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Interreg IVC Programme – Cohesion Policy 2007 – 2013

Innovation & Environment Regions of Europe Sharing Solutions This project is part-financed by the European Union

European Regional Development Fund (ERDF) Co-financing rate: 85% EU Funds; 15% National Funds

Investing in your future

Malta IT Agency

Recommendation Plan Pooling4Clusters

Daniela Busuttil Dougall October 2012

Unclassified P4C Recommendation Plan

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PART 1 – CLUSTER POLICY – MALTESE CONTEXT

INTRODUCTION

One of the Smart Island Strategy targets was that of creating a national cluster framework together

with industry leaders, educational institutions and research institutes that serve as a first class

environment that allows for the development of specialised clusters.

In parallel to the above, another clustering activity obligation, resides within the Malta IT Agency’s

(MITA)1 strategic coverage 63, were the Agency is responsible to engage with multiple stakeholders

to devise a Clusters Framework primarily to help create the core competencies in an ICT cluster.

Malta Enterprise (ME)2 has the legal remit to support and assist in the development of clusters

through the Legal Notice issued under the Malta Enterprise Act dated 2009. Furthermore, ME issued

a set of Incentive Guidelines accompanying the Legal Notice which will remain active until 31st

December, 2013. However, both the Legal Notice and the Incentive Guidelines may require

modifications and improvements to conform to the strategic approach towards a well defined and

practical clustering model.

The Malta Council for Science and Technology (MCST)3 is focused on the importance of technology

and the increasing need for inter-disciplinary competencies to tackle socio-economic priorities and

opportunities, thus building a strong case for a continued investment in clusters. This is consistent

with the EU’s 7th Framework Programme which emphasizes that innovation capacities of SMEs

should be strengthened and that research driven clusters should be supported.

The Research, Technology, Development and Innovation Committees of the Malta Chamber of

Commerce, Enterprise and Industry (Malta Chamber)4 has emphasised in its position paper that

enterprise collaboration would reduce the burden on individual enterprises to address international

business demand. Government, educational institutions and existing business networks are strong

facilitators for cluster initiation. Co-ordination of clusters is essential. The Malta Chamber has also

emphasised this point in its position policy paper for the Commission on ‘An Integrated Industrial

Policy for the Globalisation Era’

1 The prime Government agency with a mandate spanning from Information and Communications Technology (ICT) policy to

programmes and initiatives in Malta. MITA is also responsible for the propagation of ICT within society and the economy and

to promote and deliver programmes with the intention of enhancing ICT education and the use of ICT as a learning tool. MITA

is the Maltese partner in the P4C Project 2 The national development agency responsible for promoting and facilitating international investment in the Maltese Islands by

offering investors excellent business opportunities and tailored services. The Agency also coordinates initiatives to promote

the Islands’ economic growth attractiveness whilst being responsible for the growth and development of Maltese enterprises

both locally and beyond our shores. 3 The Government body responsible for research policy, promoting scientific research, management of the local research

funding programme and is the national contact point organisation for the EU Research Framework Programme (FP). 4 Established as a voluntary constituted body and officially recognised in 1848, the organisation aims to provide enhanced ‘hands-on’ services to

individual members, to mobilise sectors, associations and other groupings to pursue common agendas. The Malta Chamber provides a single point of reference for the other stakeholders, including government, EU bodies and foreign business.


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SCOPE

In November 2009, MITA together with six other European member States, signed a partnership

agreement with the Joint Technical Secretariat (JTS) within the European Commission to jointly

participate in a Regional initiative Project; namely the Pooling4Clusters (P4C) Project.

The P4C Project aims to analyse and share best practices regarding the added value provided by the

European Development Agencies partnering in the P4C Project, to become more efficient and boost

their contribution to their respective regional clusters.

Through the identification and testing of these best practices in the participating Member States, the

P4C Project will therefore endeavour to improve the effectiveness of local support policies to

clusters and to recommend authorities the best ways to develop or improve on support frameworks

to clusters.

MITA’s overarching role is therefore to field test two best practices and based on the results

achieved, draft a recommendation plan. Given the lack of local clustering activity, (as discussed

further in section 2 of this paper), MITA opted to primarily explore the best practice Support

Structures for cluster management and coordination together with the various practices identified

by the P4C partners. Moreover, because of the progressive nature of the other best practices, MITA

conducted a series of Focus Groups with local industry players to discuss the pertinence of these

best practices to the local context.

The scope of this paper is to therefore propose a way forward to Policy Makers for the setting up of

a clusters framework to help encourage locally based enterprises to migrate their operations

towards higher value adding knowledge activities.

BACKGROUND

Due to globalisation we can see a number of localities around the world, often small, developing a

particularly innovative environment in niche areas, and establishing a global reach. As a direct

result, these communities generate wealth well beyond many other localities in their country.

Research from reputable companies, increasingly show that the process of creativity is the result of

people talking, and communicating face to face in teams. In addition, the geographic setup is even

more important, especially for knowledge-intensive activities. New economy business practices are

collaborative, built on trust, dialogue and alignment.

Clustering is a form of collaboration which helps to create an environment that enables networking

between firms and the development of supply chains to flourish. The origins of clusters differ. The

initial stimulus might be the availability of a raw material, climate conditions or the proximity to a

nearby market, specific skills and ambitions or the establishment of a government funded R&D&I

facility.


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Clusters here refer to the formal associations of different locally based enterprises whose intentions

are to help their members to partner up in groups to create synergy and a better scenario to

successfully apply for government and EU R&D&I funds. This clustering activity can be clearly seen

in France whereby in 2004 the French government issued a call for clusters to be set up and officially

recognized. This has resulted in 71 formal clusters in 2005. Projects coming from a cluster are

considered more favourably by the funding R&D&I authorities as their members are better prepared

to succeed in such projects.

A key component of any high performance cluster is extensive informal and formal networking

between firms – even competitors – right across the cluster, and between firms and their supporting

infrastructure. The degree of connectivity amongst knowledge agents, and between them and firms,

is a key aspect of a high performance innovation system. Companies, in particular specialized SMEs,

rarely have the resources to innovate alone. Nevertheless, effective incentives systems will need to

be in place to encourage linkages in order to motivate firms communicate with knowledge agents.

CURRENT LOCAL SCENARIO

There are some sporadic good efforts in terms of incipient networking between entities within the

same sector as well as with training providers and academic researchers.

- In a collaborative approach between the Plastics sector and the Malta College for Science

and Technology (MCAST), a vocational course was developed on plastic injection moulding

techniques. Successful candidates will be awarded a diploma certificate as plastic injection

technicians. This initiative was driven by the Malta Chamber.

