GETTING STARTED ON CLUSTER DEVELOPMENT
Ifor Ffowcs-Williams , CEO , Cluster Navigators Ltd , Nelson , New Zealand 1
Across Australia , regions are seeking to build higher value economies . The broad range of activities underway include enhancing business skills , addressing productivity , supporting start-ups , upgrading digital competencies , addressing circular manufacturing , regional identity , attracting investment and diversification .
None of these activities are specific to Australia ’ s regions . They are common throughout the world . However , Australia ’ s economic development toolbox is missing a key element .
Close to a decade ago , one of the world ’ s experts on upgrading competitiveness contrasted Australian and international practices . Prof . Michael Enright observed that “ Cluster development has become an important , if not the dominant , means of developing regional economies ” 2 . But not in Australia .
‘ Clustering ’ has not been embedded in Australian public policy to the extent that it has across Europe and in most OECD countries . In these countries , cluster development provides an effective coordination mechanism across economic development activities and organisations , centred on each region ’ s specialisations .
Australia has many examples of naturally occurring clusters , including wine in the Barossa and Margaret River regions ; equine in Scone ; spa tourism in Daylesford ; creative industries in the Blue Mountains ; mining services in Perth , Adelaide , Brisbane , Mackay , and other centres ; wood processing in Mount Gambier and Superyacht servicing in Cairns . What Australia has been short of is substantial engagement to further develop these specialisations .
Australia has been a laggard in engaging around clusters . Each State over the last two decades has explored cluster-based economic development , usually with shortterm interventions . At the Commonwealth level , until recently , there has been little cluster engagement . The state-of-play in Australia is now finally changing . Recently , three of the Commonwealth-funded Industry Growth Centres have been supporting the development of regional clusters to , in part , deliver on their national agendas .
This paper presents the logic for regional engagement on clusters . An approach for an Australian region to fast-track cluster development is outlined , drawing heavily on European experiences . The paper complements the EDA webinar , 25 May 2022 , on ‘ Clustering for Business Growth , an International Perspective ’ (
https :// youtu . be / 7ln2T57FK6A ).
VOL 15 NO 2 2022 20 www . edaustralia . com . au