Approach to National Clustering Policy, Turkey

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Approach to National Clustering Policy, Turkey
3rd INTERNATIONAL CONFERENCE ON CLUSTERS Opatija,
Milenij Hotel

• Mateja Dermastia, Anteja ECG

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Agenda

• Motivation for Clustering Policy
• Process of Clustering Policy Design
• Lessons Learned and Challenges

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Turkey

• Population 74 million in 2006, annual growth
  1,25 (EU 0,4)
• 8 cities have more then a million citizens
• Geography 780.000 Km2, linked Europe and Asia

• The economy grew in average 7,5 per year in the
  period 02-06.
• Average annual export growth 22 per cent during
  01-05
• GDP per capita is about 9.400
• Regional Disparity (west east)

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Why Clustering Policy in Turkey? SMEs backbone
of Turkish Economy

• Turkish SMEs constituted 99.9 of the total
  number of registered enterprises but
• Exports originating from SMEs, represented only
  9.5 of Turkeys total exports
• Innovation capacity of SMEs is very limited
• Competition from low-cost producers
• Labor market is rather inflexible and upgrading
  skills is critical to sustaining competitiveness,
  especially in high added sectors
• Productivity growth comes from general
  improvements within existing firms rather then
  thorough reallocation of labor and capital across
  firms, thorough the creation of new more
  productive firms.

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Why Clustering Policy in Turkey? A number of
naturally-born industrial concentrations existed
in Turkey

• Most knowen Textile and clothing in Istanbul
  Denizli, Automotive in Bursa, Marble in Afyon and
  Diyarbakir

Source Özlem Öz, 2004
Source Özlem Öz, 2004
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Motivation for clustering policy in Turkey

• Improving the innovative capacity of Turkish
  industry
• To Improve competitiveness of Turkey on
  International market
• To exploit synergies between Turkish and European
  clusters
• To contribute to the sustainable social,
  environmental and economic development in Turkey

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Development National Clustering Policy for Turkey

• The Project's purpose is to develop a
  comprehensive and visionary clustering policy
  that will contribute to sustainable social,
  environmental and economic development in Turkey.
• Project started March 2007 and will be finalized
  in March 2009
• EuropeAid/122687/D/SER/TR

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• Designing an effective clustering policy requires
  full understanding of the practicalities of the
  implementation which embrace shared and
  understood vision, clear and consistent
  priorities, implementation tools and effective
  management.
• Key Issues?
• How to design policies that help regions to
  implement such processes in environments with
  varying social, demographic, cultural and
  governmental settings?
• How to turn cluster framework into specific
  policy programes and instruments?

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ProcessCluster Policy Life Cycle

• Analysis an initial analysis of a problem,
  determination of needs and an audit of existing
  policies that address those needs
• Design of Policy Response to those needs and
  definition of key policy objectives, resource
  view and policy tool investigation
• Implementation preparation of procedures,
  selection process, budgets and timetables for the
  implementation of the program
• Evaluation an assessment of the performance of
  the program, evaluation of effectiveness and
  efficiency of the policy after an appropriate
  operatingperiod

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Process Participatory approach

• To raise awareness about clustering and benefits
  of clustering
• To mobilize key actors (government, academia,
  business) to work together towards a shared
  vision, priorities and a set of strategies for
  attaining that vision.
• To achieve significant alignment in the actions
  of the public sector, helping to both identify
  and find innovative solutions for obstacles to
  private sector development.
• To support commitment, trust and strong ownership
  - among actors which are needed for the
  implementation phase of the policy.

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ProcessStrategic and Operational level
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Operational level CI Pilot cases

• 10 pilot clusters were selected
• Strategic plan of cluster development were
  developed
• Cluster analyzes and cluster map
• Shared Vision of the cluster actors for the
  cluster.
• Strategy that the cluster will follow to reach
  shared vision and become more competitive.
• Required Skills and Capabilities
• Action Plan - the list of activities that need to
  be undertaken to fulfil the strategic objectives
  for the cluster.
• Policy recommendations were provided based on
  experiences gained on the filed !

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Strategic levelTask Force
Task force was established and consists of 16
national institutional and representatives of
business and academia.

• SPO - State Planning Organisation
• TUBITAK- The Scientific and Technological
  Research Council Ministry of Agriculture
• Ministry of Culture and Tourism
• Ministry of Industry and Trade
• Ministry of Labour and Social Security
• Ministry of National Education
• Ministry of Treasury
• UFT - Undersecretariat for Foreign Trade
• KOSGEB - Small and Medium Industry Development
  Organisation

• TOBB- The union of chambers and commodity
  exchanges of Turkey
• MUSIAD - Independent Industrialists
  Businessmen's Association
• METU - Middle East Technical University
• TIM- Turkish Exporters Assembly
• TUSIAD- Turkish Industrialists and Businessmens
  Association
• UCCET- The Union of Chambers and Commodity
  Exchanges

Source White Paper, DCP Project,
EuropeAid/122687/D/SER/TR
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Task Force Process

