Swedish Clusters. Sweden: Clusters in Focus
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1 Göran Lindqvist Anders Malmberg Örjan Sölvell CIND, Uppsala University in cooperation with Professor Michael E. Porter ISC, Harvard Business School 1
2 Sweden: Clusters in Focus New organisations Special projects Vinnova ITPS NUTEK ISA Swedish Cluster Focus Group TCI Conference Regional growth programmes Vinnväxt Initiative 17 Feb 2003 (gl) Swedish Clusters 2
3 Swedish regions 1,000 km 21 Counties (regional government units) 81 Labour Market Regions (local commuting regions) 288 Municipalities (cities, townships) 17 Feb 2003 (gl) Swedish Clusters 3
4 Industry classifications SNI 1992 Many-to-one Many-to-one Many-to-many Many-to-one NACE rev.1 ISIC rev. 3! SIC 1987 Clusters 740 codes 503 codes 292 codes 1006 codes 41 codes Five-digit codes Four-digit codes Four-digit codes Four-digit codes Newsprint: Manuf. of paper and paperboard: Manuf. of pulp, paper and paper board: 2101 Paper mills: 2621 Fundamental problems Granularity: fewer SNI codes than SIC codes Overlap: ambiguous relationships between SIC and ISIC/NACE/SNI 17 Feb 2003 (gl) Swedish Clusters 4
5 Major cluster composition modifications Aerospace Engines Granularity problem Aerospace engines cannot be distinguished Cluster has been included in Aerospace and Defence Motor Driven Products Overlap problem Only few SNI codes allocated here (tyres, accumulators, brooms) Cluster has been excluded in analysis Prefabricated enclosures Overlap problem Only one SNI code allocated here (office furniture) Cluster has been excluded in analysis Only 38 clusters (of 41) remain in the Swedish analysis 17 Feb 2003 (gl) Swedish Clusters 5
6 Sectors Clusters (37%) Natural Resource Driven (2%) Local (56%) Public Administration (5%) 17 Feb 2003 (gl) Swedish Clusters 6
7 Agglomeration coefficients 1,0 0,8 Agglomeration coefficient 0,6 0,4 0,2 0,0 0,86 0,76 0,67 0,66 0,61 0,60 0,60 0,58 0,58 0,57 0,57 0,53 0,50 0,49 0,48 0,47 0,44 0,42 0,42 0,39 0,38 0,36 0,34 0,34 0,33 0,31 0,30 0,30 0,28 0,28 0,26 0,24 0,24 0,16 0,15 0,13 0,11 0,11 0,33 0,12 0,02 Tobacco Footwear Jewelry Aerospace Fishing Leather Power Oil and Gas Apparel Sporting Pharma Lighting Furniture Textiles Chemical Heavy Machinery Automotive Forest Communications Plastics Metal Constr. Materials Agricultural Instruments Building Fixtures Distribution Medical Food Finance Education Production Information Business Services Publishing Hospitality Transportation Construction Entertainment Natural res. Public Local Note: The clusters (yellow) agglomeration coefficients are based on the cluster sector, while the other sectors (blue) are based on the sum of all segments. 17 Feb 2003 (gl) Swedish Clusters 7
8 0,8 Tobacco Footwear Agglomeration coefficient, ,6 0,4 0,2 Jewelry Aerospace Fishing Leather Power Oil and Gas Pharma Apparel Sporting Lighting Textiles Furniture Chemical Heavy Machinery Communications Plastics Constr. Materials Instruments Agricultural Building Fixtures Medical Distribution Information Forest Food Production Finance Automotive Metal Education Business Services Publishing Hospitality Entertainment Transportation Construction 0, Employees, Feb 2003 (gl) Swedish Clusters 8
9 Empl. Share of Work Empl.per Aq nat. empl. sites work site Business Services ,30% ,24 Transportation and Logistics ,00% ,13 Education and Knowledge ,19% ,28 Creation Heavy Construction Services ,80% ,11 Metal Manufacturing ,69% ,38 Automotive ,04% ,44 Financial Services ,60% ,28 Processed Food ,57% ,30 Forest Products ,53% ,42 Hospitality and Tourism ,52% ,15 Entertainment ,46% ,11 Production Technology ,37% ,26 Publishing and Printing ,84% ,16 Distribution Services ,80% ,31 Communications Equipment ,69% ,42 Building Fixtures, Equipment and ,61% ,33 Services Information Technology ,58% ,24 Biopharmaceuticals ,53% ,57 Furniture ,48% ,50 Heavy Machinery ,46% ,47 Plastics ,46% ,39 Empl. Share of Work Empl.per Aq nat. empl. sites work site Chemical Products ,31% ,48 Lighting and Electrical Equipment ,29% ,53 Aerospace Vehicles and Defense ,28% ,66 Medical Devices ,28% ,30 Textiles ,27% ,49 Analytical Instruments ,26% ,34 Power Generation and ,22% ,60 Transmission Agricultural Products ,19% ,34 Construction Materials ,11% ,36 Apparel ,08% ,58 Fishing and Fishing Products ,07% ,61 Sporting, Recreational and ,06% ,57 Children's Goods Oil and Gas Products and ,05% ,58 Services Jewelry and Precious Metals 757 0,02% ,67 Leather Products 449 0,01% ,60 Footwear 387 0,01% ,76 Tobacco 381 0,01% ,86 17 Feb 2003 (gl) Swedish Clusters 9
