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A GREEN ECONOMY
CLUSTERING FOR
COMPETITIVENESS
URBAN PATTERNS FOR
A GREEN ECONOMY
CLUSTERING FOR
COMPETITIVENESS
URBAN PATTERNS FOR A GREEN ECONOMY: CLUSTERING FOR COMPETITIVENESS
All rights reserved
HS/045/12E
ISBN (Series): 978-92-1-133398-5
ISBN (Volume): 978-92-1-132460-0
DISCLAIMER
The designations employed and the presentation of material in this report do not imply
the expression of any opinion whatsoever on the part of the Secretariat of the United
Nations concerning the legal status of any country, territory, city or area or of its authorities,
or concerning the delimitation of its frontiers or boundaries, or regarding its economic
system or degree of development. The analysis conclusions and recommendations of this
publication do not necessarily reflect the views of the United Nations Human Settlements
Programme or its Governing Council.
ACKNOWLEDGEMENTS
ii
Foreword
The city is one of the highest pinnacles of innovate, generate wealth, enhance quality
human creation. Concentrating so many of life and accommodate more people
people in dense, interactive, shared spaces within a smaller footprint at lower per-
has historically provided distinct advantages, capita resource use and emissions than any
that is, agglomeration advantages. Through other settlement pattern.
agglomeration, cities have the power to
Figure I: Greenhouse gas emissions and containment index for selected metropolitan
regions
25
Denver
20
Green House Gas emissions per capita (Mt CO2 eq)
Washington
Minneapolis
Dallas
15
Houston
Baltimore Frankfurt
Chicago
Philadelphia Portland
Prague
10
San Francisco Hamburg London
Brussels Helsinki
Berlin
5 Rs
qua
Paris re =
0.5
Oslo 03
Stockholm
0
-3% -2% -1% 0% 1%
iii
Or so they could. Increasingly, cities are than more,1,2 and are wasting their potential
forfeiting many of the benefits that in ways that generate sprawl, congestion
agglomeration has to offer. Two meta- and segregation. These patterns are making
studies of urban land expansion have shown cities less pleasant and equitable places in
that over the last two decades most cities which to live. They are also threatening the
in the world have become less dense rather earth’s carrying capacity. And they are most
200
Global sample, 1990
180
Global sample, 2000
160
Universe of citiesi, 2000
140
120
100
80
60
40
20
0
Developing Europe and Japan Land-Rich
Countries Developed Countries
Source: Making Room for a Planet of Cites, by Shlomo Angel, Jason Parent, Daniel L. Civco, and
Alejandro M. Blei. © 2011. Lincoln Institute of Land Policy, Cambridge, MA.
Figure III: The General Decline in Built-Up Area Densities in 25 Representative Cities,
1800-2000
1400 Eastern Asia
Manila
Algiers and the Pacific
1200 Southeast Asia
South and Central Asia
Density (persons per hectare)
-200
1780 1805 1830 1855 1880 1905 1930 1955 1980 2005
Source: Making Room for a Planet of Cites, by Shlomo Angel, Jason Parent, Daniel L. Civco, and
Alejandro M. Blei. © 2011. Lincoln Institute of Land Policy, Cambridge, MA.
i This refers to 3,646 large cities with a population of over 100,000 or more.
iv
acute in fast-growing cities, particularly Although the percentage of the urban
those with the lowest institutional capacities, population living in slums worldwide has
weakest environmental protections and decreased, the absolute number of people
longest infrastructure backlogs. living in slums continues to grow.5 No less
than 62 per cent of all urban dwellers in
Increasingly, city managers wish to learn sub-Saharan Africa live in slums, compared
by example. Rather than more theory and to Asia where it varies between 24 per
principles, they want to know what has cent and 43 per cent, and Latin America
worked, what has not, and which lessons and the Caribbean where slums make
are transferrable to their own contexts. up 27 per cent of the urban population.6
There is much information available, but If these growing cities are to be socially
little time. UN-Habitat has developed these sustainable, new approaches will be
“quick guides” for urban practitioners required to integrate the poor so that
who need condensed resources at their the urbanization process improves inter-
fingertips. The aim is to suggest patterns generational equity rather than entrenching
that can help cities and city-regions regain socio-spatial fragmentation. Privatized
these inherent advantages in a time of models of service delivery that discriminate
increased uncertainty and unprecedented between consumers based on their ability
demographic expansion. to pay threaten to worsen inequalities,7 and
require carefully considered parameters to
More than half the global population now ensure that the poor are not disadvantaged.
lives in towns and cities. By the year 2050,
UN-Habitat research projects that that According to a recent World Bank study,
figure will rise to two-thirds. This rapid, urban population growth is likely to result
large-scale concentration of humanity in the in the significant loss of non-urban land
world’s cities represents new challenges for as built environments expand into their
ingenuity, and numerous opportunities to surroundings. Cities in developing countries
improve the way in which human habitats are expected to triple their land area
are shaped. Most of this population growth between 2005 and 2030, with each new
will be in the cities of developing countries, city dweller converting an average of 160
which are expected to grow by an additional metres2 of non-urban land to urban land.8
1.3 billion people by 2030, compared to 100 Despite slower population growth, cities in
million in the cities of the developed world industrialized countries are likely to see a
over the same period.3 2.5 times growth in city land areas over the
same period due to a more rapid decline in
While urban population growth rates are average densities when compared to their
stabilizing in regions which are already developing country counterparts.9 As built
predominantly urban (such as Europe, environments become less dense and stocks
North, South and Central America and of built up land accumulate, the amount
Oceania), regions with a higher proportion of reproductive and ecologically buffering
of rural population (such as Asia and Africa) land available for ecosystems and food
are likely to see exponential rates of urban production is diminished, reducing the ability
population growth in the coming years.4 of city-regions to support themselves.10
Most urbanization is likely to occur in cities
relatively unprepared to accommodate While international trade has made it
these numbers, with potential negative possible for cities to meet their demands for
repercussions for quality of life, economic food, water and energy with imports from
development and the natural environment. faraway lands, it is becoming increasingly
apparent that the appetite of the world’s
v
Figure IV: Ecological Footprint and Human Development Index for selected countries
and cities
10
U.S.A
UK London
Shanghai
Hong Kong
Germany
4
Berlin
Bangkok
Thailand
China
Delhi
2
0
500 600 700 800 900 1,000
growing and increasingly affluent population capacity by 30 per cent,11 and approximately
is coming up against limitations in the 60 per cent of the ecosystems we depend on
planet’s ability to support human life on for goods and services are being degraded
this scale. It is estimated that our addiction or used in an unsustainable manner12. We
to oil will result in a peak in oil extraction are living off the planet’s natural capital
within the next decade, leading to dramatic instead of the interest from this capital, and
increases in the costs of fuel, mobility, food there are already signs of the devastating
and other imports. Greater demand for effect this will have on our societies and
potable water, combined with changing economies in depleting fish stocks, loss of
rainfall patterns, the depletion of aquifers fertile soil, shrinking forests and increasingly
and pollution of groundwater, is likely to unpredictable weather patterns.13
see increasing competition for scarce fresh
water resources, raising the possibility of The global population is reaching a size
conflict in the near future. where cities need to start thinking beyond
their immediate interests to consider their
The ability of ecosystems to continue role as nodes of human consumption and
providing biotic resources like wood, fish waste production in a finite planet that is
and food, and to absorb manmade wastes struggling to keep pace with humanity’s
- commonly referred to as the earth’s “bio- demands. If cities are to survive, they
capacity” - is also diminishing. Comparing must acknowledge the warning signs of
global ecological footprints to the earth’s ecosystem degradation and build their
available capacity shows that, at current economies in a manner that respects and
rates of resource use, we are exceeding bio- rehabilitates the ecosystems on which life
vi
depends. If cities are to prosper, they must interest groups across disciplines and sectors
embrace the challenge of providing shelter to promote both human and environmental
and uninterrupted access to water, food and prosperity. The guides are based on the
energy and improve quality of life for all of outputs of an expert group meeting hosted
their citizens. by UN-Habitat in February 2011 entitled
What Does the Green Economy Mean for
The way in which city spaces, buildings Sustainable Urban Development? Each guide
and infrastructural systems are planned, focuses on one of the following cross-
designed and operated influences the cutting themes:
extent to which they encroach on natural
ecosystems, and locks them into certain Working with Nature
modes of consumption from which they
struggle to deviate. Urban activities have With functioning ecosystems forming the
direct and indirect consequences for the foundation for social and economic activity,
natural environment in the short, medium this guide looks at how built environments
and long term, and their scale of influence can be planned to operate in collaboration
typically extends far beyond the boundaries with nature. It looks at how to plan cities
of what is typically considered to constitute and regions for ecosystem health, focusing
“the city”. Managing the indirect, distant on allowing sufficient space for natural
and sometimes obscured impacts of systems to continue providing crucial goods
city decision making in an increasingly and services like fresh water, food, fuel and
globalized world requires appropriate waste amelioration.
governance mechanisms that improve cities’
accountability for the resources they rely on. Leveraging Density
vii
how infrastructure investments can act as competitive advantage can be achieved at a
catalysts for urban sustainability. regional scale by encouraging cooperation
between cities with complementary areas
Clustering for Competitiveness of specialization. It also considers how
innovation for green economic development
Taking a broader perspective, this guide can be encouraged through the clustering
looks at city regions and how they can of industries, and through collaborations
be more optimally planned to achieve between government, the private sector
economic objectives in a manner that does and academia.
not waste local resources. It looks at how
viii
Glossary
Agglomeration economies: Advantages Polycentricism: Principle of developing
that arise from increased density of multiple centres within a region to be
economic activity. complementary in role through city
specialization.
