tci 2014 trust in society and cluster program design in russia
DESCRIPTION
By Evgeniy Kutsenko, presented at the 17th TCI Global Conference, Monterrey 2014.TRANSCRIPT
Trust in society and cluster program design in RussiaEvgeniy Kutsenko
Parallel 2.2 Cluster implementation in different parts of the world
11 November 2014
Trust in society and cluster program design
in Russia
Evgeniy KutsenkoInstitute for Statistical Studies and Economics of Knowledge
National Research University Higher School of Economics
17th TCI Global Conference, 10-13 November 2014, Monterrey, Mexico
Plan
1. Cluster policy in Russia
2. Comparison with EU cluster
programs
3. Trust and sustainable cluster
development: role, signs, policy
implications
I. Cluster policy in Russia.1. Russian cluster policy is quite young one
• The campaign of the selection of so-called pilot innovative clusters was announced by the Ministry of Economic Development of the Russian Federation at 19 March 2012
• In total, 94 applications were received
• Just 25 was selected due to their potential and the quality of the application
4
2. Contest as a instrument of revealing the best innovative clusters
“Top-down-top” approach for the selection the pilot clusters
5
Federal authority hold a
contest
Local actors, who want to
apply, prepare a common
strategy and collaboration
projects
Regional government
should confirm
The role of federal
government is to select the best cluster
projects
Significant share of rejected applications. In Russia during one
month 94 applications from the regions were submitted.
Program Share of rejected applications, %
BioRegio 76
InnoRegio 95
Competitiveness poles 32
Russian cluster program 73
6
3. The volume of support is consistent with EU cluster programs
7
Evidence from the “Clusters are Individuals”: yearly
budget of the cluster program in EU
countries/regions
50 M euro in 2014 – federal subsidy to 25
pilot innovative clusters (Russia)
Source: Müller L., Lämmer-Gamp T., Meier zu Kôcker G., Christensen T.A. (2012) Clusters are individuals. New
findings from the European cluster management and cluster program benchmarking Vol. II. VDI/VDE Innovation
+ Technik GmbH (VDI/VDE-IT). Berlin.
4. Focus on consulting, marketing, networking, not on large infrastructure projects
Directions of federal government support for the pilot clusters in 2013:
• cluster management activities and external consultancy
• additional education and training
• consultancy for the preparation of investment projects in the sphere of innovation
• participation in international fairs, forums, round tables, etc.
• purchase of new equipment / engineering centers formation
Two main goals: Practice of collaboration + Success stories in the short-run (little quick wins).
8
II. Comparison with EU cluster programs.
A. Similarities
1. The concept of a cluster: cluster + cluster initiative
• objective endowment and relatively significant allocation of labor force (turnover, investment) in specific industry and region
• variety of participants: large companies, SMEs, universities and scientific organizations, organisations for collaboration.
• self-identification, common strategy designing, organizational efforts and collaborative projects.
9
2. Different types of initiators
10
Initiator / driver
Regional authorities
Universities / scientific
organizations
Business accociations
Large corporations
Information technology, radio-
electronics, instrument making and
communication cluster (Saint-
Petersburg)
Rocket engine building cluster “Technopolic “Noviy Zvezdniy”
(Perm region)
Aircraft and aviation cluster “Ulyanovsk-Avia” (Ulyanovsk region)
Cluster of Moscow Institute of Physics and technology (“Phystech21”) (Moscow region)
Information technology and biopharmaceutical cluster (Novosibirsk region)
Energo-efficient lighting technology and intellectual lightning control systems
(Mordovia republic)
Biotechnology cluster (Pishino, Moscow region)
Nuclear cluster (Sarov, Nizniy
Novgorod region)
3. High level of formalization of cluster initiatives
World (mostly EU) Russia
A) Share of CI with formal membership
All participants should have formal membership due to the terms of federal program
B) Legal status of the cluster initiative
All clusters that are planned to be subsidized must establish a legal entity.Due to the terms of the program regional or local government has to be the owner (at least one of the owners)
11
Lindqvist G, Ketels C., Sölvell Ö.
(2013) The Cluster Initiative
Greenbook 2.0. Stockholm. Ivory
Tower Publishers.
Lindqvist G, Ketels C., Sölvell Ö.
(2013) The Cluster Initiative
Greenbook 2.0. Stockholm. Ivory
Tower Publishers.