- eSkills Alliance Malta was set up in October 2010 through a multi-stakeholder partnership

led by MITA together with other public sector actors, business representative bodies and

the private ICT sector. The Alliance serves as the collective voice and authoritative entity for

all stakeholders to work together in achieving a better harmonisation between the demand

and supply of ICT skills.

- The Malta Chamber Energy and Environment Committee, the Renewable Energy Association

Malta (REAM) and the MCAST Institute of Electrical and Electronics Engineering have

cooperated together and developed a course in the area of renewable energy. The main

objective of such cooperation was to put forward the concerns of the Malta Chamber

members operating in this sector in terms of skill shortages and gaps in the sector and

develop a qualification that addresses such shortcomings in the labour market. As a result

the Diploma in Green Technologies was created and intended for candidates who wish to

embark on a career with a particular focus on alternative sources of energy.

- The MCST runs the R&I programme that involves an Academic and Industry partner/s in

order to develop products or innovations in a number of focus areas namely: ICT, Biotech,


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value-added manufacturing and Environment. The programme funds the design of a product

or process and its implementation in the industrial sectors.

- The MCST manages another programme that supports companies with new ideas in their

commercialisation of innovative products by funding the drafting of a business plan. This

programme is still in its infancy.

- A collaborative effort between MCAST and Lufthansa Technik took place with the aim of

increasing aviation vocational skills and qualifications. MCAST, which became an accredited

EASA Part-147 approved aircraft maintenance and servicing training organization started

delivering the theoretical part of the training, whilst Lufthansa provided on the job training

for the MCAST students.

The specialised nature of the Aviation sector requires that capabilities are shared between

companies. In this regard there are several instances where Aircraft maintenance companies

collaborate on an ad hoc basis when it comes to spare parts requirements. The

establishment of the Safi Aviation Park to house companies engaged in the aircraft

maintenance and related sectors should enhance opportunities for collaboration.

- The servicing of Super Yachts brought together multi-disciplinary companies in this high-

value sector. In this case, a number of companies engaged in different trades ranging from

carpentry to the provision and installation of super yacht related requirements teamed up

and started working on super yachts using Malta as their maintenance base. Interestingly,

MCAST developed and delivered a tailor-made course for carpenters to address the specific

carpentry skills required by the owners of super yachts.

- Through a consortium three established furniture making companies got together to bid for

a major hotel project in Libya. Although the initiative was successful and the furniture

consortium won the bid, the consortium disbanded after the project was completed.

Malta is already investing in the hard infrastructures that are deemed necessary to house some of

these clusters namely:

- The Smart City project in Ricasoli that is intended to focus on ICT. The investment is of

€230M (Dubai funds) on an area of 360,000 m2 provided by government. Smart City is

intended to invest also in residential and hospitality spaces in order to further encourage the

employees to network.

- The Life Sciences Centre in San Gwann Industrial Estate that is intended to focus on

Biotechnology and Life Sciences. The initial investment if of €30M (ERDF and government

funds) on an initial area of 35,000 m2 provided by government.


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Current Government Assistance - for Networks and Clusters

The Maltese assistance described here has a wide sectoral eligibility.

Name of

Scheme Details

% and maximum

threshold

Trade

Promotion

This incentive supports enterprises to establish

international business contacts. Aid is provided to

enterprises participating in international trade fairs or

trade promotion event for the launch of a new products

or existing product in a new market. Beneficiaries must

be part of a contingent approved by Malta Enterprise

Capped at 60% of costs.

Budget allocation varies

from year to year.

Network

Support:

Business

Networks

To support Business Networks i.e. Networks made up of

between 3 and 10 independent enterprises working

together to achieve a specific business objective.

ME will support

approved network

projects with a cash

grant which shall not

exceed €60,000. This

grant may be used to

part finance approved

costs up to 60%.

Network

Support:

Development

Networks

Aid to Development networks that bring together

enterprises operating within the same sector or having

complimentary activities for the purpose of achieving

collaborative and collective development.

ME will support

approved development

networks by part

financing 60% of eligible

costs for the first 3 years

of operation.

Innovative

Clusters &

Collaborations

The objective of this scheme is to support formal

collaboration between enterprises by assisting in the

setting-up, expansion and animation of innovation

clusters. The aid will be provided exclusively to the

enterprises operating the cluster which must have the

sole purpose of promoting Industrial Research and

Experimental Development. Any Undertakings setting-

up or operating an innovation cluster made up of a

mixture of SMEs and large undertakings, with the aim of

carrying out or promoting Industrial Research and

Experimental Development activities may apply for aid

under this incentive.

The maximum grant

value for Investment Aid

is of €200,000 per

cluster with a maximum

aid intensity of 30%.

The maximum grant

value in relation to

operating costs is of

€150,000 per cluster

(€30,000 per annum).

Furthermore ME is better focused on supplying incentives for the individual entity as noted below.

One may contemplate that these incentives might have a version that is prefers applications from

clusters by offering a more favourable incentive.


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General Assistance to

Enterprises (not only to

promote R&D&I)

From Malta Enterprise and already State Aid Approved ME 2013

budget

Research & Development

Tax Credits

Providing assistance to enterprises investing in

Industrial Research and Experimental Development to

develop innovative products and solutions. Additionally,

(SMEs) may also be assisted in protecting the

knowledge gained from Industrial Research and

Experimental Development projects.

Different capping ranging between 25% and 80%

dependent on type of R&D, size of enterprise and

extent of inter enterprise/institutional collaboration on

specific R&D projects.

Foregone

Revenue

Innovative Start-ups

(KBIC tenants and those

following the Outreach

Program.)

Up to €15k capped at 40% (Medium sized enterprises)

or 50% (small enterprises) of operational and capital

costs

€60k

Innovation Assistance Loan Interest Rate Subsidy for the acquisition of

tangible and intangible capital to increase innovation

€1.1M to

finance

subsidy (also

for non-

innovation

projects)

R&D&I project proposals

Part-financing up to €150,000 over a period three years

(Eureka/ EuroStars).

MCST National R&I Program 2008

€370k

€700k

R&D jobs Can apply for grants under Business Development

below

Typically €8k

per job (in

conjunction

with ETC)

Business Development

Grants (de minimis up to €200k over 3 rolling years)

€610k(also for

non-

innovation

projects)


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PART 2 – INTERNATIONAL GOOD PRACTICES EXPLORED

EXPLORING NATIONAL CLUSTER SUPPORT PROGRAMMES

Clustering is a relatively new concept in Malta. The local industry players as well as Policy Makers

have limited exposure in clustering. Cluster champions were chosen from the stakeholders to

explore National Cluster Support Programmes as one of the best practices necessary to take

clustering forward in Malta. The framework would then in itself also support other best practices

identified in the P4C shortlist.