Decentralization: The spread of power
away from a major centre to other cities and Strategic facilities: Facilities such as
regions. good harbours, an international airport,
universities and a financial centre strengthen
Externality: Side effect or consequence the competitiveness of a city-region and
of an industrial or commercial activity that support value chains throughout the area.
affects other parties without this being
reflected in the cost. Triple helix collaboration / innovation:
Triple helix collaborations / innovation refer
Globalization: The technological, political to collaborations / innovations where three
and economic changes resulting from helixes namely government, industry and
the increasingly global nature of the way academia play their specific roles.
activities are carried out.
Urbanization: Urbanization is the process
Infrastructure: The physical and in which the number of people living in
organizational structures needed for the cities increases compared with the number
operation of a society or enterprise, or of people living in rural areas.
the services and facilities necessary for an
economy to function; this includes transport
infrastructure, universities, airports, ports,
healthcare infrastructure.
ix
x
Contents
Foreword iii
Glossary ix
Chapter 1: Introduction 1
Chapter 2: Green Development Challenges and Trends 5
2.1. Climate change is a serious risk to poverty alleviation 5
2.2. Urbanization, especially in developing countries, puts pressure on resources and
infrastructure 5
2.3. Decentralization policies have limited success 6
2.4. Economic growth: The economic crisis is seen by many in the developed
world as an opportunity for green growth
2.5. Globalization has had profound impact on the role of cities in regional
development 6
2.6. Implications of global trends for green economic development 6
Chapter 3: Importance of Competitiveness for Green Development 9
3.1. The importance of transitioning to a green economy 9
3.2. Is competitiveness important and what plays a role in achieving a “sustainable
competitive advantage”? 12
3.3. The importance of inter-city networks and polycentric urban development in
achieving competitive advantage 14
Chapter 4: Achieving Competitive Advantage 17
4.1. Approaching the design of initiatives for green economic development 18
4.2. Mechanisms for developing competitive advantage 19
Chapter 5: Implementing Competitiveness 29
5.1. Organize and mobilize the stakeholders 29
5.2. Analysis 30
5.3. Develop the strategy and implementation plan 30
5.4. Implementation 31
5.5. Monitor and evaluate 31
Chapter 6: Case Studies 33
6.1. Collaborating for innovation at 22@Barcelona, Spain 33
6.2. Fostering innovation at Newcastle Science City, United Kingdom (UK) 35
6.3. Developmental Green Economy Strategy for Gauteng, South Africa 38
6.4. Delhi post Commonwealth Games: world–city or urban fiasco? 42
6.5. The Zurich Cleantech Innovation Park: Dübendorf a contested space 45
6.6. Clustering solar energy industries in Dezhou, China 49
6.7. Randstad: a polycentric urban region 53
6.8. Building a recycling industry at the Kitakyushu Eco Town Project 56
Chapter 7: Conclusion 61
End Notes 63
xi
Passengers gather at Tetouan’s central bus station, which is the hub for public transport in this region
of Morocco © UN-Habitat/Alessandro Scotti
1
Introduction Chapter 1: Introduction
This quick guide develops an argument that need for regional planning and strategic
through strategic investment in physical competitiveness initiatives to position regions
infrastructure, in combination with the to achieve green economic development
diversification of economies, cities will and attract international investment.
start to play a specialised role in polycentric
urban development. It is argued that a In Section 3, the concept of the green
number of green economy outcomes may economy is explained and the key risks and
be reached through efficiencies and shared challenges, especially for developing nations,
infrastructure, rather than duplication. The are clearly articulated. The section provides
central concepts to this strategy are city a rationale for competitiveness as a strategy
competitiveness and local and regional and also highlights clusters and polycentric
economic development. Furthermore, urban development as key mechanisms for
it is suggested that green economic achieving competitive advantage.
development can be achieved through the
development of green clusters and green The key design principles that are
jobs. The guide mainly grapples with the developed in Section 4 suggest a systems
perceived trade-off between economic and network approach coupled with
development and environmental protection. the adoption of supply-side, as well as
This is a key issue addressed in the guide demand-side considerations for the design
and it explores pathways of how both of of interventions. The key mechanisms that
these goals may be achieved in union. are suggested for the development of
competitive advantage are:
In Section 2, this guide provides a brief
overview of key challenges facing city- • Clustering, as this will provide a framework
regions and cities that are aiming to achieve for focused support for innovation activities
competitive advantage. The forces of and creating a competitive advantage.
globalization are found to have an immense These clusters need to be stimulated to
effect on the basis and level on which city- exhibit self-exploration activities for green
regions are competing. This increases the economic development.
1
CLUSTERING FOR COMPETITEVENESS
2
Chapter 1: Introduction
good communication are amongst the Lastly, Section 7 provides a short key
factors that have led to huge successes summary of the findings and suggested
for this project. approach.
3
Shipping containers arranged in the newly built PTP commercial harbour in Johor Bahru, Malaysia
which overlooks the Malaysia-Singapore Strait © UN-Habitat/Alessandro Scotti
2
Green Development Chapter 2: Green Development Challenges and Trends
Challenges and
Trends
5
CLUSTERING FOR COMPETITEVENESS
These difficulties may negatively impact on traditional sectors for a green economy.
cities’ abilities to attract investment and on
new industries’ ability to establish themselves 2.5. Globalization has had profound
in these areas; thereby negatively impacting impact on the role of cities
on economic development prospects in in regional development
these locations.
Globalisation has resulted in increased
2.3. Decentralization policies interconnectedness of cities across the globe
have limited success and is increasing economic competition
between cities and regions. Cities need to
Many countries in the world are engaging react to the trend by effectively managing
in processes to decentralize functions from and mitigating risks associated with
major centres. This process was originally globalization.22,23
initiated to have more equitable and efficient
service delivery by spreading functions such 2.6. Implications of global trends for
as administration, political control and green economic development
finance throughout a region or country. The
intention was also to improve policy-making The combination of urbanization and
through increased public participation. The globalization and increased pressure for
effectiveness of this policy may, however, be accountability means that local governments
questioned because capacity building and have additional responsibilities. Questions
effective management practices are lacking are asked about how to develop
in many cases.19,20 economically in relation to the international
community, while governments are pushed
2.4. Economic growth: The economic to think about social justice and equity.24
crisis is seen by many in
the developed world as an The importance of location is now
opportunity for green growth centre stage in the debate on economic
development. Contrary to some who believe
Many administrations in the developed and that the effect of globalization and the
developing world see investment in a green improvements in telecommunications will
economy as an opportunity for renewed make location, and therefore the city, less
economic growth on environmentally and important, many economic geographers,
socially sustainable grounds. Examples economists and policy-makers think that
include the United States, which included the importance of location has actually
energy-saving technologies and green increased with globalization. It is generally
activities as part of their stimulus package.21 believed that regional distinctiveness, and
Similar measures have been implemented thus regional economic development, is
in countries such as South Korea and South increasingly seen as the focus for increased
Africa, where economic development wealth creation and world trade.25,26,27,28
strategies increasingly include sustainability
practices and the establishment of non-
6
Chapter 2: Green Development Challenges and Trends
“In a global economy – which boasts rapid It is also increasingly acknowledged that by
transportation, high speed communications relying on market forces alone the world will
and accessible markets – one would expect not be successful in making the transition
location to diminish in importance. But the to a green economy. The literature widely
opposite is true. The enduring competitive acknowledges the various roles that will
advantages in a global economy are often need to be played by governments, industry,
heavily localized, arising from concentration financiers, academia and society. Many
of highly specialized skills and knowledge, countries have, therefore placed balancing
institutions, rivalry, related businesses and economic growth with sustainability
sophisticated customers.” (Porter, 1998:90) practices and environmental protection on
their development agendas.
7
Highly dense, competitive urban spaces allow for specialization, as is the case in this informal
neighbourhood in Onitsha, Anambra State, Nigeria © UN-Habitat/Alessandro Scotti
3
Importance of Chapter 3: Importance of Competitiveness for Green Development
Competitiveness for
Green Development
3.1. The importance of transitioning poor to attain decent living standards, while
to a green economy reducing emissions and waste and ending
the unrestrained drawdown of the Earth’s
The concept of the “green economy” is non-renewable resources.
appealing because it aims to respond to the
wide range of crises the world has faced “Staging a new technological revolution at
recently, namely climate change, food crises a faster pace and on a global scale will call
and economic crises. for proactive government intervention and
greater international cooperation. Sweeping
Although the perception may exist that technological change will require sweeping
the developed world has a large focus on societal transformation, with changed
technology for developing green economies; settlement and consumption patterns and
it has been increasingly acknowledged that better social values.”32
green economic development need not only
focus on high technology. Possibilities are also Green economic development sets out to
progressively being sought to consider low provide a solution to the perceived opposing
technology and high job creation industries. objectives of economic growth and poverty
The frameworks for planning green economies alleviation, and the protection of the world’s
therefore now aim to include not only a focus ecosystems. Core to this concept is the
on skills and technology development, but realization that the world needs a transition
also on factors for poverty alleviation.29,30 The from the current systems that caused crises
World Economic and Social Survey 201131 to an integrated system that “proactively
provides insight into this line of reasoning: addresses and prevents crises”.33
“A global green technological transformation, Much work has been done to understand
greater in scale and achievable within a much what the pathways towards the green
shorter time-frame than the first industrial economy may look like. Certain key enabling
revolution, is required. The necessary set conditions are:34
of new technologies must enable today’s
9
CLUSTERING FOR COMPETITEVENESS
10
Chapter 3: Importance of Competitiveness for Green Development
Source: Figure copied from UNEP39, (2008). Green jobs: Towards decent work in a sustainable, low
carbon economy.
