agencies and organisations . Draws on their insights . In the longer term , secures support for collaborative projects . CM also establishing a small Cluster Steering Group as the emerging governance entity . Collective leadership , triple helix , business led . A cluster-wide kick off meeting , introducing the CM and the role .
A short , sharp cluster review that also establishes personal connections : CM holding individual meetings with many lead core and support business CEOs and the business support organisations , reviewing opportunities and constraints . Topics for discussion could include :
• What is holding you back from doubling ?
• Why is your business based here ?
• What is the one thing that you can ’ t do by yourself ? Establishing the cluster ’ s base metrics , e . g . current # of firms , # of employees , % turnover from beyond the home region .
Month 3
A cluster-wide workshop , with the CM feeding back on the individual meetings followed by discussion on the priorities in moving forwards . Establishing small project teams around priorities .
Months 4-5 CM supporting the workshop ’ s project teams , encouraging each to engage on early , low-hanging-fruit projects . CM , drawing on knowledge of individual firms , bringing together small groups to explore opportunities for private collaborations , e . g . joint tendering , joint purchasing , sharing staff , machinery . CM organising regular cluster-wide meetings with guest speakers ; emphasis on the ‘ after-match ’ function , building connections , trust .
Months 6-9 Project activity continues , not necessarily with the CM leading all . Regular cluster-wide meetings continue , using local hosts and premises . Identifying collaborative opportunities with neighbouring clusters . Informally benchmarking with other clusters , more fully understanding the competitive position . Formalising the cluster as a not-for-profit entity , with the Cluster Steering Group evolving into the Board .
By Month 12
Establishing the cluster ’ s long-term priorities / strategy , drawing on the learning from project activities and the cluster ’ s competitive position . Moving to more substantive and transformative projects , the heavy lifting .
CLUSTER DEVELOPMENT IN ACTION Assuming the initial cluster pilot ( s ) have been agreed and resourcing for cluster development is in place , a cluster manager ( CM ) needs to be appointed as the cluster ’ s connector and catalyst . This person ’ s technical knowledge is not nearly as important as inborn relationship skills . Successful CMs earn a position as a guide and critical friend to the CEOs . They build synergies where appropriate , identifying collaboration opportunities . One of the most complex activities is aligning support organisations around the cluster ’ s forward agenda . Bringing competitors together to co-create a preferred future is significantly more difficult than dispensing business grants . The CM is usually based with a neutral host organisation , such as an economic development agency or a business incubator .
An indicative timeline for the first 12 months of a cluster development initiative follows ( see Table 1 .).
Key variables are the size of the cluster ( the number of businesses and support organisations ) and the CM ’ s dedicated time .
STRONG CLUSTERING INITIATIVES Strong initiatives develop broad project portfolios . While these collaborative projects are tailored to the specifics of the cluster , they could include market development , training , cost reduction , transport logistics , SME development , business finance , supply chain links , talent attraction , engaging with local schools and disadvantaged youth , on-shoring supply chains , diversification , pre-competitive RandD / technology and Industry 4.0 .
These projects become the cluster ’ s engine room . They are particularly centred on the businesses with both the aspirations and the competencies to grow . For many projects , the cluster manager is the neutral broker who draws on deep knowledge of the lead businesses , bringing them together to explore collaborative opportunities . Some projects will be short term ; some may be around a small sub-group of businesses within the cluster . Some projects will be open to any that may benefit ; others will be private collaborations amongst businesses that have a high level of trust . Some will fail .
The cluster manager is working across silos and sectors . One of the most difficult tasks facing a cluster manager will be aligning around business needs the wide range of State and Commonwealth programmes , addressing what are often coordination failures . As knowledge of the cluster deepens , gaps in local capabilities may be identified that could be filled by targeted inward investment .
A common focus is increasing the cluster ’ s visibility , possibly developing a brand for the cluster , to attract new customers , new investment and talent ; to connect with related clusters across Australia and globally .
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