Geoscience Reference
In-Depth Information
parts of this stage but this will decrease later. The character of knowledge and
information will become more homogenous. Consequently, entrepreneurship will
tend to stabilize and decrease. These patterns tend to occur because the likelihood
of convergence and agreement around a strategic plan during this phase is high as
the core industry and related suppliers solidify agreement on best practices and
standards. Once this happens, the need or motivation for R&D and experimentation
by entrepreneurs for enhancing practices, processes and widgets, is of less interest.
Historically this has been a critical development in the process leading to cluster
decline. It is thus important during the middle to latter parts of the phase that the
strategic approach include sustainability concepts and thus the regeneration of the
cluster when or if maturation tends toward non-sustainable processes.
The slowing rate of growth creates an environment that begs for increased
growth! One avenue in the view of cluster stakeholders may be to gain regulatory
protection and tax breaks to help the bottom line of firms in the cluster and
competitiveness. In an era where internal and external networking, especially in
the latter stages of the exploitive stage, become national and global due in part to
increasing outbound FDI, it is difficult to protect a cluster from external competi-
tion. Strategic plans need to focus as much on sustainability and rejuvenation as
upon establishing agreed on best practices. In short, it is important that such plans
include processes and procedures to ensure that there is a continued flow of
knowledge and information into the regional cluster ecosystem and thus that the
renewal dynamic provided by entrepreneurship is maintained at a high level.
Protection from external competition is the opposite of what is needed for ensuring
rejuvenation and sustaining the cluster rather than letting it lock-in on decline.
Local regional government has several important roles during the exploitive
expansion stage. First, is providing information and data on cluster dynamics to
cluster stakeholders. Second, is to interpret this information and data for
stakeholders by conveying in the early stages the need for finding general agree-
ment on cluster strategy and best practices. This includes explaining that strategy
needs to address the issue of economic sustainability as the cluster matures. Third,
there is a continued need to streamline the regulatory environment and to facilitate
compliance with measures like one stop process facilities (on-line or physical).
Fourth, is to ensure that public infrastructure is provided and/or maintained at levels
that facilitate low transaction costs for the movement of goods, services and
information (bytes). There is also a continuing need to maintain workforce training.
At the national or EU level the role of government is to provide flexible grant
programs and information to facilitate managing the cluster during the latter parts
of the exploitative stage. One major focus should be on sustaining the cluster
and planning for its rejuvenation before it falls into exhaustion. Maintenance of
resources for productive entrepreneurship and related technological change for
undergird successful
innovative clusters and thus sustainability is of central
importance.