MITA engaged with a number of stakeholders the P4C Project. These stakeholders highlighted

below were chosen purposely in view of their remit and responsibilities in the local industrial

market, as well as for the envisaged role they will partake in the development and growth of

clusters.

- ME which will be the Governmental entity responsible for the administration of funds

allocated to potential clusters.

- Malta Chamber will be the body which will stimulate, encourage and facilitate the first set of

events, meetings and channels for information dissemination using their networks to help

with the initial cluster formation.

- MCST which will serve as the main driver for the engendering of R&I activities with

interested parties within the cluster.

Together with these stakeholders, MITA teamed up with two of the P4C partners namely the Tartu

Science Park in Estonia and the Business Support Centre in Slovenia for the tailoring of a training

programme. The aim of this training was for cluster champions to gain practical exposure to the

knowledge required for the development of clusters, the parameters for their growth and how to

maintain relations as well as the handling of operational activities necessary to run clusters.

The study visits allowed the champions to experience the development and growth of clusters from

a hands-on practical approach including:

- Exposure to a relatively new cluster in the city of Tartu, Estonia, Smart City Lab which

focuses on the development, delivery and export of smart mobile and web solutions. Due to

the cluster’s infancy stage, the cluster management will initially work on the

competitiveness of the cluster’s member enterprises as developers and implementers of e-

and m- solutions for the city of Tartu.

- Shadow exposure to the Cluster Manager of Estonia’s Waste Recovery Cluster Development

Agency for a day. The champions were walked through the development of the cluster, the


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daily operational processes and the main factors that allowed the cluster to become

successful.

- Guidance on cluster development from the Manager of the Cluster Development

Programme in Estonia. A thorough explanation on how Estonia became a successful hub for

cluster development was held, were the champions had the opportunity to ask pertinent

questions for the realisation of the eventual Maltese clusters framework.

- A 2-day visit at the Estonian ICT Export Cluster which is a 3-year project, supported by

Enterprise Estonia, to export the groundbreaking e-Estonia Solutions. The cluster is made up

of companies aimed at sharing the innovative, cost-effective technologies that have

transformed Estonia into the leading e-society that it is today, allowing other governments,

communities, and private companies to benefit from them.

- A meeting was held with the management of the Business Centre at the Kranj ICT technology

Park (RC IKT (Ltd)) in Slovenia; which represents the development centre for Information

Technologies. The champions were exposed to the concepts of clustering, collaboration and

open innovation and how these can be translated into a business model through the set-up

of RC IKT (Ltd). It is pertinent to point out that the Business Centre involves the entire

product development life-cycle from the concept design to the marketing of the end-

product;

- Exposure to a Competence Centre with an incubation facility – the Technology Park in

Ljubljana where its main purpose is to provide comprehensive business support to start-ups.

Such support includes consultation on business initiatives, assistance on the preparation of

business plans, mentorship and guidance on the identification of business opportunities and

strategic partners;

- Exposure to the Slovene Cluster Policy development through a workshop with officials from

the Slovenian Ministry of Economic Development and Technology. Discussions revolved

around the support methodology that the Slovenian Government adopted to stimulate

networking and promotion of clusters.

- Exposure to the upper Gorenjska region dedicated to the Technology Park in Klagenfurt,

Austria. The Lakeside Labs is one of the companies operating within the Technology Park

and its main focus revolves around the development of solutions related to science,

technology and innovation. The champions received an overview of the structure within

which the cluster operates and the nurturing of their strong business relationship between

academia, researchers, the industry and the Government. Emphasis was drawn to research

publications as being their primary goal and as one of their main means of project output.

- Another experience within the Technology Park in Klagenfurt was Build!, which is an

incubation facility adjacent to the University. Champions were exposed to the way the


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clustering concept is encouraged at an early stage to students through the provision of

coaching to business concepts and how an idea can be harnessed and taken to market.

The study visits allowed the champions to identify the main factors that allow a cluster to become

successful as well as the best practices that shape up the operations of the cluster. These were

recorded and reproduced hereunder as lessons learned to potentially replicate in Malta. These

included:

- Structures support for management and coordination – Both Estonia and Slovenia have set

up a formal national Clusters Framework to provide applicants with financial support for

cluster activities. For example in Estonia, the co-financing rate of support is that of 70%

ERDF and 30% from the members. On the other hand the Slovenian Government stimulated

clustering activities through financial support which included 80% direct Government

funding for soft measures whilst the other 20% funded by the cluster’s members. Prior to

these financial structures, the Governments of both countries ran support schemes to

identify and train cluster managers, and even financially supported the formulation of

cluster business plans required for the application of the above-mentioned financial support.

- Project oriented funding – Due to the limitations of a small national market, clustering can

be a business model that can allow local businesses to penetrate international markets, and

with the complex requirements of such larger markets the need to collaborate with firms of

different specializations can be nurtured. In addition, clustering will allow the possibility to

enhance the potential to partake in larger projects and easier access to EU funding whilst

increasing the partners’ positioning to seek, develop and access new foreign markets. This

in fact has been recorded as one of the best practices where, further to the funding

structures as mentioned above, some cluster members may combine their efforts to apply

and seek national or European funding for specific projects that may include R&I, market

research, technology commercialisation etc. Some Member States, not only favour

applications coming from cluster members but in some cases reserve such project oriented

funding exclusively for cluster members.

- Competence Centres – Estonia ran a scheme in 2005 to help establish such competence

centres utilising European funds. These centres included investments in equipment as well

as human capital and had the objective to develop and disseminate technology and science.

The participants ranged from academics to professionals and industrialists. Similarly the

establishment of competence centres in Slovenia is an important concept to help

industrialists pool together for specific technology and science development. In both cases,

an academic-industrial competence centre turned out to be a better cluster member than a

typical university, which was deemed too academic. The Competence centre is an important

focus for dissemination of knowledge to new cluster members.

- Training and mentorship for Cluster Members– It became quite evident that the first

obstacle towards clustering has always been with regards to the negative frame of mind

towards collaboration, sharing of ideas and best practices. Another obstacle regarded by

the Estonian Government is the lack of communication between the educational pillar of the


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country and industry. Hence the concept of training and mentorship together with an on-

going awareness raising process is critical for the growth of clusters. In both Estonia and

Slovenia collective training for the cluster members is a critical activity in the cluster. For

example in the Estonian Waste management cluster, new regulations and standards led to

specific training in order to standardise the implementation of such regulations and

standards. Over the years of operation, the cluster has managed to garner enough

knowledge and expertise such that they are considering setting up a new competence centre

of the waste management sector.

