 |
Advantage West Midlands (AWM), the regional development agency, uses the description "cluster" rather than "sector" in recognition that businesses are not just grouped around a common economic activity but also use and share local resources with other types of businesses. This means a more inclusive approach in identifying the types of issues which can confront the ICT cluster. |
In addition, there are a number of businesses important to the cluster's economic well being which would not otherwise be considered through a sectoral approach to economic regeneration. The contribution of others such as a lawyer specialising in ICT Intellectual Property Rights, may also be considered important to the prosperity of the ICT cluster.
There is also a cultural difference between the two definitions. A sector may be perceived as a group of competing businesses whilst a cluster can be perceived as individually competing businesses that are also willing to collaborate with each other for mutual benefit. In a global market, competition is more likely to come from an overseas competitor than the company around the corner.
Through collaboration, businesses and the public sector can create a more dynamic local economy by ensuring key building blocks are in place. Access to a skilled workforce, quality universities, good locations and investment capital is just one example of how this can be achieved. Individual companies contribute to the clustering effect by their relationship with suppliers and customers and by using their skills in networking and building alliances with other companies.
AWM has grasped this concept as part of its economic strategy and has identfied ten target sectors for clustering development. One of these target sectors being the West Midlands ICT industry.
In order to facilitate this they have invested resources to fund projects which will meet the needs of industry in encouraging development of clustering activity.
Each cluster has developed a strategic plan to help identify the actions which project proposals can bid against to access funding in order to deliver the programmes required to achieve the cluster concepts.
