Innovation, Entrepreneurship & Green Clusters Phil Cooke Centre for Advanced Studies, Cardiff University & Aalborg University Presented at RENT Conference, Cardiff, November 22, 2007 Phil Cooke’s præsentation er, ift. den oprindelige version, bearbejdet og kommenteret af Jesper Lindgaard Christensen, Aalborg Universitet. Det sker i tekstbokse og i indsatte overheads. Disse kommentarer er ikke altid Phil Cookes egne udlægninger, men gives yderligere perspektiver, som står for JLC’s regning. Phil Cooke er foregangsmand inden for studier af regionale innovationssystemer og klynger. Han er pt. meget interesseret I problemstillinger knyttet til industrielle konsekvenser af de forandringspres som følger af miljøbelastninger. Han er især inspireret af udviklingen i Danmark, hvor han er adjungeret professor (AAU)

2 Co-location...little relevance in terms of competitive performance; firms do not emphasise the local area, or firms within it as important vis-à-vis their own competitiveness Agglomeration...co-location enhances firms’ competitive performance, but does so for reasons that are- in essence- ‘passive’. The place / area is regarded as important by firms, but for reasons other than active interaction with other local firms Clustering …co-location enhances firms’ performance because it facilitates collaborative working relationships with a range of local suppliers, customers, competitors, universities, research institutions, etc. 1. Co-location, Agglomeration, Cluster Evolution: Interaction Supersedes Location Phil Cooke (pc) starter præsentationen med nogle grundlæggende teoretiske overvejelser. Pointen er at der er forskellige grader af samlokalisering, agglomerering og klyngeaktivitet. Der er ikke nødvendigvis tale om et cluster, blot fordi virksomhederne er samlokaliserede. Interaktion mellem aktørerne er vigtig.

3 MAR, Jacobs and Evolution: the Agenda •Marshall-Arrow-Romer (MAR) ascribed view that sectoral or cluster specialisation furthers innovativeness •Jacobs ascribed view that diversification of sectors is key to innovativeness •Boschma, Frenken, Van Oort et al (Utrecht) offer ‘related variety’ to resolve specialisation vs. diversification debate on ‘what serves innovation best’ •Research by Cantwell/Iammarino (2003); Utrecht Team; C. Ketels - suggests growth dynamics (including innovation) are more associated with ‘related variety’ than either pronounced sectoral specialisation or diversification •BUT, Where does diversification (‘cognitive dissonance’) end and ‘related variety’ (lateral ‘absorptive capacity’) begin? Or ‘specialisation’ for that matter? •DO specialised MAR Clusters evolve into RV-type Jacobian Clusters? If so, would they be better termed Platforms? •If so, we would have an Evolutionary Geographic Theory of Multiplication & Cluster Species Development

4 MAR, Jacobs and Evolution: the Agenda Kommentar til slide 3+: Det næste, også teoretiske, perspektiv handler grundlæggende om strategi for regional udvikling. Man kan på den ene side argumentere for at specialisering øger konkurrenceevnen. På den anden side er der bidrag som argumenterer for at det er bedre at sprede sine satsningsområder, og at det præcis er diversiteten I erhvervsstrukturen som kan være afgørende for regional udvikling. Et nyt teoretisk perspektiv, related variety, bygger bro mellem disse to yderpoler og foreslår at det er vigtigt at have flere forskellige erhverv, men de bør ikke være så forskellige at de ikke har noget med hinanden at gøre. Og de kan godt være tidsmæssigt forskudt, m.a.o. udvikle sig i samspil, related variety er ikke altid tilstede fra start. Det illustreres (de næste slides) med et par eksempler. Det første er Cambridge ict-klyngen, som har været en platform for udvikling af biotek-klyngen. En tilsvarende historie kan skrives om ict- og biomedicoklyngen omkring Aalborg (den historie er beskrevet af Stoerring og Dalum, 2007).

