Transcript Mario Castillo_Innovation through Cluster

INNOVATION THROUGH CLUSTER
DEVELOPMENT IN CHILE
Mario Castillo
Head of Investment and Development
Chilean Economic Development Agency (CORFO)
PRESENTATION
 Policy framework and cluster
 Programs and examples
 Conclusion
OUR GOAL
Strong, sustained and equitable growth (at least 5%
annually) to reach full development
Step one: duplicate the per capita income over the next
15 years
US$ 35,000
Singapore (29,743)
Taiwan (29.244)
Spain (27.542)
N. Zealand (25.655)
Slovenia (23,159)
Korea (21,887)
Estonia (17.802)
Lithuania (15.443)
Argentina (14.838)
Latvia (13,875)
Malaysia (11,915)
USA (43,236)
Canada (35,779)
Hong Kong (35,396)
Finland (32,822)
Australia (32,127)
United Kingdom (31,585)
Sweden (31,264)
France (30,150)
US$ 25,000
CHILE
US$ 12,737
Per capita GDP in US$ PPP. IMF, sep. 2006
A very demanding challenge
considering our history
Per capita GDP
US$ ppp
From 694 to
1,325
From 1,325 to
2,768
From 2,769 to 5,781
From 5,781 to
11,520
Initial Year Last Year
Years to duplicate
1820
1877
57
1877
1920
43
1920
1988
68
1988
2004
16
“The World Economy: Historical Statistics”. A. Maddison, 2007
GLOBAL COMPETITIVENESS RANKING, WEF 2007-2008
COUNTRY
RANK
SCORE
GCI 2007-2008 RANK
(AMONG 2006 COUNTRIES)
United States
1
5.67
1
1
Switzerland
2
5.62
2
4
Denmark
3
5.55
3
3
Sweden
4
5.54
4
9
Finland
6
5.49
6
6
Japan
8
5.43
8
5
Australia
19
5.17
19
16
Neva Zealand
24
4.98
24
21
Chile
26
4.77
26
27
Esthonia
27
4.74
27
26
Thailand
28
4.70
28
28
Czech Republic
33
4.58
33
31
China
34
4.57
34
35
Saudi Arabia
35
4.55
n/a
n/a
Mexico
52
4.26
49
52
Greece
65
4.08
61
61
Colombia
69
4.04
65
63
Brazil
72
3.99
68
66
GCI 2006-2007 RANK
CHILE: PERFORMANCE – COMPETITIVENESS FACTORS
WEF Global Competitiveness Index 2007-2008
FACTORS
Macro Economy
Labor Market Efficiency
Asset Market Efficiency
Institutions
Infrastructure
Business Sophistication
Technological Preparedness
Higher Education and Training
Innovation
Health and Primary Education
12
14
28
29
31
32
42
42
45
Position in the ranking
70
0
80
STEPS TO KEEP OR IMPROVE OUR COMPETITIVE
POSITION
 “In the transition to higher growth boosted by innovation, Chile should
benefit from its comparative strengths and advantages by
strengthening emerging clusters –mainly based on natural resourcesin order to develop innovative practices that can transform the
current static advantages of the Chilean economy into dynamic
advantages.”
 “For such purpose, Chile can promote both new activities –by
introducing export products with high added value- and improving
specialized goods and services initially focused on natural resourcebased clusters.”
OECD, 2007
POLICY TRENDS IN CHILE
80’s
PROFO
Neutrality
00’s
90’s
PDP
Supports networking of
Support the
firms with a shared
integration of
business idea :
supplier firms with
• share market
“client” firms
information.