- Help desk – The critical factor to the successful development and growth of clusters include

the presence of a cluster manager to facilitate and guide members into business growth, the

involvement of medium / large companies in the cluster to serve as a business anchor to the

other smaller firms and finally, the consistent commitment and long-term stable clustering

policy from Government. Through a help desk, interested parties can easily acquire step-by-

step guide into the setting up of a cluster. The cluster framework in both Slovenia and

Estonia finances not only a cluster manager but also a business development manager who

had the role of advising members with information about the sector, the markets and

potential projects. This help desk facility also has the responsibility to attract new members

into the cluster including start-ups. Typically in each cluster, one of the members would be

an incubation facility. Example in Estonia, Garage 48 provides hot desks, grants, contacts and

training to ICT start-ups whilst the Ljubljana Technology Park in Slovenia provide office

facilities, support in the drafting of business plans as well as facilitating commercial

financing.

- Collective booth at trade fairs / shows – Strong international outlook is important for the

scope and success of clustering initiatives. Clustering with larger entities will allow smaller

companies to reach out into international markets which otherwise on their own singular

initiative can be very difficult to realise. A typical example of product showcasing and the

reach to potential foreign partners is the DemoCentre in Tallinn Estonia is a permanent

showcase of both ICT hardware and software. The cluster members welcome the possibility

of having their latest technologies showcased along with the others in a centralised

exhibition centre. This centre hosts typically three delegations per day including foreign

politicians interested in acquiring Estonian technologies. The cluster was considering

replicating the demo-centre abroad in order to be closer to its intended markets.

- Business intelligence – The cluster manager and the business development manager work

towards the generation of business opportunities into the cluster by following market leads,

innovative technology prospects and networking with potential business partners and

researchers. This is done by keeping focus on the cluster’s vision and objectives as defined

in the three-year business plan. These performance criteria would include the growth of the

cluster in terms of total revenue, total employment, and number of members and on the

collective international earnings. In the case of clusters that have a strong research

component, the key performance indicators would include the number of academic papers,

patents and number of PhD students. This ties in perfectly with the Competence Centre best


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practice, where in both Estonia and Slovenia use the Centre as one of their means to

enhance their level of business intelligence through the publication of research whilst

acquiring international visibility. It is pertinent to point out that the latter activities are

embedded in every project outcome – for instance – the requirement of publications and

PhD dissertations with each project.

Testimonials

“To learn the theory of clusters from the available literature is one thing, but to actually see how they are

developed is an entirely different thing. The exposure gained through these study visits taught us that through

sound and genuine leadership, it enables a group of players to move into a shared cluster vision, creating an

environment where anything can happen”

Daniela Chetcuti

Consultant within the Human Capital Team at MITA

“The development of clusters has been an initiative that Malta Enterprise has been trying to promote for a

number of years but unfortunately collaboration between Maltese SMEs has generally remained at the informal

level. My visit to Estonia provided me with first hand insights, on how, with the appropriate coaching and the right

incentives, but above all with the conviction that collaboration pays, the development of clusters in Malta can be

successful.”

George Francalanza.

Head, Relationship Management Unit, Malta Enterprise

“It is evident from the study visits that, notwithstanding the wide range of definitions pegged to the term "clusters",

most of the EU member states have clearly tied up their cluster framework funds to the activities noted in this

document, thereby standardising the definition of clusters. This formalisation of cluster assistance needs to be

introduced, as soon as possible, to the Maltese scenario to make sure that our industries enjoy the same

economic growth potential as their EU counterparts. It is also evident that a strong awareness raising effort prior

to the framework launch is crucial in order to ensure a good take-up of this cluster framework"

JP Sammut

Director, Malta Council for Science and Technology

“The exposure gained through the study visit in Slovenia served to uncover the basic fundamentals that need to

be in place for a successful clustering initiative. It seemed to me that what the successful stories have in common

is consistent political commitment, a business driven plan with clear targets for the cluster, and motivated

business-savvy leaders who are accountable and responsible for the achievements of the cluster.”

Robert Tabone Valetta

Research and Development Executive within the Malta Chamber

“The visit to Slovenian clusters of competence highlighted the importance of international visibility of the cluster.

Visibility is achieved through publications in international journals by cluster members. This approach needs to be

repeated in Malta especially where clusters will involve an academic and industrial partner working together.”

Peter Gatt

Malta Council for Science and Technology

“Meeting people and visiting businesses in Estonia which are functioning so successfully and benefitting from

their own clusters has been an inspiring experience. This has helped me realise more and more how enriching

such a project initiative can be. Being part of an organising which represents businesses, we hope to pass on the

knowledge which we have acquired to our Members in an effective way and aided through a more coherent

framework.”


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Marylyn Hili

Research Executive within the Malta Chamber

“Coming from a country where clustering is almost a myth, seeing how clusters are organised and actually

working was undoubtedly inspiring. Although one needs to acknowledge that a lot of work needs to be done in

order to start seeing some clustering happening in Malta, seeing clusters at work has made this goal more

attainable.”

Joseph Grech

Manager Business First, Malta Enterprise

TRANSFERABILITY OF BEST PRACTICE

As pointed out in the document, clustering activities in Malta are not yet formalised. The study visits

allowed the champions to be exposed to different European national support structures, which play

a critical role in the development and support to clusters. This showed that the setting up of support

structures for management and coordination are critical towards a clustering policy in Malta.

Naturally, the support structures will be based on different country’s needs. From this experience,

the local champions concluded that the development of a support structure as a best practice is

indeed transferable to the local industrial scenario.

FOCUS GROUPS ON P4C’S BEST PRACTICES

MITA together with the already named stakeholders organised six focus groups each pertaining to

six diverse active sectors in the local economy, namely:

- The ICT sector,

- The Plastics sector,

- The Bio-technology and Health sector,

- The Pharmaceutical sector,

- The Aviation sector and

- The Waste management sector

These sectors were targeted because of strategic importance to the economic development of Malta

to the extent that they were specifically mentioned in the Maltese Government Vision 2015

document.

The purpose of these focus groups was to discuss and consult the findings and experiences garnered

through the study visits outlined above and to the identification of the components necessary for a

local cluster framework. The scope of the focus groups was to understand how these best practices

can be transposed within the local context. The feedback gathered from these activities has served

as direct input to the formulation of the Regional Recommendations as described later on in this

document.


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This was also a great opportunity to promote the P4C project with relevant and key industry players.

Focus groups were chosen as the main vehicle to raising awareness on clusters due to the possibility

of participants interacting in an informal setting and sharing their perceptions, opinions, beliefs and

attitudes towards clustering in Malta.

Participants were contacted using the Malta Chamber, ME and MCST’s contact database. In order to

ensure effective discussions between participants, the focus group size was kept between 8 – 14

participants and therefore, the invite was based on a first-come, first-serve basis. In order to ensure

a professional setting of the Focus Group, and to allow for an efficient means of recording findings,

the service of a moderator and an assistant was sought.

