Sectoral Cluster Development

in Twente

Mr. Peter den OudstenMayor of EnschedeOctober 11th, 2006

Region of Twente

Transition to successful and innovative Region• Transformation traditional industries

into high-tech companies– innovative textile products for the aircraft and

aerospace industry.

• 583 spin-off companies University of Twente

• Largest number of patents – per capita in the Netherlands

High-tech spin-offs University of Twente

0

100

200

300

400

500

600

`76 `78 `80 `82 `84 `86 `88 `90 `92 `94 `96 `98 `00 `02 `04

Major challenge Closing the GRP gap

Slower rise regional product than Dutch average

Source: CBS (NL), August 2005

GRP per capita

0

5.000

10.000

15.000

20.000

25.000

30.000

1995 1996 1997 1998 1999 2000 2001 2002

€ NL Twente

European benchmarking important

Compare European Regions/Cities (Leuven, Grenoble, Oulu)

Stronger: • technological competence• knowlegde infrastructure• high tech spin-off, • living• environment Weaker• access of SME´s to knowledge,• number of knowledge workers• innovation reputation

Scores benchmarkingTwente Oulu Leuven Grenoble

Focus technological competences + + + +

Knowledge infrastructure ++ ++ ++ ++

Access of SME’s to knowledge - 0 0 0

Number of knowledge workers - 0 + +

Number of high tech spin offs ++ + ++ +

Co-operation between companies/knowledge institutions

0 ++ ++ ++

Living environment ++ 0 + ++

Exciting cultural environment - - + +

Realistic self image 0 + + +

Innovation reputation - ++ + +

2006 Innobarometer on clusters

Companies active in cluster-like environment:• United Kingdom 84%, Latvia 67%, Average 24%,

Netherlands 15%, Poland 4%• Cluster companies more stable turnover

Cluster development urgent in the Netherlands

65% clustercompanies agree: ‘public authorities have important role supporting the cluster’.

• Source: Flash Eurobarometer 187, The Gallup Organization, July 2006

Innovation Platform implements cluster policy

Public/private partnership in regional Innovation Platform

• Increase innovation strength of the region• Members: Captains of industry, directors of major institutions, government leaders

• How: Regional Innovation Action Programme200 mln Euros, 5 years, excluding European Funds

Development of public/private sectoral clusters

Support cluster development

5 clusters: Healthcare, Security, Food, Construction, Materials

Challenge introducing new technology in clusters:

nano-technology, ICT, mechatronicsHow:• Companies and Institutes higher education co-operate in

R&D• Government facilitates• encouraging SME´s to join clusters• Joined promotion region

The C-airlift

Example of an European award-winning healthcare product in Twente

Company: INDES

Example of cross border cluster

• Initiative Medical Product Development, TIMP, founded 1998

• Cross-border cluster companies & institutions• medical/revalidation technologies (17 Dutch

& 6 German)• TIMP supports members contacts potential

clients• Joint development new product-market

combinations• Contribution by the EU

Cross border R&D within TIMP cluster

Dry powder inhaler

Developed in Twente

Tested by Uselab in Münster

Food for discussion

Question: What could and should local/regional authorities do to foster cluster development?

• Co-financing action programmes cluster development

• Launching customership (health, construction, security)

• Lobby funding at the national/European level

• Removal administrative and regulatory barriers

• Provision risk capital revolving funds

Thank you

Mr. Peter den OudstenMayor of Enschede