• take advantage of
economies of scale
Networking at the level of value
chain links
PTI
Current
(2007)
CONSORTIUMS CLUSTERS
NATIONAL / REGIONS
Share P- P
Implementation
Companies,
Agendas
Universities,
Programs
Institutes or
Technology Centers Coordination of instruments and
institutions
R&D+i
Public inputs / Corporate competitive
gaps
Networking at the level of the
entire value chain
NATIONAL CLUSTER POLICY (NCP)
Gaps in the National-Level
Clusters
Nacional Cluster
Program
Coordination
and
Linking
Regions’ Cluster
Program
Gaps in the Local-Level Clusters
IMPLEMENTATION OF THE NCP: Identification of clusters
1.
2.
3.
Identification
of 100
sectors with
the highest
growth
potential
globally
Identifica
tion of
the 31
most
promising
sectors
for Chile
Prioritiz
ation of
11
sectors
(8 to
begin
with)
Aquaculture
Global services
Special interest
tourism
4. Pork and poultry
industry
5. Fruit industry
6. Copper mining
7. Processed food
8. Financial services
9. Logistics and
transportation
10. Communications
11. Construction
IMPLEMENTATION OF THE NCP: Identification of Clusters
NATIONAL CLUSTER PROGRAM:
MEASURES TAKEN IN 2008
Global Services
Food Industry
Mining
S.I. Tourism
Aquaculture
Development
of Agendas
1.0
Set Up of
Strategic
Councils
Election of
Executive
Secretaries
Cluster
Launch
Validation
of final agendas
by the council
November 08
CLUSTER STRATEGY: Selected Projects
Cluster of Global Services:
50 multinationals established in Chile
THE EVALUESERVE CASE
• Indian
company
that
offers
business, financial and legal
services; operates in Chile since
2007.
It invoices US$ 1.3 billion at the
global level.
• 120 top Chilean professionals
provide real time information to
customers in the United States
from
CORFO’s
technological
facilities located in Curauma.
CLUSTER STRATEGY: Selected Projects
Wines (Food Cluster):
Entrepreneurial and Technological Consortium
for Vines and Wine
• 55 winemakers (80% of the industry)
associated with Universidad Católica
del Norte and Universidad de
Concepción.
• Focused on research to improve
genetics and product diversification.
• Total investment: US$ 5.5 million.
CLUSTER STRATEGY: Selected Projects
Mining Cluster :
Technology for the Future
MINING ROBOTICS CONSORTIUM
• Comprised by High Service, Codelco,
Nippon Mining Metals and Kuka
Roboter.
• Leader in an industry that still lacks
of substantial supply at the global
level.
• Will establish a Technological Center
of Applied Robotics in Calama.
CLUSTER STRATEGY: Selected Projects
Aquaculture Cluster:
Research for the World – Developing Vaccines
Developing a vaccine for the Salmon
Rickettsial Syndrome (SRS):
• Fundación Chile, Fundación Ciencia para la
Vida and Cobequid Life Science Inc. (CLS)
developed a vaccine that prevents the spread
of SRS, which accounts for US$100 million in
annual losses.
• International Patent (Novartis Animal Vaccines
Inc).
• Funding of US$ 3.24 million provided by Corfo
through InnovaChile.
CLUSTER STRATEGY: Selected Projects
Cluster of Special Interest Tourism:
Sustainable management model for areas and
centers valuable for national tourism
• Public-private management approach for
tourism -with the tools required for
economic, social and environmental
sustainability- for destinations declared as
areas or centers with tourism interest.
• The project, carried out by Eurochile with
Sernatur, was honored by the World Tourism
Organization (WTO) with the UNWTO Ulysses
Award for innovation in NGOs.
• Total investment: US$ 0.6 million.
CLUSTER PROGRAM IN REGIONS
“We will establish Development Agencies in all
of the country’s regions whose priority will be
to coordinate the different support programs
for SMEs at the region’s level, thus improving
the access for users and the program’s
effectiveness.”
GOVERNMENT AGENDA OF THE BACHELET ADMINISTRATION (Page
46)
COMPETITIVENESS IMPROVEMENT PROGRAMS (CIPs)
Tools to improve the
competitiveness of a business
segment located in a enclosed
geographic area by choosing a
strategy that improves their
long-term competitiveness.