Through the Focus Groups, awareness was raised around the P4C fifteen identified best practices

and how these influenced the running of clusters in Europe. The discussions then focused on how

clustering should take place in Malta, and the type of support structures that should be in place to

help instigate local companies to collaborate towards business growth. Lessons learned from the

focus groups were recorded and reproduced hereunder:

- Structures support for management and coordination – There was a general consensus by the

focus groups on the need of establishing a national clusters framework. Some of the ME

schemes e.g.: the SME Development Scheme which limits internationalisation initiatives

exclusively to participation in fairs was deemed insufficient or too rigid by some sectors. This

might explain the low take-up. This paper therefore, provides a recommendation towards the

development of a clusters framework. Areas of improvement of particular note were:

- The recruitment of a cluster manager and a business development manager;

- Higher financial capping for example Euro 500K per cluster over 3 years;

- Higher co-financing rate for example 70% ERDF and 30% industry;

- Project oriented funding – It became apparent that medium to small-sized companies will be

willing to fund limited projects and staffing via a collaborative approach, but it is not guaranteed

that they will do so, until the concept and the potential of clustering are fully understood and

embraced by the necessary stakeholders. This ties in nicely with the way the participants

expressed the need for the establishment of a structured national clusters framework. Currently

none of the ME clustering schemes cater directly for joint project funding.

On the other hand, through the R&I programme run by MCST interested parties may currently

jointly apply for funding. Partners should consist of at least one academic and one industrial

partner. Nevertheless, bonding between the partners is short-termed (approx. 2 years) which

defeats the purpose of long-term collaboration. Three participants of the plastics focus group,

including an academic institution, were about to embark on a joint R&D project funded under

the MCST programme.

In another effort, the plastics sector also carried out studies on how to retro-fit energy efficiency

techniques under another project funded by MCST.


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- Competence Centre – The general structure of competence centres essentially involves the

participation of academia and industrialists. However, it was observed that the focus groups

participants failed to realise the advantages of the liaising with academic researchers for

innovative product development. This could reflect the difficulties of the main public academic

institution in reaching a critical mass of research, and the low research and development

activities carried out by companies, hence leading to the lack of combined research

commercialisation activities locally.

There were no positive local examples on this best practice apart from the ICT focus group were

they recalled the on-going efforts driven by the eSkills Alliance Malta which brings together

industry and education stakeholders in an effort to synergize policy and programmes on ICT skills

provisioning.

However, in general, it seems that there is little appreciation on how a research project through

the set up of a competence centre/living lab can lead to return on the investment in research.

One can contemplate here that living labs are so important but as yet so under-appreciated, that

a separate effort may be required driven mostly through the national R&I strategy and the

umbrella efforts therein aimed at improving the rate of research activity conducted locally. A

case in point is that of Estonia, where they have indeed established a Competence Centre

Framework distinct from its Cluster Framework.

- Training and mentorship – Previous efforts towards training and mentorship were expressed by

all participants in the focus groups. In general, they regard training as an important contribution

towards their business.

One local company in the Pharmaceutical sector provides training and mentorship to students

interested in the sector to be not only academically qualified but also industry-ready upon

graduation.

In another case there was the collaboration in the Aviation sector between the MCAST and the

Lufthansa Technik, that provided an extensive and dedicated training programme to allow

engineers to focus their knowledge towards a particular career path i.e.: aircraft maintenance

engineers.

The Plastic sector focus group remarked an example led by the Malta Chamber in developing a

vocational course for plastic injection technicians in collaboration with the MCAST.

These types of initiatives show that there is the local propensity that whenever the need arises,

dedicated training can indeed be sourced (frequently also publicly-funded). Nevertheless,

participants feel that the need for a more structured approach towards industry-based training

should be spearheaded by Government in partnership with the industry and academia to ensure

a solid educational pillar for clusters.


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- Help desk – There seemed to be a general positive consensus towards having an information

and assistance resource in place. Even though the effort of a similar service from ME (Business

First) has been well received, the focus groups noted that a cluster Help Desk would be able to

deliver much more for example in identifying new services to the cluster members; establish a

cluster brand in the region; help members identify new market opportunities.

One of the focus group participants noted an example where 3 companies collaborated to

submit and win a large international tender that otherwise they would not have been able to

handle individually.

- Collective booth at trade fairs / shows – The discussion revolved mostly around the different

types support towards trade fairs and shows. ME provides assistance to companies to

participate in fairs as part of a Maltese contingent. The fact that ME’s assistance is restricted to

supporting only the businesses’ participation in fairs was felt by some of the participants of the

focus group as a limitation.

The ICT focus group in particular noted that trade fairs were not effective and instead wanted to

participate in conferences, business forums and other networking events. In other sectors

however, collective participation at international fairs are deemed very beneficial. This shows

that these activities need to be customised according to the sector. A cluster would be able to

manage this.

- Business intelligence / Advisory Service – One of the success factors for clusters is to have a

well-functioning network of companies and research institutions, where members know, respect

and trust each other. This allows for easier collaboration between members. It seems that local

companies pertaining to same or similar operating sectors are united by the factors that cause

them the most problems, and seem to be keen to work jointly towards common goals.

One example came from the waste management sector where information on the benefits on

recovery of eco-contribution was shared amongst the sector players. The waste management

focus group noted that this sharing of intelligence helped gain trust amongst the different

companies in the sector.

Another example is where the ICT focus group noted that the valuation of Intellectual Property

(IP) in their dealings for financial loans is still rudimentary. The ICT participants realised that this

is an issue of common interest that collectively they can take up with the local financial

institutions. This is an interesting example considering that typically the sharing of IP efforts is

deemed to be conservative.

Having an advisory service in place, housing human resources with the right skill sets and with a

large database of contacts may instigate the right levels of interest between companies to come

together and test-run the clustering approach.


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Transferability of best practice

The concept of clusters in Malta is still at an embryonic stage. During this delicate stage of clustering

policy crafting, the Best Practice of Support Structures for Cluster Management and Coordination

needs to be in place before other best practices can be contemplated. The Focus Groups noted that

the above mentioned best practices seem to be the most prevalent and viable out of the P4C’s

short-list of 15 best practices and are pertinent and transferable to Malta.


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PART 3: RECOMMENDATIONS FOR MALTA The next Operational Programme (OP) under the upcoming Cohesion Policy will run from 2014 to

2020. Other member states have used ESF and ERDF to carry out schemes to support the

development and running of clusters, this because clustering requires a critical capacity of funding

instruments that enables businesses to co-operate profitably. At a European level, clustering is

being promoted profusely as an economic and industrial strategy that can re-generate growth and

new jobs in the upcoming programming period. It is therefore being proposed that a 2–Pillar Clusters

Framework is actively considered by the Maltese Government and a prioritisation towards clustering

is liberally pursued in the drafting of the Maltese OP for EU funding for the period 2014 – 2020.

