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Cluster and/or Sector Development

Cluster development means that LED initiatives are concentrated on encouraging and supporting inter-firm collaboration, institutional development and support in targeted industrial sectors. Cluster developments undertaken within a broader LED strategy that would normally include the standard approaches. Programs and projects include:

  • Developing broker and network agencies:
    Special attention is paid to encouraging local people engaged in the same cluster to meet together to enable business development opportunities. These could include encouraging local fishermen and fish processors to meet and exchange ideas on improving facilities and adding more value to their products so they would all benefit. Another example could be to start a craft network. The network could jointly market their goods and then start inter-trading with each other to build synergies.

  • Supporting joint research:
    Institutions of higher learning can undertake research that benefit all in the cluster. 

  • Developing cluster-focused public procurement and local purchasing agreements:
    The public sector is often the largest buyer in a city and as such there are opportunities to enable local businesses to access tender processes more easily. It is often difficult for small businesses, in a cluster or not, to bid for large government contracts. A cluster initiative here could include developing a food supplier network to supply government catering needs. A logical cluster development initiative could be to encourage suppliers of basic food products to enter into some form of food processing. Cluster development activities could then move on to transportation, storage and packaging of food products. From there it is likely businesses could start retailing and producing processed foods for the private sector.

  • Providing cluster specific information:
    One of the most effective ways of developing a cluster is to gather and disseminate information about businesses and institutional support systems in the cluster. Thereafter, with a small effort, supplier linkages can be developed. 

  • Developing cluster related marketing efforts:
    Cluster identification and development forms the basis for investment promotion and marketing, as well as support.

  • Developing demand-led skills and education training programs:
    A key out come of the business networking within a cluster initiative is an appreciation of skills needs in the sector. When a number of businesses express needs, it is more likely that training or education will be provided. A lone voice is not likely to be taken as seriously.

 

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