Hamburg 8 Forces to Competiveness, Growth, and Innovation

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1 1 INTRO Hamburg 8 Forces to Competiveness, Growth, and Innovation The Free and Hanseatic City of Hamburg (herein further referred in as Hamburg) took the pioneering role, when establishing Germany s first cluster initiative in Ever since Hamburg is pursuing a consistent cluster policy and has gained a lot of experience in the development, implementation, and coordination of cluster networks. Today, the city-state supports a healthy mix of eight cluster initiatives representing a cross-section of all key sectors of the regional economy: media & IT, aviation, life sciences, logistics, creative industry, healthcare, maritime industry, and renewable energies. The long-term experience of Hamburg proves that cluster policy is a very resource-efficient instrument to strengthen the local economy and to release its innovation potential. Globalisation demands a strong competitiveness where innovation plays a crucial role. Especially highly developed and technical-driven regions such as Hamburg require new models to identify and fill innovation gaps. Hamburg released its regional innovation strategy in 2010 that relies on innovation through cooperation and continuous adjustments. Involved partners in this process founded the InnovationsAllianz in The InnovationsAllianz unites actors from industry, academia, and public authorities and so completes the knowledge triangle to create added value. The strategy is mainly realised through clusters as strategic initiatives in the relevant key sectors. By this holistic approach Hamburg aims to strengthen the regional economy and to provide an innovative eco-system that involves all regional actors. The overall vision of Hamburg is to become a capital for innovation in Europe by The clusters are characterised by a high degree of economic dynamism and have given Hamburg a clear-cut competency profile, which attracts human resources, businesses, and foreign investments. By doing so, Hamburg continues to be a dynamic city with a huge capacity for innovation and the necessary room for manoeuvre features that enable Hamburg to compete with the international front-runners. The engagement and enthusiasm of businesses, universities and employees prove that Hamburg is on the right track by jointly shaping Hamburg s future. Hamburg sees itself not only as provider of funds, but above all as a long-term partner, moderator and stimulator of new ideas. As an economic development instrument cluster governance is intended to be permanent. The city state puts great emphasis on sustainable activities in regional development, especially with focus on innovative SME. The ministry of economy, transport and innovation is in charge of the overall cluster policy development and coordination. 2 CHALLENGES/ OPPORTUNITIES Hamburg - Culture of Open Minds and Shared Value Each cluster management organisation as multiplier and intermediary between industry, academia, and public authorities encourages the community to share competences to jointly create added value. The procedure to foster cooperation within the clusters is well-established and field-tested. Being active in a cluster network requires the participant to work collaboratively in a state of coopetition (cooperation under competitors) which demands to be open-minded, to share information, and to participate sometimes without immediate or direct outcome/benefit. Different or new constellations request the community to rehears collaboration in coopetition. It takes time and personal commitment to establish an atmosphere of trust within such networks. Once such a network is established, cluster management organisations are the focal point to collect, distribute, evaluate, and match various pieces of information. Hamburg has the ambition to raise awareness and understanding of future and societal challenges. Local actors are to experience that their contribution in cluster networks leads to added value that is bigger than the sum of their parts. The continuous challenge is the change of mind-set of regional actors. To stay competitive people have to broaden their focus, think about different sectors and international markets, as well as emerging industries. To keep and attract qualified staff, companies have to care about working atmosphere and societal challenges. Hamburg as public authority has not only the task to implement innovation support programmes, but also sees the task to raise awareness and openness for new opportunities in societal responsibility. Referring to the shared value approach of Porter & Kramer i, 1