PRIORITY CLUSTERS FOR
CIPs
The first CIPs are being
designed
in
Chile’s
15
regions.
By the end of 2008, there will
be 15 programs underway and
the 45 CIPs considered in the
program’s design will be in
operation by 2009.
INTERNATIONAL
CONSULTANTSHIP SUPPORT
TO ESTABLISH CIPs WITH
IDB FUNDS
NORTHERN AREA REGIONS
SOUTHERN AREA REGIONS
CASE: FRESH GRAPE CLUSTER IN
THE ATACAMA REGION
 Goal of the CIP: strengthen the competitiveness of fresh
fruit businesses, especially table grapes, in the region of
Atacama
 Strategy: consolidate the market position in the US and
expand to new markets (India, Scandinavian countries and
Eastern Europe), focusing on the “ready to eat” segment and
advancing on the “fresh on the go” segment by improving
appearance, size, quality and packaging.
 Benchmarking: In the US, mainly supermarket and delivery
chains.
CASE: IT-BASED GLOBAL SERVICE
CLUSTER,
GLOBAL SANTIAGO CIP
Vinculo a Archivo
Adjunto
 Goal of the CIP: increase the competitiveness of
outsourcing and shared service companies in the
Metropolitan Region.
 Strategy: Development of language skills; worldclass management capabilities: marketing,
finances, services, redistribution, among others.
 Expected Outcomes: create an integrated service
supply for analytical centers in the Metropolitan
Region and in Latin America (pilot)
CASE: TOURISM CLUSTER,
TOURISM CIP FOR THE MAGALLANIC
NATURE
 Goal of the CIP: Become a world class nature tourism
destination.
 Strategy: support the comparative advantages of world
renowned geographic milestones, such as the Strait of
Magellan, Tierra del Fuego and Antarctica.
 Benchmarking: Costa Rica, Galapagos, Paraguay, the
Republic of Sakha (Siberia) and the cluster of adventure
tourism in Mendoza.
RESULTS TO DATE
 15 agendas approved by the relevant Public-Private Strategic
Councils.
 Strategic axis, identification of competitiveness gaps and relevant
measures to advance the region’s economies.
 Agendas include public and private inputs and investments in terms
of funding and implementation.
 Eight public agencies (CORFO, SERCOTEC, SAG, INDAP, FOSIS,
SENCE, CONADI and PROCHILE) have subscribed agreements with
each agency committing more than US$ 83 million only for 2008.
 First Management Committees for meat and cow milk clusters in
Puerto Montt (July, 08)
COMPETITIVENESS
IMPROVEMENT
PROGRAMS
 Cluster governance
 Mainly private
 Mainly free adhesion (club
type logic)
 Focused on managing the
implementation of
initiatives to close specific
competitiveness gaps.
KEY ISSUES IN AGENDAS AND CIPs
 Public-private participatory approach (governance)
 Public Roles: Agency as guidance and facilitator; leadership
focused on the Regional Intendent.
 Private Roles: Leadership in the implementation of
initiatives to close competitiveness gaps.
 Bottom-up approach. Methodological support (IDB, Dalberg
and Competitiveness)
 Team of consultants involved in the trust building process.
LESSONS LEARNED
 Build trust as a key issue for success.
 Manage both public and private expectations.
 Build capacities in regions.
 Promote the mainstreaming of national entities in
regionally-determined priorities and programs
(agreements, agendas and CIPs).
 Deepen the links among regions, institutions and
innovation funds: the most relevant decentralization gap
CONCLUSION
 There is renewed policy focus in supporting cluster both
national and regional level
 The cluster program at national level makes sense because
Chile is an unitary country
 The main challenges:
 Institutional framework
 Management system
 Funding pattern
INNOVATION THROUGH CLUSTER
DEVELOPMENT IN CHILE
Mario Castillo
Head of Investment and Development
Chilean Economic Development Agency (CORFO)