5 The First Cambridge Cluster in ICT : a MAR-type cluster – Wolfson & St. John’s Incubator key

6 Addenbrooke’s Hospital Cambridge Biotechnology Northern Venture Managers Cambridge University Pfizer Lorantis Cambridge Antibody Technology Domantis Abbott Eli Lilly Astex Daniolabs Neurodegeneration Consortium Gateway Fund Biotica Babraham Bioincubator Babraham Technix Babraham Bioscience Inst Technologies Ltd Wellcome Trust WyethAmgenAstraZeneca Cambridge Crytallographic Data Centre GlaxoSmith Kline Gilead Sciences (joint venture) (Cambridge University administered) Institute for Medical Research Challenge Fund Founders came out of Pfizer macrolide templates Vistide out- license Hepsera out-license virtual screening collaboration (Cambridge University) (funding) partnership arthritis collaboration (funding) licensing Genzyme antibodies license validation (funding) Later Cambridge ‘Related Variety’ Biotechnology Cluster

7 Evolution of the NorCOM wireless telecom cluster: Aalborg (Dahl, Pedersen, Dalum, 2003)

8 Cluster Evolution & Species Multiplication in Aalborg? Source: Dagmara Stoerring (2007) PhD ‘Emergence & Growth of High Technology Clusters’ BIOMEDICO Cluster Emergence: Aalborg, Denmark

9 An Instance of Complex Related Variety Et vigtigt aspekt af related variety er at der er en platform af fællesnævnere, som kan være genstand for (politisk) indflydelse. Det kan øjnes i CleanTech, men også andre områder, som eksempelvis i Leuven, Belgien. Fra Californien vises desuden, at rel.v. ikke kun er mellem to klynger, men flere.

10 Micro-elektronica Nanotechnologie Telematica Communicatie E-security Mechatronica Feed – food - health Life sciences L-SEC DSP-Valley Leuven.Inc Jacobian Cluster Involving Related Variety with ‘Platform Policy’ support: Leuven, Belgium Cleantech?

11 Related Variety ‘Platform’ Support (Leuven) •Knowledge centres (e.g. IMEC) •Entrepreneurs (many ‘academic’; IPR assigned) •Seed Money, (e.g. from KU Leuven Inc.; business angels) •Capital markets (strong links to Bourse, AIM, NASDAQ etc.) •Infrastructure (3 Science Parks with incubation) •Role Models (‘academic entrepreneurs’) •Cluster Policy (Flanders & Local support) •Presence of international companies (e.g. interaction with Philips, Centocor, MedVision, Autocyte & [agro-food] Cargill) •Networks within and among sub-clusters, also abroad •Government (national funds supporting research & innovation) •Quality of Life (university town, historic and green ambience, Brussels & international airport nearby)

12 California’s Jacobian Clusters Cluster Legend: Clean Tech Biotechnology Wireless ICT Agro-Food Wine Film

13 3. Denmark has the lowest energy intensity in the EU 25

14 Firms & Institutions in Jutland Wind Turbines •Turbine Manufacturers – Vestas; Siemens (D); Gamesa (ES); Suzlon (India) •Materials – DOT; LM Glasfiber; BSB9; BSB Maskinfabrik; Reichhold; Fiberline Composites; Jorgensen & Utfold; Vest-Fiber •Components – JSB Plast; KP Components; Mita-Teknik; Fritz Schur; PMC Technology; Hydra Grene; Eltronic; Welcon; DS SM; Skagen Sandblaeseri; kk elektronik; Oiltech; ScanVib; AH Industries; Arvind Nilsson; Bachmann; Balluff; DEIF; FT Technologie; Hendricks Industries; Steel Team •Services - Difko; DONG Energy; EU Montage; Hempel; Krangården; Garrad Hassan; Sanistål; DTI, Ålborg & Århus Universities; GE Wind (small office in Ålborg) •Logistics – A2SEA; Deaugro; BaltShip; Blue Water; RM Gruppen

15 The North Central Jutland Wind Turbine Cluster Source: Danish Wind Industry Association Data, 2007 Som nævnt er p.c. meget inspireret af udviklingen i Danmark, bl.a. på miljøområdet. Eet kendt eksempel er vindmølleindustrien, og p.c. viser hvordan en række af aktørerne i industrien er koncentreret i Midtjylland. Eksemplet er særligt aktuelt i UK, hvor etableringen af møller boomer, og hvor man 10.dec.07 diskuterede i regeringen om der skulle etableres en række vindmølleparker. Den ambitiøse (ikke vedtagede, men stadig diskuterede) version er at man i år 2020 skal dække energiforbruget 100% ved vind. Det vil kræve en mølle i gns. pr. 0.5 miles kyst, men de vil selvsagt blive etableret i parker.