10 Strong cluster criteria Criterion A (absolute importance) Minimum 15% of cluster s workforce Minimum 1,000 employees Minimum 2 work sites Åre Härjedalen Vilhelmina Umeå Strömsund Örnsköldsvik Östersund Kramfors Sundsvall Ljusdal Hudiksvall Pajala Mora Bollnäs Söderhamn Criterion B (relative importance) Minimum location quotient 5 Minimum 100 employees Minimum 2 work sites Malung Falun Gävle Vansbro Torsby Avesta Hagfors Ludvika Fagersta Uppsala Filipstad Västerås Arvika Köping Stockholm Karlstad Årjäng Eskilstuna Karlskoga Bengtsfors Säffle Örebro Katrineholm Strömstad Nyköping Trollhättan Skövde Norrköping Lidköping Linköping Göteborg Tranås Västervik Note: The location quotient is defined as a region s share of a cluster s workforce divided by the region s share of the total national workforce. Example: If a region has 12% of a cluster s workforce but only 2% of the total workforce, the location quotient for this region/cluster is 6. Borås Jönköping Nässjö Vimmerby Värnamo Varberg Oskarshamn Ljungby Växjö Halmstad Älmhult Helsingborg Karlshamn Karlskrona Kristianstad Malmö Simrishamn Kalmar Gotland 17 Feb 2003 (gl) Swedish Clusters 10
11 Swedish Industry Clusters Hospitality Sporting goods Entertainment Instruments Heavy machinery Processed food Heavy machinery Entertainment Heavy machinery Instruments Building materials Aerospace Fishing Oil and gas Textiles Chemicals Communications Automotive Distribution Plastics Education Sporting goods Fishing Textiles Building fixtures Production tech. Building fixtures Building materials Jewelry Processed food Metal manufacturing Chemicals Metal manufacturing Furniture Paper Processed food Textiles Distribution Apparel Furniture Metal manufacturing Plastics Textiles Chemicals Medical equipment Agriculture Göteborg Åre Härjedalen Ljusdal Bollnäs Söderhamn Borås Jönköping Nässjö Vimmerby Värnamo Varberg Oskarshamn Vilhelmina Kramfors Malung Falun Gävle Vansbro Torsby Avesta Ludvika Hagfors Fagersta Uppsala Filipstad Västerås Örnsköldsvik Arvika Köping Stockholm Karlstad Årjäng Eskilstuna Karlskoga Bengtsfors Säffle Örebro Katrineholm Strömstad Nyköping Trollhättan Skövde Norrköping Lidköping Linköping Ljungby Växjö Halmstad Älmhult Helsingborg Tranås Karlshamn Karlskrona Kristianstad Malmö Simrishamn Mora Strömsund Östersund Kalmar Sundsvall Västervik Hudiksvall Pajala Umeå Gotland IT Automotive Lighting Communications Chemicals Power generation Power generation Lighting Metal manufacturing Heavy machinery Instruments Lighting Footwear Power generation Heavy machinery Furniture Sporting goods Furniture Furniture Communications Sporting goods Automotive Processed food Instruments Aerospace Distribution Entertainment Medical equipment Education Hospitality IT Business services Financial services Construction Biopharmaceuticals Publishing Transportation Metal manufacturing Heavy machinery Jewelry Textiles Power generation Telecom Aerospace Chemicals Power generation Plastics Lighting Furniture Textiles Sporting goods Medical equipment Building materials 17 Feb 2003 (gl) Swedish Clusters 11
12 Two concentrated clusters Employees Specialisation Location quotient quota > 10 2 to10 0,5 to 2 < 0,5 Aerospace Apparel 17 Feb 2003 (gl) Swedish Clusters 12
13 Two dispersed clusters Employees Specialisation Location quotient quota > 10 2 to10 0,5 to 2 < 0,5 Automotive Metal Manufacturing 17 Feb 2003 (gl) Swedish Clusters 13
14 Agglomeration coefficient defined Ak b = 1 2 R n= 1 a b, n A b tn T Agglomeration coefficient Ak for the industry b, where a b,n A b t n R = number of regions = number of employees in industry b in region n = national number of employees in industry b = total number of employees in region n T = national total number of employees When Ak = 0, the industry is proportionally spread across regions. When Ak? 1, the industry is concentrated to few/small regions. 17 Feb 2003 (gl) Swedish Clusters 14
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