Business corner

Cluster are unique organizations where entrepreneurs connect on interest basis together with local scientific and academic community, as well as state institutions. The main goal of clusters is to increase the competitiveness of all involved.

What makes the clustering approach different to other models of cooperation? It's the key characteristics:

• Geographical concentration of businesses producing the same or complementary products
• Vertical and horizontal integration along and within the value chain of the product / service
• The Triple-helix is the key growth generating wheel – businesses cooperating with R&D, R&D cooperating with the government, government cooperating with businesses, and finally most importantly businesses cooperating with other businesses- who are also sometimes competitors, known as 'coopetition'.

Businesses performing the core-activity cooperate between each other. Supporting businesses participate also in the process. The R&D sector supports the innovation process and human resources development. Government supports the sector and cluster by creating a business environment which is 'cluster-friendly' through the provision of tailor-made services, policies and incentives.

Cluster development process in Croatia

Business clusters are focused on one group of products or services. It is important to note that the two do not exclude each other, on the contrary – support the members' and sector's competitiveness at different levels. Clusters can be developed either taking the 'top-down' or 'bottom-up' approach. In the first instance the initiator is Government – regional or national. While in the second one – business is usually the driving force.

The basics for cluster development could be put in 6 steps:

Choosing partners identifying key motivators-most interested companies, institutional partners, supporting entities, critical mass of companies;

1. Forming a Leadership group: Leadership is key in any human endeavour. Selecting the right people – people with ideas, energy, commitment to the cluster cause is crucial.
2. Defining joint goals / vision / mission; being clear about what you want to achieve and why is a cornerstone of effectiveness
3. Develop your strategy – jointly: without a clear road map it's unlikely you will get where you want to go;
4. Develop the action plan: Strategy is essential but actions get results
5. Monitoring and evaluation: plan – review- adjust

Planning to start a cluster or need help making your existing cluster operational? Barcons j.d.o.o. is a professional consulting company specialized in cluster development in Croatia and regional areas. We provide full range of services needed to make a successful cluster.