The Dynamic Interaction between Clusters, Cities and InternationalizationNew Competitiveness Policies with the

City of Porto as a Hub Ana Teresa Tavares-Lehmann

Parallel Session 1.4: New Direction in Cluster Policy for Sustainable and Inclusive Competitiveness

18th TCI Global Conference

| 3-6 nov 2015 || Daegu |

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The Dynamic Interaction between Clusters, Cities and Internationalization

New Competitiveness Policies with the City of Porto as a Hub

• Need to understand better the nexus clusters-cities – internationalization

• Mechanisms through which clusters impact on their members’ internationalization have been scarcely documented

• Clusters: dominant level of analysis is the region

• The city/metropolitan dimension of cluster policies has been rarely developed

• Ketels (2015) recently called attention to the relevance of cities for economic development and competitiveness upgrading:

• “the central city in a region is often the natural driver to orchestrate a regional strategy for competitivenss upgrading”

BACKGROUND

• Need to clarify mechanisms in which:a) Cluster-driven development contributes to the

competitiveness of citiesb) Cities promote the internationalization of clustersc) Cities may drive regional/national competitiveness

• Explain these mechanisms based on the recent experience of the city of Porto (of which a key actor is InvestPorto)• Where an alliance has been forged between the city’s

leadership and a vast number of entities at the cluster, rgional, national and international levels

BACKGROUND

1. develop a competitive business environment

2. promote inter-institutional cooperation

3. provide specialized services

4. international promotion of Porto

5. develop business intelligence tools to facilitate access to important information about Porto

to create a favorable environment for competitiveness, business promotion and investment attraction to the city of Porto

MISSION

6. provide strategic advice to the Mayor regarding EU and other funds

INVEST PORTOMission & Strategic Objectives

31 protocols signed

9 clusters || 12.000+ companies

7 international missions

5 reverse international missions

32 investment projects supported

16 international projects

2.500+ jobs estimated

nearshore services | real estate | tourism | agroindustry | ICT

business intelligence tools INVEST PORTO PLATFORMBUSINESS LOCATION PLATFORM

INVEST PORTOMain Facts & Figures

• Cities can promote the internationalization of clusters, for instance by helping to access global pipelines and value chains, using different city/metropolitan-led policies and through territorial brand building• Strategies to attract investment and partnerships (flagship

companies/investors/international talent) to existing clusters;• Unprecedented public-private collaboration; each formal

collaboration has an action plan with KPIs etc;• Matchmaking; disseminating opportunities; • Creating integrated business intelligence systems;• Missions and economic diplomacy;• Leveraging the city’s award-winning brand;• Promotion of entrepreneurship, innovation and interindustry

convergence (intercluster experiences) and a host of other measures

CITIES AND THE INTERNATIONALIZATION OF CLUSTERS

COMPETITIVENESS POLICIES Smart Specialisation Strategy (RIS3)

Europe 2020 smart growth developing an

economy based on knowledge and

innovation

EU's growth strategypriorities

Smart Specialisation

sustainable growthpromoting a more resource efficient, greener and more

competitive economy

inclusive growth fostering a high-

employment economy delivering social and territorial cohesion

since “it is not possible to excel in everything” regions must identify the possible domains where they can have a competitive stance;

related variety: exploiting inter-sectorial synergies, combining knowledge and productive bases, as well as horizontal and vertical perspectives;

construct competitive advantages: taking advantage of the R&D and innovation capabilities and the export-led industrial DNA, to promote interlinkages and develop a technology market that can boost innovation;

connectivity and clusters: stimulate a higher density of connections both internally and internationally;

quadruple helix: adopting a collaborative understanding of innovation, involving firms, universities, institutions and users.

conceptual approach

SMART SPECIALISATION STRATEGYNORTE conceptual approach

source: ccdr-n

SMART SPECIALISATION STRATEGYNORTE priority domains

source: ccdr-n

NEARSHORING OF SPECILISED SERVICES

MARINE AND MARITIME

TECHNOLOGIES

HEALTH AND LIFE SCIENCES

SYMBOLIC CAPITAL, TECHNOLOGY AND

TOURISM

FOOD AND ENVIRONMENTAL

SYSTEMS

CULTURE, CREATIVITY AND FASHION

ADVANCED MANUFACTURING

TECHNOLOGIES

MOBILITY AND ENVIRONMENTAL

INDUSTRIES

SMART SPECIALISATION STRATEGYHEALTH AND LIFE SCIENCES

Consolidate and promote interactions between the accumulated research capabilities (namely, on tissue engineering, cancer, neurosciences and surgical techniques) and a related variety of firms (pharma, medical devices, health tourism, Health Care, Digital ICT), driving the co-construction of competitive advantages.

RATIONALE

ASSETS & RESOURCES

INNOVATION | BUSINESS

ADVANCED USERS

BASIC MEDICAL

RESEARCH

GENETICS & MOLECULAR BIOLOGY

CLINICAL MEDICINE

TISSUEENGINEERING

ENVIRONMENTALBIOTECHNOLOGY

HEALTH SYSTEMS

PHARMACEUTICALS

MEDICAL DEVICES

COSMETICS

HEALTH AND WELL-

BEING TOURISM

FOOD

ICT FOR HEALTHTEXTILES

NANOSCIENCES &NANOTECHNO-

LOGIES

PATIENTS

ICT

source: ccdr-n

PORTO’ STRATEGIC INDUSTRIES

HEALTH CARE AND

LIFE SCIENCES

NEARSHORESERVICES

ENERGY & ENVIRONMENTAL

TECHNOLOGIES

TOURISM

ADVANCED ENGINEERING, TECHNOLOGIES AND MATERIALS

CREATIVEINDUSTRIES

MARINE AND MARITIME ECONOMY

MOBILITY INDUSTRIES ICT

REAL ESTATE

• Cities are key players in the globalization process• Important arenas for competition and strategic promotion;

• Territorial centralization of controlling functions (vs dispersion), e.g. advanced services

• Cities are a part of a system of overlapping jurisdictions that should work in an articulated way

• Cities can be seen as catalysts/dynamos of what happens in a wider territory

• Cities internationalize, and help actors to internationalize too• Trans-local connections: transnational communities, clusters and

global value chains; international linkages; social capital building

• Role of flagship firms & actors; co-creating competitive advantage

IN SUM

invest.porto@cm-porto.pt