I came across this article while doing an Internet trawl for information on employment and regeneration ideas. It struck as being rather like arguments I have been advancing for some time now and that is the need to break down the Stoke on Trent economy into smaller areas. I suggested it in the context of green energy creation and conservation. This approach seems an interesting one. It almost suggests de federalisation (if there is such a word. I think getting different parts of the conurbation to work in clusters especially around the notion of “”co-operation”

A North Staffs Cluster might include Ceramics, Manufacturing, The Creative and New Technologies Sector, the Green economy and transport and communication.

I am pushing this idea because of recent events seem to me to suggest independence from the people in suits who come fleetingly to this area pocket great amounts of cash and then move on to other parts of the country, but the area does not change.

It’s an interesting read in my opinion

I am particularly interested in the development of specialisms from older industries

“The depth of the crisis meant there was agreement amongst local groups regarding the problems they faced and the need for a unified response. Since the region had a tradition of involving universities and other experts in industry it seemed logical to turn to economists and others from the university system to help develop strategies for recovery.

Based on their advice, the Styrian Provincial Government set up the Styrian Business Promotion Agency (Steierische Wirtschaftsförderung, or SFG) in 1991. This independent, semi-public regional development agency was tasked with promoting economic development and regeneration. As well as offering financial support to business, providing consultancy services and facilitating links between businesses and decision-makers, the SFG also introduced the concept of “clusters”.

Under the cluster system, local businesses work together for their common good, developing networks, transferring technology and information, forming special interest groups and initiating co-operative projects. Each cluster is set up, as a limited company 100% owned by SFG. This percentage is gradually reduced and private sector ownership increased as the cluster prospers. Membership is open to a wide range of organisations, and their joining fees help finance the cluster.

The Automotive Cluster (known as AC Styria) was the first example of this approach. Its members included the SFG itself, private sector companies and other organisations such as local universities. Since then six other clusters have been created covering Timber, Human Technology, Materials, Eco-cluster, Tech for Taste (focussing on food technology) and the Creative Industries.

Since the mid 1990s Styria has undergone a remarkable recovery, with the restructuring of traditional sectors and the development of a new, higher technology industrial base. The cluster approach is widely credited as driving this change by local businesses and politicians.

Styria is still a major steel producer, but instead of making low grade, general purpose steel it now makes specialist steels that meet the needs of the automotive and other industries. The wood and paper industries have also been modernised, and the region has become a leader in the production of papermaking machinery.

The automotive cluster, which helped kick start the change, has built on its old skills (specifically the production of four-wheel-drive vehicles), and now manufactures vehicles for prestige companies like Mercedes, BMW, Chrysler and Aston Martin. As a result employment is up, from 495,000 in 1995 to 539,800 in 2005, while the whole area is now rated as Europe’s 41st most innovative region.

Explaining the situation helps inspire action. In Styria, spelling out the sheer scale of the problem, combined with the region’s small size and strong identity, made it relatively easy to get agreement for drastic action amongst local interest groups.

Trust is the basis for all collective action. Styria’s remarkable transformation depended on a joint effort by a wide range of players. This in turn depended on one key factor – trust. Because the interested parties knew they working for their common good, the usual infighting and suspicions didn’t arise.

Make sure everyone involved understand that policy and spending decisions are in their interest. This becomes far easier if the action programme is realistic and builds on existing capabilities. It also needs to be based on a properly researched, coherent strategy that doesn’t threaten or serve the interests of any one organisation.

Choose effective local leaders with a stake in the result. Such individuals must combine technical experience, the ability to leverage private and public sector expertise, a strong commitment to the successful transformation of “Ëœtheir patch’ and the ability to combine informal networks with more formal structures.
Where a large company goes, smaller companies follow. The involvement of larger companies brought status and resources to the clusters and encouraged smaller businesses to get on board.

Since the mid 1990s Styria has undergone a remarkable recovery, with the restructuring of traditional sectors and the development of a new, higher technology industrial base. The cluster approach is widely credited as driving this change by local businesses and politicians.

Styria is still a major steel producer, but instead of making low grade, general purpose steel it now makes specialist steels that meet the needs of the automotive and other industries. The wood and paper industries have also been modernised, and the region has become a leader in the production of papermaking machinery.

The automotive cluster, which helped kick start the change, has built on its old skills (specifically the production of four-wheel-drive vehicles), and now manufactures vehicles for prestige companies like Mercedes, BMW, Chrysler and Aston Martin. As a result employment is up, from 495,000 in 1995 to 539,800 in 2005, while the whole area is now rated as Europe’s 41st most innovative region.