CADIC CrossOrganizational Assessment and Development of Intellectual Capital

CADIC Cross-Organizational Assessment and Development of Intellectual Capital Cluster Facilitation Teams Meeting 5 th April 2011 London Presentation of CADIC Framework Project Coordinator Stefan Zickgraf Frédéric Maas Confédération Européenne des Associations de Petites et Moyennes Entreprises (CEA-PME) Scientific Coordinator Prof. Dr. -Ing. Kai Mertins Markus Will Cornelia Meyer Fraunhofer IPK Division Corporate Management

Agenda 1 Introduction 2 Cluster Facilitation Background 3 CADIC Cluster Facilitation Framework 4 Intellectual Capital in Clusters

D CADIC Project Plan – Phase I Deliverable Meeting (country level) Meeting (centralised) Activity Sep. 10 Oct 10 Nov 10 Dec 10 Jan 11 Mar 11 Feb 11 Jun 11 Public Website v 2 D 1 So. A Report Cluster Facilitation Meeting Cluster Facilitation Teams Meeting Cluster Facilitation Meeting Specification Meeting Cluster Initiation Meeting State of the art, SME requirements D 18 D 3 Development of CADIC Framework and prototypical services & tools Process Evaluation RTD Meeting Public Website v 1 RTD Meeting Kick-Off D 18 D 4 RTD Meeting Ongoing Cluster Activities using prototypical services and tools SME-AGs May 11 Implementation Requirements Analysis RTDs Apr 11 CADIC D 2 Framework Evaluation of D 5 CADIC Framework D 6 Evaluation Report

CADIC’s Cluster Facilitation Teams in Core Countries Cluster Facilitator (AG) RTD Expert A Country Coach (RTD) Cluster Facilitation Team per core country Additional Support RTD Expert B Implementation of CADIC Tools and Services in CADIC SME clusters CADIC Cluster in Core Country A CM Catalyst SME CM = Cluster Relation Manager

Aims of the Day • Introduce first draft of CADIC Cluster Facilitation Framework • Get practitioners‘ feedback on CADIC Framework (in relation to real cluster activities in core countries) • Introduce first prototypical services and tools to support cluster facilitation • Get practitioners‘ feedback on services and tools • Plan next steps of cluster development • Outlook on further cluster development

Agenda 1 Introduction 2 Cluster Facilitation Background 3 CADIC Cluster Facilitation Framework 4 Intellectual Capital in Clusters

The CADIC Approach Clusters as any type of bottom-up cooperation between companies (esp. SMEs) SME Network Cluster 1 Cluster n SME Explorer CM Catalyst SME Cluster Member CM = Cluster Relation Manager Catalyst SME Cluster Aspirant Cluster Founding Member To be established

Cluster Initiatives – Benefits Why do companies collaborate? • Access to Information Increased Productivity • Synergies • Specialized Inputs • Access to Public Goods Faster Innovation New Business Formation • Cooperative Research • More intense Competition • Filling in Niches • Expand the Boundaries of the Cluster Map Source: CLOE-Cluster Management Guide

Cluster Initiatives – Objectives What do clusters want to achieve? Common objectives • HR upgrading • Cluster expansion • Foster networks among people • Promote expansion of existing firms • Establish networks among firms • Facilitate higher innovativeness • Business development • Promote innovation, new technologies • Attract new firms and talent to region • Create brand for region • Promote exports from cluster • Provide business assistance • Assemble market intelligence • Analyze technical trends • Improve firm‘s cluster awareness • Promote formation of Spin-Offs • Provide technical trainings • Provide Management trainings • Diffuse technology within the cluster • Commercial collaboration • Innovation and technology • Enhance production process • Business environment upgrading Source: C. Ketels: The Cluster Initiative Greenbook C. Ketels: Clusters and Cluster Initiatives 2008 • Improve incentives • Lobby government for infrastructure • Provide incubator services • Improve regulatory policy • Study and analyze the cluster • Lobby for subsidies • Conduct private infrastructure projects • Establish technical standards • Produce reports about the cluster • Reduce competition in the cluster Rare objectives

Best Practice Cluster Facilitation How to develop a cluster successfully? The success of a cluster depends on several factors: Uniqueness Trust Identity Communication Marketing/Branding Vision and Strategy Adaption of Financial Structure Source: Hessen Agentur, Best Practice in regional cluster management

Agenda 1 Introduction 2 Cluster Facilitation Background 3 CADIC Cluster Facilitation Framework 4 Intellectual Capital in Clusters

