0.1 Regions and clusters  (Page 6/15)

While proximity to sources of knowledge and other linkages are important elements of clusters, it must not be forgotten that high-technology companies generally exist in national and international networks, serving global markets (Keeble and Tomlinson 1999; Muller, 2007).

Uk and wales

On a global scale the DTI report ‘UK Competitiveness: Moving to the Next Stage’, (Porter and Ketels 2003), presents the UK as a whole as figuring in a number of significant clusters including services, defence, telecommunications, health care, entertainment. Further sectors such as biotechnology and motor sport are also noted to be of particular significance.

Wales as recorded in documents such as the Wales Spatial Plan already acknowledge a number of sector clusters including electronics, biotechnology, automotive and aerospace. These have been identified in the DTI study of UK clusters (DTI 2001). Each of these represents a significant employment and numbers of businesses ( [link] ).

While not all of the employment may refer to higher skilled employment or ‘knowledge workers’ the sectors involved fall within sectoral definitions of the knowledge economy (OECD 1996) and present the importance of the knowledge economy employment within the region.

An observation in the DTI assessment of clusters (DTI 2001) in Wales; is that while there exists significant specialisation with a number of clusters, they are generally and often weakly embedded and dependent upon foreign owners and markets or industries across the border in England. This reflects the concerns regarding the ‘embeddedness’ of businesses in the region and the focus given to developing indigenous enterprise within sectors and clusters (Cooke and Clifton 2005).

Government policy

Clusters on demand?

Clusters are generally built up spontaneously (EU 2003). However, the question remains as to whether it is possible to develop them in cities and regions and how it could be achieved. The conclusion put forward by governmental organisations (EU 2003), academics (Cooke 2002, Porter 2000) and other bodies is that it is possible, subject to the availability of key components including leadership and vision (Porter 1990, Cooke 2002).

This is in keeping with the model proposed by Porter (1990, 2000), where government can affect aspects including factor conditions, firm strategy, and rivalry and demand conditions. Examples of each of these include provision of training or new knowledge (e.g., funding training schemes or funding academic research), competition policy (regulation/deregulation of industries) and changing consumer behaviour (e.g., environmental legislation), as shown in [link] (Porter 2000). It is also suggested that because of the importance of proximity regional administrations are best placed to assist cluster development (EU 2003).

European and united kingdom policy

Europe: the lisbon agenda

The need to invest in the Knowledge Economy is at the heart of the European Union’s Lisbon Strategy. Investment in human capital and development of innovation is recognised as the key mechanism for realising the strategic objectives. The European Commission’s accompanying ‘Community Lisbon Programme’ proposes development of policy measures under the themes of (EU 2005):