The British government first acknowledged the strategy of cluster creation as an integral part in its economic policy in a white paper published in 1998. (1) The document underlined that “development is stronger when companies work together, achieving a critical stage of growth, collaboration, competition and opportunities for investment and knowledge-sharing”. It also officialised a transfer of competencies in terms of economic policy to ten Regional Development Agencies (RDA) in England and to regional governments in Northern Ireland, Scotland and Wales.
158 clusters of unequal value
Three years later, in February 2001, a report (2) of the Cluster Policy Group (3) chaired by Lord Sainsbury, gave a boost to the policy by providing a map of clusters in the UK. The aim was to help RDAs develop clusters by furnishing them with a unique database. “Our understanding of clusters and their place within the British economy is fragmentary,” Lord Sainsbury said. “This map is only a beginning (…), it makes it possible to identify potentials and create networks.” The Cluster Policy Group’s report identified 158 clusters (8-10 per region), although certain of them would be more accurately described as mere concentrations of industries. The report established that the more links clusters have with institutions, universities and research centres, the more efficient they are, and that such clusters (finance, leisure, tourism, pharmaceuticals, biotechnology, IT, etc.) are at their most dynamic in London and the South-West. Since the publication of the survey and the Labour government’s decision to continue to promote the policy, the RDAs (workshops, conferences, etc.) have been increasingly focusing on the development of clusters in their specific areas. But some RDAs are more equal than others: in 2003, the American economist Michael Porter produced a scathing analysis of the UK’s weaknesses in the field of clusters and innovation.
Is decentralisation a handicap ?
Since 1998, responsibility has been shared as follows: the Department of Trade and Industry (DTI) drives economic policy (publishing reports, creating networks, helping SMEs gain access to finance, subsidies, etc.), while it is the job of the Regional Development Agencies (RDAs) to implement that policy. The RDAs, and, more specifically, their directors, are therefore responsible for encouraging actors to collaborate (innovation, knowledge-sharing). Each Agency has its own vision: while Advantage West Midlands has already identified ten clusters and established a three-year development plan, and while the Northwest Regional Development Agency has a dedicated budget of 24 million pounds (approximately 31.7 million euros), the Highlands and Islands Enterprise Network (Scotland) has no specific policy on clusters. Links with universities and the degree of interconnection and involvement of SMEs is also highly variable. Consequently, there exist a number of major disparities, which are amply recorded in a recent study (4) published by the European Cluster Observatory. While London (finance, life sciences, etc.), Yorkshire (agro-food industry) and the East Midlands (textiles) can all boast their own dynamic, growing clusters, other regions have little to write home about.
(1)“Our competitive future: Building the knowledge driven economy.“
(2)“UK business clusters, a first assessment.“
(3)The Cluster Policy Group is made up of members of the government, and representatives from Regional Development Agencies, local governments and universities, and various experts.
(4)Cluster policy report United-Kingdom (European Cluster Observatory - June 2007).
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