2 Hamburg aims to stimulate its regional economy to create economic value which as well is value for society. A central requirement of shared value is openness to a new way of thinking and understanding of the dependencies between societal and economic progress. Hamburg is eager to assist in this fundamental change of mind-set. Identification and Organisation of Topics: Cross-Clustering As coordinator and interface between all cluster organisations, Hamburg gains a valuable overview on the economic development of the region. The successful cluster policy enables Hamburg to identify common topics and complementary interests beyond defined regional sectors. Due to Hamburg s specific conditions such as a spatial contiguity of clusters and a high concentration of innovative SMEs within an urban region, the city has a particular interest in building cluster bridges. Cross-cutting topics offer new services, new value chains and business opportunities to regional actors. To foster such crossclustering activities, Hamburg locates related cluster managements in one place. Short ways of communication, common rooms (cluster breakfast get-togethers), and regular meetings help to increase exchange of information, mutual learning, and synergies between projects and initiatives. In the past, Hamburg built individual cluster bridges. Cluster bridges are defined as cooperation between sectors, value chains or cluster organisations to generate common value. The following examples describe concrete initiatives in the frame of cluster bridging in Hamburg: Smart Life Cycle Analysis and Evaluation of Complex Systems Skills and Competences Acoustics IT Cluster-Evaluation Internationalisation Experts from IT, aviation, and renewable energies collaborate to advance the monitoring and live reporting of technical components in a holistic approach to reduce costs of maintenance, materials, and recycling (MDP-Cosy approach) the system can be transferred to other industries with complex systems Establishment of knowledge alliances between higher education institutions and enterprises in order to meet the needs of industry, to foster innovation and high level employability (awarded) best practices in aviation industry are transferred to other clusters Sector skills alliances supporting the design and delivery of joint vocational and academic training curricula, which can be transferred to other sectors (Hamburg Centre of Aviation Training (HCAT) - Pro school) Active involvement of all clusters and close cooperation with the technical authorities responsible Joint programmes to attract new talents (STEM) Common Acoustics-Lab to be used by several clusters (aviation, wind energy, healthcare, media etc.) Interdisciplinary working group with members from three universities and corresponding industries Identified as emerging industry with relevance to all clusters An Example of cross-clustering: joint new master programme o Several different industry actors join their forces and interests to establish a common master-programme IT-Management and Consulting ii Evaluation system for all clusters Aim: increase the productivity of the cluster, improve the effectiveness of actions and the sustainability of results through benchmarking Cooperation at international shows and conferences Organisation of joint delegation trips Joint workshops to funding programmes Industrial Law Working-group of Cluster Renewable Energy met Cluster Maritime Industry (main topic: intellectual property law in international markets) Common working group was established and opened to partners from other clusters New Materials Transfer of new materials like carbon-fiber-reinforced plastics from aviation into automotive, renewables, and life sciences 2

3 Hamburg has identified various topics for cluster bridging as mentioned above. So far, these topics and the process of development have not been structured in a systematic way. To maintain healthy and competitive regional economy, the city has to make the necessary changes to keep supporting the regional economy in a more efficient way. Especially, cross-cutting issues provide Hamburg new opportunities: on the one hand to open new business opportunities for SMEs in existing value chains and on the other hand to integrate local SMEs in the creation of new markets. 3 VISION/ CONCEPT Cluster Policy at its Peak: a Holistic Eco-system for Clusters To better release this specific innovation potential within the region, Hamburg needs to set-up a coordinated process for cluster bridging, cross-cutting topic generation, and regional (economic) priority assessment. In well-developed regions the most promising gaps for innovation can be found in-between the well-defined sectors. In order to identify and fill the gaps of innovation, Hamburg is requested to advance its cluster policy by developing a systematic approach to tackle, implement, and increase cross-sectoral topics to further emerging industries to create new jobs and profiles to generate new business opportunities to match knowledge and competences for new approaches. Within such a systematic process Hamburg aims to develop formats that organise temporary alliances of strategic relevance in-between the cluster organisations/networks. By developing formats to channel cross-cutting issues through existing and well-established cluster structures Hamburg ensures a costeffective and demand-driven approach within the regional economy. At the same time Hamburg strengthens the established clusters to reach world class performance. The development and implementation of such formats is necessary to lift Hamburg s cluster policy to the next stage and to achieve Hamburg s goal to become a capital for innovation in Europe. Stephan Duschek, researcher on cluster policy and regional networks based at Hamburg s Helmut-Schmidt-University points out that cluster bridging can be considered as the crowning achievement of successful cluster policy and successful network management iii. If such temporary alliances lead to the creation of new emerging industries within the region, Hamburg will proof the necessity to extend the existing cluster landscape. 3