CADIC Cluster Facilitation Framework Overview (Draft Version) Formation 5) Review 1) Topic Growth 5) Review Catalyst SME 4) Activities 2) Members 3) Strategy 4) Activities Stabilization 1) Topic Cluster Members 2) Members 5) Review 4) Activities 3) Strategy 1) Topic Cluster Members 2) Members 3) Strategy Degeneration 5) Review 4) Activities 1) Topic Cluster Members 2) Members 3) Strategy 1. Define Cluster Topic 2. Select Cluster Members Core Activities 3. Develop Cluster Strategy 4. Organise Cluster Activities 5. Review Cluster Performance Cluster facilitation supported by CADIC services and tools 14

Five Cluster Facilitation Steps Supported by Tools & Services Example: Formation Phase 1. Define Cluster Topic § Derive cluster topic from catalyst SME’s strategy and current demand 2. Select Cluster Members § Find potential members, discuss expectations, select members according to general cluster purpose 3. Develop Cluster Strategy § Negotiate cluster goals and plan activities 4. Organise Cluster Activities § Start value-adding activities and ensure cluster performance 5. Review Cluster Performance § Check cluster performance according to cluster goals Supporting Tools & Services Challenges & Benefits 1. Define Cluster Topic Questionnaire “Cluster Topic” Strategy check Tools to assess company’s demand for clustering according to company’s strategy 2. Select Cluster Members Speed Dating Events Mo. U / IP protection templates Tools to ensure good communication and trust between cluster members 3. Develop Cluster Strategy IC Quick Check Roles & Responsibilities Guideline for what is essential, success factors for collaboration … … 15

CADIC Cluster Facilitation Framework The five step approach • It is a framework, not a “must do” • Every cluster is different and so is their specific solution the framework needs to be universally valid 5) Cluster Review 1) Cluster Topic Steps might be repeated, skipped, elongated or abbreviated • Tools are challenge related and need to be allocated to challenges • Challenges per step may vary between phases • Tools can probably be reused in different steps 4) Cluster Activities 2) Cluster Members 3) Cluster Strategy n-to-n relations 16

Agenda 1 Introduction 2 Cluster Facilitation Background 3 CADIC Cluster Facilitation Framework 4 Intellectual Capital in Clusters

Cooperation Requirements Cluster A • Strategy: Cluster Goals • Business Model: Cluster Results, Processes, Member Value • Resources: Cluster‘s Human, Structural, Relational Capital Success factors for effective cooperation Company’s Requirements Company Level Cluster Level Intellectual Capital on Company and Cluster Level Negotiation Processes Company A • Strategy: Long-term Goals • Business Model: Products, Processes, Customer Value • Resources: Human, Structural, Relational Capital Comparison (Benchmarking) Company B Company C … Success factors for achieving company strategy

Strategic Relevance of Intellectual Capital in SMEs Standardized IC Factors (Wissensbilanz – Made in Germany & In. Ca. S)

Cooperation Requirements Cluster A • Strategy: Cluster Goals • Business Model: Cluster Results, Processes, Member Value • Resources: Cluster‘s Human, Structural, Relational Capital Success factors for effective cooperation Company’s Requirements Company Level Cluster Level Intellectual Capital on Company and Cluster Level Negotiation Processes Company A • Strategy: Long-term Goals • Business Model: Products, Processes, Customer Value • Resources: Human, Structural, Relational Capital Comparison (Benchmarking) Company B Company C … Success factors for achieving company strategy

Intellectual Capital on Cluster Level Draft set of success factors from current IC research Human Capital (of the cluster) • Professional competence • Commited key actors • Innovation and strategy oriented management Structural Capital (of the cluster) • Culture: trust and conventions • Cluster management • Budgeting • Technology in the cluster • Local proximity • Knowledge transfer support Relational Capital (of the cluster) • Cooperation of business partners in the cluster • Cooperation with R&D institutions • Openness of the cluster towards external stakeholders

Guiding Questions for Cluster Sessions per Core Country 5) Cluster Review 1) Cluster Topic 4) Cluster Activities 2) Cluster Members 1. What are current and planned cluster activities in your cluster? How do they relate to the five steps of the CADIC Framework? 3) Cluster Strategy 2. Which goals and strategy does your cluster want to achieve? What are the cluster’s success factors for reaching these goals effectively and efficiently?

CADIC Cross-Organizational Assessment and Development of Intellectual Capital Thank You for Your Attention! Project Coordinator Stefan Zickgraf Frederic Maas Confédération Européenne des Associations de Petites et Moyennes Entreprises (CEA-PME) Scientific Coordinator Prof. Dr. -Ing. Kai Mertins Markus Will Cornelia Meyer Fraunhofer IPK, Division Corporate Management