The Pillars need to address the concerns arising from the Focus Groups on the current limitations

hindering clustering, which are summarised as follows:

- The current ME networking fiscal schemes need to be upgraded to facilitate a better take-

up;

- Clusters need to be driven and managed by the industry with sufficient autonomy to react to

opportunities and threats in a timely manner;

- Government needs to provide a framework within which clusters can operate with minimal

bureaucracy;

- Clusters need to promote and focus on the potential return arising from collaboration on

industrial and research projects possibly promoting Malta as a technology living lab;

- Clusters can offer an opportunity for members to share costs related to staff training and

industry accreditation and thus offer economies of scale;

- The instigation of pioneering developments in the sectors particularly when compared with

international trends;

- The raising of the awareness of the sector in order to attract continuous sufficient talent

with the right prerequisites;

- The lack of awareness of the benefits of clusters by the industry, the public, the public

entities, including the educational institutions, and the policy makers;

- The perceived lack of wide technology absorption by non-ICT sectors, and therefore the local

limited innovation levels;

- The activities to be offered within the cluster would be customised and applicable to the

particular sector. Hence the flexibility to mould clusters and their activities independently

from other cluster applications;

- Clusters would be able to formulate plans and leverage the strength of coalitions for the

better appreciation of their economic impact that could lead to the establishment of local


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facilities that truly support their operations. For example, the appreciation of Intellectual

Property as an acceptable collateral when dealing with financial institutions;

- Continuity and redundancy in the cluster operations and strategic objectives – hence the

requirement for the availability of 2 full timers namely the Cluster Manager and the Business

Development Manager;

- The ability to strategically locate a cluster’s offices in order to act as an effective meeting

hub for its members;

- Favourable co-financing rates as well as pre-financing are deemed as critical for the setting-

up and success of a cluster.

Below are the subsequent definitions of the 2-Pillar Clusters Framework that is being proposed to

address the concerns noted above. The efforts are inherently medium-term objectives when one

considers that the funding being recommended is from the new OP 2014-2020 funds.

A clustering ecosystem will require an adequately resourced collaborative approach between

industry-represented bodies, SMEs, micro enterprises, large enterprises, academic and vocational

institutions, financial institutions, policy makers and business consultants. By working together

these stakeholders would be able to address sectoral needs whilst at the same time; they can also

identify opportunities through collective innovation and address international markets.

The proposed pro-clustering ecosystem requires the necessary dedicated funding, human resources,

awareness campaigns, ongoing supportive expertise and development opportunities. All of these

elements must be orchestrated in order for effective clustering to take place.

PILLAR 1: DEDICATED FUNDING FOR A PRO-CLUSTERING ECOSYSTEM

From a funding-perspective, the poor perception of clusters in Malta has led to limited take-up of

the cluster related schemes by ME. A comparative analysis of the Estonian and Slovenian Clusters

Framework is shown here as a best-practice benchmark to the proposed Maltese Clusters

Framework.

Table 1: - Clusters Framework Comparisons

Description Slovenian Clusters

Framework

Estonian Clusters

Framework

Proposed targets

for the Maltese

Clusters

Framework

European and/or

national funds in

support of the Clusters

Framework

European and national European and national Mostly European

Governing structure

for promotion and

advancement of

Clusters Framework

Governance structure at

a central and regional

level including:

- Ministerial support

office

Governance structure at a

central and regional level

including:

- Ministerial support

office

Governance

Structure will

include a central

coordinating entity

and industry-led


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- Regional development

institutions (Ltd)

- Regional development

institutions (Ltd)

formation

Cluster-formation

assistance

N/A as a separate

assistance

€ 25,000 per Business

Plan

Recommended:

€25,000 per

Business plan

Cluster Programme

budget € 9 M € 9.5 M €1.5 M - €3 M

Number of clusters 29 clusters 19 clusters Min. 3 clusters,

Max. 6 clusters

Approx budget per

cluster € 0.3 M per cluster € 0.5 M per cluster € 0.5 M per cluster

Co-Financing Rate 70 / 30% 70 / 30%

Determined

following Malta’s

negotiations with

the EU authorities

Minimum number of

partner per cluster 10 partners 10 partners

more than 2

partners

Ongoing supportive

expertise and

development

opportunities for

clustering

N/A as a separate

assistance

€ 100,000 allocation for a

1 time effort

Recommended:

€100,000 / year for

the programming

period

As a result of the lessons learnt from the study visits and from discussions held locally with a number

of focus groups, the financial recommendations proposed include a higher financial capping, a wider

interpretation of eligible costs and a higher co-financing rate by Government that what is currently

available through the ME Network scheme and the Innovative Cluster scheme.

As also requested by the focus group participants, dedicated resources should be eligible as a cost-

item through the funding programme, to enable the employment of a full-time cluster manager and

cluster business development manager.

Therefore, through the new OP a Clusters Framework and corresponding funding instruments would

be available to support interested parties to kick-start clustering activities within the below eligible

activities:

- Financial assistance to build a business plan for a cluster through supportive expertise;

- Financial capping at €500K per cluster development with a co-financing rate that will be

determined following Malta’s negotiations with the EU authorities. This currently stands at 70%

ERDF funds and 30% industry;

- Eligible costs arising from activities related to administration, human capital, market

intelligence, ICT, cooperation, marketing and PR - as detailed in Table 2 below.

Table 2:- Proposed Cluster Funding Instruments


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PROPOSED CLUSTER FUNDING INSTRUMENTS

Possibly revising the ME Network scheme and the Innovative Cluster scheme, by widening the action

and eligible costs under these schemes.

1. Capacity-Building for Clusters

European (if possible) or national funds are recommended for the setting-up of an office that

manages and promotes the Clusters Framework.

Instrument allocation

- Cluster Manager - € 40,000 p.a.

- Cluster Business Development Manager - € 40,000 p.a.

- Office support Officer - € 15,000 p.a.

- One time Setting up costs – € 5,000

- Office administration costs – € 15,000 p.a.

OP Period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Costs € 115,000 110,000 110,000 110,000 110,000 110,000 110,000

Total allocation for programming period - € 775,000

2. Cluster Formation Assistance

European funds are recommended to be allocated for potential clusters to build a clusters’

business plan.

Instrument allocation

€ 25,000 per plan i.e.: a allocation between € 75, 000 and € 150, 000

3. Cluster Development Scheme

European funds are recommended to be allocated for the execution of approved business plans

through a:

- Financial capping at € 500K per cluster;

- The co-financing rate that will be determined following Malta’s negotiations with the EU

authorities. Currently, this is standing at 70% ERDF funds and 30% industry.

Eligible Activities under the Cluster Development Scheme

Activities may be similar to those financed by the incentives that ME offers on a one-to-one

basis. However here the members will work collectively towards these activities and they can

customise them to suit their sectoral needs.

- The recruitment of a cluster manager and a business development manager to facilitate

clustering activities and generate business idea leading to project development;


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Other Eligible costs arising from the below activities:

- Administration activities including: Office rent, stationary, costs related to the use of

telecommunication etc;

- Cooperation activities including: initiation and coordination of cooperative projects between

the cluster members and other R&D bodies including efforts towards joint product

commercialisation particularly using Malta as a technology test-bed;

- Shared Resource activities including: optimisation of resources, joint purchasing

communities, commercialisation of products/processes, etc;

- Training / HR activities including: seminars, trainings, academic, vocational and Industry-led

professional certifications, organised company visits for cluster members, staff costs

supporting the cluster;

- Information and Communication activities including - staff company visits, newsletter, Online

presence, CRM database, regular sectoral relevant publications, product brochures;

- Internationalisation activities including: study trips abroad, provision of international

contacts/business match-making, participation in international fairs, support for

participation in international (research) projects;

- Marketing & PR activities including: sectoral related PR, awards, fairs, conferences and

seminars, joint activities/campaign to attract young people for the industry, cluster brand

creation, advertising in-house solutions for the cluster members (use the platform of the

cluster for specialised marketing);

- R&I related activities including: Specific market / sectoral studies, studies and consultancy

related to product launches, R&D related studies, surveys and financial experts for the

drafting of project applications.

Instrument allocation €1.5M to 3.0M

4. Ongoing Supportive Expertise and Development Opportunities for Clusters

European funding is recommended for a continuous development campaign that instils a

collaborative and innovation-focused business culture.

Instrument allocation of €100,000 p.a.

OP Period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Costs € 100,000 100,000 100,000 100,000 100,000 100,000 100,000


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Total allocation for programming period - € 775,000

Total maximum budget allocation of € 4.7 M

The financial instruments being proposed need to have the necessary HR allocated both on the side

of the Managing Authority as well as on the beneficiary side for best-practice management and

absorption of funds. Recommendations on the governance of the financial instruments are proposed

hereunder.

The current set-up related to the EU funding mechanisms resides with the Managing Authority, which is the government’s Planning and Priorities Coordination Department (PPCD). Funds are awarded to a Government entity which administers EU funds centrally to the selected Beneficiaries. Within this set-up therefore, one option that could be considered for the building of the clustering eco-system is that the public entities remain the drivers of EU funds and could administer the Cluster Framework centrally, together with the PPCD as the Managing Authority.

On the other hand, another option that could be considered is that responsibility of EU funds administration to drive the Clusters Framework programme is transferred on to an industry-representing body as the Beneficiary of the funds. This body would allocate and distribute funds to its sectoral groups (as potential cluster projects) accordingly. Naturally, a level of capacity building related to the management of EU funding and regulations related to state-aid will need to take place. This option would address one of industry’s suggestions; that clusters need to be driven by the industry for the industry.

In terms of expertise allocation, within the Managing Authority, there would be the need of a Cluster Framework Manager (CFM) who would help set up and lead a multi-faceted team5 responsible for the national clusters framework. On the other hand, within the Beneficiary, there would be the need of Clusters Managers (one for every cluster / Business Section) who would be responsible to bring potential cluster members together and formulate a customised business plan for the cluster. Although the Cluster managers would also be funded by European funds, they would be cluster employees under the direction of the cluster members.

The below actions are therefore deemed to be required to encourage this ecosystem:

- The appointment of the CFM. The CFM will manage a multi-faceted team responsible for

the running of the National Clusters Framework. The CFM will formulate the Cluster

Framework in close consultation with the other relevant stakeholders including MITA, MCST,

ME, Malta Chamber and any other industry representatives deemed necessary;

- Ensure that the country’s strategic and policy initiatives are congruent with the Clusters

Framework Policy

- The CFM will organise awareness campaigns on a continuous basis, in collaboration with

MITA, ME, Malta Chamber and MCST leading to a national general conference on the merits

5 This team will be made up of human resources from MITA, MCST, the Malta Chamber and ME


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of clustering. A wide range of cluster participants will need to be part of a long term and

coordinated approach to make the necessary culture shift;

- Continuous monitoring by the CFM of international cluster policies and national economic

developments to be discussed and considered for future framework updates and

enhancements.

Expected outcomes of this pillar:

- Crafting a dedicated set of funding instruments for clustering and a sound governance

structure;

- Instilling ownership and setting-up an accountable structure with clear targets for the

delivery of the local clusters framework and funding programme – ideally a structure that is

led by the industry for the industry;

- Setting the parameters for the foundational funding instruments on the basis of a demand-

led policy;

- Building and sustaining interest for clustering locally, through the identification of interested

stakeholders and potential cluster managers on a continuous basis, encouraged to come

together to reflect on the common aspects that could lead them to collaboration;

- A wide level of buy-in from the industry and the public authorities on the policy and

industry-led initiatives towards clustering;

- Clusters that form by access to funds for activities customized to their sectoral

characteristics;

- Clusters that have objectives of growth, innovative projects, multi-sectoral collaboration;

and further internationalization of local products and services;

- Clusters that would contribute towards the local economy being more competitive on the

international scene;

- Clusters that enable the collation and dissemination of sectoral business intelligence, which

is key to economic sustainability. The knowledge would be both technology specific as well

as updated sectoral economic data.

PILLAR 2: A PARADIGM SHIFT: INSTILLING A COLLABORATIVE AND INNOVATIVE CULTURE

THROUGH SUPPORTIVE EXPERTISE AND DEVELOPMENT OPPORTUNITIES

A paradigm shift is necessary to overcome the current wary mentality of the local business sector

towards collaboration with others from the same sector or companies that can enable innovation

within that sector. The stakeholders will need to understand and recognise the practical concepts of

clustering and how this can lead to business development, either through collaboration (even with

competitors for example to jointly access new foreign markets) or through the application of

technology to innovate.


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In order to facilitate this culture change the Clusters Framework is suggested to strongly encourage

the innovation component by mandating that at least one member of the cluster is an ICT provider.

Also, the cluster should bring together more than 2 collaborating entities.