4 TRIGGER/ INCENTIVES COMMUNICATION EVENTS Hamburg - Model Demonstrator Region for modern European Cluster Policy New Formats for Cluster Bridges To actively develop an innovative and flexible eco-system for regional actors, Hamburg has to design new formats that systematically help to identify innovation gaps and to assess the relevance of cross-cutting topics build cluster bridges facilitate open minds and creativity. These formats have to be highly efficient due to the economic pressure. Regional actors of all sectors need to be actively involved and need to realize the added value corresponding to their participation. Potential formats that foster a systematic approach towards cluster bridges focus on three different areas: events, communication, and incentives. Stammtisch thematic (cross-cutting) tables o tea-time get-togethers at a central public place o Cross-cutting issues: previously defined or collected during the get-together Workshops about different cross-cutting topics to select new ideas and develop concepts by using creative methods such as the World Café Innovation weekends: stakeholders from different clusters meet a whole weekend to find new solutions to a specific cluster bridging topic, e.g. Healthcare Innovation Weekend iv. International cluster conference Discuss modern cluster policy with international policy makers, practitioners, and researchers Match complementary clusters for joint projects Monthly meetings of corresponding cluster staff o Exchange of information and share results of projects o Mutual mentorship though exchange of experience and procedures in cluster management o Organised and moderated by the hosting cluster (taking turns) Digital o Interactive Application (APP: Hamburg Inno) o Use of mobile device for collection of topics and interests (chat forum) o Selected topics organised in separate groups for elaboration o Exchange platform with high information density about innovation gaps o Inter-cluster Knowledge management (based or compatible to existing system) New support programmes for cluster bridges Bridge-Innovation Award with a focus on regional SME o Competition: cross-cutting Innovation for the city (various categories) o Extension of existing international awards such as Crystal Cabin Award (Aviation Cluster) or German Renewable Award (Renewable Energy Cluster) Competition: Employee of the month Good ideas and creative people make the future call for action Drop box for smart ideas and rewarding of forward-thinking staff Presenting of the employee in the media (smart PR for the company) Supported by the industry These examples of formats are first ideas but do not claim to be complete. Hamburg hopes to advance and structure these ideas by becoming a model demonstrator region for Europe. 4 EXPECTED ADDED VALUE Support Services by the European Cluster Observatory Hamburg desires the assistance of the European Cluster Observatory in the development of a systematic approach and organisation for cross-clustering issues and formats accompanied by a proposal for implementation. 4

5 The following questions may serve as guidance: Where are gaps for cross-cluster collaboration in Hamburg? (screening - assessment) How to prioritise cross-cutting issues? (collection of topics and selection criteria) What could be instruments for implementation? (concept and design of formats) How to promote openness in the community towards cross-sectoral cooperation and new concepts? Which funding instruments / programs can be used? Does Hamburg need new funding programmes? (funding) What policies, programmes, or formats do exist in other regions? (benchmarking : good practices) Hamburg expects support by the European Cluster Observatory to answer these questions and to fully exploit the creation of a cross-cluster concept. New ideas and suggestions from external observers of the European Cluster Observatory can provide new impetus and motivation to regional actors. The positive effects of clustering will be supplemented by new open windows through coordinated cross-cluster collaboration. Through early-stage identification of future cross-sectoral innovation gaps, Hamburg will be enabled to act and to lead future trends. Hamburg can increase flexibility, competitiveness and innovation of its economy in a systematic and continuous way. This will keep Hamburg attractive for skilled people as well as for innovative companies. Finally, Hamburg would like to make benefit of the excellent international network of the European Cluster Observatory. Promoting Hamburg at international Cluster Conferences will be a good opportunity to establish new contacts and to raise international projects. 5 CONCLUSION Hamburg s Commitment and Outlook The global urbanisation is a central challenge of the 21st century. Cities in Europe face the task of combining global competitiveness and sustainable urban development. Hamburg gives a great example of an innovative city that has to tackle polarity and major trends in a heterogeneous and complex society. Globalisation, demographic change, and lack of resources name some of the challenges. Hamburg, as model demonstrator region for Europe, would like to promote the holistic approach towards innovation for a sustainable development of a city. Hamburg s vision to become an innovation capital of Europe corresponds directly to the scope of the EU call "leadership in innovation". Hamburg is always open to new approaches and highly motivated to implement them. Through new measures in cluster policy, in particular through a systematic cross-cluster exchange and activities supporting the "change of mind-set" of local actors, Hamburg can benefit and position itself not only as lead in cluster policy but also as lead market for innovation. As a "demonstrator model region", Hamburg can share the experience gained over many years and can support less mature regions in Europe in their development. By this application, Hamburg commits its ambition to implement the demonstrator approach and the cluster policy recommendations of the European Cluster Observatory. This includes the resulting policies, programmes, and cooperation partners foreseen. Within the InnovationsAllianz a current and future financial commitment to cluster policy is provided. i ii iii Duschek, Stephan and Sydow, Jörg [2011]: Management interorganisationaler Beziehungen: Netzwerke Cluster Allianzen, S. 232 [..dieser Typ der Clusterallianzen ( ) als Krönung erfolgreicher Clusterpolitik und erfolgreichen Netzwerkmanagements] Translation: this type of cluster alliances can be considered as the crowning achievement of successful cluster policy and successful network management. iv 5