Bill Greenhalgh

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Bill Greenhalgh
NWDA Cluster Manager Cluster Development Team
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North West England

• 78 billion GVA
• 7 million People
• 14,000 sq km
• 350,000 enterprises
• 8 Universities

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What is a Cluster?
A group of industries and organisations that are
linked together in buying and selling
relationships, or who share the same
infrastructure, customers or skills base and
whose linkages enhance competitive advantage -
Prof. Michael Porter
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What does a Cluster look like?
Cogent SI
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Cluster Analysis Drives...

• Business Support Structures
• Supply Chain Development
• Trade Development
• Inward Investment
• Innovation
• Infrastructure
• Skills

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North West Aerospace Cluster
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North West Textile Cluster
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Cluster Development Process
Research
Research
Research
Evaluation
Partners
5 months
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NWDA Cluster Development Programme
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Further Information
Cluster
Organisation
Website

• Biotechnology
• Digital Industries
• Aerospace
• Chemicals
• Food Drink
• Environmental
• Technologies
• Renewable Energy
• Textiles
• Automotive
• Maritime
• All Others

• BioNoW
• Digital Industries NW
• North West Aerospace
• Alliance
• Chemicals Northwest
• North West Food Alliance
• Envirolink
• Renewables Northwest
• NWTexNet
• Northwest Automotive
• Alliance
• Maritime NW

www.bionow.co.uk www.digitalindustriesnorthwest.or
g www.aerospace.co.uk www. chemicalsnorthwest.org
.uk www.nwfoodalliance.co.uk www.envirolinknorthwe
st.co.uk www.renewablesnorthwest.co.uk www.nwtexn
et.com www.nwautoalliance.com www.maritimenw.com
www.nwda.co.uk
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Cluster Life Cycle
Ecotec 2003
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Cluster Life Cycle
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Cluster Evolution In North West England 1700
Onwards

URBANISED SERVICE ACTIVITIES
CREATIVE/ DIGITAL INDUSTRIES MULTIMEDIA
HIGHER EDUCATION
FINANCIAL SERVICES
MEDIA, I.T.
COTTON EXCHANGE
COTTON TEXTILES
COTTON TEXTILES
SPECIALIST TEXTILES
EARLY WATER- POWERD LOCATIONS
ENERGY/ ENV. TECH
STEAM POWER COALFIELD ORIENTATION
ENVIRONMENTALLY FRIENDLY POWER
NUCLEAR POWER
CLEAN ENERGY
GEOLOGY, CLIMATE CULTURE
RECREATION/ LIFESTYLE ACTIVITIES
TOURISM
FOOD DRINK
TEXTILE MACHINERY
SALT AND MINERALS
CHEMICALS PRODUCTION
SPECIALISTCHEMICALS
RESEARCH ACADEMIC SPIN OFF
BIOTECHNOLOGY
NICHE MARKETS (E.G. LUXURY CARS)
RELOCATED AUTOMOTIVE PROD
MECHANICAL AND MARITIME ENGINEERING
BIOSCIENCES RESEARCH
BIO-MEDICAL
CONTROL INSTRUMENTS
MOD
STRATEGICALLY LOCATED AIRCRAFT PRODUCTION
JOINT-VENTURES/ CIVIL MOD CONTRACTS
1700 1750
1800 1850
1900 1950
2000 2050
Prof. Ray Oakey, MBS NWDA 2003
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Evidence of Superior Economic Performance

• North West Regional Economic Strategy launched
  October 1999
• NWDA Cluster Development Programme launched March
  2000
• Major progress in
• Biotechnology (Medical)
• Aerospace
• Chemicals
• Environmental Technologies
• Food Drink

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Earlier Evidence of Superior Economic Performance

• Lancashire Cotton
• Coal
• Chemicals
• Heavy engineering
• Steam Machinery
• Shipbuilding
• Power Engineering

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Evidence of Superior Economic Performance

• Scotland
• Cambridge
• Digital Industries
• Life Sciences
• London
• Financial Professional Services

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Problems of Cluster Growth

• Congestion
• Shortages of Labour Factory/Office Space
• Stagnation

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Cluster CongestionSolutions

• London
• Horse Manure Problem
• 1million tonnes 15000 dead horses in 1901
• The Tube
• 1890 First Electric Line - City South London
• The London Bus
• 1910 B-type, 1956 Routemaster
• Docklands Light Railway
• Congestion Charge (not a new idea)

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Cluster CongestionSolutions

• UK Transport - Innovation
• Horse Problems
• Petrol Vehicles post WW1
• Diesel Lorries post WW2
• Ex Army Transport
• Toll Motorways
• Tilting Trains
• Low cost Airlines

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Cluster CongestionSolutions

• Chicago
• The Great Fire - 1871
• The EL - 1892
• Low level streets (goods delivery)

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Cluster CongestionSolutions

• Lancashire Cotton Industry
• Rivalry between Liverpool Manchester
• The Bridgewater Canal 1776
• Liverpool Manchester Railway - 1830
• Manchester Ship Canal 1894
• East Lancs Road ( high speed tram ) 1934

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Cluster CongestionSolutions

• UK Food Industry
• Wholesalers Corner Shops
• Supermarkets - 1960s
• Efficient as far as the shelf
• Inefficient from shelf to the larder/freezer
• Who sells the most petrol?
• Who has the most retail grocery outlets?

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Cluster Shortages Solutions

• Expand the Cluster Boundaries
• USA Digital Industries
• Chips to Japan, Taiwan etc
• Software to India
• UK Textiles
• Garment production to Morocco etc
• Financial Professional Services
• London Docklands
• Call Centres
• Japanese Automotive Electronics
• Assembly plants in UK Far East

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Cluster Stagnation Solutions

• Inward Investment (Innovation)
• UK Automotive
• Japanese Production Systems
• UK Food
• Ethnic foods from Asia
• USA Space Industry
• Rocket Technology from Germany

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Lessons for Cluster Growth

• Encourage Innovation
• Encourage Inward Investment
• Encourage Networking
• Appropriate Skills for today tomorrow
• Encourage Market Development
• Constant Change is Here to Stay