• Interactive workshops took place and each focused
  on a specific topic relevant to the policy
  elaboration
• To reach common understanding on clustering
  concept and work towards common vision.
• To prioritize the challenges facing the
  clustering in Turkey
• To explore a range of objectives and priority
  actions
• To explore the logic of intervention and the
  priorities addressed by the Policy

OVERALL OBJECTIVE
SPECIFIC OBJECTIVES
PRIORITIES
ACTIONS
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Opportunities and Obstacles

• Existing schemes and infrastructures in Turkey
  supporting SME
• Opportunity to carry out more RD, exchange
  knowledge actors and resources for innovation
• Presence of high-quality universities supported
  by techno-parks
• High interest in clusters and clustering and
  there are dynamic groups who can lead the process
• Important domestic market size - Turkey is the
  17th biggest economy in the world)
• Young well-educated population

• Lack of coordination between different schemes
  and existing institutions
• Inefficient functioning of the triple helix
  (companies, public institutions, universities)
• Severe lack of trust in the business environment
• Lack of public and private awareness
• Expectation of companies related to direct and
  individual pecuniary incentives

Source White Paper, DCP Project,
EuropeAid/122687/D/SER/TR
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Three Specific Objectives
PRIORITIES
Source White Paper, DCP Project,
EuropeAid/122687/D/SER/TR
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Four Porgrammes aimed at structuring a sound and
coordinated intervention and operational system
Programmes addressing the main objectives and
priorities the policy has identified.
Source White Paper, DCP Project,
EuropeAid/122687/D/SER/TR
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Lesson Lernd Statistical Maps - Demonstrate
concentrations
Examples

• A geographical concentration of businesses
  operating in related fields does not necessarily
  imply that there is a cluster
• Should not be used to pick (select) clusters,
• Statistical analyses must be complemented with
  field studies.

Source White Paper, DCP Project,
EuropeAid/122687/D/SER/TR
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Lessons Learned Clustering policy - Intersection
of policies
Source White Paper, DCP Project,
EuropeAid/122687/D/SER/TR
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Cluster Policy GovernanceVertical and horizontal
coordination is crucial

• Establishment of flexibility in various levels
  from the policy level to operational level,
• From representation to the cooperation and
  coordination between public sector and clusters
  and between local actors.
• Ensuring an effective and clear distribution of
  the responsibilities given to each level
• Efficient and transparent flow of information
  between levels is of prime importance for
  achieving the successful implementation of a
  clustering policy

Source White Paper, DCP Project,
EuropeAid/122687/D/SER/TR
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Example of Implementation

• GAP-GIDEM is a EU-funded project, implemented by
  UNDP in close cooperation and collaboration with
  GAP Regional Development Administration.
• Overall Objective eliminated social economic
  disparities between South East Anatolia and other
  regions of Turkey.

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Regional ApproachGAP-GIDEM Project

• The GAP region has been the subject of a
  decades-long effort to improve living standards
  in South East Anatolia.
• Significant efforts have been undertaken, most
  notably via the hydro-electric and irrigation
  system projects over the past 25 years.
• This large-scale infrastructure projects
  (hydro-electric and irrigation system) have not
  managed to close the gap between the region and
  the rest of Turkey.
• Cluster Based Competitiveness Project was
  launched to develop recommendations that could
  provide a comprehensive framework for programs
  and policies to be undertaken within the region
  in the future.

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Competitiveness agenda was articulated

• Local and National Stakeholders have actively
  participated in the process
• Potential, challenges, vision
• Strategies and Key priorities
• Programes and measures
• Key Objectives
• Make companies in GAP region clusters more
  competitive in world markets
• Transforming region with low productivity,
  unemployment, rural emigration, internal strife,
  and poverty to a region based on new competitive
  advantages.

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Regions potential and challenges

• Potential
• On the way to becoming the region with the
  highest proportion of renewable energy in local
  consumption
• Gateway to the Middle East
• Availability of virgin land irrigation
  potential
• Available workforce
• Grand legacy of 5,000 years of civilization

• Challenges
• Education lag
• Unemployment
• Gender inequality
• lack of entrepreneurship
• Poor, but still relatively expensive

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Vision and Strategy
Testing ground for environmentally and socially
sustainable, clean tech-based growth among
emerging economies worldwide.

• HydroPower shall become cornerstone of the new
  strategy.
• by complementing this asset with appropriate
  policies to incentive additional solar, wind, and
  bio-fuel investments, this goal could become a
  reality.
• GAP Region
• 1 Solar Potential in Turkey
• 2 in Wind Power Potential in Turkey

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Cluster Potential were identified

• Largest existing export sectors of the economy
  which will have a major role to play in the
  regions future.
• Agriculture combining the regions water, land,
  and people to create sustainable produced food
  products, cotton, and other fibers, maximizing
  the use of renewable energy sources and organic
  farming methods
• Textiles and apparel accelerating innovation,
  diaspora market linkages and clean tech to
  establish a competitive edge in textiles and
  apparel and
• Tourism coordinating the regions people and
  historical/cultural authenticity to excel in
  creating an Experience Mesopotamia tourism
  brand.

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Program and Measures
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Thank you
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Innovation programme