productivity recession
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1 Responding to NZ s Productivity Dilemma OECD NZ Economic Survey June 2017 Productivity remains well below that of leading OECD countries Collaboration between firms, education and research institutions is low EDNZ Wellington 31 Ifor Ffowcs-Williams Nelson Compe''veness Produc'vity NZ in productivity recession Clusters Clustering Ini'a'ves Bergen, Norway 50% global market for subsea technology 1
2 Bergen, Norway The world s leading centre for subsea technology Bergen region 100 subsea companies and organisations, incl three of the world s leading subsea system firms Subsea cluster organisation Developing Bergen as the leading authority on subsea maintenance, modification and operation 10 year financial support Bergen University Increased competitiveness in regional clusters through long-term internal and external collaboration BSc & Masters in Underwater Technology Focus on subsea operations & maintenance Attracting high value students globally wwwinnovationclustersno Örnsköldsvik, Sweden Population: 30,000 2
3 Major clusters under development Each German state has a cluster program, cluster activities Schleswig-Holstein (EFRE, GRW) Cluster focus Zukunft schmieden Lower Saxony (Federal State Funds) Metropole Wachsende Stadt Hamburg (Federal State Funds) Mecklenburg-Western Pomerania (GRW) Bremen (EFRE) Berlin (GRW) North-Rhine Westphalia RegioClusterNRW (EFRE) Landesexzellenzwettbewerb Saxony (GRW) Clusteroffensive Hesse (EFRE) Wachstum durch Innovation RhinelandPalatinate (EFRE + Federal State Funds) Innovation Strategy Saarland (EFRE) Regional Cluster Competition (EFRE) Baden-Wuerttemberg Cluster Initiative Bavaria Bavaria (Federal State Funds) European Aerospace Cluster Partnership Canada s national innovation agenda $950m Superclusters Programme 34 clusters 13 countries Russia Turkey 4300 companies, 450 research institutes, 125 public institutions 3
4 Halifax, Nova Scotia Ocean Innovation Centre Physical infrastructure + Knowledge infrastructure + Social infrastructure = High performance cluster Clusters an international buyer's view Buyers are travelling to fewer places Places with specific specialisations Co-location of businesses in clusters Buying subsea technology? Buying a Formula 1 racing car? Buying socks? Go to Bergen, Norway Go to Motorsport Valley, UK Go to Datang, China Buying radish seeds? Go to Mid Canterbury Buying an Australian thoroughbred? 50% of the world s supply Home for 8 of 11 F1 manufacturers 35% of world production 50% of world production Go to Scone, NSW 80% of Australia s exports Increases productivity of companies & job creation; Drives innovation; Stimulates new businesses formation; Supports survival & growth of small businesses Cluster development Building the In innovation, a company s success depends on more than just the quality of its workers it also depends on the entire that surrounds it Role of Regions Upgrading productivity 1 Identifying regional strengths/clusters/ smart specialisations 2 Aligning support organisations around those specialisations: EDA + Callaghan + NZTE + Tertiary + Colleges + SME support 3 Building a co-opetition culture amongst firms, co-specialisation 4
5 Advice to regions Economic development strategies Addressing NZ s productivity dilemma Teamwork around regional strengths 1 Go beyond: Broad, cross-cutting activities Engaging with individual firms 2 Start with your assets, your foundations 3 Build the local relationships, networks, coalitions of the willing 4 Co-design solutions 5 Multiple, small scale activities Devolution, place-based development Ifor Ffowcs-Williams CEO, Cluster Navigators Ltd 22 Examiner St, Nelson 7010 New Zealand E4@clusternavigatorscom wwwclusternavigatorscom wwwlinkedincom/in/ clusterdevelopment Skype: clusterguy 5
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