16 Jutland’s Solar Thermal Cluster Source: ESTIF Data Danfoss A/S Grundfos Sensor Et andet eksempel som p.c. er inspireret af mht. udviklingen i Danmark, er solvarmeindustrien, og p.c. viser tilsvarende hvordan en række af aktørerne i industrien er koncentreret i Nord- og Midtjylland. Det er dog ikke (endnu) undersøgt om der er tale om en sam- lokalisering, eller en decideret klynge.

17 North Jutland Organic & Conventional Food Clusters EcoCuisine •Danish Culinary Institute, HQ Aalborg •House of Taste – N. Jutland –Training –Consultancy –Product Development •Thisted, Lønstrup, Skagen – gourmet cuisine •Cuisine Courses in farm estates •Organic Farming-Ecological Retail Chain (Aarstiderne – Barrit, nr. Velje, Jutland) •Women-Health-Food Network. Conventional-Intensive •Agro-Food Institute – Conventional Food.....Pigmeat Cluster (problematic) •Intensive Indoor Feedlot Production, Intensive Antibiotic Utilisation •Effluent Surplus Despite Effluent Biomass Heating Schemes •Aerial Ammonia Pollution, Ornamental Horses in Fields, Few Organic Pig Farms Et tredie eksempel fra Danmark, er fødevarer, og p.c. nævner dels nogle af aktørerne dels nogle tiltag og problemer i kølvandet på produktionen i den konventionelle del af industrien igen i Nord- og Midtjylland. Det er dog et bredt klyngebegreb som anvendes her, men igen er det et spirende felt, og Danmark fremhæves i præsentationen som foregangsland.

18 Other North Jutland Clusters •Salling – Furniture •Ikast – Textiles, Fashion Clothing •Nr. Aalborg – Insulated Pipework •Nr. Skagen – Fish Processing Equipment •Why? •Social Capital •Collective Entrepreneurship •Technological Branching •Peripherality (Copenhagen is favoured core) •Infant Industry Subsidy •Innovation System – DTI, Universities, Local, now Regional Funding •A high degree of ‘related variety’ Der nævnes andre eksempler på klynger fra Jylland, og spørgsmålet er hvorfor der synes at være højere tilbøjelighed til at være samlokaliseringer/klynger i Jylland end andre steder i Danmark. Nogle af de (mulige) forklaringer knytter sig til en aktiv erhvervspolitik (subsidier, reguleringer) men også (især) social kapital og en samarbejdsånd, som bl.a. udspringer af status som udkantsområde.

19 4. Some 40% of Freight in UK is Food: Similar Elsewhere Præsentationen bevæger sig til UK og entrepre- neurship, men bygger på de foregående pointer. I Uk er det et problem at forbrug og produktion af fødevarer er adskilte i geografisk rum. Det illustreres af at 40% af fragt er knyttet til fødevarer. Det giver CO2- problemer.

20 UK Food Transport Carbon Footprint

21 5. Local Agro-food Producer Clusters: S. Germany Alternativer til adskillelsen af forbrug og produktion er mere lokale klynger af fødevareproducenter, som illustreret i to ex. fra tyskland og sverige.