As far as green jobs in the developed world developing countries. For these countries
are concerned, analyses has focused on economic development is feared to become
factors such as changes in the total number more challenging. They are concerned that
of jobs, underlying job movements from green economic development would be used
one job category to another (e.g. change to reinforce protectionist trends, it would
in job specifications) and the quality of jobs have additional restrictions and conditions
through the transition to a green economy.40 for international financial cooperation,
and it may unleash new forces that could
There is a lack of this kind of information for reinforce inequalities.42
developing countries, which poses difficulties
for developing effective policy to transition to A key risk for this approach is also that a
a green economy. This problem forms the basis “one size fits all” strategy may be adopted.
of projects such as the International Labour Care should be taken to identify and deal
Organisation’s Global Green Jobs Programme with trade-offs that need to be made in
that is currently also investigating what the various stages of development for a country.
policy options for transitioning to a green Environmental endowments and challenges
economy will mean for developing countries.41 differ widely between countries and should
also be considered.43
3.1.2. Challenges for transitioning
to the green economy The risks associated with the trade regime
include using the environment for trade
Green economic development also entails protection; gaining market access under
risks and challenges, particularly for the guise of green economic development;
11
CLUSTERING FOR COMPETITEVENESS
and subsidized production in the industrial highlighted by some authors; for example,
world without corrective measures for with the introduction of frameworks for
developing countries. Other fears are that “sustainable competitive advantage”.48,49
developing countries may find it difficult to
promote domestic green economy sectors, The literature treats the definition of
or that technical standards are too high for competitiveness from two points of view:
domestic exporters to meet.44
• The spatial scale: This treats
3.2. Is competitiveness important competitiveness on the geographical
and what plays a role in scale, for example city, regional or
achieving a “sustainable national competitiveness; 50,51,52,53,54 and
competitive advantage”?
• The specialized functions space: This
As globalization and the transitioning to focuses on the competitiveness of cities
a green economy is causing cities and or regions in terms of their functions,
regions to increasingly compete with such as tourism, agriculture, finance or
each other, much academic and policy technology.55
attention has been focused on the notion of
“competitiveness”45,46. Factors that contribute to a location’s
competitiveness can be referred to as
Attempts have also been made to “location factors”. The following figure
grapple with the perceived trade-off provides an overview of a synthesis from
between economic development and the literature of selected factors that have
environmental protection.47 The paradigm been identified as playing a role in the
of competitiveness has also seen a development of a location’s competitiveness.
marked shift over the past few decades.
Sustainability considerations in industrial The literature acknowledges the central
policy and economic development have been role that innovation, human capital and
Entrepreneurial culture
Human capital and skills
Historical legacy
12
Chapter 3: Importance of Competitiveness for Green Development
Infrastructure is also an important factor When poor countries become richer the
driving competitiveness. Strategic facilities tendency is for their economies to become
such as universities, harbours, ports etc. more diversified.70 This expansion of activities
are widely believed to play a role in the carries on up to a relatively advanced level of
competitiveness of a city. Infrastructure has development. A country’s ability to expand
a large impact on the cost of doing business the number of activities in the economy is,
and the quality of life that, in turn, play a therefore, key to development success in
role in attracting skilled labour and firms to developing countries, that is, its ability for
the region. Strategic planning of facilities in self-exploration.71
13
CLUSTERING FOR COMPETITEVENESS
14
Chapter 3: Importance of Competitiveness for Green Development
The polycentric urban region concept and space and improved spatial diversity.
emergence of polycentric urban regions is Through planning, uncontrolled urban
described by the following characteristics:81,82 sprawl could be avoided and the “green
(and blue) networks” may be protected.
• Clustering and the existence of a set This however requires a co-ordinated
of urban centres, i.e. within a region a policymaking process from a regional
number of cities will exist with a number rather than a local perspective.
of industry clusters concentrated in and
around these centres. Key challenges to this approach
• Interaction among centres, the level of Care should be taken with the potential
economic interaction or linkage among advantages mentioned above that may
a given set of centres. result in attractive outcomes but may also
have certain drawbacks. For instance, even
• Centre specialization; the centres have though the coordination of the development
specialized economic structures. of complementary facilities may result in
higher variety of services, it may also require
A number of potential advantages may arise individual cities or centres to make some
with the emergence of polycentric urban sacrifices by subordinating their own interests
regions:83 to the greater regional good.84 An example
of this is that a city may be asked from a
1. Greater agglomeration or external regional level to lose a vocational training
economies for businesses may be institute or specialized medical service to a
achieved from the potential to effectively nearby city. The risk is that the city will not
pool assets spread across the region. be compensated for the loss of this service.85
2. Functional specialization may arise from
encouraging interaction between centres This makes the development and existence
in a region. If such specializations are of a regional framework for cooperation
complementary rather than competitive, and coordination very important in dealing
the polycentric urban region may benefit with these kinds of trade-offs. Without such
because the region could host a broader a process or framework, local interests will
range of higher quality, metropolitan prevail over the regional good which will
services to businesses, households, block the exploitation of regional potential
consumers, workers and tourists. This advantages.86
larger variety of services available
to businesses and universities and Recommended reading
other stakeholders may create further Meijers, E. (2007). Synergy in Polycentric
favourable conditions for innovation and Urban Regions Complementarity, Organising
would be an advantage in competing for Capacity and Critical Mass. PhD thesis. Delft
investments in the region. University. Available at http://repository.
3. Regional planning may also result in tudelft.nl/view/ir/uuid%3A983e9c4b-1cce-
an improvement in the quality of open 447d-bc56-9ca21ac46c21/
15
The market area of Onitsha, Anambra State, Nigeria is strategically located at one of the only
bridges crossing the Niger River, in this case the Transafrican Highway
© UN-Habitat/Alessandro Scotti
4
Achieving
Competitive
Advantage
This section provides recommendations on jobs for green clusters and strengthening
the approach, mechanisms and governance of knowledge infrastructure and linkages
framework that need to be implemented between helixes to support innovation.
to develop a competitive advantage and/or
find new areas of competitive advantage. Governance framework: Governance of
these measures is important as this addresses
Approach: This section provides guidance the framework from which government will
on the analytical framework and approach stimulate and coordinate such activities.
to be adopted in designing initiatives to Capacity development, creative governance
develop and find new areas of competitive and transition management principles are
advantage. suggested.
Creative governance
17
CLUSTERING FOR COMPETITEVENESS
18
Chapter 4: Achieving Competitive Advantage
19
CLUSTERING FOR COMPETITEVENESS
20
Chapter 4: Achieving Competitive Advantage
The Randstad case study shows that through Solvell, O., Lindqvist, G., Ketel, C. (2003).
the creation of synergies in a region, a The Cluster Initiative Green Gook.
polycentric urban region could indeed be Stockholm: BrommaTryck. Available: http://
more than the sum of its parts through www.cluster-research.org/greenbook.html
complementarity and cooperation. The case
study shows that:103 Each cluster is unique and the concept can
• The first mechanisms through which be applied differently in various situations.
synergy could be achieved (namely However, the White Book of cluster policies
cooperation) is increasingly prevalent in outlines seven elements for the notion
the Randstad region. Through formal and of clusters. Not all the elements need to
informal networks, a regional organizing be present in each cluster, nor are they
capacity has been established; necessarily desirable. The central theme,
• The second mechanism through which however, is the importance of innovation
synergy could be created (namely and the stimulation of such activities:105
complementarity) reveals that key
cities each perform distinct roles within • Geographical concentration: Hard
the region specializing in commercial factors, such as external economies of
services, manufacturing and transport, scale, as well as soft factors, such as
public administration, or trade and a learning region and processes and
education. (Full case study in Section 6.) social capital, make firms locate in a
geographic location;
4.2.2. Clusters provide a framework
for focused support for green • Specialization: There is a specialized
economic development core activity to which actors in the cluster
are related;
Through the systems view, clusters of
innovative activity that may have competitive • Multiple actors: Apart from firms,
potential can be distinguished. If potential a wide range of actors form part of
strong inter-firm clusters can be identified, a cluster, such as public authorities,
public authorities are presented with a academics, financiers, and institutions
framework for focussed support efforts, for collaboration;
alongside generic support actions.104
• Competition and co-operation: The
The following key readings may provide actors in the cluster are related to
detailed overviews of various approaches each other through competitive and
and policies available to cluster policy cooperative activities; for example,
makers and implementation professionals. they compete in the market place but
collaborate on product development;
Recommended reading
Andersson, T., Serger S., Sörvik, J., • Critical mass: This is needed to achieve
Hansson, W. (2004). The Cluster Policies the inner dynamics of cooperation and
Whitebook, International Organization competition;
for Knowledge Economy and Enterprise
Development (IKED). Available: http://www. • The cluster life cycle: Cluster initiatives
iked.org/Publications%20-%20Cluster%20 are not temporary phenomena but have
21
CLUSTERING FOR COMPETITEVENESS
a life cycle and a long term survival goal; cluster development drives in non-
they continuously have to adapt and traditional sectors to the economy for
change; deep structural transformation towards
green economic development.
• Innovation: Innovation is key to
the survival and continued existence 5. Green finance and attraction of
of clusters as there is continued investment into green clusters:
technological, commercial and/or Through attracting investment from
organizational change. local municipalities, as well as large
financiers, clusters may be developed to
The following key principles for cluster feed into wider industrial supply chains
formation for green clusters for green jobs as a progressive conversion towards the
is extracted from the literature: green economy.
22
Chapter 4: Achieving Competitive Advantage
23
CLUSTERING FOR COMPETITEVENESS
Policies need to be designed to address the • As the private sector firms raise their
requirements for the learning region and activities to become more knowledge
the principles of continuous learning and intensive, these firms start to move closer
development. The following figure, adapted to an academic model, through which
from Rutten and Boekema,108 provides a they engage in higher levels of training
summary of the shift in focus for various and in sharing of knowledge which very
infrastructure development initiatives. often strengthen their relationships with
the university sector.