Furthermore it is recommended that the Clusters Framework enables the following development

opportunities:

- Ongoing focused training by foreign clustering experts for local stakeholders and potential

cluster managers interested to set-up or form part of clusters. The envisaged training will be

action-oriented and case-based learning, encouraging participation. This will include but not

be limited to:

- Introducing the advanced cluster concepts through international case studies on

successful clusters;

- Providing the necessary tools and processes to support the development of clusters

from its early phases to the more mature phase in which innovation is the driving force

of clusters;

- Providing exposure on what drives successful strategic innovation alliances among

companies, the motivation for entering into such alliances with other companies and the

financial benefits arising from clustering;

- Presenting a toolkit of methods and activities for building collaborations, generating

ideas, and turning these ideas into business propositions;

- Providing practical exposure to the different strategic tools to be able to analyse the

internal and external environment for a cluster, and use these inputs to design a cluster

strategy and an action plan.

- European clustering study-visits towards a more practical means of first-hand experience

through meeting cluster managers and members;

- Following training and visits, the stakeholders and potential cluster managers would be

expected to draft and submit cluster business plans.

Expected outcomes of this pillar:

- Building a pool of knowledgeable individuals in the area of cluster formation and

management;

- Instigating potential cluster formations, each consisting of more than 2 members, and a

minimum of member being a technology provider;

- Repeated activity of idea-generation and business exploration that is facilitated by

expert moderators in the field of clustering; that would in turn also enable the


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generation of cluster business plans by each potential cluster formation highlighting

clear project deliverables including listing targeted cluster members;

- Recurrent applications for funding under the financial instruments highlighted in Pillar 1.

A COMPLEMENTARY ACTIVITY: THE ESTABLISHMENT OF ICT-ENABLED LIVING LABS (LONG-

TERM ACTIVITY)

As previously outlined, Competence Centres are typically research and development organisations

established to conduct high-priority applied research. These can be a joint initiative between

academic researchers and industry. For other Member States, the establishment of these Centres

has been an important milestone in sustaining a high-level of clustering activity.

For the local context, the setting up of ICT-enabled Living Labs is recommended that would conduct

applied technology research by enabling joint development efforts by the suppliers and users of

technology (from both among the cluster’s founders as well as the market). There is a large number

of Living Labs in Europe - some focus on a particular technology such as mobile communications

whilst others focus on a particular industrial sector, or on groups of services to local citizens. At a

pan-European level, these Living Labs are joining forces to co-sell developments and services on the

European or global market in specific areas, such as Healthcare or Energy Efficiency.

It is suggested that as a supportive and complementary activity to clusters, the Government

considers initiating an exercise to scope ICT-enabled Living Labs in Malta. These would enhance the

skills and competitiveness of the collaborating organisations and enable an increasing export

potential and visibility.

This Living Labs activity can be funded by EU funds with the aim of bridging the gap between

scientific and economic innovation. The Labs would provide a collaborative environment for

researchers, industry and other innovation actors whilst creating a sufficient critical mass for the

commercialisation of new technologies. The Labs would be responsible for pooling of knowledge,

creation of new knowledge by performing different types of research, training and dissemination of

knowledge and networking

This is a long term proposal that would create action space for a sustainable R&I-oriented function

to the clusters. Currently the local sectors may not be mature enough to take on this concept and so

this is being recommended as a follow-up to the initiation of the Cluster Framework.

CONCLUSION AND WAY FORWARD

This document is an outcome from an EU funded project and the proposals noted herein are the

result of studies and consultations carried out. There has been significant input from the


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international partners, international cluster framework administrators and cluster managers; as well

as the local industrialists.

It is expected that this report will act as input for the local policy makers towards setting up a

National Cluster Framework as deemed appropriate following a series of additional efforts with

multiple stakeholders and public consultations. For example, the setting-up of a multi-stakeholder

group on clusters is envisaged to execute on more tangible and operational decisions including but

not limited to:

a) The governance structure responsible to draft and drive the national clusters framework;

b) The identification of budgets and funding instruments to clusters;

c) The prioritisation of target sectors whereby for each sector a private sector-led Leadership

Group is established and empowered to drive clustering activities.

Daniela Chetcuti

Consultant, Human Capital Department

Recommendation Plan

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ANNEX 1 - SUMMARY - PROPOSED CLUSTER PILLARS

Proposed Pillars Activities Timeframes Source of

Funding

Pillar 1 – Dedicated

Funding for a pro-

Clustering Ecosystem

- Appointment of a Clusters Framework Manager administering the Cluster Framework

within a Government entity

- The launching of a continuous awareness campaign

- Continuous monitoring of International cluster policies and national economic

developments and opportunities

- Capacity Building for Clusters

- Cluster Formation Assistance

- Cluster Development Scheme

- Financial capping at € 500K per cluster

- Co-financing rate at 70% ERDF funds and 30% industry

- Eligible Activities under the Cluster Development Scheme

- Recruitment of expert facilitating cluster activities

- Administration activities

- Cooperation activities

- Shared Resource activities

- Training / HR activities

- Information and Communication activities

- Internationalisation activities

- Marketing & PR activities

- R&I related activities

OP Period

2014 - 2020 EU Funding


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Pillar 2 – Paradigm

shift

- Training programme by foreign clustering experts;

- The organisation of European clustering Study visits;

- Aid to interested stakeholders in the drafting of proposed business plans for clusters

OP Period

2014 - 2020 EU Funding

Pillar 3 – Establishing a

Competence Centre

- A conceptual initiative to help turn innovative digital ideas into sustainable businesses

- Partners to hold activities to encourage creative thinking and new partnerships

- Help develop an idea, instigate business growth through commercialisation of research

A Long-Term

Objective EU Funding

Recommendation Plan

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ANNEX 2 – FOCUS GROUP PARTICIPANTS

ICT FOCUS GROUP

- Icon

- Melita

- Exigy

- Marsec-XL

- Volksbank Malta Ltd

- Loqus

WASTE MANAGEMENT SECTOR

- WEEE Recyclers Ltd

- Metalco Ltd

- Hompesch Trading Ltd

- Green Skip

- AIS Consulting

- 60 Degrees

HEALTH AND BIO SECTOR

- Cardinal Health

- Tanti & Mallia Quality Consultants

- ICP

- Microtek medical Malta Ltd

AVIATION SECTOR

- Aeromaritime

- Falcon Alliance Group

- MCM

- SR Electronics

- Lufthansa Teknik

- Medavia

- Institute for Sustainable Development, UoM

PLASTIC SECTOR

- Toly

- Faculty of Engineering, UoM

- Techniplast Ltd

- Thermoplastics

- Techmoulds

- Playmobil Manufacturing

- Trelleborg

- Uniplast Ltd

PHARMA SECTOR

- Lewis Press

- BAS Ltd

- Medicine Authority

- Amino Chemicals Ltd

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