22 Stockholm’s local food cluster network

23 Candidate Territorial Food Chain Re-integration, e.g. Wales, SW England •Cardiff and its hinterland have potential for territorial food chain re-integration, Bristol too for SW •Cardiff is flanked by the two main organic food clusters in Wales, Bristol is one of the UK’s top ‘Green Cities’ (LED street lights; biomass burners & ‘green energy’ procurement). Recently a ‘Transition Town’ (Soil Ass. Etc.) and SW has leading organic distribution firms & networks, like Riverford Organic Foods •But there are contrasts -The South West is perhaps the English region with most appreciation of provenance. Local and locality foods are invited to open (e.g. a regional sausage counter) in UK-wide supermarket Sainsbury’s throughout that part of England. •Wales evolves in terms of local food culture and knowledge, but more slowly shrugs off a history of commodity products, its industrial food culture, not as exacting a consumer base. With notable exceptions, such as Welsh black beef and Welsh lamb, most local and locality products in Wales are sold through increasingly powerful supermarkets. But Waitrose, Tesco and other UK chains now source organic vegetables, meat and dairy from Wales for sale in Wales. •How do these conventional to either organic or functional food transitions occur? How is the underlying food chain/change discourse articulated, and which actors are key players in this evolution of food knowledges: –Consumers –Restaurants, Hotels –Municipalities –Governments & NGO Regulators (regional, national, supranational) –Supermarket chains –Others Kan det lykkes i Wales/UK? Cardiff og Bristol (nærområdet) nævnes som områder der har forudsætningerne for den udvikling i den retning, som nævnt nedenfor. Der gives også eksempler (de næste slides) på at der allerede i Wales er producenter som leverer til det lokale marked. Med ’climate change’ gives der et hint om at det (paradoksalt) måske kan skubbe på sådanne løsninger hvis den globale opvarmning fortsætter.

24 Organic Food Producers & Distributors Cardiff

25 Climate Change: Vineyards in Wales Cardiff

26 Climate Change: Biofuels in Wales Cardiff The new facility in Swansea is believed to be the largest biodiesel plant in Wales Below: Wood Pellets Miscanthus ↓

27 Agro-Food Bio in North Wales •In north Wales agro-food biotechnology involves a more mixed ‘platform’ including biofuels, biomaterials, organic and specialist food inputs, functional foods and cosmeceuticals •The food and related knowledges are linked closely to university and private research (e.g. Bangor University Biocomposites centre & Aberystwyth University Biosciences and Institute of Grasslands & Environmental Research [IGER[). IGER’s links particularly, involve many UK-wide, large firm and some international but relatively few intra-regional novel agricultural products business linkages •Utilisation of EU Convergence Funds to support local economic development agencies is a feature of the firm-university-governance network scene in evolving food knowledges alongside knowledge of other agro-food applications in rural diversification •In Wales at local level there are numerous food, energy and clean technology initiatives. Importantly, regarding aspects of innovation, key entrepreneurial leaders but also farming networks are prominent in stimulating evolution of agro-food knowledge evolution.

28 Novel Bioenergy-pharma-plastics Crops in Wales •Improve Bioenergy Crop Quality (e.g. Miscanthus) •Willow Coppicing (e.g. Agrobransle, SE) •SugarGrass as Biofuel (e.g. Bioethanol) •Fired by Solar •Plant Pharma (e.g. Galanthamine for Alzheimer’s) •Biocomposites (e.g. thermoplastic resins)

29 Barriers to Entrepreneurship •Incentivising knowedgeable customers •Training of bio-entrepreneurs •Seed-funding •Other specialist services (e.g. food consultancies) •Incubation •Increased investment in R&D •Lack of adequate Green Innovation Strategy •Inadequate support for Green Clusters •Green Governance Failure (e.g. cities, universities, large public institutions, let alone governments at all levels) •Compare Copenhagen (Dogma Project) & Malmö – 75% organic school meals, green urban zones, LED traffic & street lights, hydrogen municipal fleets, proper cycle ways, biomass & green energy production/consumption etc., etc Der afsluttes med at pege på nogle (klassiske) barrierer for entrepreneurship inden for det her område. Og der vises muligheder for at komme ud over disse barrierer (næste slide). Hovedbudskabet er at der er potentialer som ikke er udnyttet i Wales. Det kræver handling, og hidtil har man været for sløve. Og man behøver ikke at handle i blinde. Der er masser af viden og gode eksempler at trække på, især fra Danmark.

30 Breaching Barriers, Sustaining Entrepreneurship in a Green Innovation System •EU, UK & Wales slow to wake up to issues of Climate Change & Peak Oil •Poor PR for fragmentary Green supports •Green Building Code; Manufacturing Code; Energy Code? •LED lighting in Cities? Low Food Miles Policy in Schools, Hospitals, Canteens? Green Bus Fleets? Biomass burners? •Clean coal? •Significant ‘infant green industry’ subsidies? •Green business services and incubation? •Green seed funds? •Green local, meso and macro governance? •Green networking and clustering? •Mostly Missing - This is a discourse. Let’s Articulate It!