12
Specialization of a cluster Number of pilot clusters*
nuclear technology 5
aerospace and aviation 5
biotechnology, pharmaceutics, medical devices
6
information and telecommunication technology, electronics and lightning
6
new materials 3
chemical production including petrochemistry 4
*Some pilot clusters have broad specialization and are included in two specialization
categories simultaneously
II. Comparison with EU cluster programs.
B. Peculiarities
1. Specialization of the pilot clusters in Russia:
traditional Russian high-tech + popular industries
The comparison of foreign clusters’ and Russian pilot innovative clusters’ specialization
13
Industry sectors of the pilot innovative clusters
Source: Lindqvist G, Ketels C., Sölvell Ö. (2013) The Cluster Initiative Greenbook 2.0. Stockholm. Ivory Tower Publishers;
author’s analysis
2. Small number of participants in the cluster initiative. The critical mass VS manageability
0 20 40 60 80 100
New materials
Nuclear and radiationtechnologies
Aircraft and spacecraftproduction, shipbuilding
Chemistry andpetrochemistry
Pharmaceutical,biotechnology and medical
industries
IT and electronic
World (in accordance toGreenbook 2.0.)
Average Number of Clusters' Participants
14
The more cluster participants,
the more probability of the emergence of new ideas, projects, teams,
but structure is less managable
Average Number of Clusters’ Participants (the
world and Russian pilot innovative clusters)
3. A relatively small number of SMEs alongside with a significant presence of universities and research organizations
15The calculations are based on: Müller L., Lämmer-Gamp T., Meier zu Kôcker G., Christensen T.A. (2012) Clusters are individuals. New findings from the European cluster management and cluster
program benchmarking Vol. II. VDI/VDE Innovation + Technik GmbH (VDI/VDE-IT). Berlin. P. 18; programs for pilot innovative regional clusters development
Shares of various categories in the overall number of the
clusters’ participants in Europe and Russia, %
4. In some cases – lack of modern urban infrastructure
16
The competitiveness of clusters is built on developed,
diversified and open urban environment which provide high living standards and is attractive for talents and
capita.
There is a number of pilot clusters formed in
single specialisation cities with restricted access
and decreasing quality of life
5. Cluster organizations usually are owned and
lead by the regional government
17Source: pilot clusters’ survey data, the author’s calculations
1
1
1
4
8
0 1 2 3 4 5 6 7 8 9
regional development agency+ cluster development center
technology park
department in a corporation
cluster development center
regional development centre
Number of responses
Status of the cluster organization of the pilot innovative
clusters
International experience of cluster governance: the balance of
interests of different parties; pivotal role of business
18
Sectoral composition of main
governing board
The initiator of a cluster
Source: Lindqvist G, Ketels C., Sölvell Ö. (2013) The
Cluster Initiative Greenbook 2.0. Stockholm. Ivory
Tower Publishers.
6. Cluster initiatives in Russia usually are financed completely by the regional authorities
19
Russia World
Source: Lindqvist G, Ketels C., Sölvell Ö.
(2013) The Cluster Initiative Greenbook
2.0. Stockholm. Ivory Tower PublishersSource: pilot clusters’ survey data, the author’s calculations
1
1
3
9
0 2 4 6 8 10
Federal and regional budgets +Participants' fees
Loal budget
Participants' fees
Federal and regional budgets
Number of responses
Sources of cluster organization revenues
III. Trust and cluster sustainability: role,
signs, policy implications
“Virtually every commercial transaction has
within itself an element of trust, certainly
any transaction conducted over a period of
time. It can be plausibly argued that much
of the economic backward- ness in the
world can be explained by the lack of
mutual confidence.”
Arrow, Kenneth, “Gifts and Exchanges,” Philosophy and Public Affairs, I (1972), 343–
362.
1. The more innovative the interaction, the higher level of trust is needed
Concerning innovation issues the role of trust is even higher, as innovation performance is extremely sensitive to the regular "face-to-face" communication, local “buzz” and ideas exchange, involvement of different people and organizations in start-ups, venture capital inflow
2. Trust – one of key success factors for a cluster policy
Cluster policy requires a high level of trust
between
1. regional actors and the government,
2. regional actors representing different sides of
the "triple helix"
Role of trust in clusters: increasing the confidence in
local communities, increasing the activity of cluster
members, attracting new organizations, improving stability
of regional development, overcoming the conflict
"business-community“ / “business-government”
3. How to measure the level of trust in society?
a) “claiming government benefits which you are not entitled to”
b) “avoiding a fare on public transport”
c) “cheating on taxes if you have the chance”
d) “keeping money that you have found”
e) “failing to report damage you’ve done accidentally to a parked vehicle.”
World Values Survey: Generally speaking, would
you say that most people can be trusted?
4. How could we measure the trust level of a cluster initiative?
Characteristics of trust What is measured?
1. Number of participants willingness and ability to cooperate with other members of the regional community
2. Level of involvement of private organizations
trust of private business to the initiatives of the government
2.1. Level of involvement of SMEs power distance in regional communities
3. Presence of internal competition the possibility of coexistence of several influential interest groups in one cluster; stability VS growth; the level of risk avoidance
How could we measure the trust level of a cluster initiative? (2)
Characteristics of trust What is measured?
4. Possibility to influence on cluster organization’s performance
Democratization VS strong hierarchyTrust between the regional authorities and the members of a cluster
5. Transparency of decision-making in a cluster
6. Membership fees
5. Many of trust characteristics are included
in the EU cluster excellence system
6. Example: “Poles of competitiveness”
program in France
27
Start-ups and SMEs can effectively affect the
strategy of the cluster, its management bodies, promote their own joint projects or participate
in projects of other cluster members
Unequal voting weight: start-up has
5 votes, small or medium enterprise has 3 votes , large
has 1 vote
A little less than half of the votes of supervisory board are not shared, but
held by regional and local authorities
7. Mechanisms of balancing of private and public interests in
the activities of the cluster organizations of the pilot
innovative clusters (Russia)
28
cluster organisation is appointed by
cluster participants at the general
meeteing
Respondent could
select several
answers
0
0
1
2
3
4
8
9
0 1 2 3 4 5 6 7 8 9 10
cluster organisation is appointed by localauthorities
cluster managers are appointed or confermedby the cluster participants
the director of a cluster organisation is electedtaking account the opinions of cluster
participants
cluster organisation is appointed by the boardof directors
regular general meeting held, at least every 12months, allowing cluster participants to express
wishes and to provide inputs to the aims,…
cluster organisation is appointed by regionalauthorities
the director of a cluster organisation isappoined by the regional authorities
cluster organisation is appointed by clusterparticipants at the general meeteing
3
5
1
cluster organisation is appointed by cluster participants at thegeneral meeteing
cluster organisation is appointed by cluster participants at thegeneral meeteing + the director of a cluster organisation isappoined by the regional authorities
cluster organisation is appointed by cluster participants at thegeneral meeteing + cluster organisation is appointed byregional authorities
Source: pilot clusters’ survey data, the author’s calculations
8. Implications for the policy
There is a risk of decreasing the efficiency of a cluster policy when its formally imported from the EU countries to the societies with less level of trust.
Cluster policy design should include special instruments to develop and maintain the trust in local communities which lay on the basis of the supported clusters:
Requirements and technical assistance to cluster management organizations
Formal rules of cluster governance
9. Formal rules of governance at clusters
balance the composition of the main governing boards of clusters toward greater conformity to the composition of its participants (large corporations, SMEs, universities, etc.)
develop procedures of the involvement of all stakeholders in the formation / correction of the action plan of a cluster organization;
implement the practice of making annual reports by the cluster organization to the cluster members
establish open procedures and formal criteria for the selection of the projects applying for public funding as well as provide information and ensure participation of the maximum number of cluster participants in the projects
develop formal procedures to enter and exit a cluster, institute the membership fees (eventually) to ensure the financial independence and stability of a cluster organization
10. Principles of cluster governance (similar to the
principles of corporate governance)
31
Cluster governance should
• ensure equal attitude to the participants , including small and medium-sized enterprises
• provide efficient control over the cluster organization from the highest authorities of the cluster (the board, the board of the cluster, and so forth.), as well as the accountability of the higher authorities to its participants
• allow mechanisms of improving stakeholder participation in the activities of the cluster
• provide timely and accurate disclosure of information made on all important questions concerning the activities of the cluster
Participants have the right to
• obtaining the necessary information about the activities of management on a timely and regular basis
• participation and voting at general meetings of members of the cluster
• participation in the election of members of the highest managerial body of the cluster
• participation in making decisions about the selection of projects applying for the support from the federal government