Regions are increasingly required to build and
maintain new regional infrastructures which • In addition to its traditional role of
can support knowledge-based production regulator, within a triple helix framework a
systems. The triple helix framework is a useful government acts as a public entrepreneur
paradigm for better understanding the role and venture capitalist and provides
universities, public sector and industry play assistance in the form of supply-side as
in supporting innovation within a region.110 well as demand-side interventions to
stimulate innovative activity.
• Universities have started to play a
more important role in the incubation Key to strengthening the knowledge
of technology-based firms and in exchange activities in regions is therefore the
knowledge exchange activities such strengthening of triple helix collaborations,
as consulting, contract research and as is clearly illustrated in the 22@ Barcelona
executive education through which and Newcastle Science City case studies.
innovation in a region is supported. This
has given rise to the “entrepreneurial 4.3. A governance framework for driving
university”, which performs an active green economic development
role within a regional economy to make
productive use of academic knowledge. Figure 4.3 provides a summary of the key
governance principles to be implemented
24
Chapter 4: Achieving Competitive Advantage
for driving the development of a green The basic principles of creative governance
economy. The following sections shortly are outlined in Figure 4.3 where a number
explain the rationale and provide insight of categories of the multi-layer approach are
into each of these areas: outlined. The following provides context to
these principles:113
4.3.1. Creative governance can
stimulate innovation and • Building blocks: The choice of
creativity in a region stakeholders and arenas where
discourse takes place should be open
Key to development success is the ability of a and diverse. Stimulating and welcoming
region to engage in self-exploration activities interactive processes should underpin
and to be innovative. The principles of creative the mechanisms through which
governance may enhance the capacity of the negotiations, planning, strategizing or
region to stimulate such activities. discussions take place.
Governance processes
• Networks and Coalitions: Diverse and mutually aware, loosely
coupled and fluid
Managing the transition
• Stakeholder selection processes: Open and transparent
• Discourses: Open minded, inclusive and informative • Analytical approach: Develop scenarios
• Practices: Facilitative and experimental practices supportive of • Inclusivity: Take a multi-domain view geared towards being
self regulation inclusive of the views of a number of actors
• Principles: Laws, competences and resource flow principles that • Long term thinking: The approach enables policy-makers to
value local initiative and encourage experiment foster long-term thinking in short-term policy-making
• Focus on right level: Transition management enables processes
Governance culture to be addressed on the correct level and solutions to be found on
• Appreciation of diversity, focus on performance not conformance the right scale
• Identity and open negotiation of values and ethics with • Actionable tasks: An actionable set of tasks to government on
encouragement of open-minded tolerance and sensitivity how to “stimulate, mediate, engage in brokering services, create
• Self-regulative and distributive, supportive and constraining the right conditions, enforce its laws and engage in steering.”
25
CLUSTERING FOR COMPETITEVENESS
26
Chapter 4: Achieving Competitive Advantage
Central to transition management is the belief under the control of actors in the system.
that change is dependent on the mechanism This practically implies that changes in
of co-evolution of society and technology. rules, technologies and social networks as
A useful analytical framework for analysing well as behaviour will need to take place.
how these transitions occur is the Multi-Level
Perspective (MLP). Through this framework, • Landscape: The landscape level refers to
three levels of transition are identified:124 factors that are beyond the control of actors
in the system where transition needs to
• Niche innovations: Niches refer to occur. This may include macro-economic
innovations as well as socio-economic factors, climate change, socioeconomic
and political opportunities for deploying trends, macro-political developments as
the innovations. This means practically well as deep cultural patterns. The factors
that for a transition to occur the niche on this level are the factors that put
innovations need to go through a process pressure on the system to change. Existing
where learning-by-doing and price- practices in regimes may be destabilized
performance improvements need to take and also provide opportunities for niches
place so that it becomes economically to become accepted.
and politically feasible.
The following table from Kern125 provides
• Regime: A regime change is required for a insight into what this framework practically
transition to occur which refers to factors would mean for a transition in energy systems.
27
Thousands of young employees work in shifts covering 24 hours at this call centre in Uberlândia,
Brazil, answering customers scattered across the globe and strengthening the city’s position as a
logistics hub © UN-Habitat/Alessandro Scotti
5
Implementing Chapter 5: Implementing Competitiveness
Competitiveness
This section provides key action points for groups agree that there is a need for
the implementation of a green economic the suggested proposal and that a
development strategy. Government could competitiveness strategy for a green
adopt certain best practices through which economy should be developed?
the desired results of increased regional
competitiveness, innovativeness and • Are the various stakeholder groups willing
transition to a green economy could be and able to collaborate constructively?
achieved.
• Is there agreement on how intellectual
5.1. Organize and mobilize the property issues will be dealt with in the
stakeholders case of the development of new ideas
through collaborations between the
The first step of the process is to identify the private sector and the public sector?
most important institutions that are directly
or indirectly involved in the competitiveness When identifying stakeholders, the following
project. This is the organisational element of potential stakeholder groups should be
the stakeholder management process of the considered:
project and care should be taken to ensure
the group includes public, non-profit and • Public authorities involved in regional
private sector representatives. and economic development.
29
CLUSTERING FOR COMPETITEVENESS
30
Chapter 5: Implementing Competitiveness
• Ensure that a monitoring and evaluation • Discuss activities which achieved critical
mechanism is agreed on and is put in success factors.
place. This is important for ensuring
31
Newcastle Upon Tyne Linköping
Randstad Berlin
Freiburg Zurich Zagreb
Portland
New York Barcelona Sofia Seoul
Dezhou
Isfahan Kitakyushu
Cairo Hangzhou
New Delhi
Nueva Vizcaya
Ouagadougou Bangkok
Medellín Lagos
Singapore
Dar es Salaam
Lilongwe
Rio de Janeiro
Curitiba Gauteng
Marianhill
Cape Town Newcastle
Quick Guide 1: Working with Nature
Quick Guide 2: Leveraging Density
Quick Guide 3: Optimising Infrastructure
Quick Guide 4: Clustering for Competitiveness
6
Case Studies
33
CLUSTERING FOR COMPETITEVENESS
34
Chapter 6: Case Studies
innovation. The various sectors include ICT, vision in which the city participated and
media, biomedical, energy and design. The its ability to collaborate on achieving a
scale of the 22@Barcelona project spans collective vision. This vision was linked to
more than one hundred city blocks, with a sustainability and innovation as the primary
total planned revitalization area of almost themes and objectives, but there were also
200 hectares; it also includes 114,000 m2 of sector-specific focus areas. Capitalizing
green space; 145,000 m2 of new space for on this and through knowledge spillovers,
facilities and offices; an estimated 130,000 22@Barcelona has become one of the most
new jobs were created; and the total cost favourable business locations in the world in
of the project to date is USD 235 million a short space of ten years.
(EUR 180 million). See below for a summary
of the improvements made for this district 6.2 Fostering innovation at
between 2000 and 2010, highlighting the Newcastle Science City,
most important successes of the project: United Kingdom (UK)
35
CLUSTERING FOR COMPETITEVENESS
to come up with investment programmes very leading research scientists as public speakers
rapidly. Drawing on regional development and leaders of school engagement events.
concepts such as the Triple Helix approach, In return for the academics’ open attitude,
the North-East Regional Development investment programmes were put in place
Agency (in whose area Newcastle lies) to provide new research facilities where
rapidly began to engage with the two local industrial and academic researchers could
research universities, Newcastle University come together to work on new opportunities.
and, to a lesser extent, Durham University In essence, these programmes were designed
(who promptly disengaged as a result of deliberatively to bring to life the triple-helix
local sub-regional rivalries). The Regional model at the individual facility level through
Development Agency also worked closely the creation of these translational spacesii.
with the civic authorities of Newcastle Another mechanism has been the creation
(Newcastle City Council) to ensure that there of the “Professors of Practice” role within
was close alignment of city and regional Newcastle University whereby a small number
strategies. At this stage, a small number of of professorial positions were created that
prominent local industrial leaders were also functioned in a triple-helix mode rather than
invited to become involved to advise the in conventional academic roles. As the name
emerging initiative on potential areas for suggests, the Professors of Practice are not
business growth. standard academics but rather boundary
crossing individuals (largely from business
This process led to the development of backgrounds) whose role is to enhance
a prospectus for Newcastle Science City collaboration between the academic base
that was aimed at persuading the central and industry. This approach has proved highly
government to increase the agency beneficial but it has also been extremely
budget so that the identified investment challenging for the university to accommodate
programme involved additional funding and support such a novel role.
(rather than redirecting existing investment
programmes). This additional investment Given global competition, it was always
was predicated on achieving a substantial recognized that all of the activities of
number of new jobs primarily through the Newcastle Science City should focus on
generation of new companies. Unfortunately, particular areas of research strength, which
this prospectus was unsuccessful leaving the should be both areas of world-class expertise
by now established Newcastle Science City and also of emerging commercial opportunity.
partnership under-funded from its inception. Initially, four topics were chosen (ageing,
regenerative medicine, energy and molecular
The Newcastle Science City partnership had a engineering) although this was changed to
very clear philosophy of action from its outset three (ageing, sustainability and regenerative
– it aimed essentially to use the world-class medicine). Each of the science theme areas
research capability of Newcastle University developed investment programmes that
as a catalysing force to increase business were designed to supplement existing
investment in new emerging technologies, resources and to attract collaboration with
attract inward investment and generate relevant leading companies.
economic growth through innovation. In
parallel, the importance of engaging the In parallel with these science investment
public and, in particular, inspiring children to programmes, the initiative has also
higher attainment in science was identified. undertaken a large urban land development
This was linked to the university by using ii Spaces that span the boundaries of academia and industry
36
Chapter 6: Case Studies
adjacent to the main Newcastle University are tutored not to find applications for new
campus. This 81,000m2 (20 acre) land technology but rather to do the opposite – to
development has taken place on a seek new technology for indentified market
brownfield site purchased on a joint basis by needs. This programme, the Newcastle
the three primary Science City partners (the Innovation Machine, has been very successful
university, the City Council and the Regional and has led to the formation of numerous
Development Agency). The development new companies. It is, however, an expensive
is conceived to be a location where the model and it will take some years before the
triple-helix model can be grown on a larger long-term success can be evaluated.
scale and thus will supplement the smaller
scale implementation described above. Looking back over the five years of the
The development has now finished phase initiative, much has been achieved. For
1 (with the creation of a new University example, the establishment of the Campus
Business School) and will soon proceed to for Ageing and Vitality has led both to
phase 2, in which new university research spectacular research wins (including a recent
facilities in sustainable technologies will be series of awards totalling over USD 47
created alongside collaborating companies. million [GBP 30 million] from the central UK
authorities that have effectively designated
In addition to this 81,000m2 (20 acre) Newcastle as the UK’s centre of excellence in
development, a significant redevelopment ageing research) but also inward investment
of the University’s Campus for Ageing and from major multinational companies. It is also
Vitality has been done. This is also situated noticeable that many local technology based
on a brownfield site in the urban core companies have grown substantially over
of the city but is located approximately this period. Another clear win has been the
1.5 km north of the city centre. Again, flowering of relationships between the civic
the development is based on the same and university authorities as a result of the
concept; namely the creation of translational close collaborative work at many levels. The
facilities in which academic researchers can substantial investments in new translational
collaborate with industry. Interestingly, the research facilities have also paid dividends in
ageing topic developments are particularly attracting the involvement of industry.
multi-disciplinary in nature involving close
collaboration between medical doctors, bio- One of the most complex aspects of the
scientists, electronics and computer experts initiative has been the difficulties introduced
and people from a number of other disciplines. by European Union (EU) regulations
A strong focus on engagement with groups governing state aid to businesses, which,
representing older citizens has also been by and large, prevent direct government
a key feature and an enabler of success in assistance to individual companies. This
developing new commercial opportunities inhibits the creation of triple-helix type
and attracting industrial participation. structures within the EU because it restricts
the project structures that can be adopted
The professional team recruited to run when government support is provided. In a
the Newcastle Science City initiative also sense this strikes a blow at the heart of the
undertook a highly innovative initiative Science City concept, which is based on state
designed to create new high technology- investment to catalyse industrial investment.
based companies. This approach was Interestingly, this problem is also evident in
based on a highly structured programme the difficulties experienced by the coalition
of mentoring of young entrepreneurs who government in the UK through their
37
CLUSTERING FOR COMPETITEVENESS
Regional Growth Fund initiative. It is also behalf of the province, was the first step by
clear that the recent recession in the UK has Gauteng to conceptualize these sustainable
made conditions more difficult for schemes economic options. Over the past two years
such as the Science Cities – both in the the strategy been the basis for increasingly
short term through making companies less more sophisticated debates around the
likely to invest, but also through the more green economy, the development of ever
pernicious long-term eroding of confidence clearer policy statements, and the early
and aspiration in the local population. implementation of promising greening work.
Despite these difficulties, the Newcastle
Science City Partnership remains strong and For an economy whose foundations have been
committed to long term collaboration and built on commodity extraction and resource-
the fundamental aims of the initiative. intensive manufacturing and exports, the
strategy provided a transformative economic
6.3. Developmental Green approach based on initiatives in a range
Economy Strategy for of non-traditional sectors and clusters.
Gauteng, South Africaiii Importantly, the strategy argued that a green
economy is not an additional set of industry
In 2009, South Africa’s Gauteng province, clusters deserving targeted support, while
the country’s smallest, yet most densely leaving dirty options still being pursued
populated region,iv made the first of series elsewhere136. Instead, as a “green jobs”
of policy and strategic commitments strategy prioritizing sustainable development,
towards a greener economy, and adopted it argued for over-arching investments in non-
the Developmental Green Economy Strategy traditional sectors of food, energy and water
for Gauteng (DGESG). The province’s security, zero waste and sustainable mobility,
Department of Economic Development all in-turn underpinned by programmes
requested the strategy in response to for “sustainable human settlements” and
research showing that other parts of the “resource efficiency”.137
world were responding to the global
economic crisis by investing in green jobs The strategy-work included detailed studies
and industries as potential drivers of the and scenario modelling on the application of
economic recovery. This research, done green economy initiatives to local contexts.
by the Gauteng City-Region Observatory On the basis of this it was able to proffer
(GCRO), found that “green” technologies, concrete targets of how economic growth can
low carbon economics and sustainable be boosted through reducing environmental
growth were to be the context of a post- costs. For instance, using comparative
crisis economy.135 The strategy, prepared by analyses of the costs and job creation
the Gauteng City-Region Observatory on potential of 15 per cent energy efficiency
versus 20 per cent energy efficiency target
iii This case study draws on first-hand experience of the
advancement of the Developmental Green Economy for by 2025, the strategy shows the feasibility
Gauteng. For more information, see www.gcro.ac.za/ and potential impact of concentrated solar
project/strategy-development-green-economy power and other alternative energy initiatives
iv The province of Gauteng, with an urban population of just
over 11 million in 2011, is the smallest, yet most densely on labour income and economic return on
populated, region in South Africa. Covering 18 179km2 it investment.138 According to the strategy’s
has an average population density of just over 600 persons
2025 baseline estimate, the potential energy
per square kilometre. The wider functional economy of
the Gauteng City-Region includes the prominent cities of cost savings are USD 2 billion (ZAR 16 billion)
Johannesburg and Pretoria, and other outlying but still per annum while up to USD 79 million
significant urban centres, to make the largest contribution
(ZAR 624 million) in revenue could be added
of Gross Value Added (GVA) (33%) nationally.
38
Chapter 6: Case Studies
Table 6.1: Comparative economic and employment potential based on a 16 per cent
renewable target from predominantly Concentrated Solar Power (CSP)140
15% Target 2025 20% Target 2025
Business-As-Usual Gauteng Energy Consumption 2025 999.5 PJ 999.5 PJ
Energy saved through efficiency 149.9 PJ saved in 2025 199.9 PJ saved in 2025
Energy cost saved R 12 billion / year R 16 billion / year
(USD 1.4 billion) (USD 1.9 billion)
Jobs creation potential 50 jobs/PJ14 50 jobs/PJ15
Jobs created by 2025 7,500 minimum 10,400 minimum
Monthly salary per technician R 5000 R 5000
(USD 595) (USD 595)
Total yearly salary revenue in economy R 450 million R 624 million
(USD 54 million) (USD 74 million)
Total asset expenditure on energy efficiency equipment in Approx R7.5 billion per year Approx R10 billion/year
economy (USD 0.9 billion) (USD 1.2 billion)
Economic return on energy efficent initiatives Typically 2x on investment Typically 2x on investment
over 4-6 years over 4-6 years
Estimated cost to Province to establish programme R 10 million / year R 13 million / year
USD 1.2 million USD 1.5 million
to the economy annually.139 Table 6:1 shows that protect basic human requirements
that these are relatively cheap, economically such as food and water, which are elevated
feasible and employment-generating as economic sectors in themselves, was a
benefits considering it would only cost progressive step for a government strategy. This
Gauteng USD 1.65 million (ZAR 13 million) a is particularly so in a region where the economy
year to establish such a programme. is historically based on minerals extraction, and
the upstream and downstream manufacturing
A similar set of robust calculations were and financing related to mining.142 It therefore
done for, inter alia, local food production, held out the promise of a deeper structural
energy efficiency, and waste and transport, transformation of the regional economy. As
providing the first real attempt to understand such, the strategy captured the attention
the concrete costs and benefits of pursuing of provincial government departments and
a green economy agenda in the full sense local municipalities financially reliant on
of the term. the endlessly expanding growth in sales
of resource-consuming services, such as
The primary significance of the Developmental electricity and water.
Green Economy Strategy for Gauteng was
that it proposed to the Gauteng Provincial While the strategy was well received in
Government (GPG) and its partners – whether government, it did not translate into
these be players from industry, civil society immediate implementation as much as
organizations or other arms of government might have been expected. Instead, the
– a way to select, and create a fusion of, an Gauteng Provincial Government asked
interconnected set of green clusters that for more clarity in the form of more policy
might drive investment, innovation and job work and, subsequently, a more detailed
creation.141 The particular focus on industries programme design to implement the
and technologies in non-traditional clusters strategy’s recommendations.
that do more with less resources, and those
39
CLUSTERING FOR COMPETITEVENESS
First, the idea of a “green jobs” strategy was Developmental Green Economy Strategy
taken up in the Gauteng Employment Growth for Gauteng and Gauteng Employment
and Development Strategy (GEGDS), finalized Growth and Development Strategy were
mid-2010. This envisaged an economy then built on through the development, and
shifting to an endogenous growth trajectory formal adoption in mid-2011, of a Green
based primarily on “innovation, green Strategic Programme (GSP) for Gauteng. This
growth and inclusivity”. As the overarching provides programmatic detail to fill out the
economic strategy for the province, the Developmental Green Economy Strategy for
GEGDS states that Gauteng will not provide Gauteng and Gauteng Employment Growth
decent work and economic opportunities for and Development Strategy. It is designed
all unless it creates “a green, environmentally to inform the activities of departments and
friendly economy, which capitalises on the municipalities in Gauteng, so that all parts
enormous economic value to be gained by of government are working on the same
investing in green processes and products, green issues and towards the same green
and which uses existing resources in a objectives.144 The GSP takes forward the
more efficient and sustainable manner, thus DGESG message that there is a need for deep
reducing the carbon footprint of Gauteng. structural transformation of the economy,
Gauteng needs an economy based on green and that this requires investment in non-
technologies, green jobs, green energy and traditional sectors, by proposing concrete
green production processes that reduce interventions in nine sectoral areas. These
the ever higher input costs stemming from are: air quality, climate change, energy,
unsustainable resource use”.143 economic development, food security, land
use, transport, water and sanitation and
Second, the policy foundations laid by the waste.145 The Green Strategic Programme
also integrated earlier calculations around
v Calculated on an estimated USD 0.64 (ZAR 5) per household
saving per day green economy initiatives to provide more
vi These calculations are based on a revision of assumptions sophisticated scenario modelling of local
emanating from previous food security research. See
greening potential and to augment the
original documentation for detailed explanations.
40
Chapter 6: Case Studies
41
CLUSTERING FOR COMPETITEVENESS
42
Chapter 6: Case Studies
The Delhi Metro was expanded to accommodate more people and boost the use of public transport
during the 2010 games © Flikr/Le Rétroviseur
kilometres of new roads.150 The escalated the city as well as the region. In addition,
costs, however, exclude investments made Delhi acquired 193 kilometres of metro lines
by agencies such as the Delhi Metro Rail extending to the satellite cities of Gurgaon
Corporation and the Airports Authority of and Noida, and connecting the airport to
India towards infrastructure upgrades in the city centre. Commentators are quick to
preparation for the Games. point out that these improvements would
have ensued regardless of 2010, but the
A large part of the Games’ expenses were Games served to deliver them over a much
for increasing Delhi’s connectivity: globally, shorter time period. 151,152
through airport upgrade; regionally,
through extended metro lines between The vision for CGW-2010 was that it would
Delhi and peripheral towns; and locally, transform East Delhi, along River Yamuna,
within the city from the site of the Games with improved transport connectivity to
Village and new sporting venues to the the city centre and increased infrastructure
city centre. The construction of Terminal 3, investment; similar to the development
a two-tier building with over 130 check-in of South Delhi in the run up to the 1982
counters, 55 aerobridges, 30 aircraft bays ASIAD Games, which were also hosted
and the capacity to cater to more than by Delhi.153 To contain spending by the
34 million passengers a year, was a high- Indian Government and Government of
value, strategic investment tied in with the the National Capital Territory of Delhi
Games. The expanded and upgraded Indira within the confines of the administrative
Gandhi International Airport services not region of Delhi, several planning and
just Delhi, but the entire National Capital ecological conventions were disregarded.
Region and increases the competitiveness of An example of this was the initiative to
43
CLUSTERING FOR COMPETITEVENESS
beautify the roads, which was not part against the hugely expensive event. These
of Delhi’s existing City Development Plan were about the gross violation of the human
under the GoI’s flagship urban development rights of the displaced poor who lived on
and renewal programme. Street-scaping the site of the Village and in other informal
and beautification work were awarded at settlements, and the indignity suffered by
exorbitant costs and executed in an arbitrary thousands of disempowered construction
manner, with no common design guidelines. workers who were paid below minimum
The Government of the National Capital wages.156,157 Unfortunately, while instances
Territory of Delhi did not get clearance from of greed and corruption, governance
the Delhi Urban Arts Commission for this and management failures, and the lack
largely consultant-driven intervention, nor of accountability received considerable
did it coordinate with the relevant police national and global media attention; the
departments to prepare for the impact of human cost of the Games was largely
the project on Delhi’s considerable traffic.154 unaccounted for.158
Secondly, locating the Games Village on
the bank of the River Yamuna violated Despite the millions spent and the thousands
all ecological principles encapsulated in of people rendered homeless, the project
Delhi’s urban development policies. Games to transform a historic city into a modern
organizers chose this last, undeveloped metropolis is still incomplete. Despite efforts
space in the city for the Village, despite the to rush execution through a single (and
river being environmentally fragile, and that expensive) contractor, less than half of the
permanent construction on it would create bus shelters were constructed in time. The
the potential for a city-scale disaster.155 Games failed to address severe and chronic
gaps in the provision of water, electricity,
Construction of the Games Village also housing or sanitation services to the city
attracted the most serious criticisms levelled residents. An expensive and irregularly
44
Chapter 6: Case Studies
awarded contract for a water treatment sports infrastructure built or renovated for
plant, constructed for the Games Village Commonwealth Games is unlikely to be fully
and surrounding areas, is currently shut used beyond the coveted sporting events.
down. The construction of a new, gas-
based, 1,500 MW power plant, intended Barcelona and Manchester are cities that
to cover the energy-usage spike during the were able to generate positive images on
Games was delayed and not completed in the basis of successful hosting of mega
time.159 Strengthening of the power supply events. However, attempts at transferring
situation in Delhi was also not achieved by such successes to a developing country are
the distribution utility, primarily due to poor riddled with complex challenges, as the
contract management. case of the Delhi Commonwealth Games
demonstrates. The drive to elevate Delhi’s
The most visibly incomplete city development competitiveness through ignominious levels
project initiated through the Games was the of state spending resulted in considerable
renovation and restoration of the central human misery and ecological risk.
business district of Connaught Place.
Built when the capital of British India was 6.5. The Zurich Cleantech
moved to New Delhi in 1942, Connaught Innovation Park: Dübendorf
Place occupies a place of great pride and a contested space
cultural affiliation for Delhi’s citizens, the
majority of whom descend from migrants to The planned decommissioning of Dübendorf
the city during its centuries’ old existence. airbase in Zurich, Switzerland, by 2014160
Connaught Place is a symbol of Delhi’s has resulted in debate, contestation and
ability to adapt and absorb each new culture conceptualization about its future use.
that has descended on it and has branded The idea to transform and develop this
it as part of the city’s heritage. Plagued by 165 ha space into a novel urban hub
undue delays, mismanagement by the New for sustainability and clean technology
Delhi Municipal Corporation and unchecked (cleantech) innovation features prominently
increase in scope, the historic and elegant in ideas on its future.ix The necessary
structures of the business district will be ingredients and capacities for realizing
covered in scaffolding and occupied by this vision are present. These characterize
construction workers for at least three years Zurich as a city and include: a growing
after the hosting of the Games. willingness in the financial sector to invest
in green business and clean technology;161
In conclusion, the overall gains from the a high proportion of knowledge producers;
newly-created infrastructure aimed at universities, institutions and knowledge-
increasing Delhi’s investment potential have industries; highly organized and effective
been thwarted by the sizeable financial public and private institutions and
losses incurred by the state. This is in addition partnerships with a focus on “cleantech”
to the huge embarrassments faced due to and sustainability; some of the world’s most
unprofessional handling of the event. The prominent environmental organizations, for
extension of Delhi Metro and upgrade of the example the World Wildlife Fund (WWF),
airport are of great strategic value, because the International Union for Conservation
India aspires to hosting mega sporting events ix An interview was conducted with Diego Salmeron – the
in the future. However, if the disrepair and lead consultant on the project from LEP Consultants on
under use of the world-class stadia built for 18th November 2011. LEP is one of the main partners of
FFGS for this initiative. The interview was necessary as there
the 1982 ASIAD Games are any indicator, the was little formal information available on the project.
45
CLUSTERING FOR COMPETITEVENESS
of Nature (IUCN) and the Foundation for sustainability enterprises and services for a
Global Sustainability (FFGS) are present and global market. This is in particular because it
influential in this initiative. harbours one of the world’s most advanced
financial systems, with an increasing interest
This case study highlights how the rationale in providing venture capital and incubation
for a cutting-edge and viable concept for for cleantech and sustainability services.164
sustainable urban innovation and cleantech The Swiss Federal Institute of Technology
development is being stalled by divergent (ETH) Zurich supports the initiative. It is one
stakeholder contestation and complex of the top technology focused research
political and administrative processes. The universities in Europe and produces high
success of this high-level project has the quality graduates and skilled workers. The
potential to not only become a beacon for knowledge, research and development
sustainable development and cleantech industry of Zurich is also in a prime position to
innovation but also to kick-start a new engage in the cleantech industry and global
economic frontier in sustainability for markets. This is supported by this statement
Switzerland and enable it to compete in the suggesting that: “The greater Zurich area
global green economy. boasts outstanding pioneering institutions,
where the best brains are at work in basic
The Masdarx sustainable city experience and and applied science, creating a solid and
success in Abu Dhabi prompted leaders in excellent foundation for cleantech.”165
Zurich to consider replicating this on home
soil. The Foundation for Global Sustainability The Foundation for Global Sustainabilityxi
(FFGS), a primary stakeholder and leader initiated the Swiss Sustainability Initiative
of the initiative, said: “The Dübendorf (SSI) and the Swiss Cleantech Association
project will be able to profit directly from who partnered in driving the concept of
the economic and technical know-how developing cleantech innovation hubs and
gained (in Masdar).”163 Zurich is considered clusters in Zurich and other potential regions
to be a prime location for the financing, in Switzerland. After the Swiss Federal
innovation and development of cleantech, Government announced that the Dübendorf
airbase would be decommissioned by
x The Swiss are prominently involved in the design features
of Masdar city and have a section of the development
dedicated to Swiss cleantech production. See http://www.
xi Visit www.ffgs.org; and www.swisscleantech.ch for more
masdarcity.ae/en for further details.
information.
46
Chapter 6: Case Studies
2014,xii the site became a prime location for several reasons: it is hindered by Switzerland’s
the development of the Swiss Sustainability highly regulated and complex administrative
Hub, Zurich. Another group, the Stiftung processes and political procedures; not all of
Forschung Schweiz (SFS), was also interested the stakeholders are in favour of the project;
in the site to develop a Swiss Innovation and there needs to be a democratic process
Park. Recently, these opposing forces that allows for contestation.167
found common ground and joined forces
to officially rename the initiative the “Swiss The project managers realized that there
Cleantech Innovation-Park.”166 Additional would be stakeholder conflict and they
stakeholders, who were either already in a developed a process of stakeholder
partnership or formed a partnership with classification and engagement. Eventually,
the Foundation for Global Sustainability however, the complex political process of
joined the effort to transform this space decision-making about the future use of
towards this renewed goal. Among them the space took precedence, with many
were politicians, entrepreneurs, the Swiss alternatives being suggested, including
Federal Institute of Technology University, building a Formula One racetrack.
the World Wildlife Fund (WWF) and other Complicating matters further was the
non-governmental organizations; local administrative process, which began
government agencies; consulting firms and with drawing up zoning capacities and
others already mentioned. Although the dividing the space between three separate
project enjoys widespread support, its actual communes. The Swiss democratic system
implementation is not certain. This is for requires a unanimous decision for the
zoning to be changed.168 The canton of
xii Since this announcement in 2009, the Federal Government
Zurich holds the executive power and also
and Swiss Air Force have reviewed this decision again.
Federal Government
Administration: Dubendorf
Economic Opportunity
Swiss Federal Government, Canton Zurich Commune
& 3 communes divide the site
Green Economy Wangen-Brustisellen
Commune
Cleantech Sector
Volketswil Commune
INFLUENCES STAKEHOLDERS
NGO’s FFGS & Partners (WWF)
(Swiss cleantech
Societal Needs Association)
Environmental Universities/ETH
Considerations
Consultants (LEP)
47
CLUSTERING FOR COMPETITEVENESS
speaks on behalf of the owner of the site – therefore, represents a critical number of
in this case, the Swiss Federal Government components and factors that may support
and the Swiss Army. The realization of the the cleantech industry as well as sustainable
concept proposed by the Foundation for industry and services.
Global Sustainability as a cleantech hub will
require careful stakeholder management The project is unique because of the intention
and lobbying of the various communes and to construct one of the first innovation hubs
governmental agencies. Figure 6.3 depicts in the world to focus on sustainability and
the complex stakeholder involvement, and use the cleantech industry as the primary
administrative and political processes that mandate. The institutional design of the
have stalled the project. site itself will be attractive to a wide range
of stakeholders from an international level
In the context that the country is trying to a local level. This includes international
to diversify its economy and become one universities and large cleantech industries,
of the global leaders in cleantech, the some of which have already made a
potential for the project and its implications decision to base themselves in Zurich,xiii in
for Switzerland are substantial. Growing anticipation of a fast developing location
interest in the global green economy for sustainable industries. The site is also
initiative has given cleantech a substantial designed to integrate the local contexts
boost. With the global financial recession, of business with a link to the city centre,
Zurich’s financial hub is seeking new as well as the natural surroundings in a
financial and investment landscapes, and
greater interest in cleantech opportunities xiii Suntech, one of the world’s largest solar producers has
recently located its EU headquarters to Zurich for this reason
have emerged. The Dübendorf case study, (Insight 2010).
48
Chapter 6: Case Studies
49
CLUSTERING FOR COMPETITEVENESS
hot water heater collectors were installed; electricity still comes from coal-fired power
an increase in capacity of 31 per cent to a stations and it remains to be seen whether
total of 135 m2. China is now the world’s its investments in solar technologies will be
largest PV producer, and can produce over sufficient to move the city towards a more
40 million m2 of solar water heating panels sustainable energy mix as its economy
per year.174 China accounts for 70 to 80 grows.178
per cent of the global solar water heating
market,175 and its market for solar water The Solar Valley is a mixed-use development,
heaters was estimated to be worth USD 5 incorporating apartments and parks, industry,
billion (CNY 32,000 million) in 2007. educational facilities (including a solar
university), tourist attractions, and a sports
Recent policy decisions in China outline and entertainment complex within the 330
ambitious plans to dramatically increase hectare site. The Valley incorporates a wide
solar targets to 10 GW of installed range of solar technologies, such as water
solar capacity by 2015 (including 9 GW heating, desalination and air conditioning,
of solar photovoltaic installations and that brings together manufacturing,
1 GW from solar thermal electric power research and development, education and
generation), and 50 GW total installed tourism around solar energy technologies
capacity by 2020. Given that the existing in a showcase of cutting-edge solar
installed solar capacity is around 700 MW, innovation and economic revitalization.179
this represents a capacity expansion of over As noted by Greg Bruce, Executive Manager
1,000 per cent in just four years.176 of Integrated Sustainability Services at
Townsville City Council, Australia: “The
Dezhou’s solar thermal industry and scale and boldness of the development of
associated businesses employ almost a the Solar Valley is simply remarkable. Having
third of the local workforce (approximately visited the Dezhou Solar Valley in 2008 and
800,000 people), and over 90 per cent of 2010, I am simply staggered at the vision
households use a solar water heater.177 and action that is occurring here.”180
However, even in Dezhou, the bulk of
50
Chapter 6: Case Studies
Solar energy has become an integral part of introduced in eight key energy-consuming
Dezhou’s infrastructure and economy. Solar companies (including iron and steel plants,
water heaters are installed in 95 per cent of coal-based power plants, paper-making
new urban communities in Dezhou, and 50 factories, chemical factories, mechanical
per cent of surrounding towns,182 The city plants and coal mines) as part of an initial
uses solar energy for applications ranging pilot, with plans to expand this to other
from street lighting to powering buildings energy-consuming industries, as well as
and tourist buses. In 2010, over USD 10 the transport, construction and public
million was spent installing nearly 100,000 sectors.184 As a result of the initial pilot
solar lights along Dezhou’s roads.183 There EnMS programme in Dezhou, 63,000 tons
are approximately 40 energy efficient of coal and the equivalent of 160,000 tons
buildings in Dezhou, including hotels and of CO2 emissions have been saved.185
museums, showcasing solar and energy
efficiency technologies such as solar heated The story of the Solar Valley is heavily
toilet seats, solar heated pools and even a intertwined with that of the world’s leading
solar-powered Tibetan prayer wheel. Energy manufacturer of solar thermal tanks, Himin.
management systems (EnMS)xiv have been The company has been highly successful
in developing and manufacturing cost
xiv An EnMS adopts a similar framework to the International
Standards Organization’s groups of standards on quality effective solar thermal products and has
management (ISO 9001) and environmental management been instrumental in transitioning Dezhou’s
(ISO 14001), in which an iterative process of continual economy from agriculture to research,
improvement is undertaken to reduce the energy intensity
of the organization. The EnMS requires the organization manufacturing and education. Building on
to develop an energy efficiency policy, to identify all this success, the Chinese Government is
energy-consuming activities within the organization, to investing funds and providing policy support
highlight which of these have the greatest impact on the
organization’s energy consumption, and to develop policies to develop the Solar Valley as a major
and procedures to reduce the energy consumption of these manufacturer of solar technologies, and to
activities. Over time, the organization iteratively measures
further stimulate the economy and catalyze
their progress and reviews these policies and procedures,
and addresses an increasing number of their activities. more sustainable development paths.
51
CLUSTERING FOR COMPETITEVENESS
Himin’s Solar Valley headquarters is (2011),192 and pilot carbon trading schemes
currently the largest solar powered office for the cities of Beijing, Tianjin, Shanghai,
building in the world.187 Himin is vertically Chongqing and Shenzhen, and the provinces
integrating components of solar technology of Hubei and Guangdong (announced in
production, from research and development, 2012).193 China’s significant investment in
to manufacturing, demonstration and science and technology over the last 20 years
promotion, and is building capacity in has created the capacity and knowledge
Dezhou for future innovation and technology base that has enabled it to become a global
development. Himin has invested over USD leader in renewable energy innovation and
161 million to construct two demonstration manufacture. It now dominates the global
projects in the Solar Valley, the “International market, harnessing its citizens’ skills in low-
Environmentally-friendly Energy Conservation cost, efficient manufacture to produce highly
Demonstration Zone” and the “Chinese Solar competitive products.
Energy Demonstration Town’. Himin has also
established a university campus and training Although the Solar Valley is still under
centres for professional engineers, academic construction and there appears to have
engineers and business managers in the solar been no formal evaluation of the project,
thermal industry.188 there are a number of key lessons that
can be learned from the case study. This
Himin’s founder, Huang Ming, is a strong development, along with others throughout
advocate for the role of business in China, is the result of the government’s
promoting sustainable, affordable solutions, recognition of energy as a strategic sector
enhanced by government regulation when for economic development. The host of
necessary,189 and has been instrumental policies and incentives aimed at increasing
in providing the momentum for the solar energy efficiency and conservation, coupled
industry in Dezhou and China, and in with support for the renewable energy
developing the vision for the Solar Valley. sector, is indicative of the scale and breadth
His broader vision is for many similar of political support needed to foster
developments throughout China and the the growth of sustainable technologies.
rest of the world, enabling the transition to Furthermore, the growth of this industry and
a solar powered sustainable future.190 strong financial position of Chinese solar
technology companies at a time when many
The success of Himin and the development of countries are struggling to recover from
the Solar Valley is a reflection of the relatively financial crises shows how renewable energy
unique level of cooperation between technologies can support local economic
government and industry in China. The development and a green economy.
government has recently provided a range of Huang Ming advocates strongly for the
policies and incentives that have stimulated role of industry in catalysing a sustainable
the development of the renewable energy revolution, and his drive, vision and strategic
industry. Some of these are the Renewable investments have been fundamental to the
Energy Law (2006), National Action Plan on development of China’s world-leading solar
Climate Change (2007),191 the Twelfth Five- thermal industry. He frequently attests that
year Plan, incorporating the Twelfth Five- his company received minimal government
year Plan on Greenhouse Emission Controlxv support in its early days, and that this has
been a key factor of Himin’s success.194 With
xv The Twelfth Five-year Plan on Greenhouse Emission Control its focus on developing cost-effective solar
aims to reduce CO2 emissions per unit of GDP by 17 per
products that meet market needs, Himin
cent by 2015 from 2010 levels.
52
Chapter 6: Case Studies
was able to grow without government centre for political and economic activity,
assistance. Huang Ming sees the commercial the Randstad is a classic example of a
viability of solar technologies as being key polycentric urban region.196,197
to the business’s success, and warns against
too much government support for solar In the last few hundred years, the
industries.195 development of the region has been
characterized by highly fragmented political
While the development of the Dezhou and administrative organization.198 More
Solar Valley appears to be rapid by western recently however, the Randstad has benefited
standards, it must be remembered that it from a more coordinated approach towards
followed two decades of capacity building urban and regional planning, and the Green
by government and industry. Both invested Heart has been a central focus area for
heavily in research and development in planning policies since the 1950s.199,200
energy systems and have since capitalized
on China’s competitive advantage in cheap The key rationale for polycentric urban
and efficient manufacturing. Due to China’s development is that in regional development,
unique political and economic situation, these one city could not provide a complete range
circumstances may not be fully replicable of economic functions, urban facilities or
elsewhere, but this case indicates the scale at residential and business environments. This
which change can take place given the right could be better achieved through strategic
mix of vision, determination and resources. design and the coordination of development
of specialized facilities within a region,
6.7. Randstad: A polycentric
urban region Figure 6.4: Map of the Randstad region.
53
CLUSTERING FOR COMPETITEVENESS
54
Chapter 6: Case Studies
platforms have been created to address See the following paper for an empirical
issues such as transport, traffic, regional analysis and evidence of synergy in the
spatial development, housing, employment, Randstad:
economic affairs and youth welfare.205 Meijers, E. (2005). Polycentric Urban Regions
and the Quest for Synergy: Is a network of
An example of networks where formal cities more than the sum of the parts? in
cooperation has been established between Urban Studies, 42 (4), pp. 765-781.
the four provinces, regional authorities and
major cities is the “Bureau RegioRandstad” The current trend in academic literature is that
(Randstad Agency). The key objectives of this the network metaphor is increasingly being
agency are to develop the Randstad as a high used to describe inter-urban relationships.
quality urban and rural environment and to Analysis of the synergy concept and
improve the international competitiveness transferring it to spatial phenomena such
of the region.206 as the polycentric urban region shows that
the interactions and nature of relationships
An informal cooperation platform has between cities determine whether synergies
emerged in conjunction with the formal can be created on a regional level.211
cooperation network of the Randstad
Agency, which is called the Delta Metropolis This case study shows that through the
Association. Initially founded by a number of creation of synergies in a region, a polycentric
municipalities and chambers of commerce, urban region, could indeed be more than the
the Delta Metropolis Association is an open sum of its parts through complementarity
network that now includes members such and cooperation. In summary the case study
as housing corporations, organizations of showed that:212
the agriculture and horticulture branches,
an employer’s organization, the transport • The first mechanism through which
sector, environmental organizations and synergy can be achieved (namely
water boards. This cooperation platform’s cooperation) is becoming increasingly
main function is to provide members with prevalent in the Randstad region.
a platform to discuss and lobby for the Through both formal and informal
interests of the Randstad region.207 networks a regional organizing capacity
has been established;
The cooperation networks discussed mainly
developed from a bottom-up process where • The second mechanism through which
actors within the region initiated these synergy could be created (namely
platforms; that is, it was not implemented complementarity) reveals that the key
by a higher level of government. The cities each perform distinct roles within
networks in the region provide Randstad the region, specializing in commercial
with a solid regional organizing capacity. services, manufacturing and transport,
Recognition of the “region” as a suitable public administration, or trade and
scale for competitiveness, and evidence education.
of the beneficial synergies that arise
from a coordinated approach, have led Considering the trend of diminishing
to the re-examination of intra-regional economic complementarity between the
interdependencies, which in turn has resulted four main cities in Randstad, the question
in higher levels of cooperation.208,209,210. arises whether the mechanisms of reduced
complementarity and increased coordination
55
CLUSTERING FOR COMPETITEVENESS
56
Chapter 6: Case Studies
the 1980s the situation had greatly improved, Figure 6.5: Kitakyushu City overcoming
and Kitakyushu’s air and water achieved the heavy pollution
required national environment standards. The
city’s success in improving its environment
was highly regarded both domestically
and internationally, and it recognized with
awards such as the Global 500 Award from
UNEP in 1990, and the United Nations Local
Government Honours at the 1992 Earth
Summit in Rio de Janeiro, Brazil.
57
CLUSTERING FOR COMPETITEVENESS
only the environment department, but also the city provides business sites for long-term
the economic department. The 1990s saw leasing to enable small and medium-sized
the enactment of basic legal frameworks enterprises to venture into environment-
for recycling and resource management related industries.
in Japan, including the Recycling Law
(1991), Container and Packaging Recycling Kitakyushu Eco-Town is characterized by
Law (1995), and the Electric Household strong collaboration between government,
Appliance Recycling Law (1998). Together, industry and academia. Situated close to
they obliged industries, governments and the Eco-Town is the Kitakyushu Science
consumers to reduce material usage, thus and Research Park, where universities and
creating a market for recycling technologies. research institutions themed around the
Companies like Nippon Steel were also environment and information generate
looking for new business areas as global new research and build human resources.
competition pressured heavy industries Universities in the Kitakyushu Science and
to promote rationalization and efficiency. Research Park received support from the
Environmentally-friendly industries were Ministry of Education, Science, Sports and
identified as a key area of opportunity, Culture’s subsidy for pioneering academic
and stakeholders from industry, research institutions.
institutions and government joined forces
to create the Kitakyushu Environmental Kitakyushu’s answer to waste management
Industry Promotion Council. was to create a system whereby energy
and materials are flexibly shared by
When the Ministry of International Trade individual enterprises in different industry
and Industry (MITI) and the Ministry of sectors. Taking advantage of the fact that
Welfare set out their Eco-Town Initiative the Eco-Town is a gathering of different
aims of for zero emitting societies through recycling and reuse factories, residue from
the strengthening of recycling industries in one factory is, in turn, used as material
1997. Kitakyushu was ready to put its ideas at a different factory. Unusable industrial
into action. Initially, many companies took wastes discarded from enterprises within
advantage of MITI’s Eco-Town grant, which the Eco-Town (mainly residual substances
was provided for setting up systems (e.g. from recycling and automobile shredder
research to inform planning, engagement dust) are sent to the complex core facility,
with citizens etc.) and constructing where they are processed by melting. In
infrastructure for new companies. this treatment process, molten material is
recycled as slag and metals and the power
There are two main zones within generated during the process is supplied to
Kitakyushu’s Eco-Town. The first is the enterprises in the Eco-Town area. With this
Practical Research Area where industry / process, Kitakyushu is able to raise material
academia / local government institutions productivity, recycling and reuse rates, and
conduct research and development in waste in turn lower final waste volumes.
treatment and recycling technologies. The
second is the Comprehensive Environmental Kitakyushu City’s strategy of comprehensive
Industrial Complex, where newly developed development and support resulted in many
technologies are brought to market. Inside innovations in the recycling industry. For
the Comprehensive Environmental Industrial example, Kitakyushu was the first city in
Complex is the Hibiki Recycling Area, where Japan to start the reuse of florescent tubes,
58
Chapter 6: Case Studies
59
CLUSTERING FOR COMPETITEVENESS
The development of the city of Uberlândia, Brazil is strongly tied to its geographical position.
Located at a crossing point for roads connecting Brazil’s main coastal cities with the interior,
Uberlandia is considered the local capital of logistics © UN-Habitat/Alessandro Scotti
7
Conclusion Endnotes
This quick guide provided insight into the • Polycentric urban development principles
approach, mechanisms and governance should be adopted on a regional scale.
framework to achieve green economic Synergies between centres could be
development. The guide mainly grapples with created through cooperation and
the perceived trade-off between economic complementarity;
development and environmental protection.
This is a key issue addressed in the guide and • The mechanism of clusters is suggested
it explores pathways of how both of these because this will provide a framework for
goals may be achieved in union. focused support for innovative activities
and create a competitive advantage.
Approach: The quick guide suggests the These clusters need to be stimulated
analytical framework and approach to be to exhibit self-exploration activities for
adopted for designing initiatives to develop green economic development;
and find new areas of competitive advantage:
• The strengthening of knowledge
• The systems and network view should be infrastructure and linkages between
adopted as a guide to design strategies helixes to support growth in clusters
and support structures; for economic development is suggested
as a key mechanism for supporting
• Demand-side and supply-side innovation in these clusters.
considerations are important and
should be considered in the design of Governance framework: Governance
mechanisms and support structures. of these measures is important because
this addresses the framework from which
Mechanisms: A number of mechanisms government will stimulate and coordinate
through which competitive advantage may such activities. The following key principles
be achieved were discussed. In summary are suggested for a governance framework
these include the following: to optimise benefits from the above
mentioned mechanisms:
61
CLUSTERING FOR COMPETITEVENESS
